NIH Spends $54.6M on Toxicological Studies with Battelle Memorial Institute

Contract Overview

Contract Amount: $54,566,765 ($54.6M)

Contractor: Battelle Memorial Institute

Awarding Agency: Department of Health and Human Services

Start Date: 2004-11-30

End Date: 2015-12-17

Contract Duration: 4,034 days

Daily Burn Rate: $13.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: STUDIES TO EVALUATE TOXICOLOGIC AND CARCINOGENIC POTENTIAL OF TEST AGENTS

Place of Performance

Location: COLUMBUS, FRANKLIN County, OHIO, 43260

State: Ohio Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $54.6 million to BATTELLE MEMORIAL INSTITUTE for work described as: STUDIES TO EVALUATE TOXICOLOGIC AND CARCINOGENIC POTENTIAL OF TEST AGENTS Key points: 1. Significant investment in toxicological research over a decade. 2. Battelle Memorial Institute secured the contract through full and open competition. 3. Potential long-term health insights justify the substantial expenditure. 4. Research and Development sector spending benchmark is relevant for context.

Value Assessment

Rating: good

The $54.6 million cost-plus-fixed-fee contract represents a significant investment over 11 years. Benchmarking against similar long-term R&D contracts is challenging due to the specialized nature of toxicological studies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded via full and open competition, suggesting a robust price discovery process. The cost-plus-fixed-fee structure incentivizes efficient research execution while managing contractor profit.

Taxpayer Impact: Taxpayer funds are supporting critical health research, with the potential for significant public health benefits outweighing the direct cost.

Public Impact

Advances understanding of potential health risks from various agents. Informs regulatory decisions and public health policies. Supports the development of safer products and environments. Contributes to scientific knowledge in toxicology and carcinogenicity. Potential for long-term cost savings through disease prevention.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration may increase cost escalation risk.
Complexity of toxicological research can lead to unforeseen challenges.

Positive Signals

Full and open competition promotes value for money.
Focus on critical health research aligns with public interest.
Established contractor with relevant expertise.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on life sciences. Spending benchmarks for similar long-term, specialized R&D projects are difficult to establish precisely due to unique scientific objectives and methodologies.

Small Business Impact

The data does not indicate any specific provisions or awards made to small businesses under this contract. Further investigation would be needed to determine if small businesses participated as subcontractors.

Oversight & Accountability

The contract was awarded by the National Institutes of Health, a reputable agency within HHS, suggesting established oversight mechanisms. The long duration necessitates ongoing monitoring to ensure progress and fiscal responsibility.

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

Long contract duration (11 years) increases risk of cost overruns.
Complexity of toxicological research may lead to unforeseen scientific challenges.
Potential for scope creep if new agents or research questions emerge.
Reliance on a single contractor for a decade warrants close monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $54.6 million to BATTELLE MEMORIAL INSTITUTE. STUDIES TO EVALUATE TOXICOLOGIC AND CARCINOGENIC POTENTIAL OF TEST AGENTS

Who is the contractor on this award?

The obligated recipient is BATTELLE MEMORIAL 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 $54.6 million.

What is the period of performance?

Start: 2004-11-30. End: 2015-12-17.

What specific toxicological endpoints were prioritized in the study design, and how do they align with current public health concerns?

The study aimed to evaluate the toxicologic and carcinogenic potential of test agents. Specific endpoints would likely include acute toxicity, chronic toxicity, mutagenicity, and carcinogenicity assays. Prioritization would depend on the agents tested and their relevance to known or suspected human exposures, informing regulatory agencies and guiding risk assessments for public health.

How was the fixed fee determined, and what mechanisms were in place to ensure the fee remained reasonable given the project's duration and complexity?

The fixed fee in a Cost Plus Fixed Fee (CPFF) contract is typically negotiated at the outset based on estimated costs, complexity, and risk. Mechanisms to ensure reasonableness over a long duration might include periodic reviews, performance incentives, or adjustments for significant scope changes, though the base fee itself is fixed.

What were the key deliverables and milestones, and how was contractor performance measured against them throughout the contract's lifecycle?

Key deliverables likely included comprehensive study reports, data analysis, and potentially interim progress reports. Performance would be measured against adherence to study protocols, timely completion of milestones, quality of data generated, and compliance with ethical and regulatory standards for animal research and chemical safety.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 505 KING AVE, COLUMBUS, OH, 43201

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $138,817,352

Exercised Options: $134,910,561

Current Obligation: $54,566,765

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline