NIH awards $22M to Fred Hutchinson Cancer Research Center for R&D, a sole-source contract spanning 7 years

Contract Overview

Contract Amount: $21,984,945 ($22.0M)

Contractor: Fred Hutchinson Cancer Research Center

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: $8.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST SHARING

Sector: R&D

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98109

State: Washington Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $22.0 million to FRED HUTCHINSON CANCER RESEARCH CENTER for work described as: Key points: 1. Contract awarded on a cost-sharing basis, indicating shared financial risk and investment. 2. Long contract duration of over 7 years suggests a significant, ongoing research effort. 3. Sole-source award implies limited competition, potentially impacting price negotiation. 4. Research and Development in Physical, Engineering, and Life Sciences is a broad category, requiring specific focus on the project's scope. 5. The contract's value of approximately $22 million over its term warrants a detailed look at cost-effectiveness. 6. Performance period spans from 2003 to 2010, indicating historical data for analysis.

Value Assessment

Rating: fair

The contract's value of $22 million over seven years averages to roughly $3.1 million annually. Without specific deliverables or benchmarks, it's challenging to compare this to similar contracts. The cost-sharing nature suggests the government is not bearing the full financial burden, which can be a positive indicator. However, the lack of competitive bidding means there's no market-driven price validation, making it difficult to definitively assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when a specific entity possesses unique capabilities or when circumstances prevent a competitive process. The lack of competition means there were no other bidders to compare against, limiting the government's ability to secure the lowest possible price through market forces.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also limits opportunities for other qualified organizations to secure federal funding.

Public Impact

The primary beneficiaries are researchers and institutions involved in physical, engineering, and life sciences R&D. The contract supports advancements in scientific knowledge and potentially new technologies or treatments. The geographic impact is centered in Washington state, where Fred Hutchinson Cancer Research Center is located. Workforce implications include support for scientists, technicians, and administrative staff involved in the research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Long contract duration without clear performance metrics could pose a risk of cost overruns or scope creep.
The broad nature of the R&D category makes it difficult to assess specific project outcomes and value without further detail.

Positive Signals

Cost-sharing arrangement indicates a partnership and shared commitment to the research objectives.
Award to a recognized research institution like Fred Hutchinson suggests a focus on established expertise.
Long-term funding provides stability for critical research initiatives.

Sector Analysis

The contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector (NAICS 541710). This is a broad category encompassing a wide range of scientific and technical activities. Federal spending in this sector is crucial for innovation and national competitiveness. Benchmarking this contract's value is difficult without knowing the specific research area, but annual R&D spending by the federal government is in the tens of billions.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss' being false. There is no explicit information on subcontracting plans for small businesses. The sole-source nature of the award further reduces the likelihood of small business participation through subcontracting unless specifically mandated by the prime contractor.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the National Institutes of Health (NIH) program officials and contracting officers. The Inspector General's office for the Department of Health and Human Services (HHS) would have jurisdiction for audits and investigations. Transparency is limited by the sole-source nature, but reporting requirements for research grants and contracts usually exist.

Related Government Programs

National Institutes of Health Research Grants
Department of Health and Human Services Research and Development Contracts
Federal Funding for Cancer Research
Life Sciences Research and Development

Risk Flags

Sole-source award
Long contract duration
Lack of specific performance metrics in summary data

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $22.0 million to FRED HUTCHINSON CANCER RESEARCH CENTER. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is FRED HUTCHINSON CANCER RESEARCH CENTER.

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 $22.0 million.

What is the period of performance?

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

What specific research objectives were funded by this contract?

The provided data does not specify the exact research objectives funded by this contract. The NAICS code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences,' is very broad. To understand the impact and value, detailed information on the research scope, such as the specific scientific questions being addressed, the methodologies employed, and the expected outcomes (e.g., publications, patents, new therapies), would be necessary. Without this, it's difficult to assess the scientific merit or potential return on investment.

How does the annual spending compare to other NIH R&D contracts of similar scope?

The contract averaged approximately $3.1 million per year ($21,984,944.51 / 7 years). Benchmarking this against other NIH R&D contracts requires access to detailed contract databases and filtering by specific research areas, duration, and award type. Given this was a sole-source award to a single institution, direct comparisons to competitively bid, multi-institutional, or differently scoped projects would be challenging. However, annual funding for major research centers and large-scale projects at NIH can range from a few million to tens of millions of dollars, placing this contract within a plausible range for significant R&D efforts.

What are the potential risks associated with a sole-source, cost-sharing R&D contract of this duration?

A sole-source award carries the risk of paying a non-competitive price, potentially exceeding what could be achieved through competition. Cost-sharing, while indicating shared investment, can also complicate financial management and reporting. A long duration (over 7 years) for an R&D contract increases the risk of scope creep, changing research priorities, or the research becoming obsolete before completion. Furthermore, without robust interim reporting and oversight, ensuring efficient use of funds and progress towards objectives can be challenging.

What was the justification for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified when the item or service is available only from a single responsible source, or when there is a compelling urgency, or when specific capabilities are uniquely held by one entity. For R&D, this might involve proprietary technology, unique facilities, or highly specialized expertise residing solely with Fred Hutchinson Cancer Research Center that was deemed essential for the project's success.

What is the track record of Fred Hutchinson Cancer Research Center in managing large federal R&D grants?

Fred Hutchinson Cancer Research Center is a well-established and highly regarded cancer research institution. It has a long history of receiving significant federal funding, primarily from the National Institutes of Health (NIH), for a wide range of cancer research initiatives. While specific contract performance details are not provided here, the institution's sustained success in securing and managing large federal grants suggests a strong track record in research execution, financial stewardship, and compliance with federal regulations.

How has federal spending in 'Research and Development in the Physical, Engineering, and Life Sciences' evolved since this contract was awarded?

Federal spending in NAICS 541710 has generally trended upwards since 2003, reflecting a continued emphasis on scientific advancement and innovation. While specific figures fluctuate annually due to budget appropriations, economic conditions, and national priorities, overall investment in R&D across various agencies, including NIH, has seen growth. This trend suggests a sustained, and often increasing, commitment by the government to funding research in these critical fields, although specific allocations can shift based on strategic focus areas.

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: 1100 FAIRVIEW AVE N, SEATTLE, WA, 98109

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

Financial Breakdown

Contract Ceiling: $200,653,424

Exercised Options: $200,653,424

Current Obligation: $21,984,945

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline