NIH contract for R&D services awarded to WESTAT, INC. for over $180 million
Contract Overview
Contract Amount: $180,835,346 ($180.8M)
Contractor: Westat, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2002-11-15
End Date: 2012-04-19
Contract Duration: 3,443 days
Daily Burn Rate: $52.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850, UNITED STATES OF AMERICA
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $180.8 million to WESTAT, INC. for work described as: Key points: 1. Contract value exceeds $180 million, indicating a significant investment in research and development. 2. Awarded through full and open competition, suggesting a robust market for these services. 3. Long duration of over 9 years (3443 days) implies a complex, long-term research objective. 4. The contract type (Cost Plus Fixed Fee) can incentivize cost control while ensuring contractor profit. 5. Research and Development in Physical, Engineering, and Life Sciences is a critical sector for innovation. 6. The contract's geographic location in Maryland aligns with a hub for federal research activities.
Value Assessment
Rating: good
The contract value of over $180 million for a nearly 10-year research and development effort appears reasonable given the scope. Benchmarking against similar large-scale R&D contracts within the federal government would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee structure, while common for R&D, requires careful monitoring to ensure costs remain within projections and that the fixed fee is appropriate for the effort involved.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing. The presence of multiple bidders suggests a healthy market for these specialized R&D services.
Taxpayer Impact: Full and open competition typically leads to better value for taxpayers by driving down prices and encouraging innovation among bidders.
Public Impact
The primary beneficiaries are likely the National Institutes of Health (NIH) and the broader scientific community, through advancements in physical, engineering, and life sciences. The services delivered are critical research and development activities, contributing to scientific knowledge and potential technological breakthroughs. The geographic impact is centered in Maryland, a state with a significant concentration of federal research institutions and private sector R&D firms. Workforce implications include employment for scientists, researchers, technicians, and support staff involved in the R&D projects.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to scope creep or evolving research needs requiring contract modifications.
- Cost Plus Fixed Fee contracts require diligent oversight to manage costs effectively and prevent overruns.
- Reliance on a single contractor for an extended period may limit opportunities for new entrants or alternative approaches.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process that likely yielded a fair price.
- The significant investment indicates a commitment to advancing critical R&D areas.
- The long duration allows for sustained focus and deep exploration of complex research questions.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a vital area for national innovation and competitiveness. The federal government is a major funder of R&D, with significant spending allocated to agencies like NIH. Comparable spending benchmarks would involve looking at other large-scale R&D contracts awarded by NIH or other science-focused agencies.
Small Business Impact
There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the large dollar value and specialized nature of R&D, it is possible that larger firms or joint ventures were the primary bidders. Further analysis would be needed to determine if small business participation was encouraged or achieved through subcontracting.
Oversight & Accountability
Oversight for this contract would primarily reside with the contracting officers and program managers at the National Institutes of Health. Accountability measures are typically embedded within the Cost Plus Fixed Fee contract structure, requiring regular reporting and performance reviews. Transparency is generally maintained through contract databases, though specific project details may be proprietary.
Related Government Programs
- National Institutes of Health Research Grants
- National Science Foundation R&D Funding
- Department of Defense Research and Development Contracts
- Biomedical Research Initiatives
Risk Flags
- Long contract duration may increase risk of cost overruns or scope creep.
- Cost Plus Fixed Fee contracts require diligent oversight to ensure value for money.
- Potential for evolving research needs necessitates flexibility and careful management.
Tags
research-and-development, health-and-human-services, national-institutes-of-health, cost-plus-fixed-fee, full-and-open-competition, large-contract, maryland, scientific-research, life-sciences, engineering-research, physical-sciences
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $180.8 million to WESTAT, INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is WESTAT, INC..
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 $180.8 million.
What is the period of performance?
Start: 2002-11-15. End: 2012-04-19.
What was the specific nature of the research and development conducted under this contract?
The contract, NA 541710, was for 'Research and Development in the Physical, Engineering, and Life Sciences.' While the specific project details are not provided in the summary data, the classification suggests work related to scientific inquiry, experimentation, and the creation of new knowledge or technologies within these broad scientific domains. Given the awarding agency, the National Institutes of Health (NIH), the focus was likely on biomedical, health-related, or biological sciences, potentially involving areas like genetics, pharmacology, medical devices, or public health research. The Cost Plus Fixed Fee structure implies that the exact scope might have evolved, allowing for flexibility in research direction as discoveries were made or challenges arose.
How does the $180 million contract value compare to other R&D contracts awarded by NIH?
A contract valued at over $180 million for nearly a decade of R&D is substantial. The NIH awards numerous contracts annually, ranging from small, specialized services to large, multi-year research endeavors. To benchmark this specific contract, one would need to analyze the distribution of NIH's R&D contract spending. Contracts for major research initiatives, large-scale clinical trials, or the development of significant technological platforms often reach or exceed this value. Without direct comparative data on similar R&D projects' total contract values and durations, it's difficult to definitively state if $180 million is high or low. However, it signifies a major investment in a particular research area.
What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?
The primary risk with a CPFF contract, especially one spanning over 9 years and valued at $180 million, is cost escalation. While the 'fixed fee' provides a ceiling on the contractor's profit, the 'cost plus' portion means the government reimburses allowable costs. If costs are not meticulously managed and scrutinized, they can significantly exceed initial projections. For the government, this necessitates robust oversight, detailed auditing of expenses, and clear definition of allowable costs. For the contractor, there's an incentive to control costs to maximize their fixed fee, but the long duration can introduce unforeseen challenges that drive up expenses. Scope creep, where the project's objectives expand beyond the original intent without corresponding adjustments to the fee or timeline, is another significant risk.
What does the 'full and open competition' designation imply for the contractor selection process and potential outcomes?
The designation 'full and open competition' signifies that the contract was solicited with the intention of allowing all responsible sources, regardless of size or type, to submit proposals. This typically involves publishing a solicitation notice widely (e.g., on SAM.gov), establishing clear evaluation criteria, and providing ample time for potential bidders to respond. The implication is that the NIH sought the best possible technical solution and price by encouraging a broad range of competitors. This process generally leads to a more competitive environment, potentially resulting in better pricing, higher quality services, and greater innovation compared to sole-source or limited competition awards. It also suggests that WESTAT, INC. demonstrated superior qualifications and offered the most advantageous proposal among the competing entities.
How has federal spending in 'Research and Development in the Physical, Engineering, and Life Sciences' evolved over the contract's lifespan (2002-2012)?
The contract period spans from November 2002 to April 2012. During this decade, federal R&D spending, particularly in the life sciences, saw fluctuations influenced by economic conditions, national priorities, and specific legislative initiatives. The early 2000s saw increases in federal R&D budgets, partly driven by the Human Genome Project's continuation and emerging fields. The mid-to-late 2000s experienced budget pressures, including sequestration concerns, which could have impacted R&D funding levels. The NIH, as a primary driver of life sciences R&D, would have been central to these trends. Analyzing historical federal budget data for NIH and NSF during this period would reveal specific spending patterns and highlight whether overall R&D investment grew, stagnated, or declined, providing context for the sustained funding of this $180 million contract.
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: 1
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Address: 1650 RESEARCH BLVD, ROCKVILLE, MD, 20850
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $34,307,561
Exercised Options: $67,881,336
Current Obligation: $180,835,346
Timeline
Start Date: 2002-11-15
Current End Date: 2012-04-19
Potential End Date: 2012-04-19 00:00:00
Last Modified: 2016-04-01
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