NIH awards $20.5M R&D contract to Rutgers University for physical, engineering, and life sciences research

Contract Overview

Contract Amount: $20,525,898 ($20.5M)

Contractor: Rutgers, the State University

Awarding Agency: Department of Health and Human Services

Start Date: 2003-07-15

End Date: 2008-07-10

Contract Duration: 1,822 days

Daily Burn Rate: $11.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Place of Performance

Location: PISCATAWAY, MIDDLESEX County, NEW JERSEY, 08854

State: New Jersey Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $20.5 million to RUTGERS, THE STATE UNIVERSITY for work described as: Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1822 days indicates a long-term research commitment. 3. Fixed-price contract type may offer cost certainty for the government. 4. The research area aligns with critical advancements in physical, engineering, and life sciences. 5. The award to a state university highlights academic-government research partnerships. 6. No small business set-aside was utilized, indicating the primary award was not targeted to small businesses.

Value Assessment

Rating: good

The contract value of $20.5 million over approximately five years for R&D services is within a reasonable range for large-scale academic research projects. Benchmarking against similar large federal R&D grants or contracts awarded to universities for complex scientific endeavors would provide a more precise value-for-money assessment. The firm fixed-price structure, while offering cost predictability, requires careful monitoring to ensure the scope of work remains aligned with the initial objectives and that the contractor is not over-compensated for potential scope creep or inefficiencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 6 bidders suggests a healthy level of interest and competition for this research opportunity. A competitive process generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award.

Taxpayer Impact: The full and open competition likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award. It also ensures that the government has access to a wider pool of qualified researchers and institutions.

Public Impact

The primary beneficiary is Rutgers, The State University, receiving funding to conduct significant research. The research delivered will advance knowledge in the physical, engineering, and life sciences. The geographic impact is centered in New Jersey, where Rutgers is located, potentially fostering local economic activity and scientific talent. The contract supports academic researchers and potentially graduate students, contributing to the scientific workforce development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term R&D projects if not managed tightly.
Ensuring the research outcomes align with evolving scientific priorities and government needs over the contract's duration.

Positive Signals

Award to a reputable state university suggests a strong research capability.
Firm fixed-price contract provides budget certainty.
Full and open competition indicates a robust selection process.

Sector Analysis

This contract falls within the Research and Development sector, specifically NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences). This is a significant area of federal spending, with agencies like NIH investing heavily to drive scientific discovery and innovation. The market for such research is competitive, involving universities, private research institutions, and some commercial firms. Federal R&D spending often serves as a crucial funding source for basic and applied research that the private sector may not undertake due to high risk or long time horizons.

Small Business Impact

The contract was not awarded as a small business set-aside, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary focus was on securing the best research capabilities, which may have been concentrated among larger institutions or universities. Further analysis would be needed to determine if any subcontracting opportunities for small businesses were part of the overall research effort.

Oversight & Accountability

Oversight for this contract would typically be managed by the National Institutes of Health (NIH) within the Department of Health and Human Services. Mechanisms likely include regular progress reports from the contractor, site visits, and adherence to grant/contract terms. Accountability is ensured through the fixed-price nature of the award and the potential for future funding decisions to be influenced by performance. Transparency is generally maintained through contract databases, though specific research findings are usually published in scientific journals.

Related Government Programs

National Institutes of Health Research Grants
Department of Health and Human Services R&D Contracts
University Research Partnerships
Federal Funding for Basic Science

Risk Flags

Long contract duration may increase risk of scope misalignment with evolving research needs.
Firm fixed-price contracts can be challenging for R&D where outcomes are inherently uncertain.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $20.5 million to RUTGERS, THE STATE UNIVERSITY. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is RUTGERS, THE STATE 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 $20.5 million.

What is the period of performance?

Start: 2003-07-15. End: 2008-07-10.

What is the historical spending pattern of the National Institutes of Health (NIH) on Research and Development contracts with universities?

The National Institutes of Health (NIH) is a major funder of research and development, with a significant portion of its budget allocated to contracts and grants awarded to universities and research institutions. Historical data shows a consistent and substantial investment in R&D, often exceeding tens of billions of dollars annually across various scientific disciplines. Universities are primary recipients due to their infrastructure, expertise, and role in training future scientists. Spending patterns are influenced by national health priorities, emerging scientific fields, and administration-driven research agendas. The NIH often utilizes both competitive grants and contract vehicles, with contracts typically being more directed towards specific research objectives or services required by the agency, as seen in this $20.5 million award to Rutgers.

How does the $20.5 million contract value compare to other R&D contracts awarded by NIH for similar research areas?

The $20.5 million contract value awarded to Rutgers for R&D in physical, engineering, and life sciences over approximately five years is a substantial but not extraordinary amount for a large-scale, multi-year research endeavor funded by the NIH. NIH funds a wide spectrum of research, from small, targeted grants to massive center grants and complex contracts. Contracts of this magnitude are typically awarded for projects requiring significant resources, specialized facilities, or a defined research scope that aligns with agency priorities. Benchmarking against similar contracts awarded under NAICS code 541710 to academic institutions would reveal that this value is consistent with major research initiatives, though specific comparisons depend heavily on the precise research objectives, duration, and the number of principal investigators involved.

What are the key performance indicators (KPIs) typically used to evaluate the success of R&D contracts like this one?

Evaluating the success of R&D contracts involves a multi-faceted approach. Key performance indicators often include the timely achievement of research milestones as outlined in the contract's statement of work. Scientific output, such as publications in peer-reviewed journals, presentations at scientific conferences, and the generation of intellectual property (patents), are critical measures. For applied research, the successful development of prototypes, methodologies, or technologies that address a specific problem is paramount. Furthermore, adherence to budget, effective project management, and the successful training and development of research personnel (e.g., graduate students, postdocs) also contribute to the overall assessment of contract performance. The NIH likely has specific reporting requirements tied to these types of outcomes.

What is the track record of Rutgers, The State University, as a federal contractor, particularly with the NIH?

Rutgers, The State University, has a well-established track record as a recipient of federal funding, particularly from agencies like the NIH, for research and development activities. As a major public research university, it consistently secures grants and contracts to support a broad range of scientific inquiry. While specific details of past contract performance require database searches, universities of Rutgers' caliber typically demonstrate strong capabilities in managing federal awards, adhering to compliance requirements, and producing high-quality research outcomes. Their extensive experience in navigating federal funding mechanisms and their established research infrastructure generally position them as reliable partners for agencies like the NIH seeking to advance scientific knowledge.

What are the potential risks associated with a long-duration (1822 days) firm fixed-price R&D contract?

A significant risk with long-duration, firm fixed-price R&D contracts is the potential for scope creep or the need to adapt to evolving scientific understanding or technological advancements over the contract period. If the research objectives are too rigidly defined, they may become outdated or less relevant by the time the contract concludes. Conversely, if the scope is too broad, the contractor might struggle to meet all objectives within the fixed price. For the government, the risk lies in the possibility that the fixed price may not adequately cover unforeseen research challenges or that the final outcomes may not fully meet the initial expectations if the research landscape shifts dramatically. Effective contract management, including regular reviews and potential modification processes for scope adjustments, is crucial to mitigate these risks.

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 › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: P.O. BOX 1179, NEW BRUNSWICK, NJ, 08903

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

Financial Breakdown

Contract Ceiling: $4,706,152

Exercised Options: $4,706,152

Current Obligation: $20,525,898

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline