HHS awards $13.6M to University of New Mexico for R&D, raising questions about competition

Contract Overview

Contract Amount: $13,580,920 ($13.6M)

Contractor: University of NEW Mexico

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: $5.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST SHARING

Sector: R&D

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87131

State: New Mexico Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $13.6 million to UNIVERSITY OF NEW MEXICO for work described as: Key points: 1. Significant R&D investment of $13.6M. 2. Sole-source award to University of New Mexico. 3. Long contract duration (2003-2010) with potential for cost overruns. 4. Lack of competition may lead to suboptimal pricing.

Value Assessment

Rating: questionable

The contract value is substantial, but without competitive bidding, it's difficult to assess if the pricing is optimal. The cost-sharing nature suggests some financial commitment from the awardee, but the overall value proposition is unclear due to the lack of market comparison.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This significantly limits price discovery and may result in higher costs for taxpayers compared to a competitively bid contract.

Taxpayer Impact: The lack of competition for a $13.6M contract raises concerns about potential overspending and inefficient use of taxpayer funds.

Public Impact

Taxpayers may be paying more than necessary due to the absence of competitive bidding. The long duration of the contract could indicate a need for ongoing research, but the lack of competition makes it hard to gauge efficiency. The specific research outcomes and their public benefit are not detailed, making it difficult to assess the ultimate value for money.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Long contract duration
Lack of transparency on research outcomes

Positive Signals

Potential for valuable R&D

Sector Analysis

This contract falls under the Research and Development sector, specifically in physical, engineering, and life sciences. Spending in this area is crucial for innovation, but competitive processes are vital to ensure efficiency and value.

Small Business Impact

There is no indication that small businesses were involved in this contract, as it was awarded directly to a university on a sole-source basis.

Oversight & Accountability

The sole-source nature of this award warrants closer oversight to ensure the research objectives were met efficiently and that costs were reasonable, despite the absence of competition.

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

Sole-source award raises competition concerns.
Long contract duration (7 years) may indicate potential for cost creep.
Lack of detailed research outcomes makes value assessment difficult.
Absence of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $13.6 million to UNIVERSITY OF NEW MEXICO. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF NEW MEXICO.

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 $13.6 million.

What is the period of performance?

Start: 2003-06-15. End: 2010-07-31.

What specific research was conducted under this contract, and what were its tangible outcomes?

The contract data does not specify the exact research conducted. It falls under NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences). Without further details, it's impossible to assess the tangible outcomes or public benefit derived from the $13.6 million investment.

Why was this contract deemed sole-source, and were alternative competitive strategies considered?

The provided data indicates the contract was 'NOT COMPETED.' The rationale for this sole-source determination is not specified. Typically, sole-source awards are justified when only one source is capable of meeting the requirement, but this needs rigorous justification to ensure fair and open competition principles are upheld.

How does the cost-sharing arrangement impact the overall value and effectiveness of the research?

The 'COST SHARING' contract type suggests the University of New Mexico contributed some resources. While this can indicate commitment, its precise impact on value and effectiveness is unclear without knowing the proportion of cost sharing and the specific research goals. It doesn't inherently guarantee better outcomes or value.

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: 1700 LOMAS BLVD NE STE 2200, ALBUQUERQUE, NM, 87131

Business Categories: Category Business, Educational Institution, Higher Education, Higher Education (Minority Serving), Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $193,863,339

Exercised Options: $193,863,339

Current Obligation: $13,580,920

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline