NIH awards $15.9M for biomedical research, with 2 bidders in a full and open competition

Contract Overview

Contract Amount: $15,899,973 ($15.9M)

Contractor: Icahn School of Medicine AT Mount Sinai

Awarding Agency: Department of Health and Human Services

Start Date: 2002-09-30

End Date: 2008-08-25

Contract Duration: 2,156 days

Daily Burn Rate: $7.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST NO FEE

Sector: R&D

Official Description: BIOMEDICAL (BASIC)

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10029

State: New York Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $15.9 million to ICAHN SCHOOL OF MEDICINE AT MOUNT SINAI for work described as: BIOMEDICAL (BASIC) Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. Research and Development in the Physical, Engineering, and Life Sciences sector. 3. The contract duration of 2156 days indicates a long-term research commitment. 4. Awarded by the National Institutes of Health, a key agency for biomedical research funding. 5. The contract type 'COST NO FEE' suggests the contractor is reimbursed for allowable costs without additional profit. 6. The small business flag is false, indicating no specific set-aside for small businesses.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or comparable projects. The 'COST NO FEE' award type means the government covers expenses but doesn't pay profit, which can be cost-effective if managed well. However, it also means the government bears the financial risk if costs escalate. Without more detail on the research outcomes and the specific costs incurred, a definitive value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit a bid. With two bidders, the competition level was moderate. While two bidders suggest some level of price discovery, a higher number of bidders typically leads to more robust competition and potentially lower prices for the government.

Taxpayer Impact: A full and open competition with multiple bidders generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation.

Public Impact

The ICAHN School of Medicine at Mount Sinai is the primary beneficiary, conducting vital biomedical research. The research aims to advance understanding in the Physical, Engineering, and Life Sciences, potentially leading to health breakthroughs. The geographic impact is centered in New York, where the research institution is located. The contract supports scientific workforce development through research positions and training opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in 'COST NO FEE' contracts if not closely monitored.
Limited competition with only two bidders could mean less aggressive pricing.
The long duration might pose challenges in adapting to evolving research needs or technologies.

Positive Signals

Awarded through full and open competition, maximizing potential sources.
Supports critical biomedical research with potential long-term public health benefits.
The contractor, ICAHN School of Medicine, is a reputable research institution.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on basic research in the physical, engineering, and life sciences. This is a critical area for scientific advancement, often funded by government agencies like NIH. The market for such research services is characterized by specialized institutions and a highly skilled workforce. Comparable spending benchmarks would involve looking at other NIH grants and contracts for similar basic science research projects.

Small Business Impact

The contract was not set aside for small businesses, as indicated by 'ss': false and 'sb': false. This means the competition was open to all eligible entities, regardless of size. While this contract doesn't directly benefit small businesses through a set-aside, the research conducted could potentially lead to innovations or partnerships that indirectly support the small business ecosystem in the long run.

Oversight & Accountability

Oversight for this contract would primarily fall under the National Institutes of Health (NIH). As a federal agency, NIH has established procurement regulations and contract management processes. Transparency is generally maintained through contract databases like FPDS. Accountability measures would include performance reviews and adherence to research protocols. The specific Inspector General jurisdiction would likely be that of the Department of Health and Human Services.

Related Government Programs

National Institutes of Health Research Grants
Biomedical Research and Development Contracts
Basic Science Research Funding
Life Sciences Research Initiatives

Risk Flags

Limited competition (2 bidders)
Cost-reimbursable contract type ('COST NO FEE') requires close monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $15.9 million to ICAHN SCHOOL OF MEDICINE AT MOUNT SINAI. BIOMEDICAL (BASIC)

Who is the contractor on this award?

The obligated recipient is ICAHN SCHOOL OF MEDICINE AT MOUNT SINAI.

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 $15.9 million.

What is the period of performance?

Start: 2002-09-30. End: 2008-08-25.

What specific research areas are covered under this 'Research and Development in the Physical, Engineering, and Life Sciences' contract?

The provided data indicates the contract falls under NAICS code 541710, which covers Research and Development in the Physical, Engineering, and Life Sciences. However, the specific research topics are not detailed in the provided data. Typically, contracts under this code can encompass a vast array of scientific inquiry, from fundamental physics and chemistry to advanced biological studies, materials science, and computational modeling. For precise details, one would need to consult the contract's statement of work or associated documentation, which would outline the precise objectives, methodologies, and expected outcomes of the research funded by the National Institutes of Health (NIH) to the ICAHN School of Medicine at Mount Sinai.

How does the 'COST NO FEE' contract type impact the financial risk and potential for cost overruns?

A 'COST NO FEE' contract means the government agrees to reimburse the contractor for all allowable costs incurred in performing the contract, but the contractor does not receive any fee or profit. This shifts the financial risk primarily to the government, as they are responsible for covering all legitimate expenses. While it can be cost-effective for the government by avoiding profit margins, it necessitates stringent oversight to ensure costs are reasonable, allocable, and necessary. Without adequate monitoring, there is a significant risk of cost overruns if the contractor's expenses exceed initial estimates, as the government is obligated to pay these costs.

What is the significance of the contract start date (2002-09-30) and end date (2008-08-25) in relation to the duration of 2156 days?

The contract start date of September 30, 2002, and the end date of August 25, 2008, define the period during which the contract was active. The duration of 2156 days is consistent with this timeframe (approximately 5 years and 11 months). This long duration suggests a substantial research project requiring sustained effort and funding. It implies that the research objectives were complex and likely involved multi-year phases of investigation, data collection, analysis, and reporting, typical for significant biomedical research endeavors funded by agencies like the National Institutes of Health (NIH).

Given the 'FULL AND OPEN COMPETITION' and two bidders, what can be inferred about the pricing and potential for future competition?

A 'FULL AND OPEN COMPETITION' signifies that the solicitation was made available to all eligible responsible sources, maximizing the pool of potential offerors. The fact that only two bidders submitted proposals suggests that while the competition was open, the number of interested parties was limited. This could be due to the specialized nature of the research, the specific requirements of the solicitation, or the contractor's unique qualifications. While two bidders provide some level of price comparison, it is less competitive than if there were numerous bidders. For future procurements, the agency might consider strategies to broaden the bidder pool if feasible, or analyze why only two entities responded to ensure adequate market interest.

How does the ICAHN School of Medicine at Mount Sinai's role as a contractor influence the expected outcomes of this biomedical research contract?

The ICAHN School of Medicine at Mount Sinai is a well-established academic medical institution with a strong reputation for research. Its involvement suggests that the contract is likely to be executed by experienced researchers with access to advanced facilities and a supportive scientific environment. Contracts awarded to such institutions often focus on fundamental scientific discovery and the training of future scientists. The expectation would be for high-quality, peer-reviewed research outputs, publications in reputable journals, and contributions to the broader scientific knowledge base in biomedical fields, aligning with the mission of the National Institutes of Health (NIH).

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: 2

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mount Sinai Hospital (UEI: 058302266)

Address: 1 GUSTAVE L LEVY PL, NEW YORK, NY, 90

Business Categories: Category Business, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,899,973

Exercised Options: $15,899,973

Current Obligation: $15,899,973

Timeline