WHAT IS THIS?

This is a long-term contract worth about $4.8 billion paid to Leidos Biomedical Research Inc., a private company, to operate government-owned research and development facilities on behalf of the Department of Health and Human Services (HHS). The company manages the day-to-day running of these labs and research sites so the government does not have to do it directly.

WHY WAS THIS FUNDED?

The federal government uses a model called GOCO (Government-Owned, Contractor-Operated) facilities, where the government owns the buildings and equipment but hires a private company to run them. This approach is authorized under federal law and is intended to bring private-sector efficiency to government research operations.

WHAT PUBLIC PROBLEM IS IT TRYING TO SOLVE?

The U.S. government funds large-scale biomedical research to find treatments and cures for diseases that affect millions of Americans. Running complex research laboratories requires specialized staff and management, and this contract ensures those facilities stay operational and productive.

WHO BENEFITS?

Scientists, researchers, and support staff working at these government-owned labs benefit by having a stable employer managing their work environment. More broadly, the American public benefits from the medical research and health discoveries produced at these facilities.

WHAT ARE THE RISKS?

Because this is a very large, long-running contract with a single company, there is a risk of limited competition and reduced pressure to keep costs low. Oversight is critical to make sure the contractor is managing taxpayer money responsibly and delivering quality results over such a long period.

WHAT HAPPENS IF FUNDING IS REMOVED?

If this contract were cancelled, the government-owned research facilities it supports could face serious disruptions to their operations, potentially halting ongoing medical research projects. The government would need to either find a new contractor quickly or take over direct management, both of which would take significant time and resources.

ARGUMENTS FOR

• •The GOCO model allows the government to benefit from private-sector expertise and management skills without giving up ownership of critical research infrastructure.
• •Keeping these facilities running supports thousands of jobs for scientists and researchers, contributing to American leadership in biomedical science.
• •Continued operation of these labs may lead to medical breakthroughs that improve public health and reduce long-term healthcare costs for all Americans.

ARGUMENTS AGAINST

• •A single $4.8 billion contract awarded to one company over roughly 16 years raises concerns about whether taxpayers are getting the most competitive price for these services.
• •The long duration and large scale of this contract make it harder for government overseers to catch waste, fraud, or inefficiency before significant money is spent.
• •Some argue the government should manage its own research facilities directly rather than paying a private company a large fee to do so, which adds an extra layer of cost.