DHHS awards $32.6M to Wayne State University for R&D, lacking competition

Contract Overview

Contract Amount: $32,571,303 ($32.6M)

Contractor: Wayne State University

Awarding Agency: Department of Health and Human Services

Start Date: 2003-05-15

End Date: 2010-07-31

Contract Duration: 2,634 days

Daily Burn Rate: $12.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST SHARING

Sector: R&D

Place of Performance

Location: DETROIT, WAYNE County, MICHIGAN, 48202

State: Michigan Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $32.6 million to WAYNE STATE UNIVERSITY for work described as: Key points: 1. Significant funding awarded for R&D in physical, engineering, and life sciences. 2. Contract awarded without competition, raising questions about price discovery. 3. Long duration of the award (2003-2010) suggests a substantial, ongoing project. 4. The 'COST SHARING' award type indicates a partnership where funds are not solely federal.

Value Assessment

Rating: questionable

The award type is 'COST SHARING', making direct pricing assessment difficult. Without competition, it's hard to benchmark against similar contracts to determine if the federal share represents fair value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was 'NOT COMPETED', indicating a sole-source award. This limits price discovery and potentially leads to higher costs for the government compared to a competitive process.

Taxpayer Impact: The lack of competition may result in the taxpayer bearing a higher cost than necessary for the research and development services provided.

Public Impact

Research and Development funding supports scientific advancement. Cost-sharing arrangements can leverage federal funds with non-federal contributions. Long-term awards can provide stability for research initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Long award duration
Cost sharing complexity

Positive Signals

Supports R&D
Potential for innovation

Sector Analysis

This award falls under the Research and Development sector, specifically NAICS code 541710. Federal spending in this area is crucial for innovation, but competitive contracting is generally preferred to ensure value for money.

Small Business Impact

There is no indication that small businesses were involved in this contract, as it was awarded directly to a university. Future contracts should explore opportunities for small business participation.

Oversight & Accountability

The long duration and sole-source nature of this award warrant oversight to ensure continued alignment with federal objectives and efficient use of funds. Periodic reviews of the cost-sharing arrangement are essential.

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

Lack of competition
Long contract duration
Potential for cost overruns
Limited transparency on cost sharing details

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $32.6 million to WAYNE STATE UNIVERSITY. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is WAYNE STATE UNIVERSITY.

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 $32.6 million.

What is the period of performance?

Start: 2003-05-15. End: 2010-07-31.

What was the justification for not competing this award, and how was the federal share of the cost determined to be fair and reasonable?

The justification for not competing the award is not provided in the data. However, for cost-sharing agreements, the federal share is typically determined based on negotiated rates and the extent of non-federal contributions. Without a competitive process, ensuring the federal portion represents optimal value is challenging and relies heavily on the negotiation and oversight processes.

Given the 7-year duration, what mechanisms were in place to manage cost growth and ensure the research remained aligned with evolving scientific priorities?

The provided data does not detail the specific oversight mechanisms for this long-term award. Typically, such contracts would include provisions for regular progress reports, budget reviews, and potential modifications to adapt to changing research landscapes. The 'COST SHARING' aspect might also imply shared responsibility for managing project direction and costs between the federal agency and Wayne State University.

How does the 'COST SHARING' arrangement impact the overall effectiveness and accountability of the research funded by this award?

Cost sharing can enhance effectiveness by fostering a sense of shared ownership and commitment, potentially leading to more robust research outcomes. It also leverages non-federal resources, extending the impact of federal funding. Accountability is managed through joint oversight and reporting requirements, ensuring both parties fulfill their obligations and that the research objectives are met efficiently.

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: NOT COMPETED

Offers Received: 1

Pricing Type: COST SHARING (T)

Contractor Details

Address: 5700 CASS AVE STE 4900, DETROIT, MI, 90

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

Financial Breakdown

Contract Ceiling: $340,743,212

Exercised Options: $340,743,212

Current Obligation: $32,571,303

Timeline