Over $17.3 million awarded to Wayne State University for health services, spanning nearly a decade

Contract Overview

Contract Amount: $17,372,679 ($17.4M)

Contractor: Wayne State University

Awarding Agency: Department of Health and Human Services

Start Date: 2004-02-12

End Date: 2013-01-31

Contract Duration: 3,276 days

Daily Burn Rate: $5.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST NO FEE

Sector: Healthcare

Official Description: HEALTH SERVICES (OPERATIONAL)

Place of Performance

Location: DETROIT, WAYNE County, MICHIGAN, 48202

State: Michigan Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $17.4 million to WAYNE STATE UNIVERSITY for work described as: HEALTH SERVICES (OPERATIONAL) Key points: 1. The contract represents a significant investment in health services research and operations. 2. Long duration suggests a sustained need for the services provided. 3. The award was made under full and open competition, indicating a broad market search. 4. The 'Cost No Fee' contract type implies reimbursement of allowable costs without profit. 5. The contract's value and duration place it as a substantial federal commitment. 6. Performance context is within the National Institutes of Health's research and development portfolio.

Value Assessment

Rating: fair

This contract, awarded as 'Cost No Fee,' focuses on reimbursing allowable costs rather than a fixed price with profit. Benchmarking value is challenging without detailed cost breakdowns and comparison to similar research grants or service contracts. The lack of profit margin might indicate a focus on cost recovery for research institutions. However, the absence of profit can sometimes mask inefficiencies if not rigorously overseen.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This approach typically fosters competitive pricing and allows the government to select the most advantageous offer. The presence of two bids, as indicated by 'no': 2, suggests a moderate level of competition for this specific award.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring that the government secures services at the best possible value.

Public Impact

Wayne State University, a major research institution, benefits from this funding to support its health services operations. The services delivered likely contribute to advancements in health research and public health initiatives overseen by NIH. The geographic impact is primarily centered in Michigan, where Wayne State University is located. The contract supports academic and research staff, potentially impacting the local workforce in higher education and healthcare sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Cost No Fee' structure requires careful monitoring to ensure costs are reasonable and allowable.
Long contract durations can sometimes lead to scope creep or reduced agility if needs change.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
The contract supports a recognized research institution, suggesting alignment with federal research priorities.

Sector Analysis

This contract falls within the broader Health Services sector, specifically focusing on operational aspects likely related to research or public health programs managed by the National Institutes of Health (NIH). Comparable spending benchmarks would involve analyzing other NIH grants and contracts for similar health services or research support, which often involve substantial, long-term investments in academic and research institutions.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false). Given the nature of health services research and the size of the award, it is unlikely that significant subcontracting opportunities for small businesses would be mandated or typical, though specific project needs could vary.

Oversight & Accountability

Oversight would primarily be conducted by the Department of Health and Human Services (HHS) and the National Institutes of Health (NIH). Accountability measures would be tied to the fulfillment of contract requirements and the proper expenditure of funds under the 'Cost No Fee' agreement. Transparency is generally maintained through federal contract databases, though detailed operational reports may be internal.

Related Government Programs

National Institutes of Health Research Grants
Public Health Service Contracts
University Research Support Programs

Risk Flags

Cost Reimbursement Oversight
Long-Term Contract Management

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $17.4 million to WAYNE STATE UNIVERSITY. HEALTH SERVICES (OPERATIONAL)

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 $17.4 million.

What is the period of performance?

Start: 2004-02-12. End: 2013-01-31.

What specific health services were provided under this contract?

The provided data categorizes this as 'HEALTH SERVICES (OPERATIONAL)' but lacks specific details on the exact services rendered. Given the awarding agency (National Institutes of Health) and the contractor (Wayne State University), it is highly probable that these services relate to health research support, clinical trial operations, data management for health studies, or public health program implementation. The 'Cost No Fee' contract type suggests that the primary focus was on reimbursing the university for the direct and indirect costs associated with performing these essential operational functions for NIH-funded initiatives, rather than procuring a specific product or service with a profit margin.

How does the 'Cost No Fee' contract type impact value for money compared to fixed-price contracts?

The 'Cost No Fee' (CNF) contract type is primarily used when the extent or nature of the work cannot be easily defined upfront, often in research or development scenarios. It allows the contractor to be reimbursed for all allowable, allocable, and reasonable costs incurred in performing the contract, but without any profit. This contrasts with fixed-price contracts, which include a profit margin for the contractor. While CNF contracts can facilitate research by removing financial risk for the performer, they place a greater burden on the government to meticulously audit and verify costs to ensure value. Without profit, there's less incentive for the contractor to innovate for cost savings, making rigorous oversight crucial for taxpayer protection. Value is derived from the successful completion of research objectives rather than cost efficiency.

What is the significance of the contract duration (3276 days)?

A duration of 3276 days, approximately 9 years, indicates a long-term commitment by the federal government to the services provided by Wayne State University. Such extended periods are common for large-scale research projects, ongoing health service delivery programs, or foundational research initiatives that require sustained effort and funding. This longevity suggests that the services are critical to the agency's mission and that the relationship with the contractor has been stable. It also implies that the initial scope of work was substantial enough to warrant such a long-term engagement, potentially involving complex methodologies, data collection over extended periods, or the development of long-term health interventions.

What does the 'DO' award action code signify?

The 'DO' award action code typically signifies a 'Definitive Order' placed against a contract. In the context of this data, it suggests that this specific entry represents a task order or delivery order issued under a broader contract vehicle, possibly a Basic Ordering Agreement (BOA) or a similar indefinite-delivery/indefinite-quantity (IDIQ) contract. However, given the 'FULL AND OPEN COMPETITION' and the substantial value ($17.3M) and duration (9 years), it's also plausible that 'DO' could represent a direct award action for a specific project or service, rather than a subsequent order. Without more context on the specific procurement system used, 'DO' generally points to the formal issuance of an order for goods or services.

How does this contract compare to other federal spending on health services by NIH?

The $17.3 million awarded to Wayne State University over approximately 9 years for operational health services is a significant, but not extraordinary, sum within the context of the National Institutes of Health's (NIH) overall budget. NIH awards billions annually across numerous research grants and contracts. This specific contract represents a substantial investment in a particular project or program, likely focused on research support or operational infrastructure. Compared to major NIH research initiatives or large-scale public health programs, its value is moderate. However, for Wayne State University, it represents a significant funding stream. Benchmarking would require comparing it to other contracts for similar operational support or research services awarded by NIH to academic institutions.

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: $17,372,679

Exercised Options: $17,372,679

Current Obligation: $17,372,679

Parent Contract

Parent Award PIID: 275023342

IDV Type: IDC

Timeline