HHS awarded Southern Research Institute a $11.15M contract for research and development services

Contract Overview

Contract Amount: $11,151,186 ($11.2M)

Contractor: Southern Research Institute

Awarding Agency: Department of Health and Human Services

Start Date: 1999-12-15

End Date: 2005-12-01

Contract Duration: 2,178 days

Daily Burn Rate: $5.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Place of Performance

Location: BIRMINGHAM, JEFFERSON County, ALABAMA, 35205

State: Alabama Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $11.2 million to SOUTHERN RESEARCH INSTITUTE for work described as: Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 2178 days indicates a long-term commitment to the services. 3. The Cost Plus Fixed Fee (CPFF) contract type may incentivize cost control while allowing for flexibility. 4. The contract was awarded by the National Institutes of Health, a key agency within HHS. 5. The contract was awarded in 1999, with an end date in 2005, providing historical context. 6. The contract was awarded to Southern Research Institute, a known entity in the R&D sector.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or performance metrics. The CPFF structure can sometimes lead to higher costs if not managed closely, but it also allows for adaptation in research projects. Comparing it to similar NIH R&D contracts would require detailed analysis of the scope of work and outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This suggests a robust process aimed at achieving fair market value. The number of bidders is not specified, but the competition type implies a desire for broad market engagement.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and improve the quality of services offered.

Public Impact

The primary beneficiaries are likely researchers and institutions involved in the specific R&D projects funded by NIH. Services delivered would pertain to scientific research and development, contributing to advancements in health and medicine. The geographic impact is primarily within Alabama, where Southern Research Institute is located. Workforce implications include employment for scientists, researchers, and support staff at Southern Research Institute.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not meticulously monitored.
The long duration of the contract requires sustained oversight to ensure continued alignment with NIH objectives.
Lack of specific performance metrics in the provided data makes it difficult to assess the true value and impact.

Positive Signals

Awarded through full and open competition, suggesting a fair and competitive process.
The contract was awarded to a known research institution, Southern Research Institute, implying a level of established capability.
The contract supports the mission of the National Institutes of Health, a critical government health research agency.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on health-related research. The R&D sector is characterized by innovation, long project cycles, and significant government investment. Comparable spending benchmarks would depend on the specific scientific domain addressed by the contract, but NIH is a major funder of biomedical R&D.

Small Business Impact

The provided data does not indicate any small business set-asides or subcontracting requirements for this contract. Therefore, the direct impact on the small business ecosystem is likely minimal unless Southern Research Institute engaged small businesses as subcontractors, which is not specified.

Oversight & Accountability

Oversight would typically be managed by the National Institutes of Health program officials responsible for the research. Accountability measures would be tied to the terms of the Cost Plus Fixed Fee contract, including reporting requirements and milestone achievements. Transparency is generally facilitated through contract award databases, though specific project details may be proprietary.

Related Government Programs

National Institutes of Health Research Grants
Department of Health and Human Services Research Contracts
Biomedical Research and Development Contracts

Risk Flags

Contract Type Risk (CPFF)
Long-Term Project Management
R&D Specific Risks (Obsolescence, Scientific Drift)

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $11.2 million to SOUTHERN RESEARCH INSTITUTE. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is SOUTHERN RESEARCH INSTITUTE.

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 $11.2 million.

What is the period of performance?

Start: 1999-12-15. End: 2005-12-01.

What specific research areas did this contract cover for Southern Research Institute?

The provided data does not specify the exact research areas covered by this contract. However, given the awarding agency is the National Institutes of Health (NIH), it is highly probable that the research pertained to biomedical sciences, public health, or medical technologies. NIH funds a vast array of research, from basic science to clinical trials and translational research, aiming to improve human health. To determine the precise focus, one would need to consult NIH's contract databases or internal project documentation for contract number DCA.

How does the Cost Plus Fixed Fee (CPFF) structure typically perform in R&D contracts compared to other contract types?

Cost Plus Fixed Fee (CPFF) contracts are common in R&D due to the inherent uncertainties in research. They allow the contractor to recover all allowable costs plus a fixed fee, which represents profit. This structure provides flexibility for evolving research needs. However, it can incentivize cost overruns if not managed rigorously, as the contractor's profit is fixed regardless of the final cost. Compared to fixed-price contracts, CPFF offers more flexibility but potentially less cost certainty for the government. Compared to Cost Plus Incentive Fee (CPIF), the profit is not directly tied to performance targets, which might reduce the incentive for exceptional outcomes.

What is Southern Research Institute's track record with federal R&D contracts?

Southern Research Institute has a significant history of performing research and development for various U.S. federal agencies, including the Department of Defense, Department of Energy, and the Department of Health and Human Services (HHS). Their work often spans areas like life sciences, advanced materials, and engineering. While this specific contract with HHS was awarded in 1999, their continued engagement with federal R&D suggests a generally positive track record and established capabilities in meeting government research requirements. A deeper analysis would involve reviewing their performance history on other contracts.

What were the key performance indicators or milestones for this contract?

The provided summary data does not include specific key performance indicators (KPIs) or milestones for this contract. In CPFF contracts, especially for R&D, milestones are often tied to research progress, deliverables of reports, prototypes, or data sets. The success of such a contract is typically evaluated based on the scientific merit and outcomes of the research conducted, adherence to research protocols, and timely reporting. Without access to the contract's statement of work or performance reports, a detailed assessment of KPIs is not possible.

How does the $11.15 million award compare to typical NIH R&D contract values?

An $11.15 million award over approximately six years (from 1999 to 2005) is a substantial but not extraordinary amount for an NIH research contract, particularly for a well-established research institution like Southern Research Institute. NIH funds a wide spectrum of research, from small grants for individual investigators to large center grants and multi-year contracts. The value of this contract suggests a significant research project or a portfolio of related research activities. NIH's total budget is in the tens of billions annually, with a significant portion allocated to extramural research contracts and grants, making $11.15 million a mid-to-large-sized award within that context.

What are the potential risks associated with a long-term R&D contract like this?

Long-term R&D contracts carry several risks. Technological obsolescence is a key concern; the research focus might become outdated before the contract concludes. Scientific direction can drift, leading to scope creep or a deviation from original objectives if not managed carefully. Contractor performance can degrade over time, or key personnel might leave. Furthermore, changes in government priorities or funding availability could impact the project's continuation or scope. For CPFF contracts, the risk of cost escalation without commensurate value increase is also present if oversight is insufficient.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 2000 9TH AVE S, BIRMINGHAM, AL, 90

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $12,801,205

Exercised Options: $850,262

Current Obligation: $11,151,186

Timeline