NIEHS Awards $27.1M for Pathology Support to Integrated Laboratory Systems, LLC
Contract Overview
Contract Amount: $27,139,989 ($27.1M)
Contractor: Integrated Laboratory Systems, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2015-07-17
End Date: 2026-07-17
Contract Duration: 4,018 days
Daily Burn Rate: $6.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::OT::IGF PATHOLOGY PEER REVIEW AND PATHOLOGY SUPPORT FOR THE DNTP AND DIR AT NIEHS INTEGRATED LOGISTICS SYSTEMS (ILS); CONTRACT: ; FY15 FUNDING TO FUND THE BASE CONTRACT AWARD; CAN 8010787
Place of Performance
Location: DURHAM, DURHAM County, NORTH CAROLINA, 27709
Plain-Language Summary
Department of Health and Human Services obligated $27.1 million to INTEGRATED LABORATORY SYSTEMS, LLC for work described as: IGF::OT::IGF PATHOLOGY PEER REVIEW AND PATHOLOGY SUPPORT FOR THE DNTP AND DIR AT NIEHS INTEGRATED LOGISTICS SYSTEMS (ILS); CONTRACT: ; FY15 FUNDING TO FUND THE BASE CONTRACT AWARD; CAN 8010787 Key points: 1. Contract awarded to Integrated Laboratory Systems, LLC for pathology peer review and support. 2. Significant funding of $27.1M allocated for FY15 to cover the base contract. 3. The contract spans from July 2015 to July 2026, indicating a long-term need. 4. Research and Development in Physical, Engineering, and Life Sciences is the primary sector. 5. Competition was full and open after exclusion of sources, suggesting a structured procurement process.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar R&D support contracts is difficult without more detailed scope information.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The procurement utilized 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process but with specific pre-qualification criteria. This method aims for fair competition while ensuring specialized capabilities.
Taxpayer Impact: Taxpayer funds are being used for critical research support, with the expectation of valuable scientific outcomes. The cost-plus-fixed-fee structure requires careful monitoring to ensure value for money.
Public Impact
Supports critical research at the National Institutes of Health (NIH) in pathology. Long-term contract (11 years) suggests sustained need for these specialized services. Funding allocated in FY15 indicates a historical commitment to this research area. The contract supports the Division of the National Toxicology Program (DNTP) and other divisions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Long contract duration increases exposure to potential scope creep or changing research needs.
- Exclusion of sources in competition may limit broader market engagement.
Positive Signals
- Full and open competition after exclusion of sources ensures a structured procurement.
- Contract supports vital NIH research, potentially leading to significant public health advancements.
- Long-term award provides stability for critical research support services.
Sector Analysis
This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for scientific advancement, with benchmarks varying widely based on the specific research focus and duration.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.
Oversight & Accountability
The contract is managed by the National Institutes of Health (NIH), a component of the Department of Health and Human Services. Oversight would typically involve program managers ensuring adherence to scope, budget, and performance standards.
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.
- Long contract duration (11 years).
- Competition method involved exclusion of sources.
- Lack of transparency on small business participation.
- Potential for cost overruns without stringent oversight.
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 $27.1 million to INTEGRATED LABORATORY SYSTEMS, LLC. IGF::OT::IGF PATHOLOGY PEER REVIEW AND PATHOLOGY SUPPORT FOR THE DNTP AND DIR AT NIEHS INTEGRATED LOGISTICS SYSTEMS (ILS); CONTRACT: ; FY15 FUNDING TO FUND THE BASE CONTRACT AWARD; CAN 8010787
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 $27.1 million.
What is the period of performance?
Start: 2015-07-17. End: 2026-07-17.
What is the specific value proposition of Integrated Laboratory Systems, LLC's services that justified this long-term, significant award?
The value proposition likely centers on specialized expertise in pathology peer review and support for the DNTP and DIR at NIEHS. This includes ensuring the quality and integrity of toxicological research data, which is critical for public health assessments. The long duration suggests a proven track record and unique capabilities that are difficult to replicate, justifying the investment.
What are the primary risks associated with the Cost Plus Fixed Fee contract structure in this R&D context?
The primary risks with a Cost Plus Fixed Fee (CPFF) structure in R&D are potential cost overruns and reduced incentive for the contractor to control expenses, as costs are reimbursed plus a fixed fee. For NIEHS, this means diligent oversight is required to ensure all costs are reasonable, allocable, and allowable, and that the fixed fee adequately compensates the contractor for their effort without being excessive.
How effectively does this contract contribute to the overall mission of NIEHS and public health research?
This contract is likely highly effective in supporting NIEHS's mission by providing essential pathology expertise for the DNTP's toxicological studies. High-quality peer review and support are fundamental to generating reliable research findings that inform public health policy and safety regulations. The sustained funding and long duration indicate a critical and ongoing need for these services.
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: N01ES2014009
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Inotiv, Inc
Address: 601 KEYSTONE PARK DR STE 200, MORRISVILLE, NC, 27560
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: $30,309,237
Exercised Options: $28,371,776
Current Obligation: $27,139,989
Actual Outlays: $10,343,291
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-07-17
Current End Date: 2026-07-17
Potential End Date: 2026-07-17 00:00:00
Last Modified: 2025-07-18
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