NIH awards $11.8M contract to Boston University for R&D in physical, engineering, and life sciences

Contract Overview

Contract Amount: $11,804,880 ($11.8M)

Contractor: Trustees of Boston University

Awarding Agency: Department of Health and Human Services

Start Date: 2002-09-15

End Date: 2010-04-30

Contract Duration: 2,784 days

Daily Burn Rate: $4.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 21

Pricing Type: COST NO FEE

Sector: R&D

Place of Performance

Location: BOSTON, SUFFOLK County, MASSACHUSETTS, 02215

State: Massachusetts Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $11.8 million to TRUSTEES OF BOSTON UNIVERSITY for work described as: Key points: 1. Contract awarded through full and open competition, suggesting a robust market. 2. Long duration of 2784 days indicates a significant, ongoing research effort. 3. Cost-plus-no-fee contract type may incentivize cost management by the contractor. 4. The contract falls under the R&D sector, aligning with NIH's mission. 5. No small business set-aside was utilized, indicating a focus on larger entities or specific capabilities. 6. The contract's value is substantial, reflecting the scope of the research.

Value Assessment

Rating: fair

The contract value of $11.8 million over approximately 7.6 years represents a significant investment in research and development. Benchmarking this specific contract's value is challenging without detailed project scope and deliverables. However, for large-scale R&D efforts funded by agencies like NIH, this amount is within a typical range for multi-year, complex projects. The cost-plus-no-fee structure means the government reimburses the contractor's allowable costs plus a fixed fee, which can sometimes lead to less cost efficiency compared to fixed-price contracts if not managed carefully.

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 proposals. This suggests a competitive environment where multiple entities likely vied for the award. The presence of 21 proposals received (implied by 'no': 21) further supports a healthy level of competition, which is generally expected to drive better pricing and innovation. The agency's decision to use full and open competition implies confidence that the market could meet the research needs.

Taxpayer Impact: A competitive award process like this generally benefits taxpayers by fostering a marketplace where contractors are incentivized to offer their best value and pricing to secure the contract. This reduces the likelihood of overpayment and encourages efficiency.

Public Impact

The Trustees of Boston University, as the contractor, will benefit from funding to conduct critical research. The research conducted is expected to advance scientific knowledge in physical, engineering, and life sciences. The geographic impact is primarily within Massachusetts, where Boston University is located, but the scientific advancements can have a global reach. The contract supports academic researchers and potentially graduate students, contributing to the scientific workforce development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-no-fee contracts can sometimes lead to less stringent cost control compared to fixed-price arrangements.
The long contract duration may present challenges in adapting to rapidly evolving research landscapes.
The absence of specific performance metrics in the provided data makes it difficult to assess the contractor's performance trajectory.
The contract's focus on R&D means outcomes are inherently uncertain, posing a risk of not achieving desired breakthroughs.

Positive Signals

Awarded through full and open competition, indicating a strong market response and potential for high-quality proposals.
The substantial funding suggests a project of significant scientific importance and potential impact.
Boston University is a reputable research institution, implying a strong track record in academic and scientific endeavors.
The long contract duration allows for sustained focus and in-depth research, crucial for complex scientific challenges.

Sector Analysis

This contract falls under the Research and Development (R&D) sector, specifically within the 'Research and Development in the Physical, Engineering, and Life Sciences' category (NAICS 541710). This sector is characterized by innovation, long-term investment, and often high risk, with outcomes that can be unpredictable. Agencies like the National Institutes of Health (NIH) are major funders of R&D, supporting advancements across various scientific disciplines. Comparable spending benchmarks for large-scale, multi-year R&D contracts from federal agencies can range from millions to hundreds of millions of dollars, depending on the scope and complexity.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the nature of the research or the required capabilities were likely better suited for larger institutions or that the competition was open to all responsible sources regardless of size. Consequently, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, Boston University, may engage small businesses as subcontractors if their specialized services are needed for the research, though this is not mandated by the contract type.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services (HHS), specifically the National Institutes of Health (NIH), which awarded the contract. As a cost-plus-no-fee contract, rigorous financial oversight is crucial to ensure that all reimbursed costs are allowable, reasonable, and allocable to the contract. The agency would likely monitor progress reports, financial submissions, and conduct periodic reviews. Transparency is generally maintained through contract databases and public reporting, although specific research details might be proprietary. The Inspector General for HHS would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

National Institutes of Health Research Grants
National Science Foundation Research Contracts
Department of Defense Research and Development Programs
Department of Energy Scientific Research Initiatives

Risk Flags

Long contract duration may pose risks if research objectives become outdated.
Cost-plus-no-fee structure requires diligent cost oversight to ensure value.
R&D outcomes are inherently uncertain, posing a risk of non-achievement of breakthroughs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $11.8 million to TRUSTEES OF BOSTON UNIVERSITY. See the official description on USAspending.

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 $11.8 million.

What is the period of performance?

Start: 2002-09-15. End: 2010-04-30.

What is the specific research focus of this contract awarded to Boston University?

The contract, identified by NAICS code 541710, pertains to 'Research and Development in the Physical, Engineering, and Life Sciences.' While the provided data does not detail the precise research questions or objectives, it indicates a broad scope within these scientific domains. Given the funding agency is the National Institutes of Health (NIH), the research likely aligns with health-related advancements, potentially involving biological systems, medical engineering, or the application of physical and engineering principles to solve life science challenges. Further details would typically be found in the contract's statement of work or associated research proposals, which are not publicly available in this dataset.

How does the $11.8 million award compare to other NIH R&D contracts of similar duration?

The $11.8 million award over approximately 7.6 years (2784 days) for R&D in physical, engineering, and life sciences is a substantial sum, reflecting a significant, long-term research endeavor. Benchmarking requires comparing it to contracts with similar scopes, scientific fields, and durations. NIH funds a vast array of research projects, with individual awards varying widely. However, for multi-year, complex R&D projects involving a major research institution like Boston University, an $11.8 million total award is within a reasonable range. Many NIH grants and contracts can range from hundreds of thousands to tens of millions of dollars, depending on the scale, complexity, and number of research years involved. The cost-plus-no-fee structure also influences the total expenditure over time.

What are the potential risks associated with a cost-plus-no-fee contract for R&D?

Cost-plus-no-fee (CPNF) contracts, like the one awarded to Boston University, carry specific risks. The primary risk for the government is that the contractor may have less incentive to control costs rigorously, as their allowable costs are reimbursed, and the fee is fixed. This can potentially lead to higher overall expenditures compared to fixed-price contracts if not managed with stringent oversight. For R&D projects, the inherent uncertainty of scientific discovery adds another layer of risk; the project may not yield the expected results despite the expenditure of funds. Additionally, ensuring that all claimed costs are reasonable, allocable, and allowable requires diligent monitoring by the contracting agency to prevent potential overruns or misuse of funds.

What is Boston University's track record with federal R&D contracts?

Boston University is a major research institution with a long history of securing federal funding for research and development. While specific details of their past performance on this particular contract are not provided, universities of this caliber typically have extensive experience managing large federal grants and contracts across various scientific disciplines. They often have established research centers, experienced principal investigators, and robust administrative support systems for handling federal awards. Their track record with agencies like NIH, NSF, and DoD is generally strong, characterized by scientific output and adherence to federal regulations. However, a comprehensive assessment would require reviewing specific past performance evaluations and contract histories.

How does the 'full and open competition' award mechanism impact taxpayer value?

Awarding a contract through 'full and open competition' is generally considered beneficial for taxpayer value. This process ensures that a wide range of potential contractors can submit proposals, fostering a competitive environment. Competition typically drives down prices, encourages innovation, and leads to the selection of the most capable offeror at the best value. By allowing all responsible sources to participate, the government increases its chances of finding a contractor that can meet its needs efficiently and effectively. This contrasts with sole-source or limited competition scenarios, which may result in higher costs or less optimal solutions due to a restricted bidder pool.

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

Offers Received: 21

Pricing Type: COST NO FEE (S)

Contractor Details

Address: 881 COMMONWEALTH AVE, BOSTON, MA, 02215

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

Financial Breakdown

Contract Ceiling: $1,754,991

Exercised Options: $1,754,991

Current Obligation: $11,804,880

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline