NIH awards Baxter Healthcare $9.8M for R&D facilities, spanning nearly 10 years

Contract Overview

Contract Amount: $9,828,866 ($9.8M)

Contractor: Baxter Healthcare Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2003-09-30

End Date: 2012-09-14

Contract Duration: 3,272 days

Daily Burn Rate: $3.0K/day

Sector: R&D

Official Description: RESEARCH AND DEVELOPMENT FACILITIES

Plain-Language Summary

Department of Health and Human Services obligated $9.8 million to BAXTER HEALTHCARE CORPORATION for work described as: RESEARCH AND DEVELOPMENT FACILITIES Key points: 1. Significant contract value of $9.8M awarded to a single large corporation. 2. Long duration of 3272 days suggests a substantial, ongoing research need. 3. Lack of small business participation noted, potentially limiting broader economic impact. 4. The contract falls within the R&D sector, crucial for scientific advancement.

Value Assessment

Rating: questionable

The contract value of $9.8M over nearly 10 years is substantial. Without specific performance metrics or comparable contracts for similar R&D facilities, assessing value for money is difficult. The lack of competition raises concerns about potential overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source, indicating a lack of competitive bidding. This method limits price discovery and may result in higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The sole-source award potentially means taxpayers are not receiving the best possible price for these R&D facilities.

Public Impact

Taxpayers fund critical research infrastructure through this long-term award. The contract supports advancements in physical, engineering, and life sciences. Potential for innovation and scientific breakthroughs is enabled by this funding.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Long contract duration may not reflect current market conditions.
Lack of small business involvement.

Positive Signals

Supports critical R&D in vital scientific fields.
Long-term commitment provides stability for research projects.

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences (NAICS 541710). Spending in this sector is vital for innovation and national competitiveness, with significant government investment typically seen in areas like healthcare and technology.

Small Business Impact

The data indicates no small business participation in this contract. This sole-source award to a large corporation misses opportunities to engage small businesses, which are often crucial for innovation and economic growth.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure fair pricing and necessity. Further oversight would be beneficial to confirm the justification for avoiding a competitive process and to track the effective 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

Sole-source award lacks competitive pricing.
Long contract duration may lead to outdated pricing or scope.
No clear indication of performance metrics or value achieved.
Potential for cost overruns without competitive oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $9.8 million to BAXTER HEALTHCARE CORPORATION. RESEARCH AND DEVELOPMENT FACILITIES

Who is the contractor on this award?

The obligated recipient is BAXTER HEALTHCARE CORPORATION.

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 $9.8 million.

What is the period of performance?

Start: 2003-09-30. End: 2012-09-14.

What specific R&D facilities were procured, and how do their costs compare to industry benchmarks for similar infrastructure?

The data does not specify the exact nature of the R&D facilities. A detailed breakdown of the facility specifications, equipment, and construction costs would be needed to compare against industry benchmarks. Without this, it's difficult to ascertain if the $9.8M award represents fair market value for the services and infrastructure provided.

What is the justification for the sole-source award, and what risks does this pose to cost-effectiveness?

The justification for the sole-source award is not provided in the data. Sole-source contracts inherently carry a higher risk of inflated costs due to the absence of competitive pressure. This lack of competition means the government may not be achieving the most cost-effective solution for acquiring these R&D facilities.

How effectively has Baxter Healthcare Corporation utilized these funds to advance NIH's research objectives over the contract's duration?

Assessing the effectiveness requires access to performance reports, research outcomes, and milestones achieved by Baxter Healthcare Corporation. The provided data only details the award amount and duration, not the project's success metrics or its contribution to NIH's broader research goals.

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

Contractor Details

Address: 1 BAXTER PKWY, DEERFIELD, IL, 60015

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

Financial Breakdown

Contract Ceiling: $9,828,866

Exercised Options: $9,828,866

Current Obligation: $9,828,866

Timeline