HHS awards $32.3M for Pathology Support to Integrated Laboratory Systems, LLC over 10 years
Contract Overview
Contract Amount: $32,346,267 ($32.3M)
Contractor: Integrated Laboratory Systems, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2005-07-18
End Date: 2015-07-17
Contract Duration: 3,651 days
Daily Burn Rate: $8.9K/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 NIEHS
Place of Performance
Location: DURHAM, DURHAM County, NORTH CAROLINA, 27709
Plain-Language Summary
Department of Health and Human Services obligated $32.3 million to INTEGRATED LABORATORY SYSTEMS, LLC for work described as: PATHOLOGY SUPPORT FOR THE NIEHS Key points: 1. Contract awarded to Integrated Laboratory Systems, LLC for pathology support services. 2. The contract spans 10 years, indicating a long-term need for these services. 3. The award value of $32.3M suggests a significant investment in research and development support. 4. Services fall under NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences).
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The total award value over 10 years averages around $3.2M annually, which needs to be benchmarked against similar R&D support contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing mechanisms and discovery of fair and reasonable pricing are not detailed here.
Taxpayer Impact: Taxpayer funds are utilized for R&D support, with the value and efficiency of this spending being a key consideration.
Public Impact
Supports critical research and development activities at the National Institutes of Health (NIH). Ensures continuity of essential pathology services for scientific advancement. Long-term contract provides stability for research operations and service providers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type may incentivize higher costs.
- Long duration could lead to scope creep or outdated services if not actively managed.
- Lack of specific performance metrics makes it difficult to assess value for money.
Positive Signals
- Full and open competition suggests potential for competitive pricing.
- Long-term award indicates a sustained and important need for the services.
- Award to a single entity implies specialized capabilities.
Sector Analysis
This contract falls within the Research and Development sector, specifically supporting life sciences. Spending benchmarks for pathology support services within federal R&D contracts can vary widely based on scope and duration.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, small businesses were likely not primary awardees, though they may have participated as subcontractors.
Oversight & Accountability
Oversight would typically involve contract officers and program managers ensuring adherence to contract terms, quality of service, and cost control. The long duration necessitates robust oversight to maintain 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
- Potential for cost overruns due to CPFF structure.
- Risk of service obsolescence over the 10-year period.
- Lack of specific performance metrics hinders objective evaluation.
- Limited visibility into subcontractor performance if applicable.
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 $32.3 million to INTEGRATED LABORATORY SYSTEMS, LLC. PATHOLOGY SUPPORT FOR THE NIEHS
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 $32.3 million.
What is the period of performance?
Start: 2005-07-18. End: 2015-07-17.
What specific pathology services are included, and how do they align with current NIH research priorities?
The provided data does not detail the specific pathology services rendered. A thorough review would require examining the contract's Statement of Work (SOW) to understand the scope, deliverables, and alignment with NIH's evolving research objectives. This ensures taxpayer funds are supporting the most critical scientific endeavors.
How was the fixed fee determined, and what mechanisms are in place to control costs under this CPFF contract?
The determination of the fixed fee for a Cost Plus Fixed Fee (CPFF) contract typically involves negotiation based on anticipated costs, complexity, and risk. Robust oversight mechanisms, including regular audits and performance reviews, are crucial to ensure the contractor remains efficient and costs are controlled throughout the contract's lifecycle.
What is the process for evaluating the effectiveness and value for money of these pathology support services over the 10-year period?
Evaluating effectiveness and value over a decade requires a structured approach. This includes establishing clear Key Performance Indicators (KPIs) from the outset, conducting periodic performance reviews, and potentially incorporating mechanisms for contract modification or re-competition if services become outdated or less cost-effective compared to market alternatives.
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: 1 PARK PL STE 200, DURHAM, NC, 27712
Business Categories: Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business
Financial Breakdown
Contract Ceiling: $43,405,874
Exercised Options: $43,405,874
Current Obligation: $32,346,267
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2005-07-18
Current End Date: 2015-07-17
Potential End Date: 2015-07-17 00:00:00
Last Modified: 2019-04-09
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