NIH awards $15.8M for biomedical research at Utah State University over 9 years

Contract Overview

Contract Amount: $15,836,051 ($15.8M)

Contractor: Utah State University

Awarding Agency: Department of Health and Human Services

Start Date: 2001-09-14

End Date: 2010-09-29

Contract Duration: 3,302 days

Daily Burn Rate: $4.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST NO FEE

Sector: R&D

Official Description: BIOMEDICAL (BASIC)

Place of Performance

Location: LOGAN, CACHE County, UTAH, 84322, UNITED STATES OF AMERICA

State: Utah Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $15.8 million to UTAH STATE UNIVERSITY for work described as: BIOMEDICAL (BASIC) Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. Research and Development in the Social Sciences and Humanities (NAICS 541720) is a broad category. 3. The contract type 'COST NO FEE' indicates that the government reimburses the contractor for allowable costs but does not pay a fee. 4. The duration of over 3300 days (approximately 9 years) suggests a long-term research project. 5. The award amount of $15.8 million over nearly a decade implies an average annual funding of approximately $1.75 million. 6. The contract was awarded by the Department of Health and Human Services, specifically the National Institutes of Health.

Value Assessment

Rating: fair

Benchmarking the value for this contract is challenging without specific details on the research scope and deliverables. The 'COST NO FEE' contract type means the government bears the cost risk, and the value is tied to the successful completion of research objectives rather than a fixed price for a product. Comparing it to similar biomedical basic research grants from NIH would provide better context, but such data is not readily available in this summary.

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 presence of 2 bids suggests a moderate level of competition for this research grant. While not a large number of bidders, it signifies that multiple entities were interested and capable of undertaking the research.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging competitive pricing and innovation, leading to potentially better value for the research investment.

Public Impact

The primary beneficiary is Utah State University, which receives funding to conduct biomedical research. The services delivered are research and development in the social sciences and humanities, with a specific focus on biomedical applications. The geographic impact is primarily within Utah, where the research will be conducted. The contract supports academic research, potentially leading to advancements in scientific knowledge and future innovations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'COST NO FEE' contract type shifts cost risk to the government, which could lead to higher overall expenditures if costs are not well-managed.
The broad NAICS code 'Research and Development in the Social Sciences and Humanities' may obscure the specific nature and potential impact of the biomedical research funded.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent procurement process.
The long duration suggests a sustained commitment to a specific research area, potentially fostering deeper scientific inquiry.
The contract is with a university, supporting academic research and development, which is a key mission for agencies like NIH.

Sector Analysis

This contract falls under the Research and Development (R&D) sector, specifically within basic biomedical research. The R&D sector is characterized by innovation and the pursuit of new knowledge. Comparable spending benchmarks would typically involve analyzing NIH's overall budget allocation for basic research grants and contracts across various institutions and research areas. The annual average of approximately $1.75 million is consistent with funding levels for significant academic research projects.

Small Business Impact

There is no indication that this contract involved small business set-asides. The nature of large-scale, long-term research grants often favors established institutions like universities rather than small businesses, unless specific subcontracting opportunities are created. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the National Institutes of Health (NIH), a division of the Department of Health and Human Services. NIH typically has robust oversight mechanisms for research grants, including progress reports, financial reviews, and scientific evaluations. Transparency is generally maintained through public databases of awarded grants and research publications stemming from the funded work.

Related Government Programs

NIH Research Grants
Biomedical Research Funding
University Research Contracts
Federal R&D Spending

Risk Flags

Limited competition (2 bids)
Cost-reimbursable contract type (Cost No Fee)

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $15.8 million to UTAH STATE UNIVERSITY. BIOMEDICAL (BASIC)

Who is the contractor on this award?

The obligated recipient is UTAH STATE 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 $15.8 million.

What is the period of performance?

Start: 2001-09-14. End: 2010-09-29.

What specific biomedical research areas are being funded under this contract?

The provided data indicates the NAICS code is 541720, 'Research and Development in the Social Sciences and Humanities.' While the agency is the National Institutes of Health (NIH), and the awardee is Utah State University, the specific biomedical research focus is not detailed. NIH funds a vast array of biomedical research, from basic science to clinical applications. Without further documentation, it is impossible to ascertain the precise research questions, methodologies, or expected outcomes related to this particular $15.8 million award. Typically, grant proposals submitted to NIH undergo rigorous peer review to assess scientific merit, innovation, and potential impact on human health.

How does the $15.8 million award compare to typical NIH funding for similar long-term research projects?

The total award of $15.8 million over approximately 9 years translates to an average annual funding of roughly $1.75 million. This figure is within the range of significant federal research grants awarded by agencies like NIH for large-scale, multi-year projects, particularly those involving established research institutions. NIH funds a spectrum of research, from smaller exploratory grants to major program project grants and center grants. The average funding level for R01 grants, NIH's flagship research award, is typically in the $250,000-$500,000 per year range, but larger, more complex projects or those involving multiple investigators and centers can receive substantially more. Therefore, $1.75 million annually appears to be a substantial but not unprecedented level of funding for a long-term biomedical research endeavor.

What are the potential risks associated with a 'COST NO FEE' contract for biomedical research?

A 'COST NO FEE' contract means the government agrees to reimburse the contractor for all allowable costs incurred in performing the contract, but does not pay an additional fee. For biomedical research, the primary risk to the government is that costs could escalate beyond initial projections without a corresponding increase in the likelihood of successful research outcomes. The government bears the financial risk if the research proves more expensive than anticipated. While this contract type can encourage ambitious research by removing the profit motive and focusing on cost recovery, it necessitates strong government oversight to ensure that costs remain reasonable and allocable to the research objectives. The absence of a fee also means the contractor's primary incentive is the successful completion of the research itself, rather than profit maximization.

What is the significance of the contract being awarded under 'FULL AND OPEN COMPETITION' with only two bids?

Awarding a contract under 'FULL AND OPEN COMPETITION' signifies that the solicitation was made available to all responsible sources, and any interested party could submit a proposal. This is generally the preferred method for government contracting as it maximizes the potential for competition and can lead to better pricing and innovation. However, receiving only two bids for this $15.8 million, 9-year research contract suggests a potentially limited pool of qualified bidders for this specific research area or scope. While competition is present, the low number of bids might indicate that fewer entities possessed the necessary expertise, resources, or capacity to undertake such a project, or perhaps the solicitation was highly specialized. This could imply less price pressure than if there were numerous bidders.

How does the duration of this contract (over 3300 days) impact the assessment of its value and risk?

The extended duration of over 3300 days (approximately 9 years) for this biomedical research contract indicates a long-term commitment to a specific research program. From a value perspective, such long-term funding allows for sustained investigation, potentially leading to more significant breakthroughs than short-term projects. It provides stability for researchers and institutions to build expertise and infrastructure. However, the extended timeline also introduces risks. Scientific priorities can shift, research methodologies may become outdated, or the principal investigators might change. For the government, a longer contract duration increases the exposure to potential cost overruns and requires sustained oversight over many years. Assessing value over such a long period necessitates periodic reviews of progress and alignment with evolving scientific understanding and agency goals.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Social Sciences and Humanities

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: 2

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 5600 UNIVERSITY BLVD., LOGAN, UT, 84322

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: $11,298,206

Exercised Options: $7,964,442

Current Obligation: $15,836,051

Timeline