NIH awarded Wayne State University $43.9M for scientific services over 10 years

Contract Overview

Contract Amount: $43,899,436 ($43.9M)

Contractor: Wayne State University

Awarding Agency: Department of Health and Human Services

Start Date: 2003-02-15

End Date: 2013-01-31

Contract Duration: 3,638 days

Daily Burn Rate: $12.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST NO FEE

Sector: R&D

Place of Performance

Location: DETROIT, WAYNE County, MICHIGAN, 48202

State: Michigan Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $43.9 million to WAYNE STATE UNIVERSITY for work described as: Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. Long contract duration of over 10 years may indicate a need for sustained services. 3. The contract type 'COST NO FEE' implies that the government reimburses allowable costs without an additional fee. 4. The North American Industry Classification System (NAICS) code 541990 covers 'All Other Professional, Scientific, and Technical Services', indicating a broad scope. 5. The award was made by the Department of Health and Human Services (HHS) through the National Institutes of Health (NIH). 6. The contract was awarded in 2003 and expired in 2013, indicating historical spending.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details or comparable contract data. The 'COST NO FEE' structure means the government covers expenses but does not pay a premium for the contractor's risk or profit, which can be cost-effective if managed well. However, it also means the government bears the financial risk if costs escalate. The total award amount of $43.9 million over approximately 10 years averages to about $4.4 million per year, which seems reasonable for extensive scientific services, but a precise value-for-money assessment requires deeper insight into the services rendered and their impact.

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 bids suggests a moderate level of competition for this contract. While two bidders is better than a sole-source award, a higher number of bids would typically lead to more robust price discovery and potentially better value for the government.

Taxpayer Impact: A competitive award process generally benefits taxpayers by encouraging lower prices and better service offerings from contractors vying for the award.

Public Impact

The primary beneficiaries are likely researchers and institutions supported by NIH grants and programs that require specialized scientific and technical services. The services delivered fall under 'All Other Professional, Scientific, and Technical Services', which could encompass a wide range of support for NIH's research mission. The geographic impact is centered in Michigan, where Wayne State University is located, but the ultimate impact of the research supported could be national or global. Workforce implications include employment opportunities for scientists, technicians, and administrative staff at Wayne State University to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'COST NO FEE' contract type shifts cost overrun risk to the government.
A 10-year contract duration might lead to complacency or reduced incentive for continuous innovation if not managed proactively.
The broad NAICS code (541990) could imply a wide scope of services, making performance monitoring complex.
Limited competition (2 bids) might have resulted in a less optimal price than a more robustly competed contract.

Positive Signals

Awarding to a university suggests leveraging academic expertise and potentially lower overhead compared to some commercial entities.
The long-term nature of the contract indicates a stable, ongoing need for these scientific services, providing continuity for research efforts.
Full and open competition, even with two bidders, demonstrates an effort to secure services through a structured procurement process.

Sector Analysis

The contract falls within the Professional, Scientific, and Technical Services sector, a broad category encompassing a wide array of specialized expertise. This sector is crucial for supporting government research and development initiatives across various agencies. Spending in this sector is often driven by the need for specialized knowledge that may not be available in-house. Comparable spending benchmarks would depend heavily on the specific scientific disciplines and technical services provided, but NIH's overall budget for research support is substantial.

Small Business Impact

There is no indication that this contract included small business set-asides, as the 'sb' field is false. The large value and duration suggest it was likely aimed at larger institutions or organizations capable of providing extensive scientific services. Subcontracting opportunities for small businesses are not explicitly detailed but could exist if Wayne State University engaged them for specific tasks within the broader scope of the contract.

Oversight & Accountability

Oversight would typically be managed by the contracting officers and program managers within the National Institutes of Health (NIH). Accountability measures would be tied to the performance standards and deliverables outlined in the contract. Transparency is facilitated through contract award databases, though specific performance details and financial expenditures beyond the total award amount are often not publicly disclosed in detail.

Related Government Programs

NIH Research Grants
HHS Scientific Support Contracts
Federal R&D Services Procurement
University Research Partnerships

Risk Flags

Long contract duration may reduce flexibility.
Cost-reimbursable contract type shifts cost risk to government.
Broad NAICS code requires careful performance monitoring.
Limited competition (2 bidders) may impact price discovery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $43.9 million to WAYNE STATE UNIVERSITY. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is WAYNE STATE UNIVERSITY.

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 $43.9 million.

What is the period of performance?

Start: 2003-02-15. End: 2013-01-31.

What specific scientific services were provided under this contract?

The contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This broad classification suggests the services could range widely, potentially including laboratory analysis, research support, data management, scientific consulting, technical writing, or specialized equipment operation. Without more specific contract details or statements of work, it is difficult to pinpoint the exact nature of the scientific services rendered. However, given the awarding agency (NIH) and the recipient (Wayne State University), it is highly probable that the services directly supported biomedical or health-related research objectives.

How does the $43.9 million award compare to similar NIH contracts for scientific services?

Comparing the $43.9 million award requires context regarding the specific services and duration. This contract spanned approximately 10 years (February 2003 to January 2013), averaging about $4.4 million annually. NIH awards numerous contracts and grants of varying sizes. Large, multi-year contracts for comprehensive scientific support can reach tens or hundreds of millions of dollars. To provide a precise comparison, one would need to identify contracts with similar NAICS codes, service scopes, and contract types awarded around the same period. However, the annual average suggests a significant, ongoing commitment to specialized scientific support.

What were the key performance indicators (KPIs) or success metrics for this contract?

Specific Key Performance Indicators (KPIs) for this contract are not publicly detailed. However, for contracts supporting scientific research, typical metrics often include the timely completion of research milestones, the quality and reproducibility of experimental results, adherence to protocols, effective data analysis and reporting, and the successful publication or presentation of findings. For a 'COST NO FEE' contract, adherence to budget projections and efficient use of resources would also be critical. The National Institutes of Health (NIH) would have established specific deliverables and performance standards within the contract's Statement of Work (SOW) to monitor Wayne State University's performance.

What is the track record of Wayne State University as a federal contractor?

Wayne State University, as a major research institution, has likely engaged in numerous federal contracts and grants over the years, particularly with agencies like NIH. While this specific contract represents a significant award, assessing their overall track record requires a broader analysis of their past performance across all federal awards. Universities typically excel in research and development services. Their track record is generally viewed positively for their scientific contributions, though administrative and compliance aspects are also crucial. A comprehensive review would involve examining past performance evaluations, any documented issues, and the breadth of their federal contracting history.

What risks were associated with this 'COST NO FEE' contract structure?

The primary risk associated with a 'COST NO FEE' contract is that the government bears the financial risk of cost overruns. If the contractor's actual costs exceed the estimated costs, the government is obligated to reimburse these higher costs without the contractor receiving an additional fee. This structure can incentivize cost control by the contractor, as they do not earn a fee on the costs incurred. However, it requires robust government oversight to ensure costs are reasonable, allocable, and allowable. Potential risks include inflated costs or inefficient performance, as the contractor has less direct financial incentive to minimize expenses compared to a fixed-price contract.

How did the expiration of this contract in 2013 impact ongoing research or services?

The expiration of this contract in January 2013 would have necessitated a transition plan for any ongoing research or services it supported. If the services were critical and unique, NIH would have likely sought to re-compete the requirement or transition the work to another entity. Depending on the nature of the work, the expiration could have led to a temporary pause in certain research activities, a shift in personnel, or the need for researchers to find alternative support mechanisms. The long duration suggests that the services were integral to specific research programs, and their cessation would have required careful management to minimize disruption.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: COST NO FEE (S)

Contractor Details

Address: 540 E CANFIELD ST, DETROIT, MI, 90

Business Categories: Category Business, Educational Institution, Higher Education, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $30,841,493

Exercised Options: $26,257,319

Current Obligation: $43,899,436

Parent Contract

Parent Award PIID: 275023342

IDV Type: IDC

Timeline