University of Washington receives $17.46M for R&D in Physical, Engineering, and Life Sciences over 10 years

Contract Overview

Contract Amount: $17,463,012 ($17.5M)

Contractor: University of Washington

Awarding Agency: Department of Health and Human Services

Start Date: 2001-09-15

End Date: 2012-09-10

Contract Duration: 4,013 days

Daily Burn Rate: $4.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST NO FEE

Sector: R&D

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98105

State: Washington Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $17.5 million to UNIVERSITY OF WASHINGTON for work described as: Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. Long contract duration of over 10 years may indicate a need for sustained research support. 3. The contract type 'COST NO FEE' implies the government reimburses allowable costs but does not pay a fee to the contractor. 4. Awarded by NIH, a primary funder of biomedical research, placing this contract within a key sector. 5. The North American Industry Classification System (NAICS) code 541710 covers Research and Development in Physical, Engineering, and Life Sciences. 6. The contract's value of $17.46M over its life suggests a significant investment in scientific advancement.

Value Assessment

Rating: fair

The total award amount of $17.46 million over approximately 10 years averages to about $1.75 million per year. Without specific deliverables or performance metrics, it is difficult to benchmark the value for money. The 'COST NO FEE' contract type means the government bears the risk of cost overruns, and the value is primarily in the research outcomes rather than a fixed price for a specific product. Comparing this to similar R&D grants or contracts would require detailed knowledge of the research scope and objectives.

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 a bid. This typically leads to a more robust price discovery process and potentially better value for the government. The presence of two bids suggests a moderate level of competition for this specific R&D effort.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation from multiple sources.

Public Impact

The primary beneficiary is the University of Washington, which will conduct research funded by the federal government. The services delivered are research and development in the physical, engineering, and life sciences, contributing to scientific knowledge and potential technological advancements. The geographic impact is primarily in Washington state, where the University of Washington is located. Workforce implications include employment for researchers, technicians, and support staff at the University of Washington.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'COST NO FEE' contract type places the financial risk of cost overruns on the government.
A long contract duration of over 10 years could lead to scope creep or evolving research needs that may not be fully captured in the initial award.
Lack of specific performance metrics or deliverables in the provided data makes it challenging to assess the effectiveness and efficiency of the research.

Positive Signals

Awarded through full and open competition, indicating a potentially competitive bidding process.
The contract supports research and development in critical scientific fields, aligning with national R&D priorities.
The substantial funding over a decade suggests a commitment to long-term scientific inquiry and potential breakthroughs.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically NAICS code 541710. This sector is characterized by significant government investment aimed at advancing scientific knowledge and technological capabilities. The market for R&D services is diverse, involving universities, private research institutions, and specialized companies. Federal spending in R&D is crucial for innovation across various fields, from basic science to applied engineering and life sciences. Comparable spending benchmarks would depend heavily on the specific research area and the scale of the projects undertaken.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside or requirement for this contract. As a large university research award, the focus is likely on the institution's research capabilities rather than subcontracting opportunities for small businesses. However, the university may engage small businesses for specific support services or equipment procurement as part of its research operations, though this is not explicitly detailed.

Oversight & Accountability

Oversight for this contract would typically be managed by the National Institutes of Health (NIH), a component of the Department of Health and Human Services. NIH program officers and contracting officers would monitor the progress and expenditures of the research. Transparency would be facilitated through periodic reporting requirements from the University of Washington. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the federal funds.

Related Government Programs

National Institutes of Health Research Grants
Department of Health and Human Services R&D Contracts
Federal Funding for University Research
Basic and Applied Scientific Research

Risk Flags

Long contract duration may increase risk of scope creep or changing requirements.
Cost-reimbursement contract type places financial risk on the government.
Limited competition (2 bidders) may impact price discovery and value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $17.5 million to UNIVERSITY OF WASHINGTON. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF WASHINGTON.

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: 2001-09-15. End: 2012-09-10.

What is the specific research focus of this contract?

The provided data indicates the contract is for 'Research and Development in the Physical, Engineering, and Life Sciences' under NAICS code 541710. However, the specific research topics, objectives, and expected outcomes are not detailed in the summary data. This level of detail is typically found in the contract's statement of work or research proposal, which would outline the precise scientific inquiries, methodologies, and anticipated contributions to knowledge or technology within these broad fields. Without this information, it's impossible to assess the scientific merit or potential impact of the research.

How does the $17.46 million award compare to typical NIH R&D funding for a university over a 10-year period?

The $17.46 million award over approximately 10 years equates to an average of roughly $1.75 million per year. This amount is substantial but falls within the range of large, multi-year research grants and contracts awarded by the NIH to major research institutions. NIH funding varies significantly based on the research area, the institution's capacity, and the competitiveness of the proposals. While this represents a significant investment, it is not exceptionally high for a long-term, comprehensive research program at a leading university like the University of Washington, which is a major recipient of federal research funding.

What are the potential risks associated with a 'COST NO FEE' contract for R&D?

A 'COST NO FEE' contract means the government agrees to reimburse the contractor for all allowable costs incurred in performing the contract, but pays no additional fee. For R&D, the primary risk to the government is that costs could exceed initial estimates without a corresponding increase in the fee or profit margin for the contractor. The government bears the full financial risk of cost overruns. Additionally, without a fee to incentivize efficiency or timely completion, there's a potential risk that the contractor might not be as motivated to control costs or expedite the research compared to a cost-plus-fee contract. However, for fundamental research where outcomes are uncertain, this contract type can encourage exploration.

What does the duration of over 10 years imply about the nature of the research?

A contract duration exceeding 10 years for R&D typically signifies a long-term, potentially foundational research effort where significant breakthroughs are not expected in the short term. Such extended periods are often associated with basic research, complex scientific investigations, or the development of new technologies that require sustained inquiry and iterative progress. It suggests that the project is likely exploring complex problems with uncertain timelines for resolution, requiring consistent funding and dedicated resources over an extended period to achieve its objectives.

How does the competition level (2 bidders) impact value for money in R&D contracts?

Having two bidders in a 'full and open competition' suggests a moderate level of competition. While more than one bidder is preferable to a sole-source award, a higher number of bidders generally leads to more robust price discovery and potentially better value. With only two bidders, there's a risk that the competition might not be as intense as it could be with several competing proposals. This could mean that the government may not have achieved the lowest possible price or the most innovative solution available. However, for highly specialized R&D, attracting even two qualified bidders can be challenging, and the quality of the research proposed is often as critical as the cost.

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 NO FEE (S)

Contractor Details

Address: 3900 15TH AVE NE, SEATTLE, WA, 98195

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

Financial Breakdown

Contract Ceiling: $4,228,469

Exercised Options: $4,228,469

Current Obligation: $17,463,012

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline