Hennepin Healthcare Research Institute awarded $10M+ for biomedical management and support services

Contract Overview

Contract Amount: $10,029,360 ($10.0M)

Contractor: Hennepin Healthcare Research Institute

Awarding Agency: Department of Health and Human Services

Start Date: 1999-08-11

End Date: 2007-02-07

Contract Duration: 2,737 days

Daily Burn Rate: $3.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST NO FEE

Sector: R&D

Official Description: BIOMEDICAL (MANAGEMENT/SUPPORT)

Place of Performance

Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55404

State: Minnesota Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $10.0 million to HENNEPIN HEALTHCARE RESEARCH INSTITUTE for work described as: BIOMEDICAL (MANAGEMENT/SUPPORT) Key points: 1. Contract value exceeds $10 million, indicating a significant investment in biomedical support. 2. The contract spans nearly 8 years, suggesting a long-term need for these services. 3. Awarded under full and open competition, implying a robust bidding process. 4. The 'Cost No Fee' contract type suggests the government is reimbursing the contractor for allowable costs without an additional fee. 5. This contract represents a substantial portion of the agency's spending in this specific service category. 6. The duration and value may indicate a critical role for the contractor in supporting NIH research initiatives.

Value Assessment

Rating: fair

The contract's 'Cost No Fee' structure makes direct value-for-money assessment challenging as it focuses on cost reimbursement rather than profit. Benchmarking against similar contracts is difficult without knowing the specific services rendered and the associated costs. The lack of a fee might suggest a focus on cost recovery for the contractor or a unique partnership arrangement. However, the substantial award amount over a long period warrants scrutiny to ensure efficient use of funds.

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. The presence of two bids suggests a moderate level of competition for this requirement. While competition is generally positive, the specific number of bidders (two) might not be sufficient to guarantee the most competitive pricing or innovative solutions.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it theoretically drives down prices through market forces. However, with only two bidders, the potential for significant cost savings may be limited compared to scenarios with a larger number of competing firms.

Public Impact

The primary beneficiaries are likely the researchers and institutions supported by the National Institutes of Health (NIH), who receive essential management and support services. Services delivered are crucial for the smooth operation and advancement of biomedical research programs. The geographic impact is primarily within Minnesota, where Hennepin Healthcare Research Institute is located, but the research supported has national and global implications. Workforce implications include employment opportunities at Hennepin Healthcare Research Institute and potentially its subcontractors, contributing to the local economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Cost No Fee' contract type can sometimes lead to less incentive for cost control by the contractor if not meticulously monitored.
Limited competition (two bidders) might have resulted in a higher price than if more firms had competed.
The long duration of the contract (nearly 8 years) could pose risks if the scope of work or technological needs change significantly over time.

Positive Signals

Awarded through full and open competition, ensuring a fair and transparent process.
The contract's duration suggests a stable and reliable partnership, crucial for long-term research support.
The significant investment indicates the importance and value placed on the services provided by Hennepin Healthcare Research Institute.

Sector Analysis

Biomedical research support and management is a critical sector within the broader healthcare and R&D industries. This contract falls under the management and support services sub-sector, which enables scientific endeavors by providing essential administrative, logistical, and operational functions. Comparable spending benchmarks in this area are highly variable, depending on the specific services, scale of research, and agency needs. However, contracts of this magnitude often signify a long-term commitment to a particular research area or institution.

Small Business Impact

There is no indication that this contract included small business set-asides, nor is there information suggesting specific subcontracting plans for small businesses. The contractor, Hennepin Healthcare Research Institute, is a large research institution. Without explicit set-aside provisions or reporting on subcontracting, the direct impact on the small business ecosystem is likely minimal for this specific award, though larger institutions may engage small businesses in their broader operations.

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. Specific oversight mechanisms would likely include regular performance reviews, financial audits, and adherence to the terms of the 'Cost No Fee' agreement. Transparency is facilitated by the contract award notice, but detailed performance metrics and ongoing cost reporting are typically internal to the agency and contractor relationship.

Related Government Programs

NIH Research Grants
Biomedical Research Support Services
Healthcare Management Contracts
Federal R&D Funding

Risk Flags

Potential for cost overruns due to 'Cost No Fee' structure if not closely monitored.
Limited competition may have resulted in suboptimal pricing.
Long contract duration poses risks related to evolving research needs and technological advancements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $10.0 million to HENNEPIN HEALTHCARE RESEARCH INSTITUTE. BIOMEDICAL (MANAGEMENT/SUPPORT)

Who is the contractor on this award?

The obligated recipient is HENNEPIN HEALTHCARE 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 $10.0 million.

What is the period of performance?

Start: 1999-08-11. End: 2007-02-07.

What specific biomedical management and support services were provided under this contract?

The provided data indicates 'BIOMEDICAL (MANAGEMENT/SUPPORT)' services were rendered. However, the specific nature of these services is not detailed in the summary data. Typically, such contracts can encompass a wide range of activities including administrative support for research projects, data management, laboratory support services, regulatory compliance assistance, grant management, and coordination of research activities. Without further documentation, the precise scope of work remains undefined, making it difficult to assess the effectiveness or efficiency of the services provided.

How does the 'Cost No Fee' contract type typically function and what are its implications for cost control?

A 'Cost No Fee' (CNF) contract is a type of cost-reimbursement contract where the contractor is reimbursed for all allowable costs incurred in performing the contract, but receives no additional profit or fee. This structure is often used when the scope of work is uncertain or when the government wants to ensure that the contractor is fully compensated for necessary expenses without adding a profit margin. For cost control, the government relies heavily on robust auditing and monitoring of the contractor's expenses to ensure they are reasonable, allocable, and allowable. The contractor has less direct financial incentive to minimize costs compared to a fixed-price contract, making stringent oversight by the contracting agency critical.

What is the significance of the contract duration (2737 days) in relation to the award amount ($10M+)?

A duration of approximately 7.5 years (2737 days) for a contract valued at over $10 million suggests an average annual value of roughly $1.33 million. This indicates a sustained, long-term need for the biomedical management and support services provided by Hennepin Healthcare Research Institute. Such long durations are common for critical support functions that require continuity and stability, allowing the contractor to build expertise and integrate deeply with the agency's research objectives. It also implies a significant commitment from the awarding agency, likely the National Institutes of Health, to the specific research programs or initiatives these services support.

What does the limited number of bidders (2) suggest about the market for these specific biomedical support services?

Having only two bidders for this contract suggests that the market for these specific biomedical management and support services may be relatively niche or concentrated. This could be due to specialized expertise required, high barriers to entry (e.g., specific certifications, established relationships, or infrastructure), or limited awareness of the opportunity among potential contractors. While full and open competition was utilized, the low number of bids might indicate that fewer entities possess the necessary qualifications or capacity to undertake such a substantial and long-term contract. This limited competition could potentially impact price negotiation and the range of innovative solutions available to the government.

How does this contract compare to other spending by the National Institutes of Health in similar service categories?

Without access to NIH's comprehensive spending database, a direct comparison is challenging. However, the $10M+ award over nearly 8 years for biomedical management and support services is a significant sum, indicating a substantial investment. NIH, as the world's largest funder of biomedical research, awards numerous contracts and grants. Contracts for management and support services are essential for operationalizing research. This particular contract's value and duration suggest it represents a key component of NIH's operational infrastructure, potentially supporting a specific institute, center, or a large-scale research program. It is likely one of many substantial contracts within NIH's portfolio aimed at facilitating its mission.

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

Parent Company: Hennepin Faculty Associates Inc

Address: 914 S 8TH ST, MINNEAPOLIS, MN, 55404

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

Financial Breakdown

Contract Ceiling: $6,752,642

Exercised Options: $996,642

Current Obligation: $10,029,360

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline