Duke University receives $11.4M for biomedical research, spanning over a decade
Contract Overview
Contract Amount: $11,433,069 ($11.4M)
Contractor: Duke University
Awarding Agency: Department of Health and Human Services
Start Date: 2002-09-30
End Date: 2014-05-07
Contract Duration: 4,237 days
Daily Burn Rate: $2.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST NO FEE
Sector: R&D
Official Description: BIOMEDICAL (APPLIED/EXPLORATORY)
Place of Performance
Location: DURHAM, DURHAM County, NORTH CAROLINA, 27705, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Health and Human Services obligated $11.4 million to DUKE UNIVERSITY for work described as: BIOMEDICAL (APPLIED/EXPLORATORY) Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. Long duration of over 11 years indicates a sustained research effort. 3. Award type 'DCA' (Definitization Contract Action) may suggest initial contract terms were negotiated over time. 4. Research and Development in Physical, Engineering, and Life Sciences is a broad category. 5. The contract's value is spread across a significant period, implying phased funding. 6. No small business set-aside indicates the primary contractor is not a small business.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific deliverables or milestones. The 'COST NO FEE' (Cost-Plus-Fixed-Fee) contract type suggests that the government reimburses costs plus a fixed fee, which can sometimes lead to less price certainty than fixed-price contracts. The total award of $11.4M over more than 11 years averages to approximately $1M per year, which may be reasonable for a large-scale R&D project, but requires deeper analysis of the scope of work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. With 6 bidders, this suggests a healthy level of interest and competition for this research opportunity. A competitive process generally helps ensure fair pricing and allows the government to select the most advantageous offer.
Taxpayer Impact: A competitive award process is beneficial for taxpayers as it drives down costs and ensures the government receives the best value for its investment in research.
Public Impact
Duke University, a leading research institution, benefits from sustained funding for its biomedical research. The research aims to advance knowledge in the physical, engineering, and life sciences, potentially leading to new medical treatments or technologies. The geographic impact is primarily centered in North Carolina, where Duke University is located. The contract supports a workforce of researchers, technicians, and administrative staff at Duke University.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in 'COST NO FEE' contracts if not closely managed.
- The broad nature of the R&D category makes it difficult to assess specific project outcomes and value without more detail.
- Long contract duration could lead to scope creep or shifts in research priorities that may not be fully captured in initial pricing.
Positive Signals
- Awarded through full and open competition, indicating a robust selection process.
- The significant funding over an extended period suggests a high-priority research area for the NIH.
- Duke University's established reputation in research implies a strong likelihood of productive outcomes.
Sector Analysis
This contract falls within the Biomedical Research and Development sector, a critical area for the National Institutes of Health (NIH). The NIH is a major funder of health-related research in the United States, with significant annual spending. Comparable contracts in this sector often involve long-term grants and research projects awarded to universities and private institutions. The market size for biomedical R&D funding is substantial, driven by public health needs and scientific advancement.
Small Business Impact
The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary research is being conducted by Duke University, a large research institution, and that opportunities for small business participation may be limited unless they are directly contracted by Duke for specific services or supplies.
Oversight & Accountability
Oversight for this contract would typically be provided by the National Institutes of Health (NIH), a division of the Department of Health and Human Services. Mechanisms likely include regular progress reports, financial reviews, and adherence to research protocols. Transparency is generally maintained through public research publications and NIH reporting, though specific contract details might be less accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- National Institutes of Health Research Grants
- Biomedical Research and Development Contracts
- University Research Partnerships
- Life Sciences Research Funding
Risk Flags
- Cost-Plus-Fixed-Fee contract type requires diligent oversight to manage costs.
- Long contract duration necessitates careful monitoring of scope and objectives.
- Broad R&D category may obscure specific performance metrics.
Tags
biomedical-research, applied-research, exploratory-research, department-of-health-and-human-services, national-institutes-of-health, duke-university, north-carolina, full-and-open-competition, cost-plus-fixed-fee, research-and-development, long-term-contract, university-contractor
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $11.4 million to DUKE UNIVERSITY. BIOMEDICAL (APPLIED/EXPLORATORY)
Who is the contractor on this award?
The obligated recipient is DUKE 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 $11.4 million.
What is the period of performance?
Start: 2002-09-30. End: 2014-05-07.
What specific research areas are covered under this 'BIOMEDICAL (APPLIED/EXPLORATORY)' contract?
The provided data categorizes the contract under 'BIOMEDICAL (APPLIED/EXPLORATORY)' and the North American Industry Classification System (NAICS) code 541710, which is 'Research and Development in the Physical, Engineering, and Life Sciences'. However, it does not specify the exact sub-disciplines or research questions being addressed. Applied and exploratory biomedical research can encompass a vast range of fields, from basic biological mechanisms to the development of new diagnostic tools, therapeutic interventions, or public health strategies. Further details on the statement of work or specific NIH funding announcements associated with this award would be necessary to identify the precise research focus.
How does the 'COST NO FEE' contract type impact the government's financial risk and oversight?
A 'COST NO FEE' (Cost-Plus-Fixed-Fee) contract means the government agrees to pay the contractor's allowable costs plus a fixed fee, representing profit. This contract type shifts some financial risk to the government, as the total cost is not fixed upfront. The government bears the risk of cost overruns if the project takes longer or costs more than anticipated. To mitigate this, rigorous oversight is crucial. The contracting agency, in this case, NIH, must closely monitor the contractor's expenditures, ensure costs are reasonable and allocable to the contract, and verify that the work is progressing as planned. Regular audits and detailed progress reports are essential components of managing this type of contract effectively.
What is the significance of the contract award type 'DCA' (Definitization Contract Action)?
A 'Definitization Contract Action' (DCA) typically indicates that the contract was initially awarded under a letter contract or other interim agreement, and the 'DCA' signifies the formal process of finalizing the contract terms, including price and scope. This often occurs when there is a need to start work quickly but the final details require further negotiation. For this Duke University contract, it suggests that the initial award in 2002 may have been a letter contract, and the DCA finalized the terms later. This process can sometimes lead to a longer negotiation period but aims to ensure fair pricing and a clear understanding of the work before full performance.
What does the long duration (4237 days) imply for the nature of the research and potential outcomes?
A contract duration of 4237 days, approximately 11.6 years, strongly suggests that the research funded is long-term, complex, and likely involves fundamental scientific inquiry or the development of advanced technologies. Such extended timelines are common in basic and applied research where breakthroughs are not predictable and require sustained investigation. This duration implies that the project is not focused on short-term deliverables but rather on building knowledge, exploring new scientific frontiers, or developing capabilities that mature over many years. It also suggests a significant commitment from both the funding agency (NIH) and the performing institution (Duke University).
How does the total award amount of $11.4M compare to typical NIH funding for large-scale biomedical research projects?
The total award of $11.4 million spread over approximately 11.6 years averages to about $983,000 per year. This annual funding level is within the typical range for significant, multi-disciplinary research projects funded by the NIH, especially those involving multiple investigators, substantial laboratory resources, and potentially large research teams. While not exceptionally large compared to some major center grants or clinical trials, it represents a substantial investment indicative of a project deemed important by the NIH. Benchmarking against specific NIH funding opportunity announcements and similar institutional awards would provide a more precise comparison.
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 Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 6
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: DUKE UNIVERSITY, DURHAM, NC, 27708
Business Categories: Category Business, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $1,473,421,739
Exercised Options: $18,704,261
Current Obligation: $11,433,069
Timeline
Start Date: 2002-09-30
Current End Date: 2014-05-07
Potential End Date: 2014-05-07 00:00:00
Last Modified: 2017-04-04
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