NIH awards $16.7M for R&D services to Childrens Hospital Medical Center over 13+ years

Contract Overview

Contract Amount: $16,676,202 ($16.7M)

Contractor: Childrens Hospital Medical Center

Awarding Agency: Department of Health and Human Services

Start Date: 2002-06-01

End Date: 2016-01-14

Contract Duration: 4,975 days

Daily Burn Rate: $3.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST NO FEE

Sector: R&D

Official Description: R&D-OTHER SVC & DEVELOP-ADV DEV

Place of Performance

Location: CINCINNATI, HAMILTON County, OHIO, 45229

State: Ohio Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $16.7 million to CHILDRENS HOSPITAL MEDICAL CENTER for work described as: R&D-OTHER SVC & DEVELOP-ADV DEV Key points: 1. Significant long-term award for advanced development R&D. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Contract duration is exceptionally long, raising questions about flexibility and evolving needs. 4. The sector is Research and Development, a critical area for innovation.

Value Assessment

Rating: fair

The contract type is Cost No Fee, which can lead to cost overruns if not managed tightly. The total award of $16.7M over nearly 14 years averages to approximately $1.2M annually, which seems reasonable for specialized R&D services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bidders were considered. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The long duration and cost-plus nature of this contract warrant scrutiny to ensure taxpayer funds are used efficiently and effectively for the intended research outcomes.

Public Impact

Long-term funding for critical R&D can foster innovation and scientific advancement. The extended contract period may limit opportunities for newer, potentially more innovative vendors to enter. Transparency in how funds were utilized over the 13+ year period is crucial for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Extended contract duration (nearly 14 years)
Cost-reimbursement contract type without fee
Lack of specific performance metrics in provided data

Positive Signals

Awarded under full and open competition
Supports critical R&D in physical, engineering, and life sciences

Sector Analysis

This contract falls under the Research and Development sector, specifically NAICS code 541710. Spending in this sector is vital for national competitiveness and technological advancement. Benchmarks vary widely based on the specific R&D area.

Small Business Impact

The provided data does not indicate if small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The extensive duration of this contract necessitates robust oversight from the Department of Health and Human Services to ensure adherence to research goals and responsible use of funds.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Extended contract duration may lead to outdated approaches.
Cost No Fee structure could reduce cost control incentives.
Lack of clear performance metrics in summary data.
Potential for vendor lock-in over a long contract term.
Limited visibility into specific research outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $16.7 million to CHILDRENS HOSPITAL MEDICAL CENTER. R&D-OTHER SVC & DEVELOP-ADV DEV

Who is the contractor on this award?

The obligated recipient is CHILDRENS HOSPITAL MEDICAL CENTER.

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 $16.7 million.

What is the period of performance?

Start: 2002-06-01. End: 2016-01-14.

What were the specific research objectives and outcomes achieved over the contract's 13+ year lifespan?

The specific research objectives and outcomes are not detailed in the provided data. A comprehensive review would require access to project reports, milestones, and final deliverables to assess the scientific and technological advancements made under this contract. Understanding the tangible results is key to evaluating the overall value.

How did the 'Cost No Fee' structure impact the contractor's incentive to control expenses over such a long period?

The 'Cost No Fee' structure typically means the contractor is reimbursed for allowable costs but receives no additional profit. Over a long duration, this could potentially reduce the incentive for aggressive cost control, as the primary focus might shift to completing the research scope. However, the government's oversight and auditing processes are critical in mitigating this risk.

Were there opportunities to re-compete or adjust the contract scope to incorporate newer technologies or approaches given its extended duration?

The data does not specify if re-competition or scope adjustments occurred. An almost 14-year contract duration without clear evidence of periodic reviews or competitive refreshers raises concerns about potential stagnation. Modernizing research efforts often benefits from incorporating emerging technologies and allowing new vendors to compete.

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: RESEARCH AND DEVELOPMENT › Community and Regional Development R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 3333 BURNET AVE, CINCINNATI, OH, 45229

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

Financial Breakdown

Contract Ceiling: $2,583,635

Exercised Options: $4,713,090

Current Obligation: $16,676,202

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline