NIH awards $86.9M for HIV Clinical Research Management Support to PPD Development LP over 8 years

Contract Overview

Contract Amount: $86,859,314 ($86.9M)

Contractor: PPD Development LP

Awarding Agency: Department of Health and Human Services

Start Date: 2005-07-15

End Date: 2013-02-26

Contract Duration: 2,783 days

Daily Burn Rate: $31.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: HIV CLINICAL RESEARCH MANAGEMENT SUPPORT

Place of Performance

Location: WILMINGTON, NEW HANOVER County, NORTH CAROLINA, 28412

State: North Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $86.9 million to PPD DEVELOPMENT LP for work described as: HIV CLINICAL RESEARCH MANAGEMENT SUPPORT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract spans over 8 years, indicating a long-term need for these services. 3. Primary NAICS code 541710 points to Research and Development in the Physical, Engineering, and Life Sciences sector. 4. The award type 'COST PLUS FIXED FEE' can sometimes lead to cost overruns if not managed carefully.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee structure requires careful monitoring to ensure costs remain reasonable and aligned with the fixed fee. Benchmarking against similar R&D support contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the Cost Plus Fixed Fee structure means the final price is influenced by actual costs incurred plus a predetermined fee.

Taxpayer Impact: Taxpayer funds are utilized for critical HIV research support. The effectiveness of competition and cost controls will determine the overall value for money.

Public Impact

Supports vital HIV clinical research, potentially leading to advancements in treatment and prevention. Long-term contract provides stability for research continuity and PPD Development LP. The significant funding highlights the government's commitment to combating HIV/AIDS.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee structure can incentivize higher spending.
Long contract duration may not reflect current market efficiencies.
Lack of specific performance metrics makes value assessment challenging.

Positive Signals

Awarded through full and open competition.
Supports critical public health research.
Long-term commitment ensures research continuity.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on life sciences. Spending in this area is crucial for scientific advancement and public health initiatives. Benchmarks for similar long-term R&D support contracts can vary widely based on scope and duration.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The long duration of the contract necessitates robust oversight from the National Institutes of Health to ensure PPD Development LP meets performance expectations and manages costs effectively under the Cost Plus Fixed Fee arrangement.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Cost Plus Fixed Fee structure can lead to higher costs if not tightly managed.
Long contract duration may not capture potential cost savings from evolving technologies or market shifts.
Lack of specific performance metrics in the provided data makes assessing value difficult.
Potential for scope creep over an 8-year period without clear controls.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $86.9 million to PPD DEVELOPMENT LP. HIV CLINICAL RESEARCH MANAGEMENT SUPPORT

Who is the contractor on this award?

The obligated recipient is PPD DEVELOPMENT LP.

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 $86.9 million.

What is the period of performance?

Start: 2005-07-15. End: 2013-02-26.

What specific research milestones or deliverables are tied to the fixed fee, and how are cost overruns managed?

The Cost Plus Fixed Fee (CPFF) structure means the contractor is reimbursed for allowable costs plus a predetermined fixed fee. Management of cost overruns typically involves strict adherence to the contract's cost principles and potentially renegotiation or termination clauses if costs exceed agreed-upon thresholds. Specific deliverables tied to the fee would be detailed in the contract's statement of work, outlining research phases, data analysis, and reporting requirements.

How does the $86.9 million total award compare to the estimated value of similar long-term HIV research management contracts?

Benchmarking this $86.9 million award requires comparing it against contracts with similar scope, duration (8 years), and service complexity within the HIV clinical research management domain. Factors like the specific research areas, number of clinical trials managed, and geographic reach significantly influence costs. Without detailed comparisons of these factors, it's challenging to definitively state if this award represents a competitive market rate or if it's higher or lower than typical.

What mechanisms are in place to ensure the effectiveness and efficiency of research supported by this contract over its 8-year lifespan?

Effectiveness and efficiency are typically ensured through rigorous contract oversight by the awarding agency (NIH). This includes regular performance reviews, monitoring of key performance indicators (KPIs) related to research progress, data integrity, and adherence to timelines. The CPFF structure itself incentivizes the contractor to manage costs efficiently to protect their fixed fee, though active government monitoring remains paramount to prevent potential cost escalations.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: NIHNIAIDDAIDS0506

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Jaguar Holding Company II (UEI: 078391342)

Address: 3151 17TH STREET EXTENSION, WILMINGTON, NC, 07

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $255,764,725

Exercised Options: $255,764,725

Current Obligation: $86,859,314

Timeline