NIH awards $11M for biomedical research, spanning nearly a decade with University of Washington

Contract Overview

Contract Amount: $11,023,009 ($11.0M)

Contractor: University of Washington

Awarding Agency: Department of Health and Human Services

Start Date: 2001-09-28

End Date: 2010-05-30

Contract Duration: 3,166 days

Daily Burn Rate: $3.5K/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: SEATTLE, KING County, WASHINGTON, 98105

State: Washington Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $11.0 million to UNIVERSITY OF WASHINGTON for work described as: BIOMEDICAL (BASIC) Key points: 1. Contract awarded through full and open competition, suggesting a broad search for qualified bidders. 2. Long contract duration of over 8 years may indicate a stable, ongoing research need. 3. Cost-plus-no-fee contract type implies the government reimburses allowable costs plus a fixed fee, with potential for cost overruns. 4. The North American Industry Classification System (NAICS) code 541720 points to research and development in the social sciences and humanities, which may be a misclassification given the 'BIOMEDICAL (BASIC)' description. 5. The contract was awarded to the University of Washington, a large research institution with a significant track record. 6. The absence of small business set-aside indicates this was not specifically targeted for small business participation.

Value Assessment

Rating: fair

The total award amount of $11,023,009.30 over nearly nine years averages to approximately $1.22 million per year. Without specific deliverables or milestones, it's difficult to benchmark value for money. The 'COST NO FEE' contract type means the government covers all allowable costs plus a fixed fee, which can sometimes lead to less incentive for cost control compared to fixed-price contracts. Benchmarking this against similar long-term, cost-reimbursable biomedical research grants would provide better context.

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 offers suggests a moderate level of competition for this research endeavor. While more bidders could potentially drive down costs, a full and open competition is generally a positive sign for ensuring fair market access and potentially identifying the most capable research institution.

Taxpayer Impact: A full and open competition is favorable for taxpayers as it aims to secure the best value by allowing a wide range of potential contractors to compete, theoretically leading to more competitive pricing and better service selection.

Public Impact

The University of Washington is the primary beneficiary, receiving funding for its research activities. The contract supports basic biomedical research, which could lead to advancements in healthcare and scientific understanding. The geographic impact is primarily within Washington state, where the University of Washington is located. The contract likely supports researchers, technicians, and administrative staff at the university, contributing to the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the 'COST NO FEE' contract type, where the government bears the risk of increased expenses.
The discrepancy between the NAICS code (Social Sciences and Humanities) and the description ('BIOMEDICAL (BASIC)') raises concerns about accurate classification and potential misallocation of research focus or oversight.
Long contract duration without clear performance metrics could make it challenging to assess progress and ensure accountability over time.

Positive Signals

Awarded through full and open competition, indicating a robust process for selecting the contractor.
The contract is with a well-established research institution (University of Washington), suggesting a high likelihood of research capability and expertise.
The funding supports basic research, which is crucial for long-term scientific and medical progress.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on basic biomedical research. The R&D sector is characterized by innovation and the pursuit of new knowledge. Comparable spending benchmarks would involve looking at other NIH grants and contracts awarded for similar basic science research projects, particularly those with long-term durations and cost-reimbursable structures. The total award of $11 million over nearly nine years represents a significant investment in a specific area of scientific inquiry.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary focus was on securing the most qualified large research institution for this specific biomedical research project, rather than prioritizing small business participation or development.

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 (HHS). As a cost-reimbursable contract, regular financial reporting and auditing would be expected from the University of Washington to ensure that funds are spent appropriately and for approved research activities. The Inspector General for HHS would have jurisdiction for audits and investigations related to potential fraud, waste, or abuse.

Related Government Programs

National Institutes of Health Research Grants
Department of Health and Human Services Biomedical Research Funding
University Research Partnerships
Basic Science Research Contracts

Risk Flags

Potential for cost overruns due to cost-reimbursable contract type.
Incongruent NAICS code suggests possible data accuracy issues.
Long contract duration without explicit performance metrics requires robust oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $11.0 million to UNIVERSITY OF WASHINGTON. BIOMEDICAL (BASIC)

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF WASHINGTON.

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 $11.0 million.

What is the period of performance?

Start: 2001-09-28. End: 2010-05-30.

What is the specific research being conducted under this contract, and what are the expected outcomes?

The provided data indicates the contract is for 'BIOMEDICAL (BASIC)' research, funded by the National Institutes of Health (NIH). However, the specific research objectives, methodologies, and expected scientific outcomes are not detailed in the summary data. Basic research aims to expand fundamental knowledge and understanding of phenomena, without a specific application in mind. Outcomes could range from new insights into cellular processes, genetic mechanisms, or disease pathways. To ascertain the specific research, one would need to consult the contract's statement of work or associated project documentation. The NAICS code '541720' (Research and Development in the Social Sciences and Humanities) appears incongruent with 'BIOMEDICAL (BASIC)' research, suggesting a potential data entry error or a highly interdisciplinary research focus that warrants further clarification.

How does the $11 million award compare to typical NIH funding for similar long-term biomedical research projects?

The $11,023,009.30 award over approximately 8.6 years averages to about $1.28 million annually. NIH funding for basic biomedical research varies significantly based on the specific scientific area, the scope of the research, and the institution's capabilities. Large, multi-year grants to major research universities like the University of Washington can indeed reach these figures, especially for complex projects requiring extensive personnel, equipment, and resources. However, without knowing the precise research focus (e.g., genomics, immunology, neuroscience) and the specific NIH institute or center managing the award, a direct comparison is challenging. Generally, NIH grants can range from hundreds of thousands to several million dollars per year, making this award substantial but not necessarily outside the typical range for significant, long-term institutional research.

What are the risks associated with a 'COST NO FEE' contract type for basic research, and how are they mitigated?

The primary risk of a 'COST NO FEE' (Cost-Reimbursable, No Fee) contract is that the government bears the full financial risk of cost overruns. The contractor (University of Washington) is reimbursed for all allowable costs incurred in performing the research, plus a fixed fee (in this case, zero fee, meaning only costs are reimbursed). This can reduce the contractor's incentive to control costs rigorously. Mitigation strategies typically involve strong government oversight, including detailed auditing of expenditures, review of progress reports, and adherence to pre-approved budgets and research plans. The contract likely includes clauses requiring the university to exercise due diligence in managing resources efficiently. However, the absence of a fee might also indicate a specific type of institutional agreement or grant mechanism where profit is not the objective, and the focus is purely on facilitating research.

Given the long duration (nearly 9 years), what performance metrics or milestones are likely in place to ensure accountability?

While the provided data does not specify performance metrics or milestones, long-term research contracts typically incorporate them to ensure accountability and track progress. These often include annual progress reports detailing research activities, findings, and expenditures. Key milestones might involve the completion of specific experimental phases, data collection targets, publication of preliminary results, or development of prototypes or methodologies. The NIH, as the funding agency, would likely have a structured review process, potentially involving scientific advisory boards or peer reviewers, to assess the project's advancement against its stated goals. Failure to meet agreed-upon milestones could trigger reviews, funding adjustments, or even contract termination.

How does the 'FULL AND OPEN COMPETITION' award mechanism impact the value proposition for taxpayers compared to other methods?

A 'FULL AND OPEN COMPETITION' award mechanism is generally considered beneficial for taxpayers. It ensures that the government solicits proposals from the widest possible pool of qualified sources, thereby fostering robust competition. This competitive environment theoretically drives down prices, encourages innovation, and leads to the selection of the most capable contractor at the best value. In this case, with 2 offers received, there was some level of competition. While more bidders might have yielded even greater price discovery, the full and open approach maximizes the opportunity to find the optimal research partner for the NIH's objectives, ultimately aiming for a more efficient use of taxpayer funds compared to sole-source or limited competition scenarios.

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: 3900 15TH AVE NE, SEATTLE, WA, 98195

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $22,475,140

Exercised Options: $17,739,244

Current Obligation: $11,023,009

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline