NIH Spends $32.3M on Pathology Support for NTP QA via Full and Open Competition

Contract Overview

Contract Amount: $32,311,460 ($32.3M)

Contractor: Experimental Pathology Laboratories, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2004-09-30

End Date: 2015-07-30

Contract Duration: 3,955 days

Daily Burn Rate: $8.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: PATHOLOGY SUPPORT FOR THE NTP QA

Place of Performance

Location: STERLING, LOUDOUN County, VIRGINIA, 20166

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $32.3 million to EXPERIMENTAL PATHOLOGY LABORATORIES, INC. for work described as: PATHOLOGY SUPPORT FOR THE NTP QA Key points: 1. Contract awarded to EXPERIMENTAL PATHOLOGY LABORATORIES, INC. for pathology support services. 2. Significant spending over a decade indicates a long-term need for these specialized services. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The use of a Cost Plus Fixed Fee (CPFF) contract type warrants scrutiny for cost control.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee structure can lead to cost overruns if not managed carefully. Benchmarking against similar CPFF contracts for R&D support is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Awarded under full and open competition, this method typically fosters price discovery and competitive pricing. However, the CPFF structure may limit the direct impact of competition on final costs.

Taxpayer Impact: Taxpayer funds are utilized for essential research support services. The CPFF structure necessitates robust oversight to ensure cost efficiency and prevent unnecessary expenditures.

Public Impact

Supports the National Toxicology Program's Quality Assurance efforts, crucial for public health research. Long contract duration (nearly 11 years) suggests sustained demand for these specialized pathology services. The award to a single entity, EXPERIMENTAL PATHOLOGY LABORATORIES, INC., highlights potential market concentration for such niche services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs.
Lack of specific performance metrics makes it hard to assess value for money.
Long contract duration may indicate a lack of competitive re-evaluation.

Positive Signals

Awarded through full and open competition.
Supports critical public health research (NTP QA).

Sector Analysis

This contract falls within the Research and Development sector, specifically R&D in Physical, Engineering, and Life Sciences. Spending benchmarks for pathology support services can vary widely based on specialization and contract scope.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to determine small business participation.

Oversight & Accountability

The use of a Cost Plus Fixed Fee contract necessitates strong government oversight to monitor costs, ensure compliance with contract terms, and verify the necessity of expenditures. The long duration of the contract also calls for periodic reviews of its continued necessity and value.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Long contract duration (nearly 11 years).
Lack of detailed cost breakdown for analysis.
Potential for cost creep due to CPFF structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $32.3 million to EXPERIMENTAL PATHOLOGY LABORATORIES, INC.. PATHOLOGY SUPPORT FOR THE NTP QA

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 $32.3 million.

What is the period of performance?

Start: 2004-09-30. End: 2015-07-30.

What specific services are included under 'Pathology Support for the NTP QA' and how do they contribute to the overall research goals?

Pathology support for the National Toxicology Program (NTP) Quality Assurance (QA) likely involves a range of services such as histological analysis, tissue processing, slide preparation, and potentially specialized diagnostic testing. These services are critical for ensuring the accuracy, reliability, and integrity of toxicological studies conducted by the NTP, which informs public health policy and regulatory decisions regarding chemical safety.

How effectively did the full and open competition process ensure competitive pricing for a Cost Plus Fixed Fee contract?

While full and open competition is designed to foster price discovery, its effectiveness in controlling costs for a Cost Plus Fixed Fee (CPFF) contract can be limited. CPFF contracts reimburse costs plus a fixed fee, meaning the contractor has less incentive to minimize costs compared to fixed-price contracts. The competition likely focused on the contractor's technical approach, qualifications, and the proposed fixed fee, rather than driving down direct costs.

What is the long-term value proposition of this contract, given its duration and CPFF structure?

The long-term value proposition is questionable without more insight into performance and cost efficiency. The nearly 11-year duration suggests a sustained need, but the CPFF structure inherently carries higher risk for cost overruns. Evaluating the value requires assessing whether the quality and timeliness of the pathology support consistently met NTP's needs and if the total costs were reasonable compared to alternative service providers or internal capabilities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 22866 SHAW RD, STERLING, VA, 20166

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $90,576,094

Exercised Options: $60,555,964

Current Obligation: $32,311,460

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline