HHS awards $39.3M contract to Tulane for research, raising questions on value and competition

Contract Overview

Contract Amount: $39,302,813 ($39.3M)

Contractor: THE Administrators of Tulane Educational Fund

Awarding Agency: Department of Health and Human Services

Start Date: 1999-06-01

End Date: 2013-08-15

Contract Duration: 5,189 days

Daily Burn Rate: $7.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: R&D

Place of Performance

Location: JACKSON, HINDS County, MISSISSIPPI, 39217

State: Mississippi Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $39.3 million to THE ADMINISTRATORS OF TULANE EDUCATIONAL FUND for work described as: Key points: 1. Significant award value of $39.3M for research services. 2. Competition method is 'FULL AND OPEN COMPETITION', but details on its effectiveness are limited. 3. Contract duration of 5189 days (over 14 years) suggests long-term commitment. 4. No indication of small business participation. 5. Sector is primarily R&D within Healthcare.

Value Assessment

Rating: questionable

The contract value of $39.3M over a 14-year period is substantial. Without specific deliverables or performance metrics, assessing the value for money is difficult. Benchmarking against similar research contracts is challenging due to the specialized nature of R&D.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION'. However, the lack of detailed information on the bidding process and the number of bidders makes it difficult to assess the effectiveness of price discovery and whether the best value was achieved.

Taxpayer Impact: The substantial award amount suggests a significant taxpayer investment. Ensuring this investment yields valuable research outcomes is crucial for justifying the expenditure.

Public Impact

Taxpayers are funding extensive research over a long contract period. Potential for groundbreaking discoveries in health research. Transparency in the award and execution of this large research contract is important for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration may indicate potential for cost overruns or scope creep.
Lack of small business participation limits opportunities for smaller innovative firms.
Limited information on performance metrics makes value assessment difficult.

Positive Signals

Awarded under full and open competition, suggesting a broad search for qualified contractors.
Contract supports critical health research initiatives.
The Administrator of Tulane Educational Fund is a reputable institution.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on health-related research. The award amount of $39.3M is significant for a single research contract, though benchmarks vary widely based on the specific research area and scope.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). This suggests the contract was awarded to a large institution, potentially missing opportunities to engage smaller, specialized research firms.

Oversight & Accountability

The long duration of the contract necessitates robust oversight from the Department of Health and Human Services to ensure milestones are met, funds are used appropriately, and the research remains aligned with program objectives. Regular performance reviews are critical.

Related Government Programs

Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Lack of specific performance metrics makes value assessment difficult.
Long contract duration may limit adaptability to changing research needs.
No small business participation noted.
Limited transparency on the competitive process beyond the award type.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $39.3 million to THE ADMINISTRATORS OF TULANE EDUCATIONAL FUND. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is THE ADMINISTRATORS OF TULANE EDUCATIONAL FUND.

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 $39.3 million.

What is the period of performance?

Start: 1999-06-01. End: 2013-08-15.

What specific research outcomes or deliverables are expected from this $39.3M contract, and how will their achievement be measured to ensure value for taxpayer money?

The contract details do not specify the exact research outcomes or deliverables. To ensure value, the Department of Health and Human Services should have established clear, measurable milestones and performance metrics tied to the research objectives. Regular progress reports and independent evaluations would be crucial for tracking the achievement of these outcomes and justifying the significant taxpayer investment over the contract's extended period.

Given the 'FULL AND OPEN COMPETITION' award type, what was the competitive landscape, and how did the agency ensure the selected contractor provided the best value?

While the award type indicates a broad solicitation, the specific details of the competitive landscape (e.g., number of bidders, evaluation criteria, and the basis for selecting Tulane) are not provided. To ensure best value, the agency should have conducted a thorough evaluation of technical proposals, past performance, and cost, selecting the offer that represented the optimal balance of these factors, not necessarily the lowest price.

How does the 14-year duration of this contract impact the agency's ability to adapt to evolving research needs and technological advancements in the health sector?

A contract duration of 5189 days (over 14 years) presents a significant challenge in adapting to rapidly evolving research needs and technologies. While long-term contracts can provide stability for complex, multi-year research, they risk locking the government into potentially outdated approaches. The contract should include provisions for periodic reviews, scope adjustments, or termination clauses to allow for flexibility and incorporation of new scientific developments.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 6823 SAINT CHARLES AVE, NEW ORLEANS, LA, 70118

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

Financial Breakdown

Contract Ceiling: $335,812,289

Exercised Options: $189,937,046

Current Obligation: $39,302,813

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline