NIH awards $51M+ for clinical research support, spanning a decade of R&D services

Contract Overview

Contract Amount: $51,126,521 ($51.1M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2005-09-30

End Date: 2015-09-29

Contract Duration: 3,651 days

Daily Burn Rate: $14.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: CLINICAL RESEARCH SUPPORT SERVICES

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27713

State: North Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $51.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: CLINICAL RESEARCH SUPPORT SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a robust market. 2. Long contract duration (10 years) may indicate stable, ongoing needs. 3. Cost-plus fixed fee contract type can incentivize cost control but requires careful oversight. 4. Services align with NIH's mission to advance health and biomedical research. 5. Contractor has a significant federal footprint, indicating experience with large-scale projects. 6. Geographic concentration in North Carolina for service delivery.

Value Assessment

Rating: fair

The total award of over $51 million across a decade suggests a substantial investment in clinical research support. Benchmarking this specific contract's value is challenging without more granular data on the services provided and their specific outcomes. However, the duration and scale indicate a significant, long-term need. The cost-plus fixed fee structure warrants scrutiny to ensure cost efficiencies were maintained throughout the contract's life.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. This approach generally fosters a competitive environment, potentially leading to better pricing and service offerings. The presence of three bidders suggests a healthy level of interest and capability within the market for these specialized research support services.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for competitive pricing and ensures that the government explores a wide range of qualified contractors.

Public Impact

Supports critical clinical research initiatives funded by the National Institutes of Health. Facilitates the advancement of medical knowledge and potential new treatments. Services are primarily delivered in North Carolina, potentially impacting the local research workforce. Benefits patients and the public through the progression of health research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (10 years) could lead to potential complacency or reduced agility if not actively managed.
Cost-plus fixed fee contracts require diligent oversight to prevent cost overruns and ensure value.
Concentration of services in a single state may limit broader geographic reach or impact.
Lack of specific performance metrics makes it difficult to assess the true impact and efficiency of the services.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Contractor (General Dynamics Information Technology) is a large, established entity with significant federal experience.
Services directly support the critical mission of the NIH in advancing health research.
Long-term nature of the contract suggests a consistent and reliable need for these services.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on clinical research support services. The market for such services is substantial, driven by government agencies like NIH and private pharmaceutical companies. General Dynamics Information Technology is a major player in government IT and professional services, often competing for large-scale contracts in areas like R&D support, healthcare IT, and defense. Comparable spending benchmarks would typically involve analyzing other large federal contracts for similar research support or scientific services.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officers and program managers within the National Institutes of Health (NIH). As a cost-plus fixed fee contract, rigorous financial oversight and performance monitoring are crucial to ensure that costs are reasonable and that the contractor meets performance expectations. Transparency would be enhanced through regular reporting requirements and potential audits by the HHS Office of Inspector General.

Related Government Programs

NIH Research Grants
Clinical Trials Management
Biomedical Research Support
Federal Health IT Services
Scientific and Technical Services

Risk Flags

Long contract duration
Cost-plus contract type
Limited performance data visibility

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $51.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. CLINICAL RESEARCH SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, 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 $51.1 million.

What is the period of performance?

Start: 2005-09-30. End: 2015-09-29.

What specific clinical research support services were provided under this contract?

The provided data indicates the contract was for 'CLINICAL RESEARCH SUPPORT SERVICES' under NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences). While the specific deliverables are not detailed, such services typically encompass a wide range of activities essential for conducting clinical trials and research. This can include patient recruitment and screening, data collection and management, laboratory analysis, statistical analysis, regulatory compliance support, and project management. The duration of the contract (over 10 years) and its significant value ($51M+) suggest that these services were comprehensive and sustained, likely supporting multiple research projects or a large-scale, long-term research program within the NIH.

How does the cost-plus fixed fee (CPFF) contract type influence value for money compared to other contract types?

The Cost-Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined or when there is significant uncertainty in the cost of performance, such as in research and development. Under CPFF, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This structure can incentivize the contractor to control costs, as the fee remains constant regardless of the final cost. However, it also places a significant burden on the government to meticulously monitor and audit costs to ensure they are reasonable and allocable. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility but potentially less cost certainty for the government. Compared to Cost-Plus-Incentive-Fee (CPIF), the profit is fixed, removing the direct incentive for cost reduction tied to performance outcomes, though the fixed fee itself can be negotiated based on anticipated effort and risk.

What is the track record of General Dynamics Information Technology (GDIT) with large federal R&D contracts?

General Dynamics Information Technology (GDIT), a subsidiary of General Dynamics, has a substantial track record of performing large-scale IT and professional services contracts for various U.S. federal agencies, including the Department of Health and Human Services (HHS), of which NIH is a part. GDIT frequently wins and executes complex contracts in areas such as cloud computing, cybersecurity, data analytics, mission support, and scientific research services. Their experience often involves managing significant budgets, large teams of personnel, and complex technical requirements. While specific details of past R&D support contracts would require deeper analysis, GDIT's overall profile suggests they are a capable and experienced large federal contractor well-positioned to handle contracts of this magnitude and nature.

What are the potential risks associated with a 10-year contract duration for clinical research support?

A 10-year contract duration for clinical research support, while indicating stability, carries several potential risks. Firstly, technology and research methodologies can evolve rapidly; a decade-long contract might not remain aligned with the latest advancements, potentially leading to the use of outdated processes or systems if not managed proactively through contract modifications or reviews. Secondly, long-term contracts can sometimes lead to contractor complacency, where the incentive to innovate or maintain peak performance may diminish over time, especially if competition is limited during the contract's life. Thirdly, the government's needs may change significantly over a decade, requiring substantial contract modifications that could alter the original scope and pricing. Finally, institutional knowledge and key personnel turnover within the contractor organization over such a long period can impact service continuity and quality if not managed effectively.

How does the geographic concentration in North Carolina impact the delivery and oversight of these services?

The concentration of service delivery in North Carolina means that the primary operational footprint for this contract is localized. This can offer benefits such as easier management oversight for on-site government personnel, potential for building strong local relationships with research institutions, and a focused impact on the North Carolina research ecosystem and workforce. However, it also presents potential risks. If the NIH requires broader geographic reach or access to diverse patient populations across different regions, a single-state concentration might be a limitation. Oversight might also become more challenging if key government personnel are not co-located or if remote oversight mechanisms are not robust. Furthermore, reliance on a single geographic area could expose the contract to localized risks, such as natural disasters or regional economic downturns affecting the labor pool.

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: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sterling Parent Inc. (UEI: 968838909)

Address: 4300 FAIR LAKES CT, FAIRFAX, VA, 22033

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $80,646,943

Exercised Options: $52,318,089

Current Obligation: $51,126,521

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline