HHS awards $6.95M for Interventional Agents, with $4.2M spent on R&D services

Contract Overview

Contract Amount: $42,373,199 ($42.4M)

Contractor: SRI International

Awarding Agency: Department of Health and Human Services

Start Date: 2011-09-20

End Date: 2020-02-15

Contract Duration: 3,070 days

Daily Burn Rate: $13.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 1100022I SRI - PCS, INTERVENTIONAL AGENTS - TASK 004 - CAP CAN 8010521 - $6,951,343

Place of Performance

Location: MENLO PARK, SAN MATEO County, CALIFORNIA, 94025

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $42.4 million to SRI INTERNATIONAL for work described as: 1100022I SRI - PCS, INTERVENTIONAL AGENTS - TASK 004 - CAP CAN 8010521 - $6,951,343 Key points: 1. Significant portion of contract value ($4.2M) spent on R&D services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Contract duration was substantial (3070 days), indicating a long-term need. 4. The contract was awarded as a delivery order under a larger contract.

Value Assessment

Rating: good

The total obligated amount of $42.3M is a significant portion of the $6.95M ceiling, indicating substantial utilization. Benchmarking against similar R&D contracts is difficult without more specific service details.

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. The use of a delivery order suggests a flexible approach to acquiring services as needed.

Taxpayer Impact: The competitive award process likely resulted in a fair price for the government, maximizing taxpayer value for the R&D services procured.

Public Impact

Supports critical research and development in physical, engineering, and life sciences. Potential for advancements in medical interventions and treatments. Long-term contract duration suggests sustained government investment in this research area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract ceiling significantly higher than obligated amount.
Delivery order under a larger contract may obscure true cost and competition.
Cost Plus Fixed Fee contract type can incentivize cost overruns.

Positive Signals

Full and open competition utilized.
Long contract duration indicates sustained need and potential for innovation.
Awarded by a reputable agency (HHS).

Sector Analysis

The contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for innovation but can be complex to benchmark due to the specialized nature of the work.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. SRI International is a large research institute, suggesting this contract was likely not awarded to a small business.

Oversight & Accountability

The use of a delivery order under a larger contract warrants oversight to ensure the total spending remains within authorized limits and that competition is maintained throughout the contract's life.

Related Government Programs

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

Risk Flags

Obligated amount significantly exceeds contract ceiling.
Contract type (CPFF) can lead to cost overruns.
Delivery order under a larger contract may obscure full scope and cost.
No indication of small business participation.
Long contract duration without clear performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $42.4 million to SRI INTERNATIONAL. 1100022I SRI - PCS, INTERVENTIONAL AGENTS - TASK 004 - CAP CAN 8010521 - $6,951,343

Who is the contractor on this award?

The obligated recipient is SRI INTERNATIONAL.

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 $42.4 million.

What is the period of performance?

Start: 2011-09-20. End: 2020-02-15.

What specific interventional agents were developed or researched under this contract, and what is their potential impact?

The specific interventional agents are not detailed in the provided data. However, given the contract's focus on R&D within the physical, engineering, and life sciences, potential impacts could range from novel diagnostic tools to therapeutic agents for various diseases. Further investigation into SRI International's research portfolio during the contract period would be necessary to identify specific outcomes.

How does the obligated amount of $42.3M compare to the contract ceiling of $6.95M, and what does this discrepancy suggest?

The obligated amount of $42.3M significantly exceeds the stated contract ceiling of $6.95M. This discrepancy is highly unusual and suggests a potential data entry error, a misunderstanding of how the ceiling is applied to delivery orders, or that the $6.95M represents a specific task order ceiling rather than the overall contract ceiling. Clarification is needed.

What is the rationale behind using a Cost Plus Fixed Fee (CPFF) contract type for R&D services, and what are the associated risks?

CPFF contracts are often used in R&D when the scope of work is not well-defined, allowing flexibility. However, the fixed fee component can incentivize contractors to increase costs to maximize their profit margin, as the fee is a percentage of the total cost. This increases the risk of cost overruns for the government.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: NIHAI2010090

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 333 RAVENSWOOD AVE, MENLO PARK, CA, 94025

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $42,373,199

Exercised Options: $42,373,199

Current Obligation: $42,373,199

Actual Outlays: $130,465

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSN272201100022I

IDV Type: IDC

Timeline