NIH's $68M animal care facilities contract awarded to Sobran, Inc. shows cost-plus structure

Contract Overview

Contract Amount: $68,029,331 ($68.0M)

Contractor: Sobran, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2007-03-12

End Date: 2012-03-11

Contract Duration: 1,826 days

Daily Burn Rate: $37.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: MANAGEMENT, OPERATION, PROFESSIONAL, TECHNICAL AND SUPPORT SERVICES FOR NIAID ANIMAL CARE FACILITIES

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892, UNITED STATES OF AMERICA

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $68.0 million to SOBRAN, INC. for work described as: MANAGEMENT, OPERATION, PROFESSIONAL, TECHNICAL AND SUPPORT SERVICES FOR NIAID ANIMAL CARE FACILITIES Key points: 1. The contract utilized a Cost Plus Award Fee (CPAF) structure, which incentivizes contractor performance but can lead to higher costs if not managed closely. 2. Awarded under full and open competition, this contract suggests a competitive market for these specialized services. 3. The duration of the contract (5 years) indicates a long-term need for these services by NIAID. 4. The contract's value of approximately $68 million over five years suggests a significant operational requirement. 5. The geographic location in Maryland (ST: MD, SN: MARYLAND) is a key factor for facility operations. 6. The primary service category is Facilities Support Services, indicating a focus on operational maintenance and management.

Value Assessment

Rating: fair

The contract's Cost Plus Award Fee (CPAF) structure means that the final cost is not fixed and can increase based on performance incentives. While this can drive quality, it requires diligent oversight to ensure value for money. Benchmarking against similar facilities support contracts would be necessary to fully assess pricing fairness. The raw dollar amount of $68 million over five years indicates a substantial investment in maintaining critical research infrastructure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that multiple bidders were likely considered. This competitive process is generally expected to yield better pricing and service options for the government. The fact that it was competed suggests that there are multiple capable providers in the market for these specialized services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces and encourages a wider pool of contractors to bid, potentially leading to more innovative and cost-effective solutions.

Public Impact

Researchers and scientists at NIAID benefit from well-maintained animal care facilities, enabling critical biomedical research. The contract ensures the provision of essential services for the operation and management of animal research facilities. The primary geographic impact is within Maryland, where the facilities are located, supporting local operations. The contract supports a workforce involved in facilities management, animal care, and related technical support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee (CPAF) contracts require robust government oversight to prevent cost overruns and ensure performance targets are met.
The long duration of the contract could present risks if technology or research needs change significantly over the five-year period.
Reliance on a single contractor for essential facility operations necessitates strong performance management and contingency planning.

Positive Signals

Awarded under full and open competition, suggesting a healthy market and potential for competitive pricing.
The contract's focus on facilities support services indicates a commitment to maintaining critical research infrastructure.
The use of an award fee structure incentivizes the contractor to achieve high levels of performance.

Sector Analysis

This contract falls within the Facilities Support Services sector, which is a critical component of government operations, particularly for research institutions like NIH. This sector encompasses a wide range of services including maintenance, repair, operations, and management of physical infrastructure. The market for these services is generally competitive, with numerous providers ranging from large corporations to specialized small businesses. The value of this contract, approximately $68 million over five years, is significant and reflects the scale and complexity of managing research animal facilities.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. This suggests that the primary focus was on full and open competition to secure the best value. There is no explicit information on subcontracting plans for small businesses within this data, which would typically be detailed in the contract's terms and conditions.

Oversight & Accountability

The Cost Plus Award Fee (CPAF) structure necessitates strong government oversight to monitor costs, evaluate performance against award criteria, and ensure accountability. The National Institutes of Health (NIH) would be responsible for this oversight, likely involving program managers and contracting officers. Transparency would be facilitated through regular reporting requirements from the contractor and potentially through public contract databases, though specific performance metrics might be internal.

Related Government Programs

NIH Facilities Management Contracts
Animal Care and Use Program Support
Research Infrastructure Support Services
Federal Facilities Operations and Maintenance

Risk Flags

Cost Plus Award Fee (CPAF) contract type requires diligent oversight to manage costs.
Long contract duration may pose risks if requirements evolve.
Potential for cost overruns inherent in CPAF structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $68.0 million to SOBRAN, INC.. MANAGEMENT, OPERATION, PROFESSIONAL, TECHNICAL AND SUPPORT SERVICES FOR NIAID ANIMAL CARE FACILITIES

Who is the contractor on this award?

The obligated recipient is SOBRAN, 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 $68.0 million.

What is the period of performance?

Start: 2007-03-12. End: 2012-03-11.

What is the historical spending trend for NIAID animal care facilities support services?

Analyzing historical spending for NIAID animal care facilities support services requires access to historical contract data beyond this single award. This contract, awarded in 2007 and ending in 2012, represents a snapshot of spending during that period. To understand trends, one would need to examine prior and subsequent contracts for similar services, looking at the total obligated amounts, contract durations, and the number of awards over time. Factors such as changes in research scope, facility expansions or consolidations, and shifts in contracting strategies (e.g., from sole-source to competitive) would influence these trends. Without a broader dataset, it's difficult to ascertain if the $68 million over five years reflects an increase, decrease, or stable level of investment compared to previous or subsequent periods.

How does the performance of Sobran, Inc. on this contract compare to industry benchmarks for facilities support services?

Assessing Sobran, Inc.'s performance requires access to specific performance evaluations and award fee determinations for this contract, which are not publicly available in the provided data. The contract type, Cost Plus Award Fee (CPAF), implies that performance was formally evaluated against defined criteria, and award fees were granted based on that evaluation. To compare this to industry benchmarks, one would need to analyze the contractor's achieved award fee percentages, any documented performance issues or commendations, and compare these against typical performance outcomes and award fee structures in the facilities support services sector. Industry benchmarks often focus on metrics like uptime, response times, cost efficiency, and client satisfaction, which would need to be correlated with the specific requirements and evaluations of this NIAID contract.

What are the key risks associated with a Cost Plus Award Fee (CPAF) contract for essential research facilities?

The primary risk with a CPAF contract for essential research facilities like NIAID's animal care facilities is the potential for cost escalation. While the 'award fee' component incentivizes performance, the 'cost plus' element means the government pays the contractor's allowable costs plus a fee, which can be adjusted based on performance. If cost controls are weak or if the definition of allowable costs is broad, the total expenditure can exceed initial estimates. Another risk is the potential for the government to overpay if the award fee structure is not tightly aligned with critical performance outcomes or if the evaluation process is subjective. For essential facilities, disruptions due to contractor underperformance, even if financially managed, could impact research continuity, posing a significant operational risk.

What is the typical market size and competitive landscape for facilities support services for government research institutions?

The market for facilities support services for government research institutions is substantial and generally competitive. It encompasses a wide range of services including maintenance, operations, custodial services, groundskeeping, and specialized technical support. Many large, diversified government contractors offer these services, alongside numerous smaller, specialized firms. The competitive landscape is influenced by factors such as contract size, geographic location, and the specific technical requirements (e.g., handling of sensitive materials, specialized equipment maintenance). For institutions like NIH, contracts can be valued from hundreds of thousands to tens or hundreds of millions of dollars, attracting a mix of large and small businesses, often competing under full and open solicitations, though set-asides for small businesses are also common depending on the specific scope and value.

How does the $68 million contract value compare to other federal spending on similar facilities support services?

The $68 million contract value over five years (approximately $13.6 million annually) for NIAID animal care facilities support services is a significant but not extraordinary amount within the federal facilities support services landscape. Federal agencies collectively spend billions annually on facilities operations and maintenance. Larger agencies like the Department of Defense or the General Services Administration manage contracts of much higher values. However, for a specific institute like NIAID, this represents a substantial investment in maintaining its research infrastructure. Comparisons would ideally be made against contracts for similar-sized research facilities or animal care operations within other agencies (e.g., other NIH institutes, CDC, FDA) to provide better context on its relative scale and cost-effectiveness.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support 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: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 4401 DAYTON XENIA RD, DAYTON, OH, 45432

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

Financial Breakdown

Contract Ceiling: $123,959,056

Exercised Options: $68,029,331

Current Obligation: $68,029,331

Timeline