NIH awards $17.5M R&D contract to Southern Research Institute for physical, engineering, and life sciences

Contract Overview

Contract Amount: $17,541,936 ($17.5M)

Contractor: Southern Research Institute

Awarding Agency: Department of Health and Human Services

Start Date: 2001-07-15

End Date: 2006-12-31

Contract Duration: 1,995 days

Daily Burn Rate: $8.8K/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 $17.5 million to SOUTHERN RESEARCH INSTITUTE for work described as: Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries risk. 3. The duration of the contract is 1995 days, indicating a long-term research and development effort. 4. The contract was awarded to Southern Research Institute, a known entity in the R&D sector. 5. The contract falls under NAICS code 541710, Research and Development in the Physical, Engineering, and Life Sciences. 6. The contract was awarded by the Department of Health and Human Services, specifically the National Institutes of Health.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or performance metrics. The Cost Plus Fixed Fee structure means the final cost is not predetermined, making direct comparison to fixed-price contracts difficult. However, the total award amount of $17.5 million over approximately 5.5 years suggests a significant investment in research and development. Further analysis would require understanding the scope of work and the outcomes achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of two bidders suggests a moderate level of competition for this specific contract. While two bidders is better than one, a higher number of bidders typically leads to more robust price discovery and potentially lower costs for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. However, with only two bidders, the potential for significant cost savings may be limited compared to scenarios with numerous competing firms.

Public Impact

The primary beneficiaries are likely researchers and scientists within Southern Research Institute and potentially the broader scientific community through the dissemination of research findings. The contract supports research and development activities in the physical, engineering, and life sciences, contributing to advancements in these fields. The geographic impact is primarily focused on Alabama, where Southern Research Institute is located, but the research outcomes could have national or global implications. Workforce implications include the employment of scientists, engineers, technicians, and support staff at Southern Research Institute.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed carefully.
Limited competition (2 bidders) may not have resulted in the most cost-effective outcome for taxpayers.
The long duration of the contract could present challenges in adapting to evolving research needs or technological advancements.

Positive Signals

Awarded through full and open competition, ensuring a fair process.
Supports critical research and development in vital scientific fields.
Long-term commitment allows for in-depth and potentially groundbreaking research.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically NAICS code 541710. This sector is characterized by innovation, scientific discovery, and the pursuit of new knowledge and technologies. Government spending in R&D is crucial for national competitiveness, scientific advancement, and addressing societal challenges. Comparable spending benchmarks would involve analyzing other R&D contracts awarded by NIH and other federal agencies for similar scientific disciplines.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary focus was on large business or other eligible entities. There is no explicit information on subcontracting plans for small businesses within this data snippet. The impact on the small business ecosystem would depend on whether Southern Research Institute engages small businesses as subcontractors, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the National Institutes of Health (NIH) contracting officers and program managers. Accountability measures would be tied to the performance milestones and deliverables outlined in the contract. Transparency is facilitated through contract databases like FPDS-NG, which provide public access to contract awards. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

National Institutes of Health Research Grants
Department of Health and Human Services Research Contracts
Federal Research and Development Spending
Life Sciences Research Initiatives
Physical Sciences Research Programs
Engineering Research and Development

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring to manage costs.
Limited competition (2 bidders) may impact price discovery and value for money.
Long contract duration could pose risks if research objectives or technologies change significantly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $17.5 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 $17.5 million.

What is the period of performance?

Start: 2001-07-15. End: 2006-12-31.

What specific research projects or objectives were funded by this $17.5 million contract?

The provided data does not specify the exact research projects or objectives funded by this $17.5 million contract. However, the NAICS code 541710 indicates that the contract supports 'Research and Development in the Physical, Engineering, and Life Sciences.' Given the awarding agency is the National Institutes of Health (NIH), the research likely pertains to biomedical, health-related, or biological sciences, potentially including areas like disease mechanisms, therapeutic development, or fundamental biological processes. A detailed understanding of the specific research scope would require accessing the contract's statement of work or related documentation.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other contract types in terms of risk and potential value for R&D?

The Cost Plus Fixed Fee (CPFF) contract type is common in R&D where the scope of work may be uncertain or evolve. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This structure incentivizes the contractor to control costs to maximize their profit margin, as the fee is fixed regardless of the final cost. However, it carries risk for the government if costs escalate significantly beyond initial estimates, as the government bears the ultimate cost burden. Compared to fixed-price contracts, CPFF offers more flexibility for R&D but potentially less cost certainty. It is generally considered less risky for the contractor than fixed-price contracts but can be more costly for the government if not managed diligently.

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

Southern Research Institute has a history of performing research and development work for various federal agencies, including NIH. While the provided data snippet focuses on a single contract, a comprehensive assessment of their track record would involve analyzing their past performance on numerous federal contracts. This would include examining their success rates, adherence to timelines and budgets, quality of deliverables, and any past performance issues or awards. Their continued receipt of contracts, such as this $17.5 million award, suggests a generally positive or at least acceptable performance history with agencies like NIH, indicating they are a capable entity in the R&D space.

What does the competition level of two bidders imply for the government's ability to secure the best value?

A competition level of two bidders suggests a moderate degree of competition. While it is better than a sole-source award, it is less competitive than scenarios involving three or more bidders. With only two bidders, the government may not have benefited from the full spectrum of potential price reductions and innovative solutions that a larger pool of competitors could offer. The government's ability to secure the best value is influenced by the specific capabilities and pricing strategies of these two firms. A thorough evaluation process by NIH would be crucial to ensure that the selected proposal represented the best overall value, considering both technical merit and cost.

How has federal spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' category (NAICS 541710) trended over the years?

Federal spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' category (NAICS 541710) has generally shown an upward trend over the past decade, albeit with fluctuations influenced by budget appropriations, national priorities, and economic conditions. Agencies like the National Institutes of Health (NIH), the National Science Foundation (NSF), and the Department of Defense are major contributors to this spending. The increasing complexity of scientific challenges, the drive for technological innovation, and the need for advancements in healthcare and national security typically fuel sustained or increased investment in this sector. Specific year-over-year trends would require detailed analysis of historical federal budget data and contract award databases.

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 › OTHER RESEARCH/DEVELOPMENT

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, 35205

Business Categories: Category Business, HUBZone Firm, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $21,009,275

Exercised Options: $20,509,275

Current Obligation: $17,541,936

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline