NIH awards Duke University $13.17M contract for research services, spanning nearly a decade
Contract Overview
Contract Amount: $13,170,705 ($13.2M)
Contractor: Duke University
Awarding Agency: Department of Health and Human Services
Start Date: 1996-09-15
End Date: 2005-02-28
Contract Duration: 3,088 days
Daily Burn Rate: $4.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST NO FEE
Sector: Healthcare
Place of Performance
Location: DURHAM, DURHAM County, NORTH CAROLINA, 27705
Plain-Language Summary
Department of Health and Human Services obligated $13.2 million to DUKE UNIVERSITY for work described as: Key points: 1. Contract duration of 3088 days suggests a long-term, stable research partnership. 2. Cost-plus-no-fee contract type indicates that the contractor is reimbursed for allowable costs plus a fixed fee, incentivizing cost control. 3. The contract was awarded under full and open competition, suggesting a robust bidding process. 4. The significant duration and value may indicate a critical or ongoing research need. 5. The absence of small business set-aside flags suggests this was not specifically targeted for small business participation.
Value Assessment
Rating: fair
The total award amount of $13.17 million over approximately 8.5 years averages to about $1.55 million per year. Benchmarking this requires understanding the specific research services provided by Duke University to NIH. Without more granular data on the scope of work and deliverables, a precise value-for-money assessment is challenging. However, the cost-plus-no-fee structure, while common for research, necessitates careful monitoring of costs to ensure efficiency.
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. The presence of two bids suggests a moderate level of competition for this research contract. While two bidders are better than one, a higher number of bids would typically lead to more competitive pricing and potentially better value for the government.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it promotes a competitive environment that can drive down costs and improve the quality of services received.
Public Impact
Duke University, a leading research institution, benefits from this funding to continue its scientific endeavors. The contract supports critical research services for the National Institutes of Health, contributing to advancements in health and medicine. The geographic impact is primarily centered in North Carolina, where Duke University is located, but the research findings have national and potentially global implications. The contract likely supports a workforce of researchers, technicians, and administrative staff at Duke University.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to potential cost overruns if not closely managed.
- The specific research area is not detailed, making it difficult to assess the true impact and necessity of the funding.
- Limited competition (two bidders) might have resulted in a higher price than if more firms had competed.
Positive Signals
- Awarded through full and open competition, ensuring a fair process.
- Duke University is a reputable research institution, suggesting a high likelihood of quality research output.
- Cost-plus-no-fee contract type can be effective for research where costs are uncertain, provided robust oversight.
Sector Analysis
This contract falls within the broader Health and Healthcare sector, specifically focusing on biomedical research funded by a federal agency. The market for federal research grants and contracts is highly competitive, with numerous universities and private institutions vying for funding. NIH is a major source of funding for health-related research in the United States, supporting a vast ecosystem of scientific inquiry.
Small Business Impact
The data indicates that this contract was not awarded as a small business set-aside (ss=false, sb=false). This suggests that the primary focus was on selecting the best-qualified large research institution rather than specifically promoting small business participation. There is no explicit information on subcontracting plans, but large research grants to universities often involve collaborations that could include smaller entities or specialized services.
Oversight & Accountability
Oversight for this contract would primarily reside with the National Institutes of Health (NIH), a component of the Department of Health and Human Services (HHS). Mechanisms likely include regular progress reports, financial reviews, and adherence to research protocols. The Inspector General of HHS would have jurisdiction over potential fraud, waste, or abuse related to this contract. Transparency is generally maintained through public databases of federal contracts.
Related Government Programs
- NIH Research Grants
- Biomedical Research Contracts
- University Research Partnerships
- Health Services Research
Risk Flags
- Long contract duration requires sustained oversight.
- Cost-plus contract types can be susceptible to cost overruns without strict monitoring.
- Limited competition may impact price competitiveness.
Tags
healthcare, biomedical-research, department-of-health-and-human-services, national-institutes-of-health, definitive-contract, cost-plus-no-fee, full-and-open-competition, research-and-development, university-contractor, north-carolina, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $13.2 million to DUKE UNIVERSITY. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is DUKE 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 $13.2 million.
What is the period of performance?
Start: 1996-09-15. End: 2005-02-28.
What specific research services were provided under this contract?
The provided data does not specify the exact research services rendered by Duke University under this contract. However, given the awarding agency (National Institutes of Health - NIH) and the contractor (Duke University, a major research institution), it is highly probable that the services involved biomedical research, clinical trials, or health-related scientific studies. Further investigation into the contract details or NIH's research portfolio would be necessary to identify the precise scope of work. The contract type (Cost No Fee) suggests that the primary focus was on reimbursing allowable costs incurred during the research process, with a fixed fee for Duke's services, common in research where outcomes can be uncertain.
How does the $13.17 million award compare to other NIH contracts for similar research services?
Comparing the $13.17 million award to other NIH contracts requires access to a broader dataset of NIH procurements and a clear definition of 'similar research services.' NIH funds a vast array of research projects, varying significantly in scope, duration, and cost. This contract, spanning nearly nine years (1996-2005), represents an average annual expenditure of approximately $1.55 million. This figure needs to be benchmarked against the average cost of large-scale, multi-year research grants or contracts within Duke's specific research areas (e.g., cancer, infectious diseases, neuroscience) to determine if it is within a typical range. Without more specific details on the research domain, a precise comparison is difficult.
What are the potential risks associated with a Cost No Fee (CNF) contract of this duration?
A Cost No Fee (CNF) contract, while common for research and development where costs can be unpredictable, carries inherent risks. The primary risk is that the government reimburses the contractor for all allowable costs, which could potentially exceed initial estimates if not managed diligently. For a contract spanning over 3000 days (approximately 8.5 years), the risk of cost escalation due to inflation, unforeseen research challenges, or scope creep is significant. Effective oversight by NIH is crucial to monitor expenditures, ensure that costs remain reasonable and allocable to the contract, and prevent inefficiencies. The 'No Fee' aspect means Duke University's profit is fixed, which might reduce their incentive to control costs compared to a cost-plus-award-fee contract, although the primary incentive remains successful research completion.
What was the historical spending pattern for this specific research area or program prior to this award?
The provided data does not contain historical spending patterns for the specific research area or program associated with this $13.17 million contract awarded to Duke University. To assess historical spending, one would need to identify the specific NIH program or research initiative this contract supported and then analyze NIH's budget allocations and contract awards for that program over previous fiscal years. Understanding past investments would provide context on the perceived importance and sustained funding of this research area. Without this historical data, it's challenging to determine if this award represents an increase, decrease, or continuation of federal investment in this particular scientific domain.
What is Duke University's track record with NIH contracts, particularly those of similar size and duration?
The data indicates Duke University was awarded this specific $13.17 million contract by NIH. To assess their overall track record, a broader search of federal contract databases would be necessary to identify all contracts awarded to Duke University by NIH and other federal agencies. Key metrics to examine would include the number of awards, total dollar value, types of services rendered, performance history (if available), and any instances of contract disputes or terminations. Given Duke's status as a major research university, it is likely they have a substantial history of receiving federal funding, including significant contracts and grants from NIH. This particular contract's duration (nearly 9 years) suggests a successful, long-term relationship for the research services provided.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: COST NO FEE (S)
Contractor Details
Address: 705 BROAD ST RM 1, DURHAM
Business Categories: Category Business, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $13,082,629
Exercised Options: $13,171,348
Current Obligation: $13,170,705
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 1996-09-15
Current End Date: 2005-02-28
Potential End Date: 2005-02-28 00:00:00
Last Modified: 2024-05-31
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