HHS NIH Awards $16.4M for R&D Services to Integrated Laboratory Systems, LLC
Contract Overview
Contract Amount: $16,374,807 ($16.4M)
Contractor: Integrated Laboratory Systems, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2009-09-28
End Date: 2013-09-29
Contract Duration: 1,462 days
Daily Burn Rate: $11.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: R&D-OTHER R & D-B RES
Place of Performance
Location: DURHAM, DURHAM County, NORTH CAROLINA, 27709
Plain-Language Summary
Department of Health and Human Services obligated $16.4 million to INTEGRATED LABORATORY SYSTEMS, LLC for work described as: R&D-OTHER R & D-B RES Key points: 1. The contract awarded to Integrated Laboratory Systems, LLC for R&D services represents a significant investment by NIH. 2. Competition was full and open after exclusion of sources, suggesting a deliberate selection process. 3. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed carefully. 4. The sector is Research and Development in Physical, Engineering, and Life Sciences, a critical area for innovation.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type can be less predictable in terms of final cost compared to fixed-price contracts. Benchmarking against similar R&D 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 After Exclusion of Sources,' indicating that while competition was sought, specific sources were initially excluded. This method aims for broad competition while potentially focusing on specialized capabilities.
Taxpayer Impact: The total award amount of $16.4 million represents taxpayer funds allocated to research and development, with the ultimate value dependent on the outcomes of the research.
Public Impact
Taxpayers are funding critical R&D efforts through the National Institutes of Health. The contract supports scientific advancement in physical, engineering, and life sciences. The duration of the contract (over 4 years) suggests a long-term research objective. The specific R&D area (NAICS 541712) is vital for technological and medical progress.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to higher costs than fixed-price.
- Limited information on specific R&D deliverables makes assessing value difficult.
- The 'exclusion of sources' clause warrants further understanding of the rationale.
Positive Signals
- Awarded by a reputable agency (NIH) for R&D.
- Full and open competition after exclusion of sources implies a structured procurement.
- The contract supports a key scientific sector.
Sector Analysis
This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, a broad category encompassing significant government investment. Benchmarks for R&D contracts vary widely based on scope and duration, but $16.4 million over four years suggests a substantial project.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.
Oversight & Accountability
The contract is managed by the Department of Health and Human Services' National Institutes of Health. Oversight would focus on ensuring research milestones are met and funds are used appropriately, especially given the Cost Plus Fixed Fee structure.
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
- Cost Plus Fixed Fee contract type.
- Potential for limited competition due to source exclusion.
- Lack of specific performance metrics in provided data.
- No indication of small business participation.
Tags
research-and-development-in-the-physical, department-of-health-and-human-services, nc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $16.4 million to INTEGRATED LABORATORY SYSTEMS, LLC. R&D-OTHER R & D-B RES
Who is the contractor on this award?
The obligated recipient is INTEGRATED LABORATORY SYSTEMS, LLC.
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 $16.4 million.
What is the period of performance?
Start: 2009-09-28. End: 2013-09-29.
What specific research outcomes or deliverables were expected from this $16.4 million contract, and how will their success be measured to ensure value for taxpayer money?
The contract's success hinges on the tangible research outcomes achieved within the specified R&D domain. Measuring success would involve evaluating the scientific merit, potential for innovation, and contribution to NIH's research objectives. Clear metrics for deliverables, such as published findings, developed technologies, or data sets, are crucial for assessing the return on the $16.4 million investment and ensuring accountability for taxpayer funds.
Given the 'Cost Plus Fixed Fee' structure and 'Full and Open Competition After Exclusion of Sources,' what are the primary risks to cost control and fair market competition?
The primary risk with Cost Plus Fixed Fee is that the contractor may have less incentive to control costs, as the government covers allowable expenses plus a fixed fee. The 'exclusion of sources' introduces a risk if it unduly limits competition, potentially preventing the government from accessing the best value or most innovative solutions available in the broader market. Transparency in the exclusion rationale is key to mitigating this risk.
How effective is the chosen procurement method ('Full and Open Competition After Exclusion of Sources') in ensuring the NIH secures the most innovative and cost-effective R&D solutions?
This procurement method aims to balance broad competition with the need for specific expertise. Its effectiveness depends on the justification for excluding sources; if exclusions are well-founded and the remaining competition is robust, it can be effective. However, if exclusions are arbitrary, it could limit innovation and lead to suboptimal pricing. The ultimate effectiveness relies on rigorous evaluation of proposals received.
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 › OTHER RESEARCH/DEVELOPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: NIHES2009062
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: ONE PARK DR STE 200, RESEARCH TRIANGLE PARK, NC, 27709
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $16,374,807
Exercised Options: $16,374,807
Current Obligation: $16,374,807
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2009-09-28
Current End Date: 2013-09-29
Potential End Date: 2019-09-29 00:00:00
Last Modified: 2018-07-24
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