NIH contract for biomedical research awarded to Cornell University, totaling over $22 million

Contract Overview

Contract Amount: $22,146,175 ($22.1M)

Contractor: Cornell University

Awarding Agency: Department of Health and Human Services

Start Date: 1999-12-30

End Date: 2015-06-23

Contract Duration: 5,654 days

Daily Burn Rate: $3.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST NO FEE

Sector: R&D

Official Description: BIOMEDICAL (BASIC)

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892, UNITED STATES OF AMERICA

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $22.1 million to CORNELL UNIVERSITY for work described as: BIOMEDICAL (BASIC) Key points: 1. Contract value of over $22 million for biomedical research indicates significant investment in scientific advancement. 2. Awarded to a single academic institution, suggesting a focus on specialized research capabilities. 3. Long contract duration of over 15 years implies a sustained commitment to the research project. 4. The contract's cost-plus-no-fee structure may incentivize research progress but requires careful monitoring of expenses. 5. Performance context is within basic biomedical research, a critical area for public health. 6. Sector positioning is within the academic research arm of the federal health sector.

Value Assessment

Rating: fair

The contract's total value of over $22 million over its extended period suggests a substantial investment. Benchmarking this against similar large-scale, long-term biomedical research grants awarded to academic institutions would be necessary for a precise value-for-money assessment. The 'cost no fee' (CPFF) contract type, while common for research, can lead to cost overruns if not meticulously managed, potentially impacting overall value. Without specific performance metrics or deliverables, it's challenging to definitively assess if the funds were used optimally.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple entities had the opportunity to bid. The presence of 6 bids suggests a reasonably competitive environment for this type of specialized research. However, the ultimate award to a single entity, Cornell University, implies they possessed the most compelling proposal or specialized expertise required for the biomedical research scope.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and innovative solutions. In this case, it suggests that the government sought the best value through a broad solicitation process.

Public Impact

The primary beneficiaries are researchers at Cornell University, who receive funding and resources to conduct critical biomedical studies. The services delivered are fundamental biomedical research, contributing to the advancement of scientific knowledge and potentially leading to future health innovations. The geographic impact is primarily centered in Maryland, where the National Institutes of Health (NIH) is located, and at Cornell University's research facilities. Workforce implications include support for academic researchers, technicians, and administrative staff involved in the project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'cost no fee' contract type requires diligent oversight to ensure costs remain reasonable and directly related to research objectives.
Long contract durations can sometimes lead to scope creep or a lack of agility if research needs evolve significantly over time.
The absence of specific performance metrics in the provided data makes it difficult to assess the efficiency and effectiveness of the research progress.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
The significant investment suggests a commitment to advancing critical biomedical research areas.
The long-term nature of the contract allows for sustained focus and in-depth investigation.

Sector Analysis

This contract falls within the broader federal spending on Research and Development (R&D), specifically in the biomedical sector. The R&D sector is characterized by long investment horizons, high uncertainty, and the potential for significant societal benefits. Federal funding is crucial for basic research that may not attract private investment due to its early stage and uncertain commercial viability. Comparable spending benchmarks would involve analyzing other large NIH grants to academic institutions for similar research scopes.

Small Business Impact

The provided data does not indicate any specific small business set-asides or subcontracting requirements for this contract. As a large research grant awarded to a major academic institution, the primary focus is likely on the institution's internal research capabilities rather than engaging a broad network of small businesses. Further investigation into subcontracting plans would be needed to assess any potential impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the National Institutes of Health (NIH), a component of the Department of Health and Human Services. Mechanisms likely include regular progress reports, financial reviews, and potentially site visits to ensure research objectives are being met and funds are being utilized appropriately. The Inspector General for HHS would have jurisdiction over any potential fraud, waste, or abuse related to the contract.

Related Government Programs

National Institutes of Health Research Grants
Biomedical Research and Development
Federal Funding for Academic Institutions
Basic Science Research Contracts

Risk Flags

Long contract duration may increase risk of scope creep or scientific obsolescence.
Cost-plus contract type requires diligent cost oversight.
Lack of specific performance metrics in summary data hinders effectiveness assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $22.1 million to CORNELL UNIVERSITY. BIOMEDICAL (BASIC)

Who is the contractor on this award?

The obligated recipient is CORNELL 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 $22.1 million.

What is the period of performance?

Start: 1999-12-30. End: 2015-06-23.

What specific biomedical research area does this contract support, and what are the expected outcomes?

The contract is categorized under 'BIOMEDICAL (BASIC)' research. While the specific sub-field is not detailed, basic biomedical research aims to expand fundamental knowledge about life processes and disease mechanisms. Expected outcomes typically include new scientific discoveries, a deeper understanding of biological systems, and the foundational knowledge that can later be applied to develop new diagnostics, treatments, or preventive measures for diseases. The long duration suggests a project requiring sustained investigation, potentially in complex areas like genetics, immunology, neuroscience, or infectious diseases. Further details on the specific research aims and deliverables would be found in the contract's statement of work.

How does the 'Cost No Fee' (CPFF) contract type influence cost control and value for money in this research context?

A Cost-Plus-Fixed-Fee (CPFF) contract, or in this case potentially 'Cost No Fee' (CPNF) if it implies no fee beyond direct costs, reimburses the contractor for allowable costs incurred plus a fixed fee representing profit. For research, this structure can be advantageous as it allows flexibility to adapt to unforeseen research challenges and encourages exploration without the contractor bearing direct financial risk for cost overruns. However, it places a greater burden on the government to meticulously audit and approve costs to ensure they are reasonable, allocable, and necessary for the research. Value for money is achieved if the research yields significant scientific advancements that justify the incurred costs. Without a fee, the incentive for the contractor is primarily mission accomplishment and continued funding, rather than profit maximization.

What is Cornell University's track record with large federal research grants, particularly from NIH?

Cornell University has a long and established history of securing significant federal research funding, including substantial grants from the National Institutes of Health (NIH). As a major research university, it consistently ranks among top recipients of federal research and development funds. Its track record typically involves successful management of complex, multi-year projects across various scientific disciplines. Specific details on Cornell's past performance with NIH grants, including any past performance issues or exceptional successes, would be available through federal procurement databases and university research administration reports. This particular contract, awarded through full and open competition, suggests a positive assessment of their capabilities by NIH.

How does the total contract value of over $22 million compare to typical NIH funding for basic biomedical research projects?

A total contract value exceeding $22 million over a period of approximately 15 years places this award at the higher end for federal funding of basic biomedical research projects. While many NIH grants are smaller, ranging from hundreds of thousands to a few million dollars annually, large, multi-year center grants or program project grants can reach tens of millions over their lifespan. Such substantial funding often supports large, interdisciplinary research efforts, specialized research centers, or projects requiring extensive infrastructure and personnel. The size of this award suggests a significant, long-term commitment to a particular area of biomedical inquiry deemed high-priority by the NIH.

What are the potential risks associated with a contract of this duration (over 15 years) for basic research?

The primary risks associated with a basic research contract spanning over 15 years include: scientific obsolescence, where the research direction may become outdated due to rapid scientific advancements; scope creep, where the project's objectives may expand beyond the original intent without adequate justification or funding adjustments; contractor performance degradation, where institutional capacity or key personnel may change over time, impacting research quality; and funding instability, where future appropriations may not align with the long-term commitment, potentially leading to project curtailment. Additionally, the 'cost no fee' structure requires continuous government vigilance to prevent inefficient spending over such an extended period.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 6

Pricing Type: COST NO FEE (S)

Contractor Details

Address: 120 DAY HALL, ITHACA, NY, 14853

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

Financial Breakdown

Contract Ceiling: $17,235,553

Exercised Options: $15,032,175

Current Obligation: $22,146,175

Timeline