NIH awards $29.1M contract to Southern Research Institute for toxicity research, spanning a decade

Contract Overview

Contract Amount: $29,138,880 ($29.1M)

Contractor: Southern Research Institute

Awarding Agency: Department of Health and Human Services

Start Date: 2013-09-23

End Date: 2023-09-22

Contract Duration: 3,651 days

Daily Burn Rate: $8.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF SUPPORT OF THE RESEARCH EFFORT TO EVALUATE TOXICITY FOLLOWING EARLY LIFE EXPOSURE TO TEST ARTICLES FOR THE NTP

Place of Performance

Location: BIRMINGHAM, JEFFERSON County, ALABAMA, 35255

State: Alabama Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $29.1 million to SOUTHERN RESEARCH INSTITUTE for work described as: IGF::OT::IGF SUPPORT OF THE RESEARCH EFFORT TO EVALUATE TOXICITY FOLLOWING EARLY LIFE EXPOSURE TO TEST ARTICLES FOR THE NTP Key points: 1. Contract duration of 10 years suggests a long-term need for specialized research services. 2. The definitive contract type indicates a commitment to a specific scope of work over an extended period. 3. The award to a single entity, Southern Research Institute, warrants examination of the competition process. 4. Research and Development in Physical, Engineering, and Life Sciences is a critical sector for public health. 5. The contract's value, while substantial, needs benchmarking against similar long-term R&D efforts. 6. Geographic location in Alabama may have implications for local economic impact and workforce development.

Value Assessment

Rating: fair

The contract value of $29.1 million over 10 years averages to approximately $2.9 million per year. Benchmarking this against similar long-term, specialized R&D contracts is challenging without more specific data on the scope and complexity of the toxicity evaluations. However, the extended duration suggests a potentially stable and predictable cost structure for the contractor. Further analysis would require comparing the deliverables and outcomes against the investment to truly assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 3 bids suggests a moderate level of competition for this specialized research requirement. While full and open competition is generally favorable for price discovery, the specific number of bidders (3) might not represent the maximum possible interest, and further details on the bidding process would be needed to fully assess its effectiveness.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple vendors to offer competitive pricing, potentially leading to a more cost-effective outcome for the government.

Public Impact

The primary beneficiaries are the National Institutes of Health (NIH) and the broader scientific community, who will receive critical data on the toxicity of various test articles. The services delivered involve complex toxicological evaluations, contributing to public health and safety by informing regulatory decisions and risk assessments. The geographic impact is primarily centered in Alabama, where Southern Research Institute is located, potentially creating or sustaining high-skilled jobs in the region. The contract supports a specialized workforce of scientists, researchers, and technicians involved in life sciences and toxicology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The long duration of the contract (10 years) could lead to potential cost overruns if not managed effectively, especially given the evolving nature of scientific research.
Reliance on a single contractor for a decade may limit opportunities for innovation or cost savings that could arise from periodic re-competition or introduction of new technologies.
The specific nature of toxicity testing can be complex, and ensuring consistent quality and adherence to evolving scientific standards over such a long period requires robust oversight.

Positive Signals

The award under full and open competition suggests a fair process and potential for competitive pricing.
The long-term nature of the contract provides stability for critical research efforts, ensuring continuity in evaluating potential health risks.
The specialization of Southern Research Institute in this field likely means they possess the necessary expertise and infrastructure for successful execution.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The market for specialized toxicology research is driven by regulatory requirements, public health initiatives, and the need for safety assessments of new substances and products. Comparable spending benchmarks would involve looking at other long-term government contracts for similar scientific research and development services, particularly those involving complex biological and chemical analyses.

Small Business Impact

The data indicates that small business participation was not a primary focus for this contract, as the award was made to Southern Research Institute, a likely larger entity, and the 'sb' (small business) flag is false. There is no explicit mention of small business set-asides or subcontracting plans. This suggests that the specialized nature of the research may have favored larger, established research organizations with extensive capabilities.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the National Institutes of Health (NIH), a sub-agency of the Department of Health and Human Services. Accountability measures would likely include regular progress reports, milestone reviews, and adherence to scientific protocols. Transparency is generally maintained through contract award databases and public reporting, though the specifics of the research methodology and findings may be subject to confidentiality or publication schedules.

Related Government Programs

National Toxicology Program (NTP)
Environmental Protection Agency (EPA) Research
Food and Drug Administration (FDA) Research
National Science Foundation (NSF) Research Grants

Risk Flags

Long contract duration may increase risk of scope creep or obsolescence.
Cost-reimbursement contract type requires diligent oversight to manage costs.
Sole-source award to Southern Research Institute (implied by single award) warrants scrutiny of competition effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $29.1 million to SOUTHERN RESEARCH INSTITUTE. IGF::OT::IGF SUPPORT OF THE RESEARCH EFFORT TO EVALUATE TOXICITY FOLLOWING EARLY LIFE EXPOSURE TO TEST ARTICLES FOR THE NTP

Who is the contractor on this award?

The obligated recipient is SOUTHERN RESEARCH INSTITUTE.

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 $29.1 million.

What is the period of performance?

Start: 2013-09-23. End: 2023-09-22.

What is the specific scientific methodology and scope of the toxicity evaluations being conducted under this contract?

The provided data does not detail the specific scientific methodologies or the exact scope of the toxicity evaluations. However, the contract number '541712' and the description 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' suggest that the work involves laboratory-based testing to assess the potential harmful effects of various 'test articles' following early life exposure. This could encompass a range of studies, such as acute toxicity, chronic toxicity, genotoxicity, carcinogenicity, and reproductive toxicity, depending on the nature of the substances being evaluated and the objectives of the National Toxicology Program (NTP). The 'IGF::OT::IGF SUPPORT OF THE RESEARCH EFFORT' prefix might indicate internal government funding or a specific project code within the agency. Detailed methodologies would typically be outlined in the contract's statement of work, which is not publicly available in this data snippet.

How does the $29.1 million contract value compare to other long-term R&D contracts awarded by NIH for similar toxicological research?

Direct comparison of the $29.1 million contract value to other NIH R&D contracts for similar toxicological research is difficult without access to a comprehensive database of comparable awards. However, a 10-year duration for a definitive contract of this magnitude suggests a significant, ongoing research requirement. The average annual value is approximately $2.9 million. This figure needs to be contextualized by the complexity of the research, the specialized equipment and personnel required, and the regulatory importance of the findings. Long-term contracts in specialized scientific fields often represent substantial investments, and this value appears within a plausible range for a decade-long, high-stakes research endeavor, assuming the scope is appropriately defined and managed.

What are the key performance indicators (KPIs) and deliverables expected from Southern Research Institute under this contract?

The provided data does not specify the key performance indicators (KPIs) or detailed deliverables for this contract. Typically, for a research and development contract of this nature, deliverables would include comprehensive research reports, raw data, analytical results, scientific publications, and potentially presentations of findings. KPIs would likely focus on adherence to research protocols, timely completion of study phases, quality of data generated, and compliance with ethical and regulatory standards. The 'COST PLUS FIXED FEE' (CPFF) contract type suggests that the contractor is reimbursed for allowable costs plus a fixed fee, implying that performance against the defined scope and budget is crucial for successful contract execution and contractor compensation.

What is Southern Research Institute's track record in performing similar government-funded toxicology research contracts?

Southern Research Institute has a significant history of performing research and development, including work related to toxicology and life sciences. While the specific data provided here is for one contract, a broader search of federal procurement databases would reveal their past performance on similar contracts with agencies like NIH, EPA, and others. Their long-standing presence and the award of a 10-year definitive contract suggest a positive track record and established expertise in the required scientific domains. However, a thorough assessment would involve reviewing past performance evaluations, any past performance issues, and the breadth of their experience in government contracting.

What are the potential risks associated with a 10-year definitive contract for R&D, and how are they mitigated?

A 10-year definitive contract for R&D carries several risks. Firstly, the scientific landscape can change rapidly, potentially making the original research objectives or methodologies obsolete. Secondly, cost escalation over such a long period is a concern, especially with Cost Plus Fixed Fee (CPFF) contracts where contractor costs are reimbursed. Thirdly, maintaining contractor performance and quality over a decade requires continuous oversight. Mitigation strategies typically include robust contract management by the agency, periodic reviews of the research plan, incorporating flexibility clauses for adapting to new scientific findings, and clear performance metrics. The government also retains the right to terminate the contract if performance is unsatisfactory. The fixed fee component of CPFF provides some incentive for the contractor to manage costs efficiently.

How does this contract align with the broader mission and strategic goals of the National Toxicology Program (NTP) or NIH?

This contract directly aligns with the mission of the National Toxicology Program (NTP) and the broader goals of the National Institutes of Health (NIH) to protect public health. The NTP's primary objective is to develop, conduct, and evaluate scientific studies that contribute to understanding the health effects of environmental agents. Evaluating the toxicity of substances, particularly following early life exposure, is crucial for identifying potential hazards and informing risk assessments for chemicals and products that people encounter daily. By funding this long-term research, NIH and NTP are investing in generating the scientific evidence needed to make informed public health decisions, develop safety guidelines, and potentially prevent adverse health outcomes.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2000 9TH AVE S, BIRMINGHAM, AL, 35205

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: $92,908,880

Exercised Options: $29,138,880

Current Obligation: $29,138,880

Actual Outlays: $3,845,974

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $87,535

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline