HHS awards $10M+ for AIDS Research to Family Health International over 11 years

Contract Overview

Contract Amount: $10,033,668 ($10.0M)

Contractor: Family Health International

Awarding Agency: Department of Health and Human Services

Start Date: 2003-12-01

End Date: 2015-04-21

Contract Duration: 4,159 days

Daily Burn Rate: $2.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: R&D

Official Description: AIDS RESEARCH (APPLIED/EXPLORATORY)

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27713

State: North Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $10.0 million to FAMILY HEALTH INTERNATIONAL for work described as: AIDS RESEARCH (APPLIED/EXPLORATORY) Key points: 1. Significant long-term investment in critical health research. 2. Sole-source award raises questions about competition and potential cost savings. 3. Extended contract duration suggests ongoing need and potential for sustained impact. 4. Focus on applied and exploratory research indicates a commitment to advancing scientific understanding.

Value Assessment

Rating: questionable

The total award of over $10 million across 11 years is substantial. Without comparable contract data or a clear justification for the sole-source award, assessing its value and pricing efficiency is difficult. The 'COST NO FEE' contract type suggests the government reimburses allowable costs, making oversight of spending crucial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and may prevent the government from securing the best possible value. The rationale for not competing the award needs further examination to ensure it was justified.

Taxpayer Impact: The lack of competition could potentially lead to higher costs for taxpayers than if the contract had been competitively bid. Transparency around the justification for the sole-source award is essential for public trust.

Public Impact

Supports vital research into AIDS, a major public health concern. Long-term funding provides stability for research continuity and progress. Potential for breakthroughs in prevention, treatment, or understanding of the disease. Investment in scientific advancement and public health infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for innovation and addressing societal challenges. Benchmarks for R&D contracts vary widely based on scope and duration, but significant, long-term investments like this warrant careful scrutiny.

Small Business Impact

There is no indication that small businesses were involved in this contract, as it was awarded sole-source. Future opportunities for small business participation in AIDS research should be explored.

Oversight & Accountability

The long duration and sole-source nature of this contract necessitate robust oversight from the Department of Health and Human Services to ensure funds are used effectively and efficiently. Regular reviews of progress and expenditures are critical.

Related Government Programs

Risk Flags

Tags

research-and-development-in-the-physical, department-of-health-and-human-services, nc, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $10.0 million to FAMILY HEALTH INTERNATIONAL. AIDS RESEARCH (APPLIED/EXPLORATORY)

Who is the contractor on this award?

The obligated recipient is FAMILY HEALTH INTERNATIONAL.

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 $10.0 million.

What is the period of performance?

Start: 2003-12-01. End: 2015-04-21.

What was the specific justification for awarding this contract sole-source, and were alternative competitive strategies considered?

The justification for a sole-source award is critical for understanding why competition was bypassed. Agencies typically cite reasons such as unique capabilities of the contractor, urgent needs, or lack of other responsible sources. Without this information, it's difficult to assess if taxpayer funds were used optimally or if potential cost savings from competition were missed.

How does the cost structure of this 'COST NO FEE' contract ensure accountability and prevent cost overruns over its 11-year duration?

The 'COST NO FEE' contract type means the government reimburses the contractor for allowable costs incurred. Accountability hinges on rigorous monitoring and auditing of these costs by the contracting agency. Clear performance metrics and regular financial reviews are essential to prevent overruns and ensure the research remains within budget and scope.

What measurable outcomes or milestones were established for this extensive AIDS research project, and how will their achievement be evaluated?

For a contract of this magnitude and duration, clearly defined milestones and measurable outcomes are paramount. These should align with the applied and exploratory nature of the research. The agency must have a robust system for tracking progress against these objectives and evaluating the scientific and public health impact of the research conducted.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENTN – Health R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: COST NO FEE (S)

Contractor Details

Address: 2224 CHAPEL HILL-NELSON HIGHWAY, DURHAM, NC, 27713

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

Financial Breakdown

Contract Ceiling: $81,609,094

Exercised Options: $73,278,915

Current Obligation: $10,033,668

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline

Start Date: 2003-12-01

Current End Date: 2015-04-21

Potential End Date: 2015-04-21 00:00:00

Last Modified: 2018-01-25

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