NIH awards $16.9M contract to Marshfield Medical Research for cost-sharing research over 19 years

Contract Overview

Contract Amount: $16,923,449 ($16.9M)

Contractor: Marshfield Medical Research FO

Awarding Agency: Department of Health and Human Services

Start Date: 1992-09-15

End Date: 2012-03-31

Contract Duration: 7,137 days

Daily Burn Rate: $2.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST SHARING

Sector: Healthcare

Place of Performance

Location: MARSHFIELD, WOOD County, WISCONSIN, 54449

State: Wisconsin Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $16.9 million to MARSHFIELD MEDICAL RESEARCH FO for work described as: Key points: 1. The contract value of $16.9M over nearly 20 years suggests a long-term research focus. 2. Competition details are not provided, making it difficult to assess market competitiveness. 3. The 'cost sharing' contract type may indicate shared financial risk and reward. 4. The sector is healthcare/biomedical research, a critical area for public health investment.

Value Assessment

Rating: fair

The contract value is substantial, but without specific deliverables or comparable contracts, assessing value for money is difficult. The long duration suggests a sustained need, but the lack of detailed performance metrics hinders a precise valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is positive for price discovery. However, the lack of specific details on the bidding process and the final awardee makes it hard to gauge the effectiveness of this competition in securing the best price.

Taxpayer Impact: The long-term nature and significant value of this contract represent a considerable investment of taxpayer funds, the ultimate benefit of which depends on the research outcomes.

Public Impact

Supports critical biomedical research potentially leading to health advancements. Long-term funding commitment provides stability for research continuity. Taxpayer funds are allocated to a specific research institution for a defined period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics.
Limited transparency on competition specifics.
Long contract duration without clear phase-outs.

Positive Signals

Awarded under full and open competition.
Supports vital research area.
Long-term stability for research.

Sector Analysis

This contract falls within the healthcare and biomedical research sector, characterized by significant government investment in scientific advancement. Benchmarks for similar long-term research contracts would typically focus on research output and impact rather than just cost.

Small Business Impact

There is no indication in the provided data whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine any small business participation.

Oversight & Accountability

The long duration of the contract necessitates robust oversight to ensure milestones are met and funds are used effectively. The 'cost sharing' aspect also requires careful monitoring of financial contributions from both parties.

Related Government Programs

Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Long contract duration may lead to cost overruns or outdated research.
Lack of specific performance metrics makes oversight challenging.
Limited information on the competitive bidding process.
Potential for scope creep over the extended contract period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $16.9 million to MARSHFIELD MEDICAL RESEARCH FO. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is MARSHFIELD MEDICAL RESEARCH FO.

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 $16.9 million.

What is the period of performance?

Start: 1992-09-15. End: 2012-03-31.

What specific research outcomes were achieved relative to the $16.9M investment over 19 years?

The provided data does not detail the specific research outcomes or deliverables associated with this contract. To assess the value, a review of progress reports, publications, and any resulting innovations or treatments would be necessary. Without this, it's impossible to quantify the return on investment for the taxpayer.

How did the 'cost sharing' mechanism impact the final negotiated price and risk allocation?

The 'cost sharing' nature implies that both the government and Marshfield Medical Research contributed financially. This could potentially reduce the direct burden on taxpayers and incentivize efficient resource management by the contractor. However, the exact split and its impact on the final price are not detailed here.

Given the 19-year duration, were there mechanisms for re-evaluating the contract's necessity and cost-effectiveness over time?

The data indicates a contract duration of over 19 years (7137 days). Long-term contracts often include provisions for periodic reviews, option periods, or adjustments based on changing research needs or funding landscapes. The absence of such details raises questions about adaptive management and sustained cost-effectiveness.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: COST SHARING (T)

Contractor Details

Address: 510 SAINT JOSEPH AVE, MARSHFIELD

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $443,137,908

Exercised Options: $434,010,823

Current Obligation: $16,923,449

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline