NIH contract for professional services awarded to Wayne State University for over $12.7 million

Contract Overview

Contract Amount: $12,750,528 ($12.8M)

Contractor: Wayne State University

Awarding Agency: Department of Health and Human Services

Start Date: 2003-04-15

End Date: 2013-01-31

Contract Duration: 3,579 days

Daily Burn Rate: $3.6K/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, 48201

State: Michigan Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $12.8 million to WAYNE STATE UNIVERSITY for work described as: Key points: 1. Contract awarded to a single university, raising questions about the breadth of competition. 2. Long contract duration of nearly 10 years suggests a sustained need for services. 3. The 'All Other Professional, Scientific, and Technical Services' NAICS code is broad, making specific performance assessment challenging. 4. Awarded under full and open competition, but only one awardee was listed. 5. The contract type 'COST NO FEE' indicates that the government reimburses allowable costs without an additional fee to the contractor. 6. The contract was awarded in 2003 and expired in 2013, indicating historical spending.

Value Assessment

Rating: fair

The contract value of $12.7 million over nearly 10 years averages to approximately $1.3 million per year. Without specific details on the services rendered, it is difficult to benchmark this against similar contracts. The 'COST NO FEE' contract type means the government bears the cost risk, and value is determined by the necessity and efficiency of the reimbursed costs rather than a fixed price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' suggesting that all responsible sources were permitted to submit offers. However, the data only lists one awardee, Wayne State University. This could imply that while the opportunity was open, only one entity submitted a responsive and competitive bid, or that the data provided is a summary and does not reflect all award actions.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it aims to solicit the best possible offers, potentially leading to lower prices or higher quality services. However, if only one bid was received, it may indicate market limitations or issues with the solicitation process.

Public Impact

Wayne State University, a research institution, likely benefited through funding and resources to conduct its professional, scientific, and technical services. The services delivered were categorized broadly under 'All Other Professional, Scientific, and Technical Services,' suggesting support for research, development, or specialized technical functions within the NIH. The geographic impact is primarily centered in Michigan, where Wayne State University is located, though the ultimate beneficiaries of the research or services could be national or global. The contract likely supported academic researchers, technical staff, and administrative personnel at the university.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The broad NAICS code makes it difficult to ascertain the specific value and impact of the services provided.
The 'COST NO FEE' contract type shifts cost risk to the government, requiring robust oversight to ensure cost efficiency.
The long duration of the contract could indicate a lack of flexibility or potential for cost overruns if not managed effectively.

Positive Signals

Awarded under full and open competition, indicating an attempt to maximize market participation.
The contract was awarded to a reputable university, suggesting a focus on specialized expertise.
The contract served a clear purpose within the National Institutes of Health, supporting scientific and technical endeavors.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, a broad category encompassing a wide range of activities from research and development to consulting and testing. The National Institutes of Health (NIH) is a major federal agency that heavily utilizes these services to advance medical research and public health. Spending in this sector is significant across the government, with agencies like NIH, DoD, and NSF being major consumers. Benchmarking requires specific service details, but university research contracts are common.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large award to a university, it is unlikely that significant subcontracting opportunities for small businesses were mandated or realized, unless specific research components required specialized small business support.

Oversight & Accountability

Oversight for this contract would primarily reside with the awarding agency, the National Institutes of Health (NIH), a division of the Department of Health and Human Services. As a 'COST NO FEE' contract, rigorous financial oversight and auditing would be crucial to ensure that reimbursed costs are allowable, reasonable, and allocable to the contract's objectives. Transparency is generally facilitated through contract databases, but detailed performance reports are often internal.

Related Government Programs

National Institutes of Health Research Grants
Department of Health and Human Services Scientific Support Contracts
Federal Grants to Universities
Professional and Technical Services Contracts

Risk Flags

Broad NAICS code limits specificity of services.
Cost-reimbursable contract type requires diligent cost oversight.
Long contract duration may indicate potential for cost creep if not managed.
Single awardee under 'full and open competition' warrants review of competition dynamics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $12.8 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 $12.8 million.

What is the period of performance?

Start: 2003-04-15. End: 2013-01-31.

What specific scientific or technical services were provided under this contract?

The contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This is a very broad category that can include a wide array of activities such as research support, laboratory analysis, technical consulting, data processing, and specialized scientific services. Without further details specific to this award, it is impossible to determine the exact nature of the services rendered. The National Institutes of Health (NIH) funds a vast spectrum of biomedical research, so these services could have supported anything from basic laboratory experiments to clinical trial data management or epidemiological studies.

How does the $12.7 million award compare to other NIH contracts for similar services?

Comparing this $12.7 million award requires knowledge of the specific services provided, which are not detailed under the broad NAICS code 541990. However, the NIH is known to award substantial contracts and grants to universities and research institutions, often in the multi-million dollar range, especially for long-term research initiatives. The duration of this contract (nearly 10 years) suggests a significant, ongoing project. To provide a precise comparison, one would need to identify comparable contracts within the NIH that procured similar 'Other Professional, Scientific, and Technical Services' over similar timeframes and to similar types of institutions.

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

Specific Key Performance Indicators (KPIs) and deliverables for this contract are not publicly available in the provided data. For a 'COST NO FEE' contract, especially one supporting research at a university, deliverables often revolve around research progress reports, publications, data sets, presentations, and the successful completion of defined research phases or objectives. The effectiveness of the contract would be measured by the NIH's assessment of whether the university met its research goals and contributed to the agency's mission within the allocated budget.

What is the significance of the 'COST NO FEE' contract type for value and risk?

The 'COST NO FEE' (Cost Without Fee) contract type means the government agrees to pay the contractor's allowable, allocable, and reasonable costs incurred in performing the contract, but the contractor does not receive any additional payment (fee) for profit. This type of contract is typically used when the scope of work is uncertain or when the contractor is a non-profit organization (like a university) where profit is not the primary motive. For the government, the primary risk is that costs could exceed initial estimates, and value is derived from the successful completion of the research or service objectives rather than a fixed price. Robust cost monitoring and auditing are essential to manage this risk.

What was the historical spending trend for this specific contract or similar services at NIH?

This contract was awarded in April 2003 and expired in January 2013, with a total award amount of $12,750,528. This represents an average annual expenditure of approximately $1.3 million over its duration. Historical spending data for this specific contract would show a steady expenditure pattern, reflecting the reimbursement of costs as they were incurred. To assess broader trends, one would need to examine NIH's overall spending on NAICS code 541990 or similar research support services over the period encompassing this contract and beyond.

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: $5,463,440

Exercised Options: $5,463,440

Current Obligation: $12,750,528

Parent Contract

Parent Award PIID: 275023342

IDV Type: IDC

Timeline