DHHS awards $22M to Wayne State University for scientific services over 10 years

Contract Overview

Contract Amount: $22,075,920 ($22.1M)

Contractor: Wayne State University

Awarding Agency: Department of Health and Human Services

Start Date: 2003-09-15

End Date: 2013-01-31

Contract Duration: 3,426 days

Daily Burn Rate: $6.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST NO FEE

Sector: Other

Place of Performance

Location: DETROIT, WAYNE County, MICHIGAN, 48202

State: Michigan Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $22.1 million to WAYNE STATE UNIVERSITY for work described as: Key points: 1. Significant 10-year contract duration suggests long-term research or service needs. 2. No small business participation noted, potentially missing opportunities for smaller entities. 3. The 'All Other Professional, Scientific, and Technical Services' NAICS code is broad, making direct competition comparison difficult. 4. Award type 'DO' (Defense Order) is unusual for DHHS, warranting further investigation into its specific purpose.

Value Assessment

Rating: questionable

The contract value of $22,075,920 over 10 years averages to $2.2M annually. Without specific deliverables or benchmarks for 'All Other Professional, Scientific, and Technical Services,' it's difficult to assess value. The 'COST NO FEE' pricing structure suggests reimbursement of costs rather than a fixed price, which can lead to cost overruns if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. However, the broad NAICS code and lack of specific performance metrics make it challenging to determine if the competition effectively drove down prices or ensured the best value.

Taxpayer Impact: The long duration and significant value suggest a substantial investment of taxpayer funds. The effectiveness of the competition and the management of costs will determine the ultimate taxpayer impact.

Public Impact

Long-term funding for research or technical services supports ongoing scientific advancement. Potential for innovation and discovery through sustained investment in scientific endeavors. The broad nature of the services may impact the specificity of public benefit reporting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Unusual award type 'DO' for DHHS.
Broad NAICS code limits specific analysis.
Lack of small business participation.

Positive Signals

Awarded under full and open competition.
Long contract duration indicates sustained need.
Significant investment in scientific services.

Sector Analysis

The 'All Other Professional, Scientific, and Technical Services' sector is vast, encompassing a wide range of activities. Federal spending in this area is substantial, supporting everything from basic research to specialized technical consulting. Benchmarks are difficult to establish due to the code's breadth.

Small Business Impact

This contract does not appear to have involved small businesses, as indicated by the 'sb' field being false. This represents a missed opportunity to leverage the capabilities of small businesses in the scientific and technical services sector.

Oversight & Accountability

The long duration of the contract necessitates robust oversight from the Department of Health and Human Services to ensure deliverables are met and costs remain within reasonable bounds. Accountability for performance and financial management is crucial.

Related Government Programs

All Other Professional, Scientific, and Technical Services
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Unusual award type ('DO') for DHHS.
Broad NAICS code lacks specificity.
Potential for cost overruns with 'COST NO FEE' structure.
Lack of small business participation.
Long contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $22.1 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 $22.1 million.

What is the period of performance?

Start: 2003-09-15. End: 2013-01-31.

What specific scientific or technical services are being provided under this contract, and how do they align with DHHS's mission?

The NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' is extremely broad. To assess value and effectiveness, specific details on the nature of the work performed by Wayne State University are needed. This could range from laboratory research and data analysis to specialized technical consulting or program support, all of which must directly contribute to the Department of Health and Human Services' public health and scientific research objectives.

What is the rationale behind using a 'DO' (Defense Order) award type for a Department of Health and Human Services contract?

The use of a 'DO' award type, typically associated with the Department of Defense's priority ratings for national defense, is unusual for the Department of Health and Human Services. Clarification is needed on whether this signifies a specific urgency, a unique inter-agency agreement, or a misclassification. Understanding this context is critical for assessing the procurement process and potential justifications for this specific award mechanism.

How was the 'COST NO FEE' pricing structure justified, and what mechanisms are in place to control costs over the 10-year period?

A 'COST NO FEE' contract means the government reimburses the contractor for allowable costs but pays no fee or profit. This structure is often used when the scope of work is uncertain or involves research and development. Robust oversight and clear criteria for allowable costs are essential to prevent overspending. The government must have strong financial controls and performance monitoring to ensure the $22M is used efficiently and effectively over the contract's decade-long duration.

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: $11,401,597

Exercised Options: $11,401,597

Current Obligation: $22,075,920

Parent Contract

Parent Award PIID: 275023342

IDV Type: IDC

Timeline