NIH awards $33.7M for biomedical research to University of Alabama at Birmingham over 10 years

Contract Overview

Contract Amount: $33,724,880 ($33.7M)

Contractor: University of Alabama AT Birmingham

Awarding Agency: Department of Health and Human Services

Start Date: 2003-08-01

End Date: 2013-12-01

Contract Duration: 3,775 days

Daily Burn Rate: $8.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: R&D

Official Description: BIOMEDICAL (BASIC)

Place of Performance

Location: BIRMINGHAM, JEFFERSON County, ALABAMA, 35294

State: Alabama Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $33.7 million to UNIVERSITY OF ALABAMA AT BIRMINGHAM for work described as: BIOMEDICAL (BASIC) Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. Long duration of over 10 years indicates a sustained need for the research services. 3. Research and Development in Physical, Engineering, and Life Sciences is a critical area for scientific advancement. 4. The contract type 'COST NO FEE' implies the contractor is reimbursed for allowable costs without additional profit. 5. The award amount of $33.7M over a decade suggests an average annual commitment of approximately $3.37M. 6. The definitive contract award mechanism is typically used for substantial research and development efforts.

Value Assessment

Rating: good

The contract's value of $33.7M over 10 years for biomedical research appears reasonable given the long-term nature and the scope of R&D. Without specific benchmarks for similar large-scale biomedical research grants or contracts, a direct comparison is difficult. However, the 'COST NO FEE' structure suggests a focus on cost recovery rather than profit, which can be advantageous for the government in managing research expenses. The duration indicates a significant investment in a specific research area.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This process is designed to foster a competitive environment, potentially leading to better pricing and innovative solutions. The number of bidders is not specified, but the open competition suggests a robust process was intended.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a level playing field for contractors, which can drive down costs and improve the quality of services through market forces.

Public Impact

The University of Alabama at Birmingham, a leading research institution, benefits from this significant funding to advance its biomedical research capabilities. The primary service delivered is Research and Development in the Physical, Engineering, and Life Sciences, contributing to scientific knowledge and potential medical breakthroughs. The geographic impact is primarily focused on Alabama, where the University of Alabama at Birmingham is located, potentially fostering local scientific talent and infrastructure. This contract supports a workforce of researchers, technicians, and administrative staff involved in cutting-edge biomedical studies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to potential scope creep or changes in research priorities over a decade.
The 'COST NO FEE' structure, while cost-reimbursing, requires diligent oversight to ensure all costs are allowable and reasonable.
Reliance on a single institution for a decade-long project may limit exposure to emerging research methodologies from other institutions.

Positive Signals

Award through full and open competition suggests a thorough vetting of potential research partners.
The sustained funding over 10 years provides stability for long-term, complex research projects.
Focus on R&D in a critical scientific field aligns with national health and innovation goals.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on biomedical sciences. The market for biomedical R&D is substantial, driven by government funding agencies like NIH, as well as private investment. Contracts of this nature support academic institutions and private companies in pushing the boundaries of scientific knowledge, often leading to new treatments, diagnostics, and technologies. Comparable spending benchmarks would typically involve analyzing other large grants awarded by NIH or similar agencies for basic and applied research in life sciences.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. As a large research grant awarded to a major university, the primary focus is likely on the institution's research capacity rather than small business subcontracting. However, the University of Alabama at Birmingham may engage small businesses for specific support services or supplies as part of its overall research operations, though this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily fall under the National Institutes of Health (NIH), a component of the Department of Health and Human Services. NIH typically employs program officers and grants management specialists to monitor research progress, adherence to funding guidelines, and financial accountability. The 'COST NO FEE' contract type necessitates careful review of incurred costs to ensure they are allowable and reasonable. Transparency is generally maintained through public reporting of research outcomes and financial expenditures, though specific oversight mechanisms for this particular award would require deeper investigation into NIH's internal procedures.

Related Government Programs

National Institutes of Health Research Grants
Biomedical Research Funding
University Research Partnerships
Life Sciences R&D Contracts

Risk Flags

Long contract duration may increase risk of obsolescence or changing research needs.
Potential for cost overruns or unallowable costs in 'COST NO FEE' contracts requires diligent oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $33.7 million to UNIVERSITY OF ALABAMA AT BIRMINGHAM. BIOMEDICAL (BASIC)

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF ALABAMA AT BIRMINGHAM.

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 $33.7 million.

What is the period of performance?

Start: 2003-08-01. End: 2013-12-01.

What is the track record of the University of Alabama at Birmingham in managing large federal research grants?

The University of Alabama at Birmingham (UAB) has a well-established track record in managing large federal research grants, particularly from agencies like the National Institutes of Health (NIH). As a major research university, UAB consistently ranks among the top institutions for federal research funding. Its extensive experience includes managing complex, multi-year projects across various scientific disciplines. UAB's infrastructure, including dedicated research support offices and experienced administrative staff, is designed to handle the financial and programmatic oversight required for such awards. Their history suggests a capacity to meet the rigorous reporting and compliance standards set by federal agencies, ensuring that funds are used effectively and efficiently towards achieving research objectives.

How does the $33.7M award compare to other NIH biomedical research grants of similar duration?

The $33.7 million award to the University of Alabama at Birmingham over 10 years, averaging approximately $3.37 million annually, is a substantial but not unprecedented figure for major NIH-funded biomedical research projects. NIH funds a wide spectrum of research, from small exploratory grants to large center grants and program project grants. Large, multi-disciplinary research centers or initiatives focused on complex diseases or fundamental biological processes can easily reach or exceed this funding level over a decade. For instance, NIH's National Cancer Institute or National Institute of Allergy and Infectious Diseases often award multi-year grants in the tens of millions for significant research programs. The 'COST NO FEE' structure, focusing on reimbursement of expenses, is common for institutional research grants, distinguishing it from contracts that might include profit margins.

What are the primary risks associated with a 10-year 'COST NO FEE' research contract?

A significant risk with a 10-year 'COST NO FEE' research contract is the potential for research relevance to diminish over time due to evolving scientific understanding or technological advancements. The 'COST NO FEE' structure, while aiming to control costs by reimbursing only allowable expenses without profit, requires robust oversight to prevent cost overruns or the inclusion of unallowable expenses. There's also a risk of 'scope creep,' where the research objectives may expand beyond the original intent without commensurate adjustments in oversight or funding mechanisms. Furthermore, institutional challenges, such as changes in key personnel or administrative priorities at the University of Alabama at Birmingham, could impact project continuity. Ensuring consistent progress and adherence to the original research goals over such an extended period necessitates proactive management and regular performance reviews by the funding agency.

How effective is 'full and open competition' in ensuring value for taxpayer money in R&D contracts?

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money in R&D contracts. By allowing all responsible sources to submit proposals, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving innovative approaches and competitive pricing. This process encourages contractors to propose their best technical solutions and most cost-effective methods to win the award. The competitive pressure inherent in this approach incentivizes efficiency and discourages complacency. While R&D inherently involves uncertainty, a well-structured competition allows the government to select the proposal that offers the best balance of technical merit, risk mitigation, and price, ultimately serving the taxpayer's interest by securing the most promising research outcomes for the investment.

What are historical spending patterns for NIH in the 'Research and Development in Physical, Engineering, and Life Sciences' NAICS code (541710)?

The National Institutes of Health (NIH) is a primary funder for activities classified under NAICS code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences.' Historical spending patterns show NIH consistently allocating billions of dollars annually to this sector, making it one of the largest federal sources of R&D funding. This spending supports a vast array of research, from basic science discoveries to applied research aimed at developing new medical treatments and technologies. NIH's funding is distributed through various mechanisms, including grants to universities and research institutions, contracts with private companies, and intramural research. The trend over the years has generally been an increase in overall R&D investment, reflecting a national priority on scientific advancement and public health, although specific funding levels can fluctuate based on budgetary appropriations and administration priorities.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE University of Alabama System

Address: 701 20TH ST SOUTH AB 990, BIRMINGHAM, AL, 35294

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: $42,411,499

Exercised Options: $29,651,898

Current Obligation: $33,724,880

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline