NIEHS Awards $34M Pathology Support Contract to Experimental Pathology Laboratories, Inc
Contract Overview
Contract Amount: $33,963,233 ($34.0M)
Contractor: Experimental Pathology Laboratories, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2015-07-23
End Date: 2026-07-27
Contract Duration: 4,022 days
Daily Burn Rate: $8.4K/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" EXPERIMENTAL PATHOLOGY LABORATORIES (EPL)
Place of Performance
Location: DURHAM, DURHAM County, NORTH CAROLINA, 27709
Plain-Language Summary
Department of Health and Human Services obligated $34.0 million to EXPERIMENTAL PATHOLOGY LABORATORIES, INC. for work described as: IGF::OT::IGF "PATHOLOGY PEER REVIEW AND PATHOLOGY SUPPORT FOR THE DNTP AND DIR AT NIEHS" EXPERIMENTAL PATHOLOGY LABORATORIES (EPL) Key points: 1. Contract awarded via full and open competition after exclusion of sources. 2. Significant value of $33.96M for research and development services. 3. Potential for cost overruns given the Cost Plus Fixed Fee contract type. 4. Services support the DNTP and DIR at NIEHS, focusing on life sciences R&D.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type carries inherent risk for cost overruns. Without specific benchmarks for similar pathology support contracts, assessing the pricing efficiency is challenging. The fixed fee component provides some cost control, but the variable cost reimbursement requires careful monitoring.
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,' suggesting a competitive process but with specific criteria that may have limited the pool of eligible bidders. This method aims for fair pricing through competition while ensuring specialized capabilities.
Taxpayer Impact: Taxpayer funds are utilized for critical research support. While competition is intended to ensure value, the CPFF structure necessitates robust oversight to prevent unnecessary costs.
Public Impact
Supports vital research at the National Institutes of Health (NIH) in toxicology and environmental health. Ensures continuity of specialized pathology services for ongoing scientific studies. The contract's duration extends to 2026, indicating a long-term need for these services. Funding is allocated through the National Institute of Environmental Health Sciences (NIEHS).
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type increases risk of cost overruns.
- Exclusion of sources in competition may limit broader market price discovery.
- Contract duration is long (over 10 years), increasing exposure to changing needs and costs.
Positive Signals
- Awarded through a competitive process.
- Supports critical scientific research at a leading health agency.
- Contract has a defined end date, providing a natural review point.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology) sector. Spending in this area is crucial for scientific advancement, but often involves complex, long-term projects where cost predictability can be challenging.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The awardee, Experimental Pathology Laboratories, Inc., does not appear to be a small business based on its name and the contract's nature.
Oversight & Accountability
The Cost Plus Fixed Fee structure necessitates strong oversight from NIEHS to monitor costs, ensure performance, and prevent potential waste or fraud. Regular reviews and audits would be essential to ensure accountability and value for taxpayer money.
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.
- Potential for limited competition due to source exclusion.
- Lack of clear 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 $34.0 million to EXPERIMENTAL PATHOLOGY LABORATORIES, INC.. IGF::OT::IGF "PATHOLOGY PEER REVIEW AND PATHOLOGY SUPPORT FOR THE DNTP AND DIR AT NIEHS" EXPERIMENTAL PATHOLOGY LABORATORIES (EPL)
Who is the contractor on this award?
The obligated recipient is EXPERIMENTAL PATHOLOGY LABORATORIES, INC..
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 $34.0 million.
What is the period of performance?
Start: 2015-07-23. End: 2026-07-27.
How does the pricing structure of this CPFF contract compare to similar pathology support services procured by other federal agencies?
Assessing the pricing of this Cost Plus Fixed Fee (CPFF) contract requires detailed cost breakdowns and comparison with similar services. CPFF contracts can be efficient when scope is uncertain, but they shift cost risk to the government. Benchmarking against other agencies' pathology support contracts, considering factors like service complexity, duration, and specific deliverables, is crucial for determining if the $33.96M award represents fair value and competitive pricing.
What specific criteria led to the exclusion of other potential sources in this 'full and open competition after exclusion of sources' award?
The 'full and open competition after exclusion of sources' designation implies that while the competition was intended to be open, specific requirements or justifications led to the exclusion of certain potential bidders. This could be due to highly specialized technical needs, unique facility requirements, or prior performance history. Understanding these exclusion criteria is vital for assessing whether the competition was truly robust and if the government secured the best possible value or if it inadvertently limited competitive pressure.
What mechanisms are in place to ensure the effectiveness and scientific integrity of the pathology support services provided under this contract?
Effectiveness and scientific integrity are typically ensured through rigorous performance standards, quality assurance plans, and regular technical reviews outlined in the contract. For pathology support, this would involve adherence to established protocols, peer review processes, and potentially independent scientific validation of results. The NIEHS contracting officers and technical monitors play a crucial role in overseeing these aspects, ensuring the services meet the high scientific standards required for NIH research.
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: NIHES20140009
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 45600 TERMINAL DR, STERLING, VA, 20166
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $49,320,690
Exercised Options: $33,963,233
Current Obligation: $33,963,233
Actual Outlays: $8,556,311
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-07-23
Current End Date: 2026-07-27
Potential End Date: 2026-07-27 00:00:00
Last Modified: 2025-07-24
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