NIH spent $23.5M on operations research, with Baylor College of Medicine securing the contract

Contract Overview

Contract Amount: $23,488,511 ($23.5M)

Contractor: Baylor College of Medicine

Awarding Agency: Department of Health and Human Services

Start Date: 2003-08-01

End Date: 2015-12-15

Contract Duration: 4,519 days

Daily Burn Rate: $5.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST NO FEE

Sector: R&D

Official Description: OPERATIONS RESEARCH&QUANTITATIVE

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77030

State: Texas Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $23.5 million to BAYLOR COLLEGE OF MEDICINE for work described as: OPERATIONS RESEARCH&QUANTITATIVE Key points: 1. Contract value represents a significant investment in specialized research capabilities. 2. The duration of the contract suggests a long-term need for these services. 3. Competition dynamics indicate a robust bidding process for this research area. 4. Performance context is crucial for understanding the impact of this long-term engagement. 5. Sector positioning highlights the importance of R&D within the healthcare landscape.

Value Assessment

Rating: good

The total award of $23.5 million over approximately 12 years suggests a substantial investment in operations research. Benchmarking this against similar long-term R&D contracts within the NIH or broader federal health sector would provide a clearer picture of value for money. Without specific comparable contract data, it's difficult to definitively assess if the pricing was competitive, but the duration implies a consistent need and potentially stable pricing over time. The Cost No Fee (CNF) contract type suggests that the government is primarily concerned with the contractor's ability to perform the research, with costs being reimbursed up to an agreed-upon limit.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of multiple bidders generally fosters price discovery and encourages contractors to offer competitive terms. The specific number of bids received is not provided, but the 'full and open' designation suggests a healthy competitive environment for this type of research service.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it increases the likelihood of obtaining services at a fair market price and encourages innovation among potential bidders.

Public Impact

The primary beneficiary is the National Institutes of Health (NIH), which gains access to specialized operations research expertise. The services delivered likely contribute to improving the efficiency and effectiveness of health research programs and administrative processes. The geographic impact is centered in Texas, where Baylor College of Medicine is located, but the research findings can have national implications for health policy and research. Workforce implications may include employment for researchers, analysts, and support staff at Baylor College of Medicine.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to potential cost overruns if not managed effectively.
Reliance on a single contractor for an extended period might limit the introduction of new methodologies or technologies.
The Cost No Fee structure requires careful monitoring to ensure costs remain within reasonable bounds for the research performed.

Positive Signals

Full and open competition suggests a competitive environment that can drive value.
The sustained funding indicates a recognized and ongoing need for these specialized research services.
The contractor, Baylor College of Medicine, is a reputable institution likely to deliver high-quality research.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on operations research within the physical, engineering, and life sciences. The federal government, particularly agencies like NIH, invests heavily in R&D to advance scientific knowledge and improve public health outcomes. Comparable spending benchmarks would involve looking at other large-scale R&D grants and contracts awarded by NIH and similar agencies for specialized analytical and research services.

Small Business Impact

There is no indication that this contract involved small business set-asides, nor is there information suggesting significant subcontracting opportunities for small businesses. The primary contractor is a large academic institution, suggesting the focus was on specialized research capabilities rather than small business participation.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Institutes of Health (NIH). As a definitive contract with a long duration, regular performance reviews, financial audits, and milestone tracking would be expected. Transparency is generally maintained through federal contract databases, though specific performance details may be proprietary. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

NIH Research Grants
Health Services Research
Biomedical Research Support
Operations Research Services
Federal R&D Spending

Risk Flags

Long contract duration may present challenges in adapting to evolving needs.
Cost No Fee structure requires diligent oversight to ensure cost-effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $23.5 million to BAYLOR COLLEGE OF MEDICINE. OPERATIONS RESEARCH&QUANTITATIVE

Who is the contractor on this award?

The obligated recipient is BAYLOR COLLEGE OF MEDICINE.

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 $23.5 million.

What is the period of performance?

Start: 2003-08-01. End: 2015-12-15.

What is the specific nature of the 'Operations Research' services provided under this contract?

The contract data indicates the North American Industry Classification System (NAICS) code 541710, which covers 'Research and Development in the Physical, Engineering, and Life Sciences.' While 'Operations Research' is mentioned in the description, the specific services would likely involve applying advanced analytical methods, mathematical modeling, statistical analysis, and simulation techniques to solve complex problems related to the planning, management, and execution of health research programs. This could include optimizing resource allocation, improving research protocols, analyzing large datasets for trends, forecasting outcomes, and enhancing the overall efficiency of NIH's research endeavors. The 'Cost No Fee' (CNF) contract type suggests a focus on the research process itself, with the government reimbursing allowable costs up to a certain limit, rather than a fixed-price deliverable.

How does the $23.5 million award compare to other NIH contracts for similar research and development services?

The $23.5 million award over approximately 12 years represents a significant, long-term investment. To benchmark this effectively, one would need to compare it against other large-scale, multi-year R&D contracts awarded by the NIH or other federal health agencies for specialized analytical and research services. For instance, comparing the average annual spend ($23.5M / ~12 years ≈ $1.96M/year) to similar 'Research and Development in the Physical, Engineering, and Life Sciences' contracts could reveal if this represents a typical investment level for such specialized expertise. Without access to a comprehensive database of comparable contracts, a precise comparison is challenging, but the substantial total value suggests a critical and ongoing need for the services provided by Baylor College of Medicine.

What are the key performance indicators (KPIs) used to assess the success of this contract?

Specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data. However, for a 'Cost No Fee' contract focused on 'Research and Development in the Physical, Engineering, and Life Sciences,' typical KPIs would likely revolve around the successful execution of research methodologies, the quality and validity of research findings, adherence to project timelines and milestones, and the effective application of operations research techniques to address NIH's objectives. Progress reports, peer-reviewed publications stemming from the research, and the successful implementation of recommendations derived from the operations research analysis would also serve as crucial indicators of performance and value.

What is Baylor College of Medicine's track record with federal contracts, particularly with the NIH?

Baylor College of Medicine is a prominent academic medical center with a strong history of receiving federal funding, particularly from the National Institutes of Health (NIH), for research and development. While the provided data focuses on a single contract, Baylor consistently ranks among the top institutions for NIH funding. Their track record typically involves successful management of large, complex research grants and contracts across various scientific disciplines. This specific contract, awarded under full and open competition and spanning over a decade, suggests a demonstrated capability and reliability in delivering the required operations research services to the satisfaction of the NIH.

Are there any identified risks associated with this contract, such as cost overruns or performance issues?

Given the 'Cost No Fee' (CNF) contract type and its long duration (over 12 years), potential risks include cost management and performance consistency. While CNF contracts aim to control costs by reimbursing actual expenses, there's a risk of cost overruns if the scope of research expands or if efficiencies are not maintained. Performance risks over such an extended period could involve maintaining the contractor's expertise, adapting to evolving research needs, and ensuring consistent delivery of high-quality analytical support. The 'full and open competition' aspect, however, suggests that the NIH selected a contractor deemed capable of mitigating these risks effectively at the outset.

How has federal spending in 'Operations Research & Quantitative' (NAICS 541710) evolved over the years, and where does this contract fit in?

Federal spending in 'Operations Research & Quantitative' (often falling under NAICS code 541710 for R&D) has generally seen consistent investment, particularly within agencies like the Department of Health and Human Services (HHS) and its sub-agency, the National Institutes of Health (NIH). This specific contract, valued at $23.5 million over approximately 12 years (ending in 2015), represents a significant portion of spending within this category during its performance period. The sustained nature of the contract indicates a long-term strategic priority for NIH to leverage advanced analytical capabilities to support its mission. Tracking overall federal R&D spending trends, especially in health-related fields, would provide context for the importance and scale of this particular award within the broader landscape.

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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL 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: ONE BAYLOR PLAZA T100, HOUSTON, TX, 77030

Business Categories: Category Business, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $60,164,942

Exercised Options: $44,878,547

Current Obligation: $23,488,511

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline