NIH awards $26M+ for biomedical research to University of Alabama at Birmingham over 24 years

Contract Overview

Contract Amount: $26,072,809 ($26.1M)

Contractor: University of Alabama AT Birmingham

Awarding Agency: Department of Health and Human Services

Start Date: 1989-02-01

End Date: 2013-06-30

Contract Duration: 8,915 days

Daily Burn Rate: $2.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: R&D

Official Description: BIOMEDICAL (BASIC)

Place of Performance

Location: BIRMINGHAM, JEFFERSON County, ALABAMA, 35294

State: Alabama Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $26.1 million to UNIVERSITY OF ALABAMA AT BIRMINGHAM for work described as: BIOMEDICAL (BASIC) Key points: 1. Contract awarded on a cost-no-fee basis, indicating research focus over profit. 2. Long duration of nearly 25 years suggests a sustained, foundational research effort. 3. Sole-source award raises questions about competition and potential value optimization. 4. Significant investment in basic biomedical research, aligning with NIH's core mission. 5. Geographic concentration of award in Alabama may have local economic implications.

Value Assessment

Rating: fair

The contract's cost-no-fee structure is typical for basic research grants where the primary goal is scientific advancement rather than profit generation. However, without a competitive bidding process, it's difficult to benchmark the pricing against market rates for similar research services. The total award amount of over $26 million spread across nearly 25 years suggests a substantial, long-term investment in a specific research area. The lack of a defined ceiling or fixed price makes direct value-for-money assessment challenging without further details on research outcomes and milestones achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This approach is often used for research grants where a specific institution or principal investigator has unique expertise or has already established a long-term research trajectory. While this can ensure continuity, it bypasses the potential benefits of competition, such as driving down costs or fostering innovation through a wider pool of bidders. The absence of multiple bids means there's no direct comparison to gauge if alternative providers could have offered similar research at a better value.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from competitive pricing pressures that could potentially lower the overall cost of research.

Public Impact

The University of Alabama at Birmingham is the primary beneficiary, receiving substantial funding for its research activities. The contract supports fundamental biomedical research, potentially leading to advancements in understanding and treating diseases. The geographic impact is concentrated in Alabama, supporting local research infrastructure and potentially high-skilled jobs. The workforce implications include support for researchers, technicians, and administrative staff at the university.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits opportunities for other institutions and potentially higher value.
Long contract duration without clear performance metrics makes oversight challenging.
Cost-plus structure, even with 'no fee', requires careful monitoring of expenditures.

Positive Signals

Focus on basic research aligns with NIH's mission to advance scientific knowledge.
Sustained funding over decades allows for long-term, high-impact research projects.
Award to a known institution suggests a level of established capability and trust.

Sector Analysis

This contract falls within the basic biomedical research sector, a critical area for scientific advancement and public health. The market for such research is characterized by grants and contracts awarded to academic institutions and research organizations. While direct market size figures for specific basic research areas are difficult to quantify, the overall federal investment in health research is substantial, with agencies like NIH being major funders. This contract represents a significant, long-term commitment to a particular research focus within this broad sector.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. As a sole-source award to a large academic institution for basic research, the focus is likely on the primary research entity rather than broader contracting vehicles that might engage small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the National Institutes of Health (NIH). Given its nature as a research grant, oversight likely focuses on adherence to research protocols, ethical guidelines, and the proper use of funds for approved research activities. Transparency is generally maintained through periodic progress reports and publications of research findings. The Inspector General for the Department of Health and Human Services would have jurisdiction over potential fraud, waste, or abuse.

Related Government Programs

NIH Research Grants
Biomedical Research Funding
University Research Contracts
Basic Science Initiatives

Risk Flags

Sole-source award
Long contract duration
Lack of defined ceiling price
Cost-plus contract type (even with no fee)

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $26.1 million to UNIVERSITY OF ALABAMA AT BIRMINGHAM. BIOMEDICAL (BASIC)

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF ALABAMA AT BIRMINGHAM.

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 $26.1 million.

What is the period of performance?

Start: 1989-02-01. End: 2013-06-30.

What specific biomedical research areas were funded under this contract?

The provided data indicates the contract falls under 'BIOMEDICAL (BASIC)' research. However, it does not specify the precise sub-disciplines or research questions being investigated. NIH typically funds a wide array of basic biomedical research, including areas like genetics, molecular biology, immunology, neuroscience, and cellular biology. To understand the specific focus, one would need to consult the detailed contract award documents or NIH's project portfolio, which often outlines the aims and objectives of funded research projects. Without this granular detail, the scope remains broad, encompassing foundational scientific inquiry aimed at understanding life processes and disease mechanisms at their most fundamental levels.

How does the $26M+ award compare to other NIH basic research grants?

The total award of over $26 million spread across nearly 25 years represents a substantial, long-term investment. While NIH funds numerous grants, many are shorter-term (e.g., 3-5 years) and range from tens of thousands to several million dollars annually. Large, multi-year awards like this are less common and typically reserved for significant, foundational research programs or centers of excellence where sustained funding is crucial for achieving ambitious scientific goals. Benchmarking this against other 'basic biomedical' grants requires comparing total awarded amounts and durations. Grants of this magnitude often support large-scale projects, multi-disciplinary teams, or specialized research infrastructure, indicating a high level of priority and potential impact deemed by NIH.

What are the potential risks associated with a sole-source award of this duration?

A primary risk of a sole-source award, especially one spanning nearly 25 years, is the lack of competitive pressure to ensure optimal value for taxpayer money. Without competing the contract, there's no guarantee that the University of Alabama at Birmingham offered the most cost-effective approach or that alternative institutions couldn't have achieved similar or better results at a lower cost. Furthermore, the extended duration increases the risk of research priorities shifting, technological obsolescence, or the principal investigator's departure, potentially leading to inefficiencies or a redirection of funds. Robust oversight mechanisms are critical to mitigate these risks, ensuring continued relevance and effective use of resources throughout the contract's life.

What performance metrics or milestones were likely used to justify continued funding over 24 years?

For a long-term basic research contract like this, performance metrics are typically tied to scientific progress and milestones rather than strict deliverable timelines common in service contracts. Justification for continued funding would likely involve the successful achievement of research objectives outlined in the initial proposal, publication of findings in peer-reviewed journals, presentation of results at scientific conferences, and the development of new hypotheses or research directions. NIH grant review processes involve periodic renewal applications where the grantee must demonstrate significant progress, scientific merit, and the potential for future discoveries to secure continued funding. The 'cost-no-fee' structure implies that the primary measure of success is scientific advancement and knowledge generation.

How does this contract's spending pattern compare to historical NIH funding trends?

This contract, awarded in 1989 and ending in 2013, reflects NIH's historical commitment to long-term, foundational research investments. During this period, NIH funding, while subject to annual appropriations, often supported multi-year projects to allow for the deep, methodical work characteristic of basic science. The trend has been towards increasing overall investment in biomedical R&D, with a significant portion allocated to grants and contracts supporting academic institutions. While specific spending patterns vary by research area and fiscal climate, the existence of such a long-duration, substantial award aligns with NIH's strategy of fostering sustained scientific inquiry to address complex health challenges.

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE University of Alabama System (UEI: 808245794)

Address: 701 20TH ST SOUTH AB1070, BIRMINGHAM, AL, 35294

Business Categories: Category Business, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $53,420,046

Exercised Options: $45,792,551

Current Obligation: $26,072,809

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline