NIH awards $46.3M R&D contract to RHO Federal Systems Division Inc. for advanced biomedical research

Contract Overview

Contract Amount: $46,292,142 ($46.3M)

Contractor: RHO Federal Systems Division Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2008-06-16

End Date: 2020-03-16

Contract Duration: 4,291 days

Daily Burn Rate: $10.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TAS::75 0885::TAS BIOMEDICAL (ADVANCED)

Place of Performance

Location: CHAPEL HILL, CHATHAM County, NORTH CAROLINA, 27517

State: North Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $46.3 million to RHO FEDERAL SYSTEMS DIVISION INC for work described as: TAS::75 0885::TAS BIOMEDICAL (ADVANCED) Key points: 1. Contract awarded via full and open competition, suggesting a robust market. 2. Long duration of nearly 12 years indicates a significant, ongoing research need. 3. Cost-plus-fixed-fee structure may incentivize cost control but requires careful oversight. 4. Research and Development in Physical, Engineering, and Life Sciences (except Biotechnology) is a critical sector. 5. The contract's value is moderate within the context of large-scale federal R&D. 6. Performance occurred across multiple years, allowing for assessment of sustained delivery.

Value Assessment

Rating: good

The contract's total value of $46.3 million over nearly 12 years averages to approximately $3.9 million annually. Benchmarking this against similar large-scale R&D contracts is challenging without more specific service details. However, the cost-plus-fixed-fee (CPFF) pricing structure, while common for R&D, can sometimes lead to higher costs if not managed tightly. The fixed fee component provides some predictability for the contractor's profit.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple capable vendors had the opportunity to bid. The presence of two bidders suggests a competitive environment, though the exact number of proposals received and the evaluation process details are not provided. A competitive award process generally supports better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices and encourages innovation among bidders, leading to better value for public funds.

Public Impact

The primary beneficiaries are researchers and institutions within the National Institutes of Health (NIH) and the broader biomedical community. The contract supports advanced biomedical research, contributing to scientific advancements and potential public health improvements. The geographic impact is likely national, given NIH's role, with potential for findings to be disseminated globally. Workforce implications include employment for scientists, researchers, technicians, and administrative staff involved in the R&D activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts require diligent oversight to ensure costs remain reasonable and within scope.
The long contract duration could present risks if research priorities shift or if contractor performance degrades over time.
Lack of specific details on performance metrics makes it difficult to assess the true value and impact of the R&D.

Positive Signals

Awarded through full and open competition, indicating a competitive marketplace.
The contract supports critical advanced biomedical research, aligning with national health priorities.
The long performance period suggests a sustained commitment and potential for significant research outcomes.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences, excluding biotechnology. This is a high-value, knowledge-intensive area crucial for scientific progress and innovation. Federal spending in R&D is substantial, with agencies like NIH being major contributors, driving advancements that can have significant economic and societal impacts. Comparable spending benchmarks would depend on the specific sub-field of biomedical research.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor, RHO Federal Systems Division Inc., may engage small businesses as subcontractors if it aligns with their project needs and procurement strategy, though this is not mandated by the contract terms.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Institutes of Health (NIH), a component of HHS. As a cost-plus-fixed-fee contract, rigorous financial oversight is expected to monitor expenditures and ensure compliance with the fixed fee. Transparency is facilitated through contract awards databases, but detailed programmatic oversight and accountability measures are internal to the agency. The Inspector General for HHS would have jurisdiction over potential fraud, waste, or abuse.

Related Government Programs

Biomedical Research Grants
National Institutes of Health Research Programs
Federal R&D Spending
Life Sciences Research Contracts

Risk Flags

Cost-plus-fixed-fee contract requires diligent oversight.
Long contract duration may pose risks if priorities shift.
Specific R&D outcomes not detailed in award data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $46.3 million to RHO FEDERAL SYSTEMS DIVISION INC. TAS::75 0885::TAS BIOMEDICAL (ADVANCED)

Who is the contractor on this award?

The obligated recipient is RHO FEDERAL SYSTEMS DIVISION 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 $46.3 million.

What is the period of performance?

Start: 2008-06-16. End: 2020-03-16.

What is the track record of RHO Federal Systems Division Inc. with federal contracts, particularly in R&D?

RHO Federal Systems Division Inc. has a history of performing federal contracts, primarily within the Department of Defense and Health and Human Services. Their portfolio includes work in IT services, research and development, and technical support. Analyzing their past performance on similar R&D contracts, including contract values, duration, and any reported issues or successes, would provide further insight into their capabilities and reliability. Specific data on past performance ratings or any contract disputes would be crucial for a comprehensive assessment. Their sustained engagement with agencies like NIH suggests a level of competence and trust in delivering on research objectives.

How does the annual spending on this contract compare to other NIH R&D contracts of similar scope?

The average annual spending of approximately $3.9 million on this contract ($46.3M over ~12 years) places it in the mid-to-large tier for individual R&D awards. However, without specific details on the precise scientific domain and complexity of the research, direct comparisons are difficult. NIH funds a vast array of research projects, from small, targeted grants to massive center grants. Contracts supporting advanced, multi-disciplinary research often command higher annual expenditures. To benchmark effectively, one would need to identify comparable contracts focusing on similar scientific areas, with similar research objectives and contractor capabilities, and analyze their average annual funding levels.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for advanced R&D?

The primary risks with a CPFF contract for advanced R&D involve potential cost overruns and the contractor's incentive to manage expenses. While the fixed fee provides a defined profit margin, the 'cost plus' component means the government reimburses the contractor's allowable costs. If costs escalate beyond initial projections due to unforeseen research challenges or inefficient management, the total contract value can increase significantly. The government bears the financial risk of these cost increases. Conversely, the contractor's incentive might be to maximize costs to ensure all project expenses are covered, rather than aggressively seeking efficiencies, although the fixed fee does provide a ceiling on profit. Robust government oversight is critical to mitigate these risks.

What specific advancements or outcomes has this contract contributed to in biomedical research?

The provided data does not detail the specific scientific advancements or research outcomes resulting from this contract. This information would typically be found in NIH's research publications, progress reports submitted by the contractor, or agency assessments of research impact. Advanced biomedical research can lead to new diagnostic tools, therapeutic strategies, understanding of diseases, or fundamental biological discoveries. Without access to these specific outputs, it's impossible to quantify the direct contribution of this $46.3 million award to the field of biomedical science. Further investigation into NIH's research portfolio and publications linked to RHO Federal Systems Division Inc. would be necessary.

How has federal spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' category evolved over the contract's performance period?

The contract performance period spanned from June 2008 to March 2020. During this time, federal R&D spending, particularly within agencies like NIH, generally saw fluctuations influenced by budget appropriations, economic conditions, and national priorities. While overall R&D investment is crucial, specific trends within the 'Physical, Engineering, and Life Sciences' (excluding biotech) category would require detailed analysis of historical federal budget data. Agencies like NIH often aim for consistent or increasing investment in core research areas, but year-to-year variations are common. Understanding these broader trends provides context for the sustained funding of this specific contract.

What is the significance of the NAICS code 541712 for this contract?

The NAICS code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' precisely categorizes the nature of the work performed under this contract. It signifies that the contract's objective was to conduct scientific research and experimental development in fields such as chemistry, physics, mathematics, engineering, and various life sciences, excluding the specific domain of biotechnology. This classification helps in benchmarking the contract against others in the same industry, understanding the market landscape for R&D services, and assessing the type of expertise required from the contractor.

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: RFPNIHNIAIDDAIT0810

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: RHO Incorporated (UEI: 932325574)

Address: 6330 QUADRANGLE DR STE 500, CHAPEL HILL, NC, 27517

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business

Financial Breakdown

Contract Ceiling: $53,356,674

Exercised Options: $46,292,142

Current Obligation: $46,292,142

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline