NIH awarded Southern Research Institute $10.46M for R&D, with contract duration exceeding 2 years

Contract Overview

Contract Amount: $10,459,110 ($10.5M)

Contractor: Southern Research Institute

Awarding Agency: Department of Health and Human Services

Start Date: 2001-09-15

End Date: 2008-12-31

Contract Duration: 2,664 days

Daily Burn Rate: $3.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Place of Performance

Location: BIRMINGHAM, JEFFERSON County, ALABAMA, 35205

State: Alabama Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $10.5 million to SOUTHERN RESEARCH INSTITUTE for work described as: Key points: 1. Value for money appears fair given the extended duration and R&D nature of the contract. 2. Full and open competition suggests a healthy market for these specialized research services. 3. Contract duration of over 2 years indicates a need for sustained research efforts. 4. Performance context is R&D in physical, engineering, and life sciences. 5. Sector positioning is within the broader federal R&D spending landscape.

Value Assessment

Rating: fair

The contract value of $10.46 million over approximately 2.2 years averages to about $4.75 million annually. Without specific deliverables or comparable contracts for similar R&D, a precise value-for-money assessment is challenging. However, the cost-plus-fixed-fee structure suggests that costs were estimated and a fixed fee was added, which can be appropriate for R&D where exact costs are uncertain. Benchmarking against other NIH R&D contracts of similar scope and duration would provide a clearer picture of pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This suggests a competitive market for the specialized research and development services required by the National Institutes of Health. The presence of multiple bidders generally leads to better price discovery and potentially more innovative solutions.

Taxpayer Impact: Taxpayers benefit from a competitive process that is likely to yield a fair price for the research services rendered.

Public Impact

The primary beneficiaries are the National Institutes of Health and the broader scientific community, through advancements in physical, engineering, and life sciences. The services delivered are research and development activities, contributing to scientific knowledge and potential technological innovations. The geographic impact is primarily within Alabama, where Southern Research Institute is located, but the research findings can have national and global implications. Workforce implications include employment for scientists, researchers, and support staff at Southern Research Institute.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can sometimes lead to cost overruns if not closely monitored.
The extended duration of the contract may present challenges in adapting to rapidly evolving research landscapes.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
The contract supports critical research and development activities for the NIH.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. Federal spending in R&D is crucial for scientific advancement and innovation. Comparable spending benchmarks would involve looking at other NIH contracts for similar scientific research, as well as R&D spending across other federal agencies like NSF or DoD. The market for specialized scientific R&D services is often characterized by a mix of academic institutions and private research organizations.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the direct impact on small businesses through set-asides is minimal. However, Southern Research Institute, as a large research organization, may engage small businesses as subcontractors, though this is not explicitly detailed in the provided data. The focus appears to be on securing specialized R&D capabilities from established entities.

Oversight & Accountability

Oversight for this contract would typically be managed by the National Institutes of Health contracting officers and program managers. Accountability measures are inherent in the cost-plus-fixed-fee structure, requiring detailed reporting and justification of costs. Transparency is generally maintained through contract databases and public reporting, although specific research methodologies and findings may be proprietary. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

NIH Research Grants
Federal R&D Funding
Life Sciences Research Contracts
Engineering Research Services

Risk Flags

Extended contract duration may increase risk of obsolescence or shifting priorities.
CPFF structure requires diligent cost oversight to prevent overruns.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $10.5 million to SOUTHERN RESEARCH INSTITUTE. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is SOUTHERN RESEARCH INSTITUTE.

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 $10.5 million.

What is the period of performance?

Start: 2001-09-15. End: 2008-12-31.

What specific research areas did Southern Research Institute focus on under this contract?

The provided data indicates the contract falls under NAICS code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences.' While the specific sub-disciplines or projects are not detailed, this broad classification suggests work could encompass a wide range of scientific inquiry. Southern Research Institute is known for its work in areas such as infectious diseases, drug discovery, advanced materials, and aerospace engineering. Therefore, the research likely spanned one or more of these domains, contributing to NIH's mission of advancing fundamental knowledge and health solutions.

How does the $10.46 million award compare to typical NIH R&D contract values?

The $10.46 million award over approximately 2.2 years, averaging around $4.75 million annually, is a substantial but not extraordinary amount for NIH R&D contracts. NIH funds a vast array of research, from small grants to large, multi-year center grants and contracts. Contracts of this magnitude are common for specific research projects requiring specialized expertise or facilities that NIH does not possess internally. Benchmarking against similar definitive contracts awarded under full and open competition for R&D in the physical, engineering, and life sciences would provide a more precise comparison. However, it falls within a typical range for significant, focused research initiatives.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

Cost Plus Fixed Fee (CPFF) contracts, while suitable for R&D where costs are uncertain, carry inherent risks. For the government, the primary risk is that the contractor may not have sufficient incentive to control costs rigorously, as the fee is fixed regardless of the final cost. This can lead to cost overruns if the initial cost estimates are inaccurate or if unforeseen challenges arise. For the contractor, the risk lies in underestimating the costs, which could reduce their profit margin or even lead to a loss if the fixed fee does not adequately cover their efforts. Effective oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks.

What was the historical spending pattern for Southern Research Institute with the Department of Health and Human Services?

The provided data shows a single definitive contract awarded to Southern Research Institute by the Department of Health and Human Services (specifically NIH) from September 15, 2001, to December 31, 2008, totaling $10.46 million. This suggests that prior to this specific award, there might not have been significant federal contract activity with HHS for this entity, or at least not under this specific contract vehicle. Without access to a comprehensive federal procurement database covering all historical contracts, it's difficult to ascertain the full extent of their past dealings. However, this single, substantial award indicates a significant engagement during that period.

How does the duration of this contract (2664 days) impact its overall value and risk?

A contract duration of 2664 days (approximately 7.3 years) is quite long for a definitive contract, especially for R&D where scientific landscapes can shift rapidly. This extended duration suggests a long-term research objective or a phased approach to development. For value, it implies a sustained commitment and potentially deeper research outcomes. However, it also increases risks related to technological obsolescence, changes in research priorities, and the potential for cost escalation over time, even with a fixed fee. Managing such a long-term project requires robust program management, regular reviews, and flexibility to adapt to new information or changing requirements.

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

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 2000 9TH AVE S, BIRMINGHAM, AL, 35205

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,023,097

Exercised Options: $4,213,478

Current Obligation: $10,459,110

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline