NIH Spends $43.3M on Toxicology Studies with Battelle Memorial Institute via Full and Open Competition

Contract Overview

Contract Amount: $43,335,211 ($43.3M)

Contractor: Battelle Memorial Institute

Awarding Agency: Department of Health and Human Services

Start Date: 2005-02-03

End Date: 2015-05-08

Contract Duration: 3,746 days

Daily Burn Rate: $11.6K/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 THE TOXICOLOGIC POTENTIAL OF SELECTED TEST AGENTS FOR THE NTP

Place of Performance

Location: COLUMBUS, FRANKLIN County, OHIO, 43201

State: Ohio Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $43.3 million to BATTELLE MEMORIAL INSTITUTE for work described as: STUDIES TO EVALUATE THE TOXICOLOGIC POTENTIAL OF SELECTED TEST AGENTS FOR THE NTP Key points: 1. Significant investment in toxicological research to understand potential health risks of various agents. 2. Battelle Memorial Institute secured a large contract, indicating strong capabilities in specialized scientific research. 3. The contract duration of nearly 10 years suggests a long-term need for these studies. 4. Full and open competition was utilized, implying a robust process for selecting the contractor.

Value Assessment

Rating: fair

The contract value of $43.3 million over nearly 10 years for specialized toxicology studies appears reasonable given the complexity and duration. Benchmarking against similar long-term R&D contracts is difficult without more specific data on the scope of 'selected test agents'.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition suggests a fair process to solicit bids from multiple qualified entities. This method generally promotes competitive pricing and ensures the government receives the best value, though the specific price discovery impact is not detailed.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most cost-effective research services for critical public health studies.

Public Impact

Ensures public health by identifying potential toxicological risks of various substances. Supports scientific advancement in understanding chemical safety and regulatory policy. Provides valuable data for federal agencies involved in health and environmental protection.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific detail on 'selected test agents' makes it hard to assess the precise value and necessity.
Long contract duration could lead to cost overruns if not managed tightly.
Potential for scope creep in long-term research projects.

Positive Signals

Utilized full and open competition, promoting fairness and potential cost savings.
Contract awarded to a reputable research institution (Battelle Memorial Institute).
Addresses critical public health research needs.

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences (NAICS 541710). Spending in this sector is crucial for innovation and addressing complex societal challenges, including public health and safety.

Small Business Impact

The contract was awarded to Battelle Memorial Institute, a large research organization. There is no indication of small business participation in this specific award, suggesting opportunities may lie in subcontracting roles or other contract vehicles.

Oversight & Accountability

The contract was awarded by the Department of Health and Human Services (National Institutes of Health), a major federal agency with established oversight mechanisms. The long duration necessitates consistent monitoring to ensure adherence to scope, budget, and quality standards.

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 increases risk of cost escalation and scope creep.
Lack of specific details on 'test agents' hinders independent value assessment.
CPFF contract type requires diligent government oversight of costs.
Potential for research findings to become outdated over the contract's lifespan.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $43.3 million to BATTELLE MEMORIAL INSTITUTE. STUDIES TO EVALUATE THE TOXICOLOGIC POTENTIAL OF SELECTED TEST AGENTS FOR THE NTP

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 $43.3 million.

What is the period of performance?

Start: 2005-02-03. End: 2015-05-08.

What specific 'selected test agents' were evaluated, and how does their potential impact justify the $43.3M investment?

The specific 'selected test agents' are not detailed in the provided data. However, the National Toxicology Program (NTP) typically investigates agents with potential public health relevance, such as environmental contaminants, industrial chemicals, or substances found in consumer products. The significant investment suggests these agents were identified as posing a notable risk or uncertainty, necessitating comprehensive toxicological evaluation to inform public health policy and regulatory decisions.

Given the 10-year duration, what mechanisms are in place to mitigate risks associated with evolving scientific understanding or changing research priorities?

Long-term contracts often include provisions for periodic reviews, phased deliverables, and modification clauses to adapt to new information or shifting priorities. The NTP likely employs a robust program management structure to oversee this contract, allowing for adjustments based on emerging scientific findings or changes in the perceived risk landscape of the test agents. Regular communication and performance reviews are critical for managing such long-duration research efforts effectively.

How does the cost-plus-fixed-fee (CPFF) contract type ensure cost-effectiveness for these complex R&D services?

The Cost Plus Fixed Fee (CPFF) structure allows the government to cover the actual costs incurred by the contractor while providing a predetermined fixed fee for profit. For complex R&D where exact costs are difficult to predict, CPFF can be appropriate. However, it places a greater burden on the government to meticulously audit costs to ensure they are reasonable and allocable. The fixed fee incentivizes the contractor to manage costs efficiently to maximize their profit within the agreed-upon fee.

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

Financial Breakdown

Contract Ceiling: $98,169,530

Exercised Options: $68,710,473

Current Obligation: $43,335,211

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline