Nearly $17 million awarded to Wayne State University for scientific research services over a decade

Contract Overview

Contract Amount: $16,860,675 ($16.9M)

Contractor: Wayne State University

Awarding Agency: Department of Health and Human Services

Start Date: 2003-06-15

End Date: 2013-01-31

Contract Duration: 3,518 days

Daily Burn Rate: $4.8K/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 $16.9 million to WAYNE STATE UNIVERSITY for work described as: Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. Long contract duration of over 9 years may indicate a stable, ongoing need for services. 3. The contract type 'Cost No Fee' suggests that the government reimburses allowable costs without an additional fee. 4. The award was made by the Department of Health and Human Services, indicating a focus on health-related research. 5. The North American Industry Classification System (NAICS) code 541990 covers 'All Other Professional, Scientific, and Technical Services', a broad category. 6. The contract was awarded in Michigan, potentially impacting the local economy and research ecosystem.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or performance metrics. The 'Cost No Fee' structure means the government bears the risk of cost overruns, but it can also facilitate research where costs are difficult to predict. Comparing this to similar long-term research grants or contracts would require detailed analysis of the scope of work and outcomes.

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. The presence of two bids suggests some level of competition, but the exact number of bidders and the nature of the competition (e.g., technical proposals, price) are not detailed. This competitive approach is generally favorable for price discovery.

Taxpayer Impact: A full and open competition process is generally beneficial for taxpayers as it aims to secure the best value through a wide range of potential providers.

Public Impact

Wayne State University, a major research institution, is the primary beneficiary, enhancing its research capabilities. The contract likely supports scientific research and development, contributing to advancements in various fields. The geographic impact is primarily in Michigan, where Wayne State University is located, potentially fostering local scientific talent and infrastructure. Workforce implications include support for researchers, technicians, and administrative staff at the university.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the true value and impact of the research funded.
The 'Cost No Fee' contract type places the financial risk of cost overruns on the government.
The broad NAICS code limits understanding of the specific scientific domain being researched.
The long duration without clear interim reporting requirements could obscure potential inefficiencies or shifts in research priorities.

Positive Signals

Awarded through full and open competition, indicating a commitment to a fair and broad selection process.
Long-term nature of the contract suggests a sustained and important research need being addressed.
The award to a university research institution aligns with government goals of advancing scientific knowledge.
The contract supports a significant amount of federal spending in the scientific research and development sector.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically under scientific research and development. This sector is crucial for innovation and technological advancement. Federal spending in this area often supports academic institutions and private firms to push the boundaries of knowledge. Comparable spending benchmarks would depend heavily on the specific scientific discipline and the scale of the research undertaken.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from this particular award. The focus appears to be on securing research services from a large academic institution.

Oversight & Accountability

Oversight mechanisms for this contract would typically be managed by the contracting officers and program managers within the National Institutes of Health (NIH) or the broader Department of Health and Human Services (HHS). Transparency is generally facilitated through contract databases like FPDS. Accountability would be tied to the research outcomes and adherence to the terms of the 'Cost No Fee' agreement, though specific IG jurisdiction details are not provided.

Related Government Programs

National Institutes of Health Research Grants
Department of Health and Human Services Scientific Research Programs
Federal Funding for University Research
Professional, Scientific, and Technical Services Contracts

Risk Flags

Long contract duration without clear interim performance reviews.
Cost-reimbursable contract type ('Cost No Fee') shifts financial risk to the government.
Broad NAICS code limits specificity of research focus.
Limited information on the number of bidders and evaluation criteria.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $16.9 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 $16.9 million.

What is the period of performance?

Start: 2003-06-15. End: 2013-01-31.

What specific research areas or projects were funded by this contract?

The provided data indicates the contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' and was awarded by the National Institutes of Health (NIH). However, the specific research areas or projects funded are not detailed in the provided data. NIH funds a vast array of biomedical and health-related research across numerous disciplines, from basic science to clinical applications. To determine the specific research areas, one would need to consult the contract's statement of work, any associated task orders, or NIH's internal project databases, which often provide more granular details on funded research.

How does the total award amount of approximately $16.86 million compare to other NIH research contracts of similar duration?

Comparing the $16.86 million award to similar NIH contracts requires defining 'similar.' If 'similar' refers to contracts with a duration of over 9 years (3518 days), this amount represents an average annual expenditure of roughly $1.87 million. NIH funds a wide spectrum of research, from small, targeted grants to large, multi-year center grants. The average cost per year can vary significantly based on the research field (e.g., basic science vs. clinical trials), the number of principal investigators, and the scope of the research. Without knowing the specific research domain and the number of competing bids, it's difficult to definitively benchmark this value. However, for a long-term, comprehensive research effort at a major university, this figure is within a plausible range for federal R&D funding.

What are the primary risks associated with a 'Cost No Fee' contract for scientific research?

The primary risk associated with a 'Cost No Fee' (CNF) contract is that the government bears the full financial burden of the costs incurred by the contractor, without any additional profit margin for the contractor. This means if the research project incurs higher-than-expected costs, the government is obligated to reimburse those allowable costs. For scientific research, where outcomes and associated costs can be highly unpredictable, this risk is amplified. The government might end up paying more than anticipated if the research proves more complex or resource-intensive than initially projected. While CNF contracts can encourage research by removing the contractor's profit motive and focusing solely on cost recovery, they require robust government oversight to ensure costs are reasonable, allocable, and necessary.

What is the significance of Wayne State University being the sole awardee for this contract?

The data indicates that Wayne State University was the awardee, but it does not explicitly state they were the *sole* awardee for the entire contract duration or for all potential task orders under it. The competition level is listed as 'FULL AND OPEN COMPETITION' with 'no' (number of bids) as 2. This suggests that at least two bids were received, and Wayne State University was selected as the winner. If Wayne State University is the only entity performing work under this specific contract ID, it implies they offered the best value proposition among the bidders. For long-term research contracts, it's common for a single institution to be awarded the primary contract, potentially with options for task orders that could be competed separately or awarded to the prime.

How has federal spending on 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) evolved over the period this contract was active (2003-2013)?

The period of this contract (June 15, 2003, to January 31, 2013) spans a significant time frame during which federal spending, particularly on R&D and professional services, saw fluctuations. Generally, federal spending on scientific and technical services, especially those related to health and research funded by agencies like NIH, tends to increase over time, driven by advancements in science and public health needs. However, specific spending trends within NAICS 541990 would be influenced by broader economic conditions, national priorities, and budget allocations. Without specific historical spending data for this NAICS code across all federal agencies, a precise trend analysis is difficult. It's plausible that spending in this broad category saw growth, particularly in areas supported by agencies like HHS, reflecting sustained investment in research and development.

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: $9,266,584

Exercised Options: $8,442,293

Current Obligation: $16,860,675

Parent Contract

Parent Award PIID: 275023342

IDV Type: IDC

Timeline