NIH awards $100.5M for biomedical research, with a significant portion for basic R&D

Contract Overview

Contract Amount: $100,517,685 ($100.5M)

Contractor: Trustees of Boston University

Awarding Agency: Department of Health and Human Services

Start Date: 2002-02-01

End Date: 2015-05-08

Contract Duration: 4,844 days

Daily Burn Rate: $20.8K/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: BOSTON, SUFFOLK County, MASSACHUSETTS, 02118

State: Massachusetts Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $100.5 million to TRUSTEES OF BOSTON UNIVERSITY for work described as: BIOMEDICAL (BASIC) Key points: 1. Contract awarded to a single academic institution, raising questions about competition. 2. Long duration of the contract (over 13 years) suggests a sustained research effort. 3. The contract type (Cost No Fee) indicates a focus on research progress over profit. 4. Spending aligns with the 'Biomedical (Basic)' category, emphasizing foundational scientific inquiry. 5. The awardee's location in Massachusetts places it within a strong biotech and research hub.

Value Assessment

Rating: fair

The total award of over $100 million for biomedical research is substantial. However, without specific benchmarks for similar long-term, basic research grants to academic institutions, a precise value-for-money assessment is challenging. The 'Cost No Fee' contract type suggests that the primary focus is on achieving research objectives rather than maximizing contractor profit, which can be a positive indicator for research-intensive awards. Further analysis would require comparing the scope and outcomes of this project against other NIH-funded initiatives in basic biomedical science.

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 among multiple potential contractors. This approach is often used for research grants where a specific institution or principal investigator has unique expertise or ongoing work that is deemed essential for the project's success. While it ensures continuity and leverages specialized knowledge, it limits the potential for price discovery through competitive bidding and may not always yield the most cost-effective outcome.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the cost savings that can arise from a competitive bidding process. The government relies on the justification of unique capabilities to ensure the award is appropriate.

Public Impact

The Trustees of Boston University, as the awardee, directly benefits from this funding to conduct critical research. The contract supports fundamental research and development in the physical, engineering, and life sciences, potentially leading to future medical breakthroughs. The geographic impact is primarily centered in Massachusetts, a hub for biomedical innovation and research institutions. The contract likely supports a workforce of researchers, technicians, and administrative staff at the university.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits potential cost savings for taxpayers.
Long contract duration could pose risks if research direction needs to pivot significantly.
Sole-source nature requires strong justification to ensure public funds are used appropriately.

Positive Signals

Award to a reputable academic institution suggests a focus on scientific merit.
The 'Cost No Fee' structure prioritizes research outcomes over contractor profit.
Funding basic research is crucial for long-term scientific advancement and potential future health benefits.

Sector Analysis

This contract falls within the broader Research and Development sector, specifically focusing on basic biomedical research. The market for such grants is characterized by academic institutions, research hospitals, and specialized R&D firms. Funding levels for basic science are critical for innovation pipelines, though often difficult to benchmark directly against commercial contracts due to differing objectives and risk profiles. The National Institutes of Health (NIH) is a primary source of federal funding for biomedical research in the United States.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there information suggesting significant subcontracting opportunities for small businesses. The award is made directly to a large academic institution, indicating that the primary focus is on the institution's capacity to conduct the research rather than engaging a diverse range of smaller suppliers.

Oversight & Accountability

Oversight for this contract would primarily fall under the National Institutes of Health (NIH), a component of the Department of Health and Human Services. As a research grant, oversight likely focuses on adherence to research protocols, ethical conduct, financial accountability, and the achievement of scientific milestones. Transparency is generally maintained through public research publications and reporting requirements, though specific contract details might be less publicly accessible than for typical procurement contracts.

Related Government Programs

National Institutes of Health Research Grants
Biomedical Research and Development
Basic Science Funding

Risk Flags

Sole-source award lacks competitive pricing.
Long contract duration may indicate potential for scope creep or changing research needs.
No fee structure requires careful monitoring of cost expenditures.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $100.5 million to TRUSTEES OF BOSTON UNIVERSITY. BIOMEDICAL (BASIC)

Who is the contractor on this award?

The obligated recipient is TRUSTEES OF BOSTON 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 $100.5 million.

What is the period of performance?

Start: 2002-02-01. End: 2015-05-08.

What is the specific research focus of this contract?

This contract, awarded to the Trustees of Boston University, is categorized under 'BIOMEDICAL (BASIC)' and falls under the North American Industry Classification System (NAICS) code 541710, which pertains to 'Research and Development in the Physical, Engineering, and Life Sciences.' While the specific project details are not provided in the summary data, the 'basic' designation implies a focus on fundamental scientific inquiry and discovery in the life sciences, rather than applied research or product development. This type of research aims to expand the understanding of biological processes, diseases, and potential therapeutic targets, laying the groundwork for future innovations.

How does the 'Cost No Fee' contract type impact the contractor's incentives?

The 'Cost No Fee' (CNF) contract type is common for research and development efforts, particularly those funded by government agencies like the NIH. Under a CNF agreement, the contractor (in this case, the Trustees of Boston University) is reimbursed for all allowable costs incurred in performing the contract. However, they receive no additional profit or fee on top of these costs. This structure strongly incentivizes the contractor to focus on achieving the research objectives and milestones outlined in the contract, as their financial return is tied directly to the successful execution of the research plan and the responsible management of incurred costs, rather than on maximizing profit margins.

What are the implications of a sole-source award for this type of research?

A sole-source award for biomedical research, as seen with this contract, typically indicates that the awarding agency (NIH) identified a specific entity with unique capabilities, expertise, or ongoing work essential for the project. This can ensure continuity in long-term research endeavors and leverage specialized knowledge that might not be available through a competitive process. However, it means that taxpayers do not benefit from the potential cost efficiencies and broader innovation that can arise from multiple bidders competing for the contract. The justification for a sole-source award must be robust to ensure that public funds are being used in the most effective manner.

What is the significance of the contract duration (4844 days)?

The contract duration of 4844 days, approximately 13.3 years, is exceptionally long for a federal contract and is indicative of a sustained, long-term research initiative. Such extended periods are often necessary for fundamental scientific research, which can take many years to yield significant results or achieve complex objectives. This duration suggests a deep commitment by the NIH to a particular research area or project, allowing the researchers at Boston University the stability and time needed to explore complex scientific questions without the pressure of frequent re-competition or short-term funding cycles.

How does this spending compare to other NIH biomedical research contracts?

The total award of $100.5 million is substantial, placing it among significant funding allocations by the NIH. However, the NIH funds a vast array of projects, from small individual investigator grants to large center grants and contracts. Without specific comparative data on the average size and duration of 'basic biomedical' contracts or grants with similar objectives and awardees (academic institutions), it's difficult to definitively benchmark this specific award. The 'Cost No Fee' and 'sole-source' nature also differentiate it from typical competitive procurement contracts, making direct comparisons challenging. It represents a significant investment in a specific area of scientific inquiry.

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: NOT COMPETED

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 85 E NEWTON ST M-921, BOSTON, MA, 02118

Business Categories: Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Higher Education (Private)

Financial Breakdown

Contract Ceiling: $100,517,685

Exercised Options: $100,517,685

Current Obligation: $100,517,685

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline