VA awards $54.4M contract for animal research services to University of Michigan
Contract Overview
Contract Amount: $54,381 ($54.4K)
Contractor: Regents of the University of Michigan
Awarding Agency: Department of Veterans Affairs
Start Date: 2025-07-01
End Date: 2026-06-30
Contract Duration: 364 days
Daily Burn Rate: $149/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: COST NO FEE
Sector: R&D
Official Description: ACADEMIC AFFILIATE - ANIMAL RESEARCH
Place of Performance
Location: ANN ARBOR, WASHTENAW County, MICHIGAN, 48105
State: Michigan Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $54,380.93 to REGENTS OF THE UNIVERSITY OF MICHIGAN for work described as: ACADEMIC AFFILIATE - ANIMAL RESEARCH Key points: 1. Contract awarded for specialized animal research support, aligning with VA's mission to advance medical knowledge. 2. The contract duration of 364 days suggests a focused, project-based need for these services. 3. The award mechanism indicates a lack of broad competition, potentially impacting price negotiation. 4. The specific NAICS code points to a niche area within R&D, requiring specialized expertise. 5. Geographic concentration in Michigan may limit broader access to these services for other VA facilities. 6. The absence of small business set-asides warrants further investigation into subcontracting opportunities.
Value Assessment
Rating: fair
The contract value of $54.4 million for a one-year period for academic affiliate animal research appears to be within a reasonable range for specialized R&D services. However, without specific benchmarks for comparable academic affiliate contracts or detailed cost breakdowns, a precise value-for-money assessment is challenging. The 'COST NO FEE' contract type suggests that the government is reimbursing the contractor for allowable costs, which can sometimes lead to less stringent cost control compared to fixed-price contracts. Benchmarking against similar research support contracts across federal agencies would provide a clearer picture of pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning the Department of Veterans Affairs identified the Regents of the University of Michigan as the only responsible source capable of meeting the requirement. This approach bypasses the standard competitive bidding process. While sole-source awards can be justified for unique capabilities or urgent needs, they limit the opportunity for price discovery through market competition and may result in higher costs for the government.
Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the potential cost savings that can arise from a competitive bidding process. This can lead to less efficient use of taxpayer funds if alternative, more cost-effective providers could have been identified through competition.
Public Impact
Veterans will benefit from advancements in medical research facilitated by this contract, potentially leading to improved healthcare outcomes. The contract supports critical animal research activities essential for understanding and treating diseases affecting veterans. The primary geographic impact is in Michigan, where the University of Michigan is located, but the research findings can have national implications for veteran healthcare. The contract supports a highly specialized workforce within the academic research community at the University of Michigan.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition raises concerns about potential overpricing and reduced value for taxpayer money.
- Sole-source awards limit transparency and accountability in the procurement process.
- The 'COST NO FEE' contract type may incentivize less rigorous cost management by the contractor.
- Absence of small business participation could mean missed opportunities for economic inclusion and innovation.
Positive Signals
- The award is to a reputable academic institution with established research capabilities.
- The contract directly supports the VA's mission to improve veteran health through research.
- The specified research area (NAICS 541715) is critical for advancing medical science.
Sector Analysis
The contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for federal agencies like the VA, which invest heavily in scientific inquiry to improve health and well-being. The market for specialized academic affiliate research services is often characterized by unique expertise and long-standing institutional relationships, making full and open competition challenging in some instances. Comparable spending benchmarks for similar R&D services at academic institutions can vary widely based on the complexity and scope of the research.
Small Business Impact
This contract does not appear to include a small business set-aside. The award to a large academic institution suggests that the primary focus was on specialized capabilities rather than small business participation. There is no explicit information regarding subcontracting plans for small businesses. This could represent a missed opportunity to engage small businesses in specialized research support roles, potentially limiting their access to federal contracting dollars and hindering the broader small business ecosystem.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers. The 'COST NO FEE' contract type necessitates careful monitoring of allowable costs to ensure adherence to the contract terms and prevent overspending. While specific Inspector General (IG) jurisdiction for this particular award is not detailed, the VA Office of Inspector General typically has oversight over VA expenditures and programs to identify waste, fraud, and abuse. Transparency is limited due to the sole-source nature of the award.
Related Government Programs
- VA Research and Development Programs
- National Institutes of Health (NIH) Research Grants
- Department of Defense Research Contracts
- National Science Foundation (NSF) Grants
Risk Flags
- Sole-source award may limit competition and potentially increase costs.
- Lack of small business participation noted.
- Cost-reimbursement contract type requires strong government oversight of expenditures.
Tags
research-and-development, department-of-veterans-affairs, academic-affiliate, animal-research, cost-reimbursement, sole-source, michigan, university-of-michigan, life-sciences, medical-research
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $54,380.93 to REGENTS OF THE UNIVERSITY OF MICHIGAN. ACADEMIC AFFILIATE - ANIMAL RESEARCH
Who is the contractor on this award?
The obligated recipient is REGENTS OF THE UNIVERSITY OF MICHIGAN.
Which agency awarded this contract?
Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).
What is the total obligated amount?
The obligated amount is $54,380.93.
What is the period of performance?
Start: 2025-07-01. End: 2026-06-30.
What is the track record of the Regents of the University of Michigan in performing similar federal research contracts?
The Regents of the University of Michigan, as a major research institution, has a long history of engaging in research activities funded by various federal agencies, including the Department of Veterans Affairs, Department of Health and Human Services (through NIH), and others. Their track record typically involves conducting complex scientific studies, managing research infrastructure, and adhering to federal regulations for research, including those pertaining to animal care and use. Specific performance data on past VA contracts would require a deeper dive into contract databases and performance reviews, but generally, large academic institutions are expected to have robust administrative and research capabilities. However, the success of any individual contract depends on project-specific management, funding levels, and alignment with agency goals.
How does the cost of this contract compare to similar animal research services procured by other federal agencies?
Benchmarking the cost of this $54.4 million contract for a one-year period is challenging without access to detailed cost breakdowns and specific service level agreements. Federal agencies procure animal research services through various mechanisms, including grants, cooperative agreements, and contracts, often with different scopes of work and institutional overhead rates. The 'COST NO FEE' structure means the government reimburses actual costs incurred by the university, which can vary significantly. To perform a robust comparison, one would need to identify contracts with similar scientific objectives, animal models, research intensity, and institutional overhead structures across agencies like NIH, DoD, or NSF. Without such granular data, it's difficult to definitively state if this contract represents optimal value for money compared to market rates or other federal procurements.
What are the primary risks associated with a sole-source award for critical research services?
The primary risks associated with a sole-source award for critical research services include a lack of price competition, which can lead to higher costs for the government and taxpayers. It also reduces transparency in the procurement process, making it harder to ensure that the selected contractor offers the best possible value. Furthermore, sole-source awards can stifle innovation by not allowing other qualified entities to propose alternative approaches or technologies. There's also a risk that the government may become overly reliant on a single provider, potentially limiting flexibility in future procurements. For critical research, this could mean delays or suboptimal outcomes if the chosen provider faces unforeseen challenges.
How effective is the VA in utilizing academic affiliates for research that directly impacts veteran healthcare?
The VA has a long-standing and generally effective strategy of partnering with academic medical centers and universities to conduct research that directly impacts veteran healthcare. These collaborations leverage the extensive research infrastructure and expertise present in academic institutions, allowing the VA to pursue a broad range of medical advancements relevant to veteran populations. Many significant breakthroughs in understanding and treating conditions prevalent among veterans, such as PTSD, TBI, and various chronic diseases, have originated from such partnerships. The effectiveness is measured by the translation of research findings into clinical practice, policy changes, and improved health outcomes for veterans. The VA's affiliation program is a cornerstone of its research mission.
What are the historical spending patterns for animal research services by the Department of Veterans Affairs?
Historical spending patterns for animal research services by the Department of Veterans Affairs show a consistent and significant investment in this area, reflecting its commitment to advancing medical knowledge for veteran health. The VA typically awards substantial contracts and grants to academic institutions and research organizations for a variety of research projects, including those involving animal models. Spending fluctuates based on research priorities, congressional appropriations, and the initiation of new research initiatives. While specific annual figures require detailed analysis of historical contract data, it is evident that animal research remains a critical component of the VA's R&D budget, often comprising tens to hundreds of millions of dollars annually across various research categories and institutions.
What are the implications of the 'COST NO FEE' contract type on contractor performance and cost control?
The 'COST NO FEE' (CNF) contract type, also known as Cost-Reimbursement (CR) without fee, means the government agrees to pay the contractor for all allowable costs incurred in performing the contract, but provides no additional profit or fee. This type of contract is typically used when the scope of work is uncertain, or when research and development activities are involved, making it difficult to estimate costs accurately upfront. For the contractor, the primary incentive is to perform the work and incur allowable costs, rather than to minimize costs to maximize profit, as there is no profit margin. For the government, the key implication is the need for rigorous oversight to ensure that all costs incurred are reasonable, allocable, and necessary for contract performance. Without a fee, the contractor's motivation to control costs might be reduced compared to fixed-price or cost-plus-incentive-fee contracts, placing a greater burden on government contract administration.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: 1109 GEDDES AVE STE 3300, ANN ARBOR, MI, 48109
Business Categories: Category Business, Educational Institution, Government, Higher Education, U.S. National Government, Not Designated a Small Business, Higher Education (Public), U.S. Regional/State Government
Financial Breakdown
Contract Ceiling: $54,381
Exercised Options: $54,381
Current Obligation: $54,381
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 36C24E25D0024
IDV Type: IDC
Timeline
Start Date: 2025-07-01
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2026-04-10
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