The Bionetics Corp received over $20M for animal care and diet prep services from HHS
Contract Overview
Contract Amount: $20,212,782 ($20.2M)
Contractor: THE Bionetics Corp
Awarding Agency: Department of Health and Human Services
Start Date: 2006-01-03
End Date: 2012-11-13
Contract Duration: 2,506 days
Daily Burn Rate: $8.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIXED PRICE INCENTIVE
Sector: Other
Official Description: ON-SITE ANIMAL CARE/DIET PREPARATION
Place of Performance
Location: JEFFERSON, JEFFERSON County, ARKANSAS, 72079
State: Arkansas Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $20.2 million to THE BIONETICS CORP for work described as: ON-SITE ANIMAL CARE/DIET PREPARATION Key points: 1. Contract value appears reasonable given the duration and scope of services. 2. Full and open competition suggests a competitive bidding process. 3. Fixed Price Incentive contract type introduces performance-based risk and reward. 4. Services provided are essential for scientific research and regulatory compliance. 5. Contract duration of over 8 years indicates a long-term need. 6. Geographic concentration in Arkansas for service delivery.
Value Assessment
Rating: good
The contract's total value of approximately $20.1 million over its 2506-day duration (roughly 8 years) averages to about $2.5 million per year. This seems within a reasonable range for specialized animal care and diet preparation services supporting federal research. Without specific benchmarks for this niche service, direct comparison is difficult, but the sustained award over a long period suggests consistent value delivery.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of two bidders suggests a moderate level of competition for this specialized service. While not a large number, it demonstrates that the opportunity was accessible.
Taxpayer Impact: Full and open competition generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source or limited competition awards.
Public Impact
Federal researchers benefit from reliable animal care and diet preparation, enabling critical scientific studies. Services support the Food and Drug Administration's mission in ensuring the safety and efficacy of products. The primary geographic impact is in Arkansas, where the services are performed. Potential workforce implications include employment for animal care technicians, veterinarians, and support staff in Arkansas.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Fixed Price Incentive (FPI) contracts can lead to cost overruns if cost targets are not met and incentives are heavily utilized.
- Long contract durations can sometimes reduce flexibility to adapt to changing technological needs or scientific priorities.
- Reliance on a single contractor for an extended period could create vendor lock-in.
Positive Signals
- Full and open competition suggests a robust process that should yield fair pricing.
- The contract's long duration indicates a stable and predictable need for these essential services.
- The award to The Bionetics Corp suggests a proven track record in delivering these specialized services.
Sector Analysis
This contract falls within the Professional, Scientific, and Technical Services sector, specifically under NAICS code 541990 (All Other Professional, Scientific, and Technical Services). This broad category includes a wide range of specialized services. The market for animal care and specialized diet preparation for research is niche but critical for government agencies like the FDA, supporting preclinical research and regulatory testing. Benchmarking is difficult due to the specialized nature, but spending in scientific support services is substantial across federal agencies.
Small Business Impact
This contract does not appear to have been specifically set aside for small businesses, nor is there an indication of significant subcontracting opportunities for small businesses based on the provided data. The primary award went to The Bionetics Corp, and further analysis would be needed to determine if they have a robust small business subcontracting plan. The focus seems to be on specialized technical capability rather than small business participation.
Oversight & Accountability
Oversight for this contract would typically reside with the contracting officer and program officials within the Food and Drug Administration (FDA). The contract's Fixed Price Incentive structure implies performance monitoring to ensure cost targets and quality standards are met. Transparency would be facilitated through contract award databases like FPDS. Specific Inspector General (IG) jurisdiction would depend on the agency's IG mandate, but the HHS OIG generally oversees HHS contracts.
Related Government Programs
- NIH Animal Care and Use Programs
- USDA Animal Research Facilities
- DoD Research and Development Support Services
- CDC Laboratory Support Services
Risk Flags
- Long-term contract duration may limit flexibility.
- Fixed Price Incentive contract requires careful monitoring of cost and performance.
- Potential for vendor lock-in due to extended relationship.
Tags
hhs, fda, animal-care, diet-preparation, scientific-services, professional-services, fixed-price-incentive, full-and-open-competition, arkansas, the-bionetics-corp, research-support, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $20.2 million to THE BIONETICS CORP. ON-SITE ANIMAL CARE/DIET PREPARATION
Who is the contractor on this award?
The obligated recipient is THE BIONETICS CORP.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Food and Drug Administration).
What is the total obligated amount?
The obligated amount is $20.2 million.
What is the period of performance?
Start: 2006-01-03. End: 2012-11-13.
What is The Bionetics Corp's track record with federal contracts, particularly in animal care?
The Bionetics Corporation has a history of federal contracting, primarily with agencies like the Department of Health and Human Services (HHS), including the Food and Drug Administration (FDA) and the National Institutes of Health (NIH). Their awards often center around biological research support, including animal care, vivarium operations, and specialized diet preparation. Data suggests they have held multiple contracts in these areas over several years, indicating a sustained presence and likely experience in meeting federal requirements for animal welfare, research support, and regulatory compliance. Further analysis of contract performance ratings and any past performance issues would provide a more complete picture of their track record.
How does the cost per year of this contract compare to similar federal animal care contracts?
The annual cost for this contract, averaging approximately $2.5 million ($20.1M / ~8 years), is difficult to benchmark precisely without access to detailed cost breakdowns and specific service level agreements for comparable contracts. However, given the specialized nature of providing animal care and diet preparation for federal research, particularly supporting regulatory functions like the FDA's, this figure appears within a plausible range. Contracts for vivarium management, specialized animal husbandry, and research support can vary significantly based on the type and number of animals, the complexity of research protocols, and the required level of veterinary and technical support. A comprehensive comparison would require analyzing contracts with similar scope, duration, and agency focus.
What are the primary risks associated with a Fixed Price Incentive (FPI) contract for animal care services?
The primary risks with an FPI contract for animal care services revolve around cost control and performance incentives. For the government, there's a risk that the contractor may not achieve the target cost, leading to higher final prices if the ceiling is reached. Conversely, the contractor bears risk if costs exceed the ceiling. For animal care, incentives might be tied to animal welfare metrics, research support timeliness, or facility maintenance. If incentives are poorly defined or difficult to measure objectively, it could lead to disputes or a focus on easily achievable metrics rather than critical aspects of care. Ensuring clear, measurable, and relevant performance metrics is crucial to mitigate risks and ensure value.
How effective has The Bionetics Corp been in fulfilling its obligations under this contract?
Assessing the effectiveness of The Bionetics Corp under this specific contract requires access to performance evaluations, contractor performance assessment reporting (CPAR) data, and any documented issues or successes. The fact that the contract was awarded and executed over an extended period (2006-2012) suggests a baseline level of satisfactory performance. However, without direct access to performance metrics and feedback from the government's contracting officer's representative (COR) or program managers, a definitive statement on effectiveness cannot be made. The contract's duration and renewal potential (if any) are indirect indicators, but specific performance data is necessary for a thorough evaluation.
What is the historical spending trend for animal care and diet preparation services by the FDA?
Historical spending trends for animal care and diet preparation services by the FDA, and more broadly by HHS, show a consistent and significant investment in these areas due to their critical role in research and regulatory functions. While specific year-over-year figures for this exact service category are not provided, the FDA relies heavily on animal models for drug safety and efficacy testing. Spending in this domain typically fluctuates based on research priorities, the number of active studies, and the types of animals required. Long-term contracts like the one awarded to The Bionetics Corp indicate a stable demand. Overall, federal spending on scientific support services, including animal care, represents a substantial portion of agency budgets dedicated to research and development.
What are the implications of the contract's geographic concentration in Arkansas?
The geographic concentration of this contract's services in Arkansas implies that the primary operational facilities and workforce are located there. For the FDA, this means that oversight and site visits would likely be focused on this location. For the local economy in Arkansas, it signifies job creation and economic activity related to specialized scientific support services. If the FDA were to require similar services elsewhere, it might necessitate seeking new contracts or expanding operations, potentially impacting the distribution of federal research support infrastructure.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Address: 11833 CANON BLVD, NEWPORT NEWS, VA, 03
Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $33,936,786
Exercised Options: $20,364,731
Current Obligation: $20,212,782
Contract Characteristics
Multi-Year Contract: Yes
Timeline
Start Date: 2006-01-03
Current End Date: 2012-11-13
Potential End Date: 2012-11-13 00:00:00
Last Modified: 2012-12-03
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