NIH awards $56.3M contract for R&D in physical, engineering, and life sciences

Contract Overview

Contract Amount: $56,268,913 ($56.3M)

Contractor: Social & Scientific Systems, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2018-08-22

End Date: 2026-08-22

Contract Duration: 2,922 days

Daily Burn Rate: $19.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: THE SISTER STUDY: TASK ORDER 001 - CORE ACTIVITIES

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27701

State: North Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $56.3 million to SOCIAL & SCIENTIFIC SYSTEMS, INC. for work described as: THE SISTER STUDY: TASK ORDER 001 - CORE ACTIVITIES Key points: 1. Contract focuses on research and development, aligning with NIH's mission. 2. The contract duration is substantial, spanning nearly 8 years. 3. Awarded under full and open competition, suggesting a competitive process. 4. The North Carolina location may have implications for regional economic impact. 5. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful cost monitoring. 6. The specific NAICS code indicates a focus on scientific research services.

Value Assessment

Rating: good

Benchmarking the value of this contract requires comparison to similar R&D contracts within the life sciences sector. Given the duration and scope, the $56.3 million figure appears reasonable, though a detailed cost breakdown would be necessary for a definitive assessment. The Cost Plus Fixed Fee structure necessitates robust oversight to ensure costs remain aligned with the fixed fee component and project objectives. Without specific comparable contract data, it's difficult to definitively state if this represents excellent value, but it falls within expected ranges for large-scale R&D efforts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was open, specific sources may have been excluded prior to the full and open solicitation. This suggests a competitive process was intended, but the exclusion of certain sources warrants further investigation into the rationale. The number of bidders is not specified, which limits the ability to fully assess the intensity of the competition and its impact on price discovery.

Taxpayer Impact: A competitive award process, even with exclusions, generally benefits taxpayers by encouraging multiple firms to offer their best pricing and technical solutions. However, the specific nature of the exclusion could potentially limit the breadth of competition and thus the ultimate cost savings.

Public Impact

The primary beneficiaries are likely researchers and institutions within the physical, engineering, and life sciences fields, advancing scientific knowledge. The contract supports critical research and development activities, potentially leading to breakthroughs in health and technology. The geographic impact is centered in North Carolina, potentially stimulating local economic activity and job creation in the research sector. Workforce implications include the potential for highly skilled jobs in scientific research, engineering, and technical support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Exclusion of Sources' clause in the full and open competition requires clarification to ensure no undue restrictions on competition occurred.
Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed with stringent oversight.
The long duration of the contract (nearly 8 years) necessitates sustained performance monitoring and adaptability to evolving research needs.

Positive Signals

Awarded through a full and open competition process, indicating a broad search for qualified contractors.
The contract supports critical research and development, aligning with national scientific priorities.
The fixed fee component provides a degree of cost certainty for the government once the fee is established.

Sector Analysis

This contract falls within the Research and Development sector, specifically NAICS code 541715, which covers Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology). This is a significant sector for federal investment, with agencies like NIH dedicating substantial resources to advancing scientific understanding and developing new technologies. Comparable spending benchmarks would involve looking at other large-scale R&D contracts awarded by NIH and other science-focused agencies, considering the specific scientific disciplines involved.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly provided in the data. Without this information, it is difficult to assess the impact on the small business ecosystem. Typically, large R&D contracts may include provisions for small business participation, either through direct set-asides or subcontracting goals, to foster innovation and economic opportunity.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services, specifically the National Institutes of Health. Accountability measures would be embedded in the contract's performance work statement, requiring adherence to research protocols, reporting requirements, and delivery schedules. Transparency is generally facilitated through contract award databases, though detailed project specifics may be proprietary. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

National Institutes of Health Research Grants
Department of Defense Research and Development Contracts
National Science Foundation Research Awards
Biomedical Research Initiatives

Risk Flags

Potential for limited competition due to source exclusion.
Cost control risks inherent in Cost Plus Fixed Fee contracts.
Need for sustained oversight due to long contract duration.
Risk of research priorities shifting over the contract term.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $56.3 million to SOCIAL & SCIENTIFIC SYSTEMS, INC.. THE SISTER STUDY: TASK ORDER 001 - CORE ACTIVITIES

Who is the contractor on this award?

The obligated recipient is SOCIAL & SCIENTIFIC SYSTEMS, 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 $56.3 million.

What is the period of performance?

Start: 2018-08-22. End: 2026-08-22.

What is the specific nature of the research and development activities funded by this contract?

The contract, under NAICS code 541715, focuses on 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology).' While the data does not provide granular details on the specific projects, it implies work in areas such as fundamental scientific inquiry, applied research, and experimental development across various scientific disciplines. This could encompass a wide range of activities, from basic biological research to engineering solutions for health-related challenges. The National Institutes of Health (NIH) typically funds research aimed at improving human health, so the R&D is likely aligned with that mission, potentially including areas like disease mechanisms, therapeutic development, medical device innovation, or public health interventions.

How does the Cost Plus Fixed Fee (CPFF) contract type influence cost control and contractor incentives?

The Cost Plus Fixed Fee (CPFF) contract type is common for research and development where the scope of work can be uncertain or evolve. Under CPFF, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure incentivizes the contractor to control costs, as the fee remains constant regardless of the final cost. However, it also places a significant burden on the government to meticulously monitor and audit costs to ensure they are reasonable and allocable to the contract. The fixed fee provides a level of cost certainty for the government regarding profit, but the total contract cost can still fluctuate based on actual expenses. Effective oversight is crucial to prevent cost overruns and ensure value for taxpayer money.

What are the potential implications of the 'Exclusion of Sources' in the competition process?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while the competition was intended to be open, certain potential sources were excluded from consideration prior to the solicitation. The rationale for such exclusions must be clearly documented and justified, often based on factors like specialized capabilities, existing infrastructure, or prior performance. If the exclusions were not well-justified or were overly broad, it could limit the pool of potential offerors, potentially reducing competition and leading to less favorable pricing or innovation. Taxpayers benefit most from broad competition, so understanding the basis for these exclusions is important for assessing the overall effectiveness of the procurement strategy.

What is the historical spending pattern for similar R&D contracts at NIH?

Historical spending patterns for similar R&D contracts at NIH are generally substantial, reflecting the agency's significant investment in scientific advancement. NIH consistently ranks among the top federal agencies for R&D obligations. Large, multi-year contracts for research services are common, often awarded through competitive processes. The value of individual contracts can range widely depending on the scope, duration, and scientific area. While this specific $56.3 million contract is significant, it is not unusual within the context of NIH's overall R&D portfolio. Analyzing past awards for similar NAICS codes and contract types can provide benchmarks for cost, duration, and contractor performance.

What are the risks associated with a contract duration of nearly 8 years?

A contract duration of nearly 8 years (2922 days) presents several potential risks. Firstly, the scientific landscape can change rapidly, and research priorities may shift over such a long period, potentially making the original objectives of the contract less relevant or requiring significant modifications. Secondly, maintaining consistent contractor performance and quality over an extended period can be challenging. Thirdly, long-term contracts may offer less flexibility for the government to adapt to new technologies or alternative approaches that emerge during the contract's life. Finally, there's a risk of contractor complacency or a decline in innovation if performance incentives are not robustly managed throughout the contract term. Continuous monitoring and potential for contract modifications are essential.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: NIHES201800001

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: DLH Holdings Corp

Address: 8757 GEORGIA AVE STE 1200, SILVER SPRING, MD, 20910

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

Financial Breakdown

Contract Ceiling: $56,268,913

Exercised Options: $56,268,913

Current Obligation: $56,268,913

Actual Outlays: $31,928,921

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $34,220,710

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75N96018D00005

IDV Type: IDC

Timeline