NIH awards $10.9M for R&D facilities, with a 2001 start and 2008 end date

Contract Overview

Contract Amount: $10,931,325 ($10.9M)

Contractor: University of Alabama AT Birmingham

Awarding Agency: Department of Health and Human Services

Start Date: 2001-04-08

End Date: 2008-12-31

Contract Duration: 2,824 days

Daily Burn Rate: $3.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: R&D

Official Description: RESEARCH AND DEVELOPMENT FACILITIES

Place of Performance

Location: BIRMINGHAM, JEFFERSON County, ALABAMA, 35294

State: Alabama Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $10.9 million to UNIVERSITY OF ALABAMA AT BIRMINGHAM for work described as: RESEARCH AND DEVELOPMENT FACILITIES Key points: 1. The contract value of $10.9 million over its duration suggests a moderate investment in research infrastructure. 2. Competition dynamics for this contract are not detailed, but the 'FULL AND OPEN COMPETITION' designation implies a broad solicitation. 3. The contract type 'COST NO FEE' indicates that the government reimburses the contractor for allowable costs but provides no fee. 4. The long duration (2824 days) for an R&D facilities contract may indicate a complex or phased project. 5. The North American Industry Classification System (NAICS) code 541710 points to significant activity in physical, engineering, and life sciences research. 6. The award to the University of Alabama at Birmingham suggests a focus on academic research infrastructure.

Value Assessment

Rating: fair

The total award of $10.9 million over approximately 7.7 years averages to about $1.4 million per year. Without specific details on the facilities or services provided, it's difficult to benchmark against similar contracts. The 'COST NO FEE' contract type means the government bears the cost risk, and value is determined by the efficiency of the research conducted rather than profit margins. The absence of a fee suggests the primary motivation is research advancement rather than commercial gain.

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. The number of bidders is not specified, but this type of competition generally fosters price discovery and encourages competitive pricing. However, for specialized R&D facilities, the pool of qualified bidders might be limited, potentially impacting the breadth of competition.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it aims to secure the best value through a wide range of offers, potentially leading to lower costs or better technical solutions.

Public Impact

The University of Alabama at Birmingham, as the contractor, likely benefits from enhanced research capabilities and infrastructure. The services delivered are related to research and development facilities, supporting scientific advancement. The geographic impact is primarily within Alabama, where the university is located, potentially boosting local research ecosystems. Workforce implications could include support for researchers, technicians, and administrative staff involved in facility operations and research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'COST NO FEE' structure shifts cost risk entirely to the government, which could lead to less incentive for cost control by the contractor.
The long contract duration without specific performance metrics or milestones could pose a risk if project scope or objectives change.
Limited information on the specific nature of the R&D facilities makes it hard to assess if the investment aligns with current scientific priorities.

Positive Signals

Awarding to a university suggests a commitment to advancing fundamental research and education.
The 'FULL AND OPEN COMPETITION' process, if robust, indicates an effort to find the most capable provider.
The contract's focus on R&D facilities supports the development of new knowledge and technologies.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The R&D sector is crucial for innovation and economic growth, with government funding playing a significant role in supporting basic and applied research. Comparable spending benchmarks would depend heavily on the specific type of research facilities and equipment involved, but federal investment in university-based research infrastructure is a common practice.

Small Business Impact

There is no indication that this contract involved small business set-asides, as it was awarded to a university. Universities typically have large operational capacities and may not be subject to the same small business subcontracting requirements as for-profit entities, unless specific clauses are included. The impact on the small business ecosystem is likely minimal for this particular award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the National Institutes of Health (NIH). The 'COST NO FEE' structure necessitates careful monitoring of allowable costs to ensure adherence to the contract terms. Transparency is generally facilitated through contract databases, but detailed operational oversight specifics are not publicly available.

Related Government Programs

National Institutes of Health Research Grants
University Research Infrastructure Programs
Federal Funding for Scientific Facilities

Risk Flags

Cost Reimbursement Risk
Long-Term Project Management
Limited Performance Fee Incentive

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $10.9 million to UNIVERSITY OF ALABAMA AT BIRMINGHAM. RESEARCH AND DEVELOPMENT FACILITIES

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF ALABAMA AT BIRMINGHAM.

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 $10.9 million.

What is the period of performance?

Start: 2001-04-08. End: 2008-12-31.

What specific types of research and development facilities were funded by this contract?

The provided data indicates the contract was for 'RESEARCH AND DEVELOPMENT FACILITIES' under NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences). However, the specific nature of these facilities (e.g., laboratories, specialized equipment, testing sites) is not detailed in the summary data. The award to the University of Alabama at Birmingham suggests these facilities likely support academic research across various scientific disciplines. Further investigation into the contract's statement of work or associated documentation would be required to ascertain the precise types of facilities established or enhanced.

How does the $10.9 million award compare to typical NIH investments in R&D facilities?

The $10.9 million award over approximately 7.7 years represents an average annual investment of roughly $1.4 million. Benchmarking this against typical NIH investments requires context on the scale and purpose of the facilities. NIH funds a wide range of research infrastructure, from individual lab equipment grants to major facility construction. For large-scale, specialized research centers or new building construction, $1.4 million annually might be considered moderate. However, for upgrades to existing facilities or specific equipment acquisition, it could be substantial. Without knowing the exact scope, a direct comparison is challenging, but it falls within the range of significant, though not necessarily massive, infrastructure investments.

What are the potential risks associated with a 'COST NO FEE' contract for R&D facilities?

A 'COST NO FEE' contract means the government reimburses the contractor for all allowable costs incurred in performing the contract, but the contractor receives no profit or fee. For R&D facilities, this structure shifts the financial risk entirely to the government. Potential risks include the contractor having less incentive to control costs rigorously, as their reimbursement is not tied to profit margins. There's also a risk that the contractor might prioritize activities that are easily justifiable as 'allowable costs' over potentially more innovative or cost-saving approaches. Effective oversight is crucial to ensure costs are reasonable, allocable, and necessary for the R&D objectives.

What does the long contract duration (2824 days) imply for the project's complexity or management?

A contract duration of 2824 days, approximately 7.7 years, suggests a project that is either long-term in nature, involves multiple phases, or requires sustained support. For R&D facilities, this could indicate the construction or significant renovation of complex infrastructure, the establishment of long-term research programs requiring dedicated facilities, or ongoing maintenance and operational support. Such durations necessitate robust project management, clear milestone definitions, and adaptive planning to accommodate potential changes in research priorities or technological advancements over the project lifecycle. It also implies a significant commitment of resources over an extended period.

How might the award to a university impact the utilization and accessibility of the R&D facilities?

Awarding R&D facility contracts to universities often implies that the facilities will primarily serve the university's research community, including faculty, students, and postdoctoral researchers. This can foster a highly collaborative and educational environment. Accessibility for external researchers or industry partners might vary depending on the university's policies and the specific terms of the contract. While universities are hubs for innovation, their primary mission is education and research, which may influence how broadly the facilities are made available compared to government-owned or industry-operated facilities.

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: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE University of Alabama System

Address: 701 20TH ST SOUTH AB 990, BIRMINGHAM, AL, 35294

Business Categories: Category Business, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $51,806,163

Exercised Options: $27,612,035

Current Obligation: $10,931,325

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline