Duke University awarded $11.6M contract for research services by NIH, spanning over 15 years
Contract Overview
Contract Amount: $11,596,197 ($11.6M)
Contractor: Duke University
Awarding Agency: Department of Health and Human Services
Start Date: 2000-09-15
End Date: 2016-07-25
Contract Duration: 5,792 days
Daily Burn Rate: $2.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST NO FEE
Sector: R&D
Place of Performance
Location: DURHAM, DURHAM County, NORTH CAROLINA, 27708
Plain-Language Summary
Department of Health and Human Services obligated $11.6 million to DUKE UNIVERSITY for work described as: Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. Long duration of over 15 years may indicate a stable, ongoing research need. 3. Cost-plus-no-fee contract type implies reimbursement of allowable costs without additional profit. 4. The contract was awarded in 2000, with an end date in 2016, indicating a historical project. 5. The awarding agency, NIH, is a major funder of biomedical research. 6. The contract value of $11.6 million over its lifespan suggests significant investment in the research area.
Value Assessment
Rating: fair
The contract value of $11.6 million over approximately 16 years averages to about $725,000 per year. Without specific details on the research services provided, it's difficult to benchmark against similar contracts. The 'Cost No Fee' (Cost Plus Fixed Fee) structure means the contractor is reimbursed for allowable costs but does not earn a profit, which can sometimes lead to less incentive for cost control compared to fixed-price contracts. However, for research, this structure might be appropriate to cover unpredictable expenses.
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. The number of bids received (6) suggests a reasonable level of interest and competition for this research opportunity. This competitive process is generally expected to lead to a fair price discovery and selection of the most advantageous offer.
Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by fostering a market-driven price for the services rendered.
Public Impact
Duke University, a leading research institution, benefits from this funding to conduct scientific studies. The services delivered likely involve advanced biomedical or health-related research, contributing to scientific knowledge. The geographic impact is primarily within North Carolina, where Duke University is located, but the research findings can have a national or global impact. The contract supports research personnel, including scientists, technicians, and administrative staff at Duke University.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The long contract duration (over 15 years) could potentially lead to scope creep or evolving research needs that may not have been fully anticipated at the outset.
- Cost-reimbursement contracts, especially 'Cost No Fee,' can sometimes lack strong incentives for aggressive cost management if not closely monitored.
- The lack of specific details on the research outcomes makes it challenging to assess the ultimate value and impact of the awarded funds.
Positive Signals
- Awarded through full and open competition, indicating a robust and fair selection process.
- The significant funding awarded suggests the importance and potential impact of the research being conducted.
- The long-term nature of the contract implies a sustained commitment to a critical research area by the NIH.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically in biomedical or health sciences. The National Institutes of Health (NIH) is a primary source of federal funding for such research in the United States. The market for federal research grants and contracts is highly competitive, with academic institutions and private companies vying for funding. Benchmarks for similar long-term research contracts can vary widely depending on the scientific field, scope, and duration.
Small Business Impact
There is no indication that this contract involved small business set-asides or subcontracting requirements. The nature of the award to a large academic institution like Duke University suggests it was not specifically targeted towards small businesses.
Oversight & Accountability
Oversight for NIH contracts typically involves program officers, contracting officers, and potentially an Inspector General's office to ensure compliance and proper use of funds. The 'Cost No Fee' structure requires diligent monitoring of allowable costs. Transparency is generally maintained through contract databases, though specific research progress reports may be proprietary.
Related Government Programs
- National Institutes of Health Research Grants
- Department of Health and Human Services Research Programs
- Federal Funding for University Research
- Biomedical Research Contracts
Risk Flags
- Long Contract Duration
- Cost Reimbursement Contract Type
- Lack of Specific Outcome Data
Tags
research-and-development, health-and-human-services, national-institutes-of-health, definitive-contract, cost-plus-no-fee, full-and-open-competition, academic-institution, north-carolina, multi-year, historical-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $11.6 million to DUKE UNIVERSITY. See the official description on USAspending.
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 $11.6 million.
What is the period of performance?
Start: 2000-09-15. End: 2016-07-25.
What specific research was conducted under this contract?
The provided data does not specify the exact research area or project conducted under this $11.6 million contract awarded to Duke University by the National Institutes of Health (NIH). NIH funds a vast array of research, including but not limited to, basic science, clinical trials, public health initiatives, and disease-specific studies. To understand the specific research, one would need to consult NIH contract award details, Duke University's research publications from the 2000-2016 period, or project reports associated with this award number (if publicly available). The 'Cost No Fee' contract type suggests that the focus was on reimbursing the direct costs of research activities and personnel without an additional profit margin for the contractor.
How does the $11.6 million total award compare to typical NIH research contracts of similar duration?
Benchmarking the $11.6 million award for a contract spanning approximately 16 years (2000-2016) requires context on the specific research field and scope. NIH contracts can range dramatically in value. For long-term, complex research projects, especially those involving multiple phases or large teams, $11.6 million ($725,000 annually on average) could be considered moderate. However, for smaller, more focused studies, it could be substantial. Without knowing the precise scientific domain (e.g., basic biology vs. large-scale clinical trials), a direct comparison is difficult. NIH's funding levels vary significantly across its various institutes and centers, and by the nature of the research being supported.
What are the potential risks associated with a 'Cost No Fee' contract structure for long-term research?
A 'Cost No Fee' (Cost Plus Fixed Fee) contract structure, while suitable for research where costs can be unpredictable, carries certain risks. Primarily, it shifts the financial risk to the government, as the contractor is reimbursed for all allowable costs. This can reduce the contractor's incentive for stringent cost control compared to fixed-price contracts. For long-term projects, there's a risk of cost overruns if initial estimates are inaccurate or if unforeseen challenges arise. Effective oversight by the government is crucial to monitor expenditures, ensure costs are reasonable and allocable, and prevent potential inefficiencies. The absence of a profit motive might also, in some cases, reduce the contractor's drive for innovation or efficiency, although this is often mitigated by the scientific and ethical motivations of researchers.
What was Duke University's track record with NIH contracts around the time this award was made?
Duke University has historically been a major recipient of federal research funding, particularly from the NIH, due to its strong research infrastructure and faculty. In the period around 2000 and extending through 2016, Duke consistently ranked among the top universities for NIH funding. This suggests that Duke had a well-established track record of successfully managing complex research grants and contracts, meeting scientific objectives, and complying with federal regulations. Awards like this $11.6 million contract would have been part of a larger portfolio of research activities, indicating their capacity to handle significant federal investments in scientific endeavors.
How does the duration of this contract (over 15 years) compare to typical federal research agreements?
Federal research agreements, especially those funded by agencies like the NIH, can indeed have long durations, often extending over multiple years. While many grants and contracts are awarded for shorter periods (e.g., 1-5 years), it is not uncommon for significant research initiatives, particularly those involving long-term studies, clinical trials, or the development of complex technologies, to be funded over periods exceeding a decade. The 15+ year duration of this contract suggests a sustained, multi-phase research effort that required long-term commitment and funding stability. Such long-term awards are typically reserved for projects with high scientific merit and potential for significant impact, where incremental funding over extended periods is necessary for success.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 6
Pricing Type: COST NO FEE (S)
Contractor Details
Address: P.O. BOX 90030, DURHAM, NC, 27708
Business Categories: Category Business, Educational Institution, Higher Education, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $41,171,809
Exercised Options: $10,396,197
Current Obligation: $11,596,197
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2000-09-15
Current End Date: 2016-07-25
Potential End Date: 2016-07-25 00:00:00
Last Modified: 2016-07-28
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