NIH awards $12.6M for Biomedical R&D to University of Minnesota over 16 years
Contract Overview
Contract Amount: $12,577,843 ($12.6M)
Contractor: Regents of the University of Minnesota
Awarding Agency: Department of Health and Human Services
Start Date: 1999-01-13
End Date: 2015-08-15
Contract Duration: 6,058 days
Daily Burn Rate: $2.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 21
Pricing Type: COST NO FEE
Sector: R&D
Official Description: BIOMEDICAL (BASIC)
Place of Performance
Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55455
Plain-Language Summary
Department of Health and Human Services obligated $12.6 million to REGENTS OF THE UNIVERSITY OF MINNESOTA for work described as: BIOMEDICAL (BASIC) Key points: 1. Significant long-term investment in basic biomedical research. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Contract duration is extensive, raising questions about adaptability to evolving research needs. 4. Focus on R&D in Physical, Engineering, and Life Sciences.
Value Assessment
Rating: fair
The contract type is 'COST NO FEE', which means the contractor is reimbursed for allowable costs but receives no fee. This is common for basic research where the scope may be less defined and the focus is on cost reimbursement.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: Taxpayer funds are supporting critical basic research, with the potential for significant long-term health benefits, though the long duration warrants scrutiny.
Public Impact
Supports fundamental scientific discovery with potential for future medical breakthroughs. Long-term funding provides stability for complex, multi-year research projects. Investment in a key area of national health and scientific advancement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration of over 16 years may not reflect current research needs or technological advancements.
- Lack of fee structure could disincentivize contractor efficiency if not properly monitored.
Positive Signals
- Long-term commitment to a critical research area.
- Full and open competition suggests a robust bidding process.
Sector Analysis
This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for innovation and national competitiveness, with significant government investment typically seen in basic and applied research.
Small Business Impact
The data does not indicate any specific involvement or set-asides for small businesses in this contract. The awardee is a large research institution.
Oversight & Accountability
The long duration of the contract necessitates robust oversight from the National Institutes of Health to ensure research progress aligns with objectives and funds are used efficiently.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Extended contract duration may lead to outdated research focus.
- Lack of performance incentives in 'COST NO FEE' structure.
- Potential for scope creep over a long research period.
- Limited visibility into specific research milestones and deliverables.
Tags
research-and-development-in-the-physical, department-of-health-and-human-services, mn, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $12.6 million to REGENTS OF THE UNIVERSITY OF MINNESOTA. BIOMEDICAL (BASIC)
Who is the contractor on this award?
The obligated recipient is REGENTS OF THE UNIVERSITY OF MINNESOTA.
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 $12.6 million.
What is the period of performance?
Start: 1999-01-13. End: 2015-08-15.
What specific research milestones or deliverables were established to ensure accountability over the 16-year contract period?
The contract details do not specify the research milestones. Typically, long-term research contracts are managed through periodic reviews, progress reports, and defined phases. The National Institutes of Health would likely have internal mechanisms to track progress against the stated research goals and ensure funds are being utilized effectively towards advancing scientific knowledge in the biomedical field.
How does the 'COST NO FEE' structure impact the incentive for the University of Minnesota to achieve cost efficiencies?
A 'COST NO FEE' contract reimburses allowable costs but provides no additional profit. This can reduce the incentive for cost savings compared to fixed-price or cost-plus-incentive-fee contracts. However, for basic research, the primary driver is often scientific advancement rather than profit, and oversight focuses on ensuring research integrity and efficient use of resources.
Given the 16-year duration, what mechanisms are in place to ensure the research remains relevant and adaptable to scientific advancements?
Long-term research contracts often include provisions for periodic reviews and potential modifications to adapt to evolving scientific landscapes. The National Institutes of Health likely engages in ongoing dialogue with the awardee to ensure the research remains at the forefront of the field and aligns with emerging priorities. Flexibility in scope and objectives is crucial for such extended research endeavors.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 21
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Parent Company: University of Minnesota Twin C (UEI: 006220594)
Address: 200 OAK ST SE, MINNEAPOLIS, MN, 55455
Business Categories: Category Business, Educational Institution, Government, Higher Education, Not Designated a Small Business, U.S. Regional/State Government
Financial Breakdown
Contract Ceiling: $17,371,402
Exercised Options: $12,577,823
Current Obligation: $12,577,843
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 1999-01-13
Current End Date: 2015-08-15
Potential End Date: 2015-08-15 00:00:00
Last Modified: 2019-03-07
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