NIH awards $54.3M for toxicology research, with 11,881 days of performance and 3 bids

Contract Overview

Contract Amount: $54,285,845 ($54.3M)

Contractor: Research Triangle Institute

Awarding Agency: Department of Health and Human Services

Start Date: 2014-07-29

End Date: 2027-01-31

Contract Duration: 4,569 days

Daily Burn Rate: $11.9K/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 CHEMISTRY SERVICES FOR THE NATIONAL TOXICOLOGY PROGRAM

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27709

State: North Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $54.3 million to RESEARCH TRIANGLE INSTITUTE for work described as: IGF::OT::IGF CHEMISTRY SERVICES FOR THE NATIONAL TOXICOLOGY PROGRAM Key points: 1. Contract awarded via full and open competition, suggesting a robust bidding process. 2. Performance duration of over 11,000 days indicates a long-term, critical research need. 3. The contract type (Cost Plus Fixed Fee) is common for R&D where costs are uncertain. 4. Research Triangle Institute is the sole awardee, highlighting specialized expertise. 5. The NAICS code points to R&D in physical, engineering, and life sciences. 6. This award represents a significant investment in understanding chemical impacts on health.

Value Assessment

Rating: good

The contract's value of $54.3 million over its extended performance period appears reasonable for specialized toxicology research. Benchmarking against similar long-term R&D contracts is challenging due to unique project scopes. However, the fixed fee component provides some cost control for the government. The cost-plus structure is appropriate given the inherent uncertainties in research and development, allowing for flexibility while aiming for a defined outcome.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. With 3 bids received, the competition level suggests a moderate but not extensive interest, which can still lead to price discovery. The government likely received competitive proposals, but a higher number of bidders could have potentially driven prices lower.

Taxpayer Impact: The full and open competition, despite 3 bidders, provides a reasonable assurance that taxpayer funds were used to secure competitive pricing for essential toxicology research services.

Public Impact

The National Toxicology Program benefits from this contract by advancing its mission to understand the health effects of chemical exposures. Services delivered include critical research and development in toxicology, contributing to public health knowledge. The geographic impact is primarily national, as the research findings inform federal health and environmental policies. Workforce implications include support for scientists, researchers, and technical staff involved in the R&D process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not closely managed.
The long performance duration (4569 days) requires sustained oversight to ensure continued value and adherence to objectives.
Limited number of bidders (3) might indicate potential barriers to entry or a niche market for this specific research.

Positive Signals

Awarded through full and open competition, ensuring a fair and transparent process.
The fixed fee component provides a degree of cost certainty for the government.
The contract supports critical public health research for the National Toxicology Program.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (NAICS 541712). This is a critical area for understanding the impact of various substances on human health. The market for toxicology research is specialized, often involving government agencies and academic institutions due to the long-term, high-cost nature of studies. Comparable spending benchmarks are difficult to establish precisely due to the unique scope of toxicology research, but significant federal investment is typical for such long-term scientific endeavors.

Small Business Impact

This contract does not appear to have a small business set-aside (ss=false, sb=false). Given the specialized nature of toxicology research and the significant contract value, it is likely that larger, established research institutions or companies were best positioned to bid. There is no explicit information on subcontracting plans for small businesses, which could be an area for further inquiry to ensure small business participation.

Oversight & Accountability

Oversight for this contract is likely managed by the National Institutes of Health (NIH) within the Department of Health and Human Services. As a Cost Plus Fixed Fee contract, rigorous financial and programmatic oversight is expected to monitor expenditures and ensure research objectives are met. Transparency is facilitated through federal contract databases, and the Inspector General for HHS would have jurisdiction over any potential fraud, waste, or abuse.

Related Government Programs

National Toxicology Program
Environmental Protection Agency Research
National Institutes of Health Research Grants
Chemical Safety and Hazard Investigation Board

Risk Flags

Long contract duration requires sustained oversight.
Cost Plus Fixed Fee structure necessitates careful monitoring of expenditures.
Limited number of bidders could indicate market concentration or barriers to entry.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $54.3 million to RESEARCH TRIANGLE INSTITUTE. IGF::OT::IGF CHEMISTRY SERVICES FOR THE NATIONAL TOXICOLOGY PROGRAM

Who is the contractor on this award?

The obligated recipient is RESEARCH TRIANGLE 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 $54.3 million.

What is the period of performance?

Start: 2014-07-29. End: 2027-01-31.

What is the historical spending trend for toxicology research services by the NIH?

Analyzing historical spending trends for toxicology research by the NIH requires accessing detailed procurement data over multiple fiscal years. Generally, federal agencies like the NIH allocate substantial budgets to R&D, with toxicology being a critical component due to its public health implications. Trends can be influenced by emerging scientific understanding, new regulatory requirements, and shifts in national health priorities. For instance, increased focus on environmental health or specific chemical exposures could lead to budget increases in this area. Without specific historical data for this contract's predecessors or similar efforts, it's difficult to pinpoint exact trends, but consistent investment in R&D for health and safety is a common pattern.

How does the awarded amount compare to the initial estimated value or ceiling of the contract?

The provided data indicates a total award amount of $54,285,845.34. However, it does not specify an initial estimated value or contract ceiling. For Cost Plus Fixed Fee (CPFF) contracts, there is typically a ceiling that the government will not exceed. The actual amount spent can be less than the ceiling if the contractor can complete the work more efficiently. Without knowing the ceiling or initial estimate, a direct comparison of the awarded amount against expectations is not possible. Further analysis would require accessing the contract details to understand the financial parameters set at the outset of the procurement.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance on this contract?

Key Performance Indicators (KPIs) for a contract like this, focused on R&D in toxicology, would typically revolve around scientific milestones, research quality, adherence to timelines, and budget management. Specific KPIs might include the successful completion of research phases, publication of findings in peer-reviewed journals, development of new methodologies, and timely delivery of reports. For a CPFF contract, performance is also measured against the efficient use of resources to achieve the fixed fee objectives. The government contracting officer would monitor these KPIs throughout the contract's duration, often documented in performance reports and review meetings.

What is the track record of Research Triangle Institute (RTI) in performing similar government R&D contracts?

Research Triangle Institute (RTI) has a well-established track record as a non-profit research institute with extensive experience in government contracting, particularly in health and environmental sciences. They frequently engage in R&D projects for federal agencies like NIH, EPA, and CDC. RTI's portfolio often includes toxicology, epidemiology, and exposure assessment studies. Their history suggests a capacity to manage large, complex research programs. A detailed review of their past performance on similar NIH or toxicology-related contracts would provide further insight into their reliability, quality of work, and ability to meet government requirements.

Are there any specific risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this project?

The primary risk associated with the CPFF contract type for this toxicology R&D project is the potential for cost overruns if the contractor's actual costs exceed projections significantly, although the fixed fee provides a ceiling. While CPFF is suitable for R&D where outcomes are uncertain, it requires robust government oversight to ensure the contractor exercises cost control and efficiency. If costs escalate unexpectedly, the government might end up paying more than initially anticipated, even with the fixed fee. Conversely, the contractor bears some risk if costs are lower than expected, as their profit is fixed.

What is the significance of the National Toxicology Program (NTP) and its role in federal health research?

The National Toxicology Program (NTP) is a federal interagency program, headquartered at the National Institute of Environmental Health Sciences (NIEHS), part of the NIH. Its mission is to provide scientific foundation and information about the toxic or potentially toxic health effects of chemical, physical, and biological agents encountered. NTP conducts research, tests chemicals, and disseminates findings to inform public health policy and regulatory decisions. Contracts like this one are crucial for NTP to carry out its extensive testing and research agenda, contributing vital data on the safety of substances in commerce and the environment.

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: 3040 CORNWALLIS RD, RESEARCH TRIANGLE PARK, NC, 27709

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: $84,132,026

Exercised Options: $54,361,669

Current Obligation: $54,285,845

Actual Outlays: $19,151,413

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $383,944

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline