Contractors, Brace Yourselves: NCI’s Acquisition Power Just Moved to ARPA-H
If you’ve got a stake in health R&D contracts—especially with the National Cancer Institute—there’s a seismic shift you need to know about. As part of a sweeping reorganization at the Department of Health and Human Services (HHS), all acquisition roles at NCI are being eliminated effective June 2, 2025. Contracting responsibilities are being handed over to ARPA-H, the agency known for agile, DARPA-style health innovation. It’s all thanks to Executive Order 14210. And yes, this changes everything about how contracts will be managed going forward.
Let’s break down what’s happening, what it means for you, and how to ride the wave without getting buried by red tape—or worse, delayed payments.
Here’s What’s Going On
Executive Order 14210, signed by President Trump on February 11, 2025, kicked off a government-wide “Workforce Optimization Initiative.” Translation: deep cuts and centralization of functions deemed non-essential. HHS followed suit with a plan to downsize 25% of its workforce, and that includes a full Reduction in Force (RIF) at the NCI’s acquisitions office.
Come June, NCI will no longer have in-house contracting authority. All acquisition responsibilities—including oversight of existing contracts—are moving to the Advanced Research Projects Agency for Health (ARPA-H). Current contractors have been told to pause invoicing and deliverables until the transfer is complete.
This isn’t just bureaucratic shuffling—it’s a fundamental change in how cancer research contracts are awarded and managed.
Why This Matters to Contractors
If your business touches cancer research, clinical trials, or anything under the NCI banner, this handoff is more than an address change.
New Contacts, New Rules: You’ll be working with ARPA-H contracting officers who operate under a completely different playbook—often outside the FAR, using Other Transactions (OTs) and milestone-driven models.
Delays and Disruption: Institutional knowledge is walking out the door with the NCI staff. Expect slowdowns, re-briefs, and new systems to navigate.
Different Priorities: ARPA-H is wired for fast, high-risk, high-reward projects. If your work is more traditional or compliance-heavy, you might have to rethink your approach to align with their expectations.
This could be a boon for some—but a brick wall for others, especially those used to the methodical (and sometimes glacial) NIH/NCI processes.
What You Should Do Right Now
Here’s how to stay in control while the ground shifts beneath you:
Wait for the Official Mod: Don’t assume anything until you get a contract modification naming ARPA-H as the new admin office. Keep working under your current terms until then.
Clarify Who’s in Charge: Confirm who’s accepting your deliverables. If your Contracting Officer’s Representative (COR) is leaving, get a new point of contact in writing.
Invoice Cautiously: Submitting invoices to a now-defunct NCI office? Not a good idea. Wait for new invoicing instructions to avoid getting stuck in payment limbo.
Keep Records Like a Hawk: Save every email, call note, and update. During transitions, you may know more about your contract than the agency does.
Stay Compliant: The contract hasn’t changed—just the people managing it. Don’t assume requirements are on pause just because the staff is.
Looking Ahead: A More Centralized, Innovation-Driven Landscape
This move is part of a broader trend in federal procurement: consolidating contracting functions under innovation hubs like ARPA-H. It reflects a shift away from siloed, agency-specific acquisition shops and toward centralized models that promise speed and flexibility.
Whether that promise holds up remains to be seen. There are valid concerns about ARPA-H’s bandwidth (they had fewer than 200 staff as of early 2025) and their ability to fully understand the nuanced needs of programs like NCI.
But one thing’s clear: the days of predictable, NIH-style procurement at NCI are over. If you’re pursuing federal health contracts—especially under SBA 8(a) certification, women owned small business certification, or disabled veteran government contracts—you’ll want to adapt fast.
For companies that are flexible, ready to innovate, and comfortable with ARPA-H’s milestone-based oversight, this could be an opportunity to thrive. For others, it may be time to reassess your pipeline and proposal strategy.
Want to stay ahead of the curve in this fast-changing landscape? Read our post, “Understanding the GSA Schedule: Is It Right for Your Business?” to explore another pathway into streamlined government contracting opportunities.
The GSA Schedule can be a powerful tool for businesses looking to grow in the government marketplace, but it’s not a one-size-fits-all solution. By understanding the benefits, challenges, and requirements, you can make an informed decision about whether it’s the right path for your business.
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