University of Wisconsin System awarded $61.7M for R&D in Physical, Engineering, and Life Sciences by NIH

Contract Overview

Contract Amount: $61,745,455 ($61.7M)

Contractor: University of Wisconsin System

Awarding Agency: Department of Health and Human Services

Start Date: 2002-09-15

End Date: 2010-09-28

Contract Duration: 2,935 days

Daily Burn Rate: $21.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: R&D

Place of Performance

Location: MADISON, DANE County, WISCONSIN, 53706

State: Wisconsin Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $61.7 million to UNIVERSITY OF WISCONSIN SYSTEM for work described as: Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. Long contract duration of over 8 years indicates a significant, ongoing research effort. 3. Cost-plus-no-fee contract type may incentivize cost incurrence without direct profit motive. 4. The contract falls under the R&D sector, specifically scientific research services. 5. Awarded by the National Institutes of Health, a primary funder of biomedical research. 6. The large dollar amount signifies a substantial investment in scientific advancement.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without specific deliverables or comparable projects. The Cost No Fee (CNF) structure is often used for research where costs are difficult to predict, but it can sometimes lead to less cost control compared to fixed-price contracts. The total award of $61.7 million over nearly 8 years averages to approximately $7.7 million annually, which for a large-scale research endeavor may be reasonable, but requires deeper analysis of the scope of work.

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. This suggests a robust bidding process where multiple entities likely vied for the contract. The level of competition is not explicitly stated in terms of the number of bidders, but the designation implies a market where the government sought the best value through an open process.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and higher quality services as contractors strive to win the award.

Public Impact

The primary beneficiaries are researchers and institutions within the University of Wisconsin System, enabling advanced scientific inquiry. The contract supports research and development in the physical, engineering, and life sciences, potentially leading to new discoveries and innovations. The geographic impact is centered in Wisconsin, supporting the state's research infrastructure and academic community. Workforce implications include employment for researchers, technicians, and support staff at the University of Wisconsin System.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost No Fee (CNF) contracts can sometimes lack strong cost control incentives.
The long duration may present challenges in adapting to evolving research needs or technological advancements.
Lack of specific performance metrics makes it difficult to assess the efficiency of resource utilization.

Positive Signals

Awarded through full and open competition, suggesting a competitive environment for selecting the contractor.
The significant funding indicates a commitment to important scientific research areas.
The contract supports a major university system, leveraging established research capabilities.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically under NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences). This sector is characterized by significant investment in innovation and scientific discovery. Comparable spending benchmarks would involve analyzing other large-scale R&D grants and contracts awarded by agencies like NIH to academic institutions or research organizations for similar scientific pursuits.

Small Business Impact

There is no indication of small business set-asides for this contract, as it was awarded to the University of Wisconsin System, a large academic institution. Subcontracting opportunities for small businesses are not explicitly detailed but could potentially arise if the university engages external specialized services or suppliers as part of the research activities.

Oversight & Accountability

Oversight for this contract would primarily fall under the National Institutes of Health (NIH), which is responsible for monitoring the progress and financial stewardship of research grants and contracts. Accountability measures would likely involve regular reporting on research milestones, expenditures, and adherence to ethical and scientific standards. Transparency is generally maintained through public research publications and NIH's reporting mechanisms, though specific contract details might be less accessible.

Related Government Programs

National Institutes of Health Research Grants
University Research and Development Contracts
Federal Funding for Scientific Research
Life Sciences Research Initiatives

Risk Flags

Long contract duration may increase risk of scope misalignment.
Cost No Fee structure requires careful monitoring for cost control.
Lack of specific performance metrics could hinder outcome assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $61.7 million to UNIVERSITY OF WISCONSIN SYSTEM. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF WISCONSIN SYSTEM.

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 $61.7 million.

What is the period of performance?

Start: 2002-09-15. End: 2010-09-28.

What specific research areas are covered under this contract?

The contract, identified by NAICS code 541710, broadly covers 'Research and Development in the Physical, Engineering, and Life Sciences.' Without access to the detailed statement of work or specific task orders, the precise research areas remain unspecified. However, given the funding agency (NIH), it is highly probable that the research focuses on biomedical, health-related, or biological sciences, potentially spanning areas like genetics, immunology, neuroscience, or public health research. The 'Physical' and 'Engineering' aspects could relate to developing new medical devices, diagnostic tools, or computational models for biological systems.

How does the Cost No Fee (CNF) contract type impact cost control and contractor incentives?

A Cost No Fee (CNF) contract reimburses the contractor for allowable costs incurred but does not provide any additional fee or profit. This type of contract is typically used when the costs are uncertain or difficult to estimate, often in research and development settings. While it ensures that the contractor is compensated for their efforts and materials, it can reduce the incentive for stringent cost control compared to fixed-price contracts. The primary incentive for the contractor is to successfully complete the research objectives, as their compensation is tied to incurred costs rather than profit margins. This structure requires robust oversight from the government to monitor expenditures and ensure efficiency.

What is the historical spending pattern for this type of research at the University of Wisconsin System?

Analyzing the historical spending patterns for similar research at the University of Wisconsin System would require access to detailed federal procurement data beyond this single contract. However, the University of Wisconsin System is a large public university system with multiple campuses engaged in significant research activities. Federal agencies like the NIH are major funders of university research nationwide. A $61.7 million award over nearly 8 years suggests a substantial, long-term research program. To understand historical patterns, one would typically look at the total federal R&D funding received by the UW System over several years, the distribution of that funding across different agencies (like NIH, NSF, DoD), and the types of research projects funded to see if this contract represents a continuation, expansion, or new initiative.

What are the potential risks associated with a long-duration research contract?

Long-duration research contracts, such as this one spanning over 8 years, carry several potential risks. Firstly, the scope of research may become outdated or misaligned with evolving scientific frontiers or national priorities over such an extended period. Secondly, managing costs effectively over many years can be challenging, especially if initial estimates were inaccurate or unforeseen expenses arise. Thirdly, there's a risk of 'scope creep,' where the project expands beyond its original objectives without adequate adjustments to budget or timeline. Finally, maintaining consistent performance and engagement from the research team over such a long timeframe can be difficult, potentially impacting the quality and timeliness of outcomes.

How does this contract compare to other NIH-funded research projects in terms of scale and duration?

This contract, with an award of $61.7 million over approximately 2935 days (nearly 8 years), represents a significant investment. NIH funds a vast array of research projects, ranging from small, short-term grants to large, multi-year center grants and contracts. Large-scale R&D contracts awarded to major research institutions like the University of Wisconsin System often fall into this multi-million dollar, multi-year category. While many NIH awards are smaller, substantial funding is allocated to major research centers, consortia, and long-term studies. The duration is substantial, indicating a commitment to a sustained research effort, which is common for complex scientific endeavors requiring extensive data collection, analysis, or development.

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 › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: COST NO FEE (S)

Contractor Details

Address: 750 UNIVERSITY AVE, MADISON, WI, 53706

Business Categories: Category Business, Educational Institution, Higher Education, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,466,874

Exercised Options: $36,995,369

Current Obligation: $61,745,455

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline