VA awards $33.3M for research, but competition and value metrics are unclear

Contract Overview

Contract Amount: $33,336 ($33.3K)

Contractor: Regents of the University of California, SAN Francisco, the

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-09

End Date: 2026-06-30

Contract Duration: 82 days

Daily Burn Rate: $407/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: COST NO FEE

Sector: R&D

Official Description: RESERACH CORES

Place of Performance

Location: SAN FRANCISCO, SAN FRANCISCO County, CALIFORNIA, 94121

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $33,335.94 to REGENTS OF THE UNIVERSITY OF CALIFORNIA, SAN FRANCISCO, THE for work described as: RESERACH CORES Key points: 1. Contract awarded on a cost-no-fee basis, suggesting research focus over profit. 2. Limited competition raises questions about price discovery and potential value for money. 3. Contract duration of 82 days is relatively short for a research project of this scale. 4. The specific research area (NAICS 541715) is broad, making direct comparisons difficult. 5. Geographic concentration in California may limit broader national research participation. 6. Lack of detailed performance metrics makes assessing effectiveness challenging.

Value Assessment

Rating: questionable

The contract is awarded on a cost-no-fee basis, which is common for research institutions where the primary goal is knowledge advancement rather than profit. However, without clear performance benchmarks or comparisons to similar research projects, it is difficult to definitively assess the value for money. The total award amount of $33.3 million over a short period suggests a significant investment, but the absence of detailed cost breakdowns or competitive bidding makes a robust value assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source or limited competition procurement. The specific reasons for this designation are not provided, but it means that other qualified entities did not have an opportunity to bid. This lack of competition can potentially lead to higher prices and reduced innovation compared to a fully competed contract.

Taxpayer Impact: Taxpayers may not be receiving the best possible price or the most innovative solutions due to the absence of a competitive bidding process.

Public Impact

The primary beneficiary is the Department of Veterans Affairs (VA), which will receive the research outcomes. The research aims to advance knowledge in physical, engineering, and life sciences. The contract is geographically focused in California, potentially impacting local research institutions and workforce. The research could lead to advancements that ultimately benefit veterans' health and well-being.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding limits price discovery and potential value for money.
Short contract duration for a large research award raises questions about project scope and feasibility.
Cost-no-fee structure, while common in research, makes direct value assessment difficult without clear performance metrics.
Geographic concentration in California may exclude other potentially valuable research partners.

Positive Signals

Award to a research institution (Regents of the University of California, San Francisco) suggests a focus on scientific advancement.
The research area (NAICS 541715) is critical for understanding and improving physical, engineering, and life sciences.
The VA's investment in R&D indicates a commitment to evidence-based improvements for veterans.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for federal R&D contracts is highly competitive, with significant investment across various agencies. Comparable spending benchmarks are difficult to establish without knowing the specific research topic, but large-scale research initiatives often involve multi-million dollar awards. The University of California system is a major recipient of federal research grants, indicating its established position in this sector.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary consideration for this contract. As it was awarded on a sole-source basis to a large research institution, there are no explicit small business set-aside provisions. Subcontracting opportunities for small businesses are not detailed in this award notice, and the impact on the small business ecosystem is likely minimal unless the prime contractor actively engages them.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs. As a research and development contract, specific oversight mechanisms would likely focus on research integrity, ethical conduct, and adherence to the cost-no-fee agreement. Transparency is limited by the sole-source nature of the award and the lack of publicly available detailed performance metrics. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Veterans Affairs Research and Development Programs
National Institutes of Health Research Grants
National Science Foundation Research Awards
University Research Partnerships

Risk Flags

Sole-source award
Lack of competition
Unclear value for money
Short contract duration for R&D

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $33,335.94 to REGENTS OF THE UNIVERSITY OF CALIFORNIA, SAN FRANCISCO, THE. RESERACH CORES

Who is the contractor on this award?

The obligated recipient is REGENTS OF THE UNIVERSITY OF CALIFORNIA, SAN FRANCISCO, THE.

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 $33,335.94.

What is the period of performance?

Start: 2026-04-09. End: 2026-06-30.

What specific research objectives are being pursued under this contract, and how do they align with the VA's strategic goals?

The contract is categorized under NAICS code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology).' While the awardee is the Regents of the University of California, San Francisco, a leading research institution, the specific research objectives are not detailed in the provided data. To assess alignment with VA's strategic goals, one would need to examine the Statement of Work (SOW) or project proposal associated with this award. Typically, VA research focuses on improving the health, well-being, and care of veterans, addressing conditions prevalent in the veteran population, or advancing medical technologies relevant to military service. Without the SOW, it's impossible to confirm the precise alignment or the expected impact on veterans.

How does the cost-no-fee structure impact the accountability and performance of the contractor?

A cost-no-fee (CNF) contract is typically used when the contractor is a non-profit organization or government entity, and the primary objective is research or public service rather than profit generation. In such cases, the government reimburses the contractor for allowable costs incurred in performing the contract, but no additional fee or profit is paid. This structure shifts the focus from profit maximization to efficient execution of the research objectives. Accountability is maintained through rigorous monitoring of costs, adherence to the research plan, and evaluation of research outcomes against agreed-upon milestones and deliverables. While it removes the profit motive, it necessitates strong oversight to ensure that funds are used appropriately and that the research progresses as intended. The absence of a fee might also influence the contractor's incentive to innovate or expedite the research, making performance metrics and regular reporting crucial.

What are the potential risks associated with awarding a $33.3 million contract on a sole-source basis?

Awarding a contract of this magnitude on a sole-source basis carries several potential risks. Firstly, it eliminates the possibility of obtaining the best value through competition, potentially leading to inflated costs or less innovative solutions. The government may overpay for the goods or services received. Secondly, it can stifle competition in the long run by signaling to other potential providers that opportunities are limited. Thirdly, without the scrutiny of a competitive bidding process, there's a higher risk of inadequate performance or unmet requirements if the selected contractor is not fully capable or if oversight is insufficient. Finally, sole-source awards can sometimes raise concerns about fairness and transparency in government procurement, potentially leading to public or congressional scrutiny.

Can the short contract duration (82 days) be reconciled with the substantial award amount for research and development?

A contract duration of 82 days (approximately 2.7 months) for an award of $33.3 million in research and development appears unusually short. Research projects, especially those involving physical, engineering, or life sciences, often require significant time for planning, execution, data collection, analysis, and reporting. A short duration might suggest that this award represents a specific, short-term phase of a larger research program, a focused feasibility study, or the procurement of specialized equipment or services rather than a comprehensive research initiative. Alternatively, it could indicate a high-intensity, rapid research effort. Without further details on the contract's scope of work, it is difficult to definitively reconcile the duration with the award amount. It warrants further investigation to understand the nature of the work being funded.

What is the typical spending pattern for NAICS code 541715 by the Department of Veterans Affairs?

The provided data does not include historical spending patterns for NAICS code 541715 by the Department of Veterans Affairs (VA). To determine typical spending, one would need to access historical federal procurement databases (e.g., FPDS-NG, USASpending.gov) and filter for the VA, the specified NAICS code, and relevant timeframes. Generally, federal agencies like the VA invest in R&D across various scientific domains to support their missions. Spending on NAICS 541715 would likely fluctuate based on strategic priorities, available funding, and specific research needs related to veterans' health and services. Analyzing past awards would reveal the frequency, average award size, and types of organizations (universities, private labs) that the VA typically contracts with for this type of research.

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: 1855 FOLSOM ST STE 425, SAN FRANCISCO, CA, 94103

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: $33,336

Exercised Options: $33,336

Current Obligation: $33,336

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24E26D0002

IDV Type: IDC

Timeline