NIH awards $150M+ R&D contract to Cornell University over 7 years for physical, engineering, and life sciences research

Contract Overview

Contract Amount: $15,019,460 ($15.0M)

Contractor: Cornell University

Awarding Agency: Department of Health and Human Services

Start Date: 2003-09-15

End Date: 2010-09-28

Contract Duration: 2,570 days

Daily Burn Rate: $5.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 21

Pricing Type: COST NO FEE

Sector: R&D

Place of Performance

Location: ITHACA, TOMPKINS County, NEW YORK, 14853

State: New York Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $15.0 million to CORNELL UNIVERSITY for work described as: Key points: 1. Contract value exceeds $150 million, indicating a significant investment in research and development. 2. Full and open competition suggests a robust bidding process, potentially leading to better pricing. 3. The contract duration of over 7 years implies a long-term commitment to the research objectives. 4. Cornell University's selection highlights its established capabilities in the specified research fields. 5. The 'Research and Development in the Physical, Engineering, and Life Sciences' category is broad, encompassing diverse scientific endeavors. 6. The contract type 'COST NO FEE' suggests that the government reimburses allowable costs without an additional fee for the contractor. 7. The contract was awarded in 2003 and completed in 2010, providing historical data on federal R&D spending.

Value Assessment

Rating: good

The contract value of over $150 million for a 7-year R&D effort is substantial. Benchmarking this against similar large-scale, long-term research grants awarded by NIH to academic institutions would provide a clearer picture of value for money. The 'COST NO FEE' structure implies that the government bears the direct costs of the research, with the contractor's primary incentive being the successful execution of the research program rather than profit maximization. This structure can be efficient for complex R&D where outcomes are uncertain.

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 competitive environment where multiple research institutions likely vied for the award. The presence of 21 bids (no) indicates a high level of interest and a potentially competitive landscape, which generally favors price discovery and can lead to more favorable terms for the government.

Taxpayer Impact: A full and open competition for a contract of this magnitude ensures that taxpayer funds are utilized efficiently by fostering a competitive environment that drives down costs and encourages innovation among bidders.

Public Impact

The primary beneficiary is Cornell University, which received substantial funding to advance scientific research. The contract supports advancements in the physical, engineering, and life sciences, potentially leading to new discoveries and technologies. The geographic impact is centered in New York, where Cornell University is located, but the research findings can have national and global implications. The contract likely supported a significant number of researchers, technicians, and administrative staff at Cornell, contributing to the academic workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 7 years) can sometimes lead to scope creep or evolving research needs that may not be fully anticipated at the outset.
The 'COST NO FEE' contract type, while common in R&D, requires diligent oversight to ensure that costs incurred are reasonable and directly related to the research objectives.
The broad nature of 'Research and Development in the Physical, Engineering, and Life Sciences' could present challenges in precisely measuring outcomes and impact over the contract period.

Positive Signals

Award to a reputable institution like Cornell University suggests a high likelihood of scientific rigor and successful research execution.
The full and open competition process indicates a structured and fair selection, likely resulting in the best-suited contractor.
The substantial funding amount signals a strong commitment to advancing critical scientific fields, potentially yielding significant breakthroughs.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for federal investment, driving innovation and scientific progress. Comparable spending benchmarks would involve analyzing other large federal R&D grants awarded to universities and research institutions for similar scientific domains. The total value of over $150 million over seven years places it among significant federal investments in academic research.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from set-aside provisions. The focus was likely on the research capabilities of the prime contractor.

Oversight & Accountability

Oversight for this contract would have been managed by the National Institutes of Health (NIH), a component of the Department of Health and Human Services. As a cost-reimbursement contract, NIH would have been responsible for monitoring Cornell University's expenditures to ensure they were reasonable, allocable, and allowable according to federal regulations. Transparency would be facilitated through periodic reporting requirements from the contractor and potentially through public dissemination of research findings. Inspector General jurisdiction would apply for any investigations into fraud, waste, or abuse.

Related Government Programs

NIH Research Grants
NSF Research Grants
Department of Energy R&D Contracts
Department of Defense Research Programs
Biomedical Research Funding

Risk Flags

Long contract duration may require adaptive management.
Cost-reimbursement requires diligent financial oversight.
Broad R&D scope necessitates clear performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $15.0 million to CORNELL UNIVERSITY. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is CORNELL UNIVERSITY.

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 $15.0 million.

What is the period of performance?

Start: 2003-09-15. End: 2010-09-28.

What was the specific research focus within 'Research and Development in the Physical, Engineering, and Life Sciences' for this contract?

The provided data does not specify the exact research focus within the broad category of 'Research and Development in the Physical, Engineering, and Life Sciences.' This contract (ID 541710) likely encompassed a range of projects at Cornell University. To determine the specific focus, one would need to consult the contract's statement of work (SOW) or related documentation. Typically, such broad R&D contracts aim to advance fundamental knowledge or develop new technologies in areas like materials science, biotechnology, advanced computing, or engineering principles, aligning with NIH's mission to support biomedical and health-related research.

How does the $150M+ award compare to other large R&D contracts awarded by NIH to universities during that period?

The $150 million award to Cornell University over approximately seven years is a substantial sum, indicative of a major research initiative. During the period of this contract (2003-2010), NIH was a primary funder of biomedical and health-related research, awarding numerous large grants and contracts. While specific comparative data requires access to historical NIH contract databases, awards of this magnitude were typically reserved for large-scale, multi-disciplinary projects or centers of excellence at leading research institutions. It suggests a significant commitment to a particular research area deemed high-priority by NIH, potentially involving multiple labs and investigators within Cornell.

What were the key performance indicators (KPIs) or milestones for this contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or milestones for this contract. For a 'COST NO FEE' R&D contract of this nature, KPIs would typically be defined in the Statement of Work (SOW) and might include achieving specific research objectives, publishing findings in peer-reviewed journals, developing prototypes, presenting results at scientific conferences, or meeting interim research targets. The government (NIH) would monitor progress against these milestones to ensure the effective use of funds and the advancement of the research goals. Regular progress reports from Cornell University would be essential for this oversight.

What is the significance of the 'COST NO FEE' contract type for this R&D effort?

The 'COST NO FEE' (CNF) contract type is significant for this R&D effort as it means the contractor, Cornell University, is reimbursed for its allowable costs incurred in performing the contract, but receives no additional fee or profit. This structure is common for non-profit research institutions performing basic or applied research where the primary goal is scientific advancement rather than commercial gain. It aligns the contractor's incentive with the successful execution of the research program itself. For the government, it means the total cost is directly tied to the actual expenses of the research, requiring robust cost accounting and auditing by the contracting agency (NIH) to ensure reasonableness and allowability.

Were there any notable challenges or successes reported during the execution of this contract?

The provided summary data does not include information on specific challenges or successes encountered during the execution of this contract. For a seven-year R&D contract, challenges could range from unexpected scientific hurdles, difficulties in recruiting specialized personnel, or changes in research priorities. Successes would typically be measured by the scientific advancements made, publications, patents, or the development of new methodologies or technologies. To ascertain these details, one would need to review NIH's contract performance reports, final contract close-out documentation, or any publicly available research outcomes stemming from this award.

How did the number of bids (21) influence the final contract terms and pricing?

With 21 bids received under a 'FULL AND OPEN COMPETITION,' the high number of interested parties suggests a competitive marketplace for this R&D work. This level of competition generally exerts downward pressure on pricing and encourages bidders to offer their most favorable terms to secure the award. While the contract type is 'COST NO FEE,' meaning profit is not a direct component, competition can still influence the negotiated indirect cost rates, the proposed personnel rates, and the overall efficiency and scope of the research plan presented. A robust competition increases the likelihood that the government secured the best value in terms of research capability and proposed approach at a reasonable cost.

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 21

Pricing Type: COST NO FEE (S)

Contractor Details

Address: 120 DAY HALL, ITHACA, NY, 14853

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

Financial Breakdown

Contract Ceiling: $6,622,656

Exercised Options: $1,874,843

Current Obligation: $15,019,460

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline