NIH awards $26.6M to University of Alabama at Birmingham for R&D in Physical, Engineering, and Life Sciences
Contract Overview
Contract Amount: $26,579,941 ($26.6M)
Contractor: University of Alabama AT Birmingham
Awarding Agency: Department of Health and Human Services
Start Date: 1997-09-30
End Date: 2010-09-29
Contract Duration: 4,747 days
Daily Burn Rate: $5.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST NO FEE
Sector: R&D
Official Description: OTHER FUNCTIONS TAS::75 0849::TAS PLCO/NLST FY2010 FUNDING
Place of Performance
Location: BIRMINGHAM, JEFFERSON County, ALABAMA, 35294
State: Alabama Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $26.6 million to UNIVERSITY OF ALABAMA AT BIRMINGHAM for work described as: OTHER FUNCTIONS TAS::75 0849::TAS PLCO/NLST FY2010 FUNDING Key points: 1. Contract awarded for Research and Development in the Physical, Engineering, and Life Sciences. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is extensive at 4747 days (over 13 years). 4. The awardee is the University of Alabama at Birmingham, a known research institution.
Value Assessment
Rating: questionable
The contract type is 'COST NO FEE', which can sometimes lead to less price discipline compared to fixed-price contracts. Without specific deliverables or performance metrics, assessing value is difficult. The long duration also makes it hard to benchmark pricing effectively over time.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders were likely considered. This method generally promotes price discovery and competitive pricing, though the 'COST NO FEE' structure might mitigate some of these benefits.
Taxpayer Impact: The long-term nature and cost-reimbursement structure warrant scrutiny to ensure taxpayer funds are used efficiently for research outcomes.
Public Impact
Long-term funding for critical research areas in physical, engineering, and life sciences. Supports academic research and development at a major university. Potential for significant scientific advancements and discoveries.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (13+ years)
- Cost-reimbursement contract type ('COST NO FEE')
- Lack of specific performance metrics for value assessment
Positive Signals
- Awarded via full and open competition
- Supports critical R&D sector
- Established research institution as awardee
Sector Analysis
This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector (NAICS 541710). Spending in this area is crucial for innovation but can be complex to manage due to the inherent uncertainties in research outcomes.
Small Business Impact
The data indicates the awardee is a university, not a small business. There is no information provided on whether small businesses were subcontracted.
Oversight & Accountability
The extensive duration and cost-reimbursement nature of this contract suggest a need for robust oversight from the Department of Health and Human Services to ensure funds are used effectively and for their intended research purposes.
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
- Long contract duration (13+ years)
- Cost-reimbursement contract type ('COST NO FEE')
- Potential for lack of cost control due to contract type
- Limited visibility into specific research deliverables and milestones
- Extended period for potential cost escalation
Tags
research-and-development-in-the-physical, department-of-health-and-human-services, al, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $26.6 million to UNIVERSITY OF ALABAMA AT BIRMINGHAM. OTHER FUNCTIONS TAS::75 0849::TAS PLCO/NLST FY2010 FUNDING
Who is the contractor on this award?
The obligated recipient is UNIVERSITY OF ALABAMA AT BIRMINGHAM.
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 $26.6 million.
What is the period of performance?
Start: 1997-09-30. End: 2010-09-29.
What specific research objectives and milestones are associated with this long-term 'COST NO FEE' contract to ensure value for money?
The contract details do not specify research objectives or milestones. A 'COST NO FEE' contract typically reimburses the contractor for allowable costs without a fixed profit margin. To ensure value, the awarding agency (NIH) would need to closely monitor the research progress, scientific merit, and adherence to budget, ensuring the costs incurred directly contribute to the advancement of physical, engineering, and life sciences research as intended.
How does the 'COST NO FEE' structure impact the risk of cost overruns and the incentive for efficient research execution?
The 'COST NO FEE' structure shifts the primary risk of cost overruns to the government, as the contractor is reimbursed for allowable expenses. This can reduce the contractor's incentive for cost control compared to fixed-price contracts. However, the government retains oversight to ensure costs are reasonable and allocable to the research, mitigating some risk. The long duration amplifies the importance of this oversight.
Given the 13+ year duration, how is the effectiveness of the research measured and ensured under this contract?
Effectiveness is likely measured through periodic scientific reviews, publications, presentations at conferences, and the achievement of research milestones outlined in the contract's statement of work. The long duration necessitates ongoing evaluation by the NIH to ensure the research remains scientifically relevant, progresses as expected, and ultimately contributes to the intended advancements in physical, engineering, and life sciences.
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 › N – Health R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation ID: NA
Pricing Type: COST NO FEE (S)
Contractor Details
Parent Company: THE University of Alabama System (UEI: 808245794)
Address: 701 20TH ST S AB1070, BIRMINGHAM
Business Categories: Category Business, Educational Institution, Higher Education, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $59,885,143
Exercised Options: $55,688,060
Current Obligation: $26,579,941
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 1997-09-30
Current End Date: 2010-09-29
Potential End Date: 2014-09-29 00:00:00
Last Modified: 2019-01-30
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