DHHS awards $11.8M to University of Hawaii for R&D, raising questions on competition and value
Contract Overview
Contract Amount: $11,851,865 ($11.9M)
Contractor: University of Hawaii
Awarding Agency: Department of Health and Human Services
Start Date: 2003-06-15
End Date: 2010-07-31
Contract Duration: 2,603 days
Daily Burn Rate: $4.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST SHARING
Sector: R&D
Place of Performance
Location: HONOLULU, HONOLULU County, HAWAII, 96822
State: Hawaii Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $11.9 million to UNIVERSITY OF HAWAII for work described as: Key points: 1. Significant R&D investment in physical, engineering, and life sciences. 2. Sole-source award to University of Hawaii may limit competitive pricing. 3. Long contract duration (2003-2010) warrants scrutiny for ongoing value. 4. Potential for higher costs due to lack of competitive bidding.
Value Assessment
Rating: questionable
The contract value of $11.8M over 7 years is substantial. Without competitive benchmarks or detailed cost breakdowns, assessing its value for money is difficult, especially given the 'NOT COMPETED' status.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method bypasses competitive bidding, potentially leading to higher prices and reduced innovation compared to open competition.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for the research and development services provided.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. Limited transparency on how the $11.8M was allocated for R&D. The long contract period could indicate a lack of market alternatives or a missed opportunity for re-evaluation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of competition
- Unclear value for money
Positive Signals
- Supports critical R&D in life sciences
- Partnership with a state university
Sector Analysis
This contract falls under NAICS code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences.' Federal spending in this sector is crucial for innovation but requires careful oversight to ensure cost-effectiveness.
Small Business Impact
The award to the University of Hawaii, a large institution, does not appear to directly benefit small businesses. There is no indication of subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
The 'NOT COMPETED' status suggests a potential lapse in competitive sourcing practices. Further review is needed to understand the justification for the sole-source award and ensure accountability.
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
- Potential for inflated costs
- Limited transparency on justification
- Long contract duration without clear performance metrics
- Uncertainty of value for money
Tags
research-and-development-in-the-physical, department-of-health-and-human-services, hi, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $11.9 million to UNIVERSITY OF HAWAII. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is UNIVERSITY OF HAWAII.
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 $11.9 million.
What is the period of performance?
Start: 2003-06-15. End: 2010-07-31.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The provided data indicates the contract was 'NOT COMPETED,' suggesting a sole-source award. A thorough review would require accessing the contract file to determine the specific justification, such as unique capabilities or urgent needs. Without this information, it's difficult to assess if competitive alternatives were adequately explored or if this represented the only viable option.
How was the $11.8M cost-sharing agreement determined to be fair and reasonable without competitive pricing?
Assessing the fairness and reasonableness of an $11.8M cost-sharing agreement without competition is challenging. Typically, agencies rely on historical pricing, independent government cost estimates, or commercial item pricing. The 'COST SHARING' designation implies the government is not bearing the full cost, but the lack of competition makes it difficult to benchmark against market rates or ensure optimal value.
Given the 7-year duration, what mechanisms were in place to ensure the ongoing effectiveness and relevance of the R&D performed?
The contract's long duration (2003-2010) necessitates robust oversight to ensure continued effectiveness. Key mechanisms would include regular performance reviews, milestone tracking, and clear deliverables. Without access to performance reports or contract modifications, it's difficult to ascertain if the R&D remained aligned with evolving scientific needs and if the University of Hawaii consistently met performance expectations.
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: 2530 DOLE ST, HONOLULU, HI, 96822
Business Categories: Category Business, Educational Institution, Higher Education, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $130,058,508
Exercised Options: $130,058,508
Current Obligation: $11,851,865
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2003-06-15
Current End Date: 2010-07-31
Potential End Date: 2010-07-31 00:00:00
Last Modified: 2018-11-16
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