NIAID Awards $330M for HIV/Infectious Disease Clinical Research Support Services
Contract Overview
Contract Amount: $329,835,681 ($329.8M)
Contractor: PPD Development LP
Awarding Agency: Department of Health and Human Services
Start Date: 2017-08-14
End Date: 2024-08-14
Contract Duration: 2,557 days
Daily Burn Rate: $129.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: IGF::OT::IGF NIAID HIV AND OTHER INFECTIOUS DISEASES CLINICAL RESEARCH SUPPORT SERVICES (CRSS)
Place of Performance
Location: WILMINGTON, NEW HANOVER County, NORTH CAROLINA, 28401
Plain-Language Summary
Department of Health and Human Services obligated $329.8 million to PPD DEVELOPMENT LP for work described as: IGF::OT::IGF NIAID HIV AND OTHER INFECTIOUS DISEASES CLINICAL RESEARCH SUPPORT SERVICES (CRSS) Key points: 1. Significant investment in critical infectious disease research. 2. PPD Development LP is the sole awardee, raising questions about competition. 3. Contract duration extends to August 2024, indicating long-term need. 4. Research and Development sector, specifically life sciences, is a key focus.
Value Assessment
Rating: fair
The contract value of $329.8M over approximately 7 years suggests a substantial commitment. Benchmarking against similar large-scale clinical research support contracts is necessary to fully assess pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Despite being awarded to a single entity (PPD Development LP), the contract was initially competed under full and open procedures. The award type 'DEFINITIVE CONTRACT' with 'COST PLUS AWARD FEE' indicates a complex pricing structure that requires careful monitoring.
Taxpayer Impact: Taxpayer funds are supporting critical public health research, but the cost-effectiveness of the sole awardee's pricing needs ongoing scrutiny.
Public Impact
Supports vital research into HIV and other infectious diseases, potentially leading to new treatments and cures. The long-term nature of the contract ensures continuity in critical research efforts. Investment in North Carolina's research infrastructure and workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of clear justification for sole awardee if competition was truly full and open.
- Cost Plus Award Fee contracts can incentivize cost overruns if not managed tightly.
- Potential for vendor lock-in given the long duration and specialized nature of services.
Positive Signals
- Addresses a critical public health need.
- Long-term commitment provides stability for research programs.
- Potential for significant scientific breakthroughs.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on life sciences. Spending in this area is crucial for medical advancements but often involves high costs and long development cycles.
Small Business Impact
The data indicates this contract was not awarded to small businesses, suggesting larger, specialized firms are dominant in this research support service area.
Oversight & Accountability
The long-term nature and significant value of this contract warrant robust oversight from NIH and potentially the HHS IG to ensure funds are used efficiently and effectively.
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
- Sole awardee despite 'full and open' claim.
- Cost Plus Award Fee structure requires vigilant oversight.
- Long contract duration (7 years) increases risk of cost escalation.
- Lack of specific performance metrics in provided data.
- Potential for vendor lock-in.
Tags
research-and-development-in-the-physical, department-of-health-and-human-services, nc, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $329.8 million to PPD DEVELOPMENT LP. IGF::OT::IGF NIAID HIV AND OTHER INFECTIOUS DISEASES CLINICAL RESEARCH SUPPORT SERVICES (CRSS)
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 $329.8 million.
What is the period of performance?
Start: 2017-08-14. End: 2024-08-14.
What was the competitive landscape during the bidding process, and why was PPD Development LP the sole awardee for this significant contract?
The data states 'FULL AND OPEN COMPETITION', yet PPD Development LP is the sole awardee. Further investigation is needed to understand if multiple bids were received, if PPD was the only qualified bidder, or if there were other factors leading to a single award. This is crucial for ensuring taxpayer value and exploring potential for future competition.
How does the Cost Plus Award Fee structure ensure cost control and incentivize performance for this extensive research support contract?
Cost Plus Award Fee (CPAF) contracts reimburse allowable costs and provide a fixed fee plus an award fee based on performance. Effective oversight is critical to ensure the 'award' portion truly reflects exceptional performance and doesn't simply incentivize meeting minimum requirements or incurring costs. Benchmarking against similar CPAF contracts is essential.
What specific clinical research support services are being provided, and how will their effectiveness be measured to justify the $330M investment?
The contract title 'HIV AND OTHER INFECTIOUS DISEASES CLINICAL RESEARCH SUPPORT SERVICES (CRSS)' is broad. Detailed performance metrics and milestones tied to research outcomes, data integrity, and project timelines are necessary to evaluate the effectiveness of these services and the overall value derived from this substantial investment.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: NIAIDNIHAI2015050
Offers Received: 4
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 929 N FRONT ST, WILMINGTON, NC, 28401
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $332,437,172
Exercised Options: $329,835,681
Current Obligation: $329,835,681
Actual Outlays: $299,487,186
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2017-08-14
Current End Date: 2024-08-14
Potential End Date: 2024-08-15 00:00:00
Last Modified: 2025-09-18
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