HHS awards $28.4M for toxicology program archives, with Experimental Pathology Laboratories Inc. managing data storage

Contract Overview

Contract Amount: $28,371,382 ($28.4M)

Contractor: Experimental Pathology Laboratories, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2018-09-25

End Date: 2023-09-28

Contract Duration: 1,829 days

Daily Burn Rate: $15.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: MANAGEMENT AND SUPPORT OF AN ARCHIVES AND REPOSITORY CONTRACT (AARC) FOR THE NATIONAL TOXICOLOGY PROGRAM (NTP) AND THE NATIONAL INSTITUTE OF ENVIRONMENTAL HEALTH SCIENCES (NIEHS)

Place of Performance

Location: MORRISVILLE, WAKE County, NORTH CAROLINA, 27560

State: North Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $28.4 million to EXPERIMENTAL PATHOLOGY LABORATORIES, INC. for work described as: MANAGEMENT AND SUPPORT OF AN ARCHIVES AND REPOSITORY CONTRACT (AARC) FOR THE NATIONAL TOXICOLOGY PROGRAM (NTP) AND THE NATIONAL INSTITUTE OF ENVIRONMENTAL HEALTH SCIENCES (NIEHS) Key points: 1. Contract value represents a significant investment in long-term data preservation for critical health research. 2. The use of a Cost Plus Fixed Fee (CPFF) contract type suggests potential for cost overruns if not closely managed. 3. The duration of the contract (over 5 years) indicates a need for stable, ongoing support for the archives. 4. The specific National Archives and Records Administration (NARA) code suggests a focus on managing sensitive and historical data. 5. The contract's performance period aligns with the ongoing research needs of the National Toxicology Program (NTP) and NIEHS. 6. The award to a single entity highlights the specialized nature of managing such a comprehensive archive.

Value Assessment

Rating: fair

The contract's total value of $28.4 million over approximately five years for managing archives and repositories for the National Toxicology Program (NTP) and the National Institute of Environmental Health Sciences (NIEHS) appears reasonable given the specialized nature of the services. However, the Cost Plus Fixed Fee (CPFF) contract type warrants careful monitoring for cost efficiency. Benchmarking against similar archival and data management contracts within federal health agencies would provide a clearer picture of value for money, but such data is not readily available in the provided snippet. The absence of a specific Product or Service Code (PSC) makes direct comparison difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The number of bidders is not specified, but full and open competition generally fosters a competitive environment that can lead to better pricing and service offerings. This approach suggests the government sought the best possible solution through a broad solicitation process.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining services at competitive prices and encourages innovation among potential contractors.

Public Impact

Researchers and scientists within the NTP and NIEHS benefit from secure and accessible storage of critical toxicology data. The public benefits from the long-term preservation of data that supports environmental health research and policy development. The contract ensures the integrity and availability of historical and ongoing research data, crucial for understanding health risks. The workforce involved in managing and maintaining the archives gains employment and develops specialized skills in data management and preservation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed diligently.
Lack of specific performance metrics or outcome-based measures in the provided data makes assessing effectiveness challenging.
The specialized nature of the service could limit the pool of qualified contractors for future procurements.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
Long contract duration indicates a stable and reliable service provider is needed and likely secured.
Focus on archives and repositories implies a commitment to long-term data integrity and accessibility for critical research.

Sector Analysis

This contract falls within the broader sector of government services, specifically focusing on archival, data management, and repository services for scientific research. The market for such specialized services is driven by the need for secure, long-term storage and accessibility of sensitive data, particularly within health and environmental agencies. Comparable spending benchmarks would likely be found in contracts supporting other federal research institutions or agencies with significant data archival requirements, such as the National Archives and Records Administration (NARA) or other National Institutes of Health (NIH) institutes.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (sb: false). There is no information on subcontracting plans. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless the prime contractor voluntarily engages small businesses for specialized support services not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the National Institutes of Health (NIH). The Cost Plus Fixed Fee (CPFF) structure necessitates close financial oversight to ensure costs remain reasonable and within the fixed fee parameters. Transparency is generally maintained through contract databases and reporting requirements, though specific details of ongoing oversight activities are not publicly detailed.

Related Government Programs

National Toxicology Program (NTP) Operations
National Institute of Environmental Health Sciences (NIEHS) Research Support
Federal Archives and Records Management
Scientific Data Repository Services
Health Research Data Management

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
Lack of detailed performance metrics makes objective assessment of value difficult.
Specialized nature of service may limit future competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $28.4 million to EXPERIMENTAL PATHOLOGY LABORATORIES, INC.. MANAGEMENT AND SUPPORT OF AN ARCHIVES AND REPOSITORY CONTRACT (AARC) FOR THE NATIONAL TOXICOLOGY PROGRAM (NTP) AND THE NATIONAL INSTITUTE OF ENVIRONMENTAL HEALTH SCIENCES (NIEHS)

Who is the contractor on this award?

The obligated recipient is EXPERIMENTAL PATHOLOGY LABORATORIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $28.4 million.

What is the period of performance?

Start: 2018-09-25. End: 2023-09-28.

What is the historical spending pattern for this specific contract or similar archival services at NIEHS/NTP?

The provided data details a single award of $28,371,382.29 for the period of September 25, 2018, to September 28, 2023. This represents the total obligated amount for the contract's duration. To understand the historical spending pattern, one would need to examine prior contracts for similar services at NIEHS/NTP, or analyze the annual expenditure breakdown of this specific contract if available. Without access to historical contract databases or detailed financial reports for this specific award, a comprehensive historical spending pattern cannot be established from the given information. However, the duration and value suggest a consistent need for these services over the contract period.

How does the cost of this contract compare to industry benchmarks for archival and repository management services?

Directly comparing the cost of this $28.4 million contract to industry benchmarks for archival and repository management is challenging without more specific details on the scope of services, the volume and type of data managed, and the security requirements. Contracts for managing scientific archives, especially those involving sensitive health data, often command higher prices due to specialized expertise, infrastructure, and compliance needs (e.g., HIPAA, data integrity standards). The Cost Plus Fixed Fee (CPFF) nature also means the final cost can vary. A thorough benchmark would require analyzing similar-sized contracts within the federal government or large-scale private sector data management agreements, considering factors like data volume, retrieval rates, and preservation standards.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance in managing the archives and repository?

The provided data does not explicitly list the Key Performance Indicators (KPIs) used to evaluate Experimental Pathology Laboratories, Inc.'s performance. However, for a contract managing archives and repositories for the National Toxicology Program (NTP) and National Institute of Environmental Health Sciences (NIEHS), typical KPIs would likely include data integrity (e.g., error rates in storage and retrieval), data accessibility (e.g., uptime, retrieval time), security compliance (e.g., adherence to data protection regulations), completeness of archival records, and timeliness of data updates or ingestions. The effectiveness of the CPFF contract also relies on the government's ability to monitor and manage costs against the established fixed fee and allowable costs.

What is the potential risk associated with the Cost Plus Fixed Fee (CPFF) contract type for this service?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract type for managing archives and repositories is the potential for cost overruns. While the 'fixed fee' provides the contractor with a stable profit margin, the 'cost plus' element means the government reimburses the contractor for allowable costs incurred. If costs escalate beyond initial projections due to unforeseen circumstances, inefficiencies, or scope creep, the total contract value could increase significantly. This necessitates robust government oversight to scrutinize incurred costs, ensure they are reasonable and allocable to the contract, and prevent unnecessary expenditures. Effective management is crucial to realizing the value intended by the contract.

What is the significance of the National Archives and Records Administration (NARA) code '493120' in the context of this contract?

The NARA code '493120' signifies 'Refrigerated Warehousing and Storage'. In the context of this contract for the National Toxicology Program (NTP) and National Institute of Environmental Health Sciences (NIEHS), this code suggests that a significant component of the service involves the storage of materials requiring controlled, refrigerated environments. This could include biological samples, chemical compounds, or other research materials that degrade at ambient temperatures. Proper refrigerated warehousing is critical for maintaining the integrity and usability of such research assets, ensuring the validity of scientific findings derived from them.

Industry Classification

NAICS: Transportation and Warehousing › Warehousing and Storage › Refrigerated Warehousing and Storage

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: NIHES201800007

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 45600 TERMINAL DR, STERLING, VA, 20166

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,371,382

Exercised Options: $28,371,382

Current Obligation: $28,371,382

Actual Outlays: $12,990,456

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline