HHS awards $11M+ to Southern Research Institute for R&D, facing full and open competition
Contract Overview
Contract Amount: $10,998,697 ($11.0M)
Contractor: Southern Research Institute
Awarding Agency: Department of Health and Human Services
Start Date: 2003-09-15
End Date: 2010-09-29
Contract Duration: 2,571 days
Daily Burn Rate: $4.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 16
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Place of Performance
Location: BIRMINGHAM, JEFFERSON County, ALABAMA, 35255
State: Alabama Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $11.0 million to SOUTHERN RESEARCH INSTITUTE for work described as: Key points: 1. Contract value exceeds $10.9M, indicating significant investment in R&D. 2. Full and open competition suggests a potentially competitive bidding process. 3. Long contract duration (2003-2010) may present risks related to evolving needs. 4. Focus on R&D in Physical, Engineering, and Life Sciences aligns with NIH mission.
Value Assessment
Rating: fair
The contract value of over $10.9M for R&D services is substantial. Without specific benchmarks for similar NIH R&D contracts, it's difficult to definitively assess pricing, but the duration and cost-plus-fixed-fee structure warrant scrutiny.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically promotes competitive pricing. However, the specific details of the bidding process and the number of bidders are not provided, impacting a full assessment of price discovery.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for R&D, but the long duration and cost-plus structure could lead to cost overruns if not managed closely.
Public Impact
Supports critical research and development in physical, engineering, and life sciences. Potential for advancements in health and medical technologies through NIH funding. Long-term investment may yield significant scientific breakthroughs and public health benefits.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (7 years) increases risk of scope creep and cost escalation.
- Cost-plus-fixed-fee structure can incentivize higher costs if not tightly managed.
- Lack of specific performance metrics or deliverables makes value assessment challenging.
Positive Signals
- Awarded through full and open competition, suggesting a fair process.
- Significant investment in a critical R&D area for public health.
- Contractor has a long history with NIH, implying established working relationship.
Sector Analysis
This contract falls under the NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences). Spending in this sector is crucial for innovation and often involves long-term, high-value contracts, with NIH being a major funder.
Small Business Impact
The data indicates the awardee is Southern Research Institute, a non-small business. There is no indication of small business participation or subcontracting in the provided data.
Oversight & Accountability
The contract's long duration and cost-plus-fixed-fee nature necessitate robust oversight from HHS/NIH to ensure cost control, adherence to scope, and achievement of research objectives. Regular performance reviews are critical.
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
- Long contract duration (2003-2010)
- Cost-plus-fixed-fee contract type
- Lack of specific performance metrics in data
- Potential for scope creep over extended period
- No clear indication of small business subcontracting
Tags
research-and-development-in-the-physical, department-of-health-and-human-services, al, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $11.0 million to SOUTHERN RESEARCH INSTITUTE. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is SOUTHERN RESEARCH INSTITUTE.
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 $11.0 million.
What is the period of performance?
Start: 2003-09-15. End: 2010-09-29.
What were the key performance indicators and milestones established for this contract, and how were they measured to ensure value for money?
The provided data lacks specific details on performance indicators and milestones. For a cost-plus-fixed-fee R&D contract of this magnitude and duration, clear, measurable objectives and rigorous tracking mechanisms are essential to ensure the $10.9M investment yielded tangible scientific progress and met NIH's research goals effectively.
Given the 7-year duration, what mechanisms were in place to manage potential cost overruns and ensure the research remained relevant to evolving scientific landscapes?
The cost-plus-fixed-fee structure inherently carries a risk of cost escalation. Effective management would require stringent oversight, regular budget reviews, and potentially phased funding tied to achieving specific research milestones. Adaptability clauses or mechanisms to re-evaluate research direction might have been necessary to maintain relevance over the long term.
How did the full and open competition process ensure that Southern Research Institute's proposal represented the best value and technical approach compared to other potential bidders?
Full and open competition implies multiple entities could bid. The evaluation process would have assessed technical merit, past performance, and cost. While the award suggests Southern Research Institute was deemed the best value, the specific evaluation criteria and the number of competing proposals are not detailed, limiting a deeper analysis of the competitive outcome.
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 › General Science and Technology R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 16
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Address: 2000 9TH AVE S, BIRMINGHAM, AL, 35205
Business Categories: AbilityOne Program Participant, Category Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $26,986,655
Exercised Options: $10,642,635
Current Obligation: $10,998,697
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2003-09-15
Current End Date: 2010-09-29
Potential End Date: 2010-09-29 00:00:00
Last Modified: 2024-11-23
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