HHS awarded Southern Research Institute over $11.4M for research and development services

Contract Overview

Contract Amount: $11,476,343 ($11.5M)

Contractor: Southern Research Institute

Awarding Agency: Department of Health and Human Services

Start Date: 1999-09-15

End Date: 2010-03-31

Contract Duration: 3,850 days

Daily Burn Rate: $3.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Place of Performance

Location: BIRMINGHAM, JEFFERSON County, ALABAMA, 35205

State: Alabama Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $11.5 million to SOUTHERN RESEARCH INSTITUTE for work described as: Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. Long contract duration (1999-2010) may indicate sustained need or project complexity. 3. Cost-plus-fixed-fee contract type can incentivize cost control but requires careful oversight. 4. The contract was awarded by the National Institutes of Health, a major biomedical research agency. 5. Geographic location in Alabama may point to specific regional research capabilities or facilities.

Value Assessment

Rating: fair

The total award amount of $11.4M over approximately 10 years suggests a moderate annual spend. Without specific deliverables or performance metrics, it's difficult to benchmark value for money. The cost-plus-fixed-fee structure necessitates close monitoring to ensure costs remain reasonable and the fixed fee is justified by the scope of work. Comparison to similar NIH research contracts would be needed for a more precise assessment.

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 bids. This typically leads to a more robust price discovery process and potentially better pricing for the government. The number of bidders is not specified, but the open competition itself is a positive sign for market engagement.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation.

Public Impact

Benefits researchers and institutions involved in health and biomedical studies. Services delivered likely include laboratory research, drug development, or other scientific investigations. Geographic impact is centered in Alabama, potentially supporting local scientific infrastructure. Workforce implications include employment for scientists, technicians, and support staff at Southern Research Institute.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can lead to cost overruns if not managed tightly.
Lack of specific performance metrics makes it hard to assess the true value delivered.
Long contract duration without clear phase gates could obscure potential inefficiencies.

Positive Signals

Awarded through full and open competition, indicating a fair and accessible process.
The substantial award amount suggests a significant and potentially impactful research project.
Contracting with a known entity like Southern Research Institute may leverage established expertise.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on health and biomedical research. The National Institutes of Health is a primary driver of federal R&D spending in this area. Comparable spending benchmarks would involve looking at other large, multi-year R&D contracts awarded by NIH or other agencies for similar scientific endeavors.

Small Business Impact

There is no indication that this contract involved small business set-asides or significant subcontracting opportunities for small businesses. The focus appears to be on a large research institution, suggesting that prime contract opportunities for small businesses may have been limited in this specific award.

Oversight & Accountability

Oversight would typically be managed by the National Institutes of Health contracting officers and program managers. The cost-plus-fixed-fee structure necessitates rigorous financial oversight to ensure costs are allowable, allocable, and reasonable. Transparency would depend on NIH's reporting practices for this specific contract.

Related Government Programs

National Institutes of Health Research Grants
Biomedical Research and Development
Federal Contract Research Organizations

Risk Flags

Cost-plus contract type requires diligent oversight.
Long contract duration may obscure evolving needs or efficiencies.
Lack of specific performance data limits value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $11.5 million to SOUTHERN RESEARCH INSTITUTE. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is SOUTHERN RESEARCH INSTITUTE.

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 $11.5 million.

What is the period of performance?

Start: 1999-09-15. End: 2010-03-31.

What specific research areas did Southern Research Institute focus on under this contract?

The provided data does not specify the exact research areas. However, given the awarding agency is the National Institutes of Health (NIH), the research likely pertained to health sciences, potentially including areas such as infectious diseases, cancer research, drug discovery, or other biomedical fields. Southern Research Institute has a broad history in various scientific disciplines, including life sciences and engineering, so the specific focus would be detailed in the contract's statement of work, which is not available here.

How does the $11.4M award compare to other NIH R&D contracts of similar duration?

An $11.4M award over roughly 10 years averages to about $1.14M per year. This is a moderate-sized contract for NIH, which awards billions annually across thousands of contracts and grants. Many NIH R&D contracts, especially those involving large-scale clinical trials or advanced technology development, can range from several million to tens or even hundreds of millions of dollars over their lifecycle. This contract appears to be a significant but not exceptionally large award within the NIH's vast portfolio, suggesting a focused research effort rather than a sprawling program.

What are the risks associated with a Cost Plus Fixed Fee (CPFF) contract type for this project?

The primary risk with a CPFF contract is that the contractor may have less incentive to control costs compared to fixed-price contracts, as the government agrees to cover all allowable costs plus a predetermined fixed fee. This can lead to cost overruns if the government's oversight is not diligent. For the government, ensuring that all costs submitted by Southern Research Institute are allowable, allocable, and reasonable is critical. The fixed fee itself needs to be justified based on the complexity and risk assumed by the contractor. Effective management and auditing are essential to mitigate these risks.

What was Southern Research Institute's track record prior to or during this contract?

Southern Research Institute is a well-established non-profit research organization with a long history dating back to 1941. They have a broad range of expertise in areas including life sciences, engineering, and energy. Prior to and during this 1999-2010 contract with NIH, they would have had numerous other government and private contracts. Their extensive experience in scientific research and development suggests a strong foundational capability, though specific performance metrics on this particular NIH contract would require further investigation into NIH's contract performance databases or reports.

How does the contract's duration (1999-2010) impact the assessment of its value?

The long duration of this contract (over 10 years) suggests a sustained need for the research services provided by Southern Research Institute and potentially a complex, long-term project. While a long duration can indicate stability and deep engagement, it also increases the importance of ongoing performance monitoring and adaptability. For value assessment, it means that the initial award amount is spread over a significant period, making annual spending relatively modest. It also raises questions about whether the scope evolved significantly over time and how the fixed fee remained appropriate throughout the contract's life. Regular reviews and potential re-competitions or modifications would be key to ensuring continued value.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 2000 9TH AVE S, BIRMINGHAM, AL, 90

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

Financial Breakdown

Contract Ceiling: $2,896,254

Exercised Options: $6,106,254

Current Obligation: $11,476,343

Contract Characteristics

Multi-Year Contract: Yes

Timeline