Vanderbilt University Medical Center awarded $50M contract for respiratory virus surveillance, including COVID-19

Contract Overview

Contract Amount: $49,995,944 ($50.0M)

Contractor: Vanderbilt University Medical Center

Awarding Agency: Department of Health and Human Services

Start Date: 2022-08-30

End Date: 2025-08-31

Contract Duration: 1,097 days

Daily Burn Rate: $45.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST NO FEE

Sector: R&D

Official Description: SURVEILLANCE OF ACUTELY ILL ADULTS WITH RESPIRATORY VIRUSES, INCLUDING SARS-COV-2

Place of Performance

Location: NASHVILLE, DAVIDSON County, TENNESSEE, 37232

State: Tennessee Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $50.0 million to VANDERBILT UNIVERSITY MEDICAL CENTER for work described as: SURVEILLANCE OF ACUTELY ILL ADULTS WITH RESPIRATORY VIRUSES, INCLUDING SARS-COV-2 Key points: 1. Contract focuses on critical public health surveillance for respiratory illnesses. 2. Research and Development in Life Sciences is a key sector for this award. 3. The contract duration of nearly three years suggests a sustained effort. 4. The 'Cost No Fee' contract type indicates reimbursement of allowable costs. 5. This award is a significant investment in understanding viral threats. 6. The geographic focus on Tennessee may provide localized insights.

Value Assessment

Rating: good

The contract value of $49,995,944 over approximately 3 years represents a substantial investment in public health research. Benchmarking this against similar large-scale epidemiological surveillance contracts is challenging due to the specific nature of the research and the ongoing public health context. However, the 'Cost No Fee' structure implies that the government will reimburse the contractor for approved expenses, which is a common approach for research and development contracts where final costs can be variable. The award amount appears reasonable for a multi-year, comprehensive surveillance program.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple interested parties had the opportunity to bid. The presence of 3 bids suggests a competitive environment, which typically leads to better pricing and value for the government. This approach ensures that the most capable and cost-effective solution was selected from a range of potential offerors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces and ensures that government funds are used efficiently by selecting the best value proposal.

Public Impact

The primary beneficiaries are public health agencies and policymakers who will receive data to inform disease prevention and response strategies. The services delivered include ongoing surveillance, data collection, and analysis of respiratory viruses. The geographic impact is initially focused on Tennessee, providing detailed insights into local disease patterns. Workforce implications include support for researchers, epidemiologists, and laboratory personnel at Vanderbilt University Medical Center.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in research objectives if not tightly managed.
Reliance on a single institution for critical national surveillance data.
Challenges in standardizing data collection across different study sites if expanded.

Positive Signals

Vanderbilt University Medical Center has a strong track record in medical research.
The 'Cost No Fee' structure, while variable, allows for flexibility in research execution.
The contract's focus on a critical public health issue aligns with national priorities.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for public health surveillance and epidemiological research is driven by government funding and the need to address emerging health threats. Comparable spending benchmarks would typically be found in grants and contracts awarded by agencies like the CDC and NIH for similar large-scale research initiatives.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the nature of the research and the size of the award, it is unlikely that significant subcontracting opportunities for small businesses will be a primary focus, unless specialized services are required.

Oversight & Accountability

Oversight will likely be managed by the Centers for Disease Control and Prevention (CDC) through regular reporting requirements, progress reviews, and financial audits. The 'Cost No Fee' structure necessitates close monitoring of expenditures to ensure they are allowable and reasonable. Transparency will be maintained through public health reports and data dissemination, subject to privacy regulations.

Related Government Programs

National Respiratory and Enteric Virus Surveillance System (NREVSS)
Influenza Division activities at CDC
COVID-19 Public Health Response Programs

Risk Flags

Potential for cost overruns due to the 'Cost No Fee' structure.
Dependence on a single academic institution for critical national data.
Need for clear data sharing and privacy protocols.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $50.0 million to VANDERBILT UNIVERSITY MEDICAL CENTER. SURVEILLANCE OF ACUTELY ILL ADULTS WITH RESPIRATORY VIRUSES, INCLUDING SARS-COV-2

Who is the contractor on this award?

The obligated recipient is VANDERBILT UNIVERSITY MEDICAL CENTER.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $50.0 million.

What is the period of performance?

Start: 2022-08-30. End: 2025-08-31.

What is Vanderbilt University Medical Center's prior experience with large-scale federal health surveillance contracts?

Vanderbilt University Medical Center (VUMC) has a well-established reputation for conducting significant medical research and participating in large-scale public health initiatives. While specific details on prior federal surveillance contracts of this exact magnitude are not provided in the summary data, VUMC has a history of receiving substantial federal funding for research from agencies like the National Institutes of Health (NIH) and the Centers for Disease Control and Prevention (CDC). Their expertise in clinical research, epidemiology, and infectious diseases positions them as a capable entity for such surveillance work. Further investigation into their contract history with federal agencies would provide a more precise benchmark of their experience in managing large, multi-year surveillance programs.

How does the 'Cost No Fee' contract type impact the government's financial risk and oversight?

The 'Cost No Fee' (CNF) contract type means the government reimburses the contractor for all allowable, allocable, and reasonable costs incurred in performing the contract, but the contractor does not receive any additional fee or profit. This structure is common for research and development contracts where the final scope and costs can be uncertain. For the government, the financial risk lies in the potential for costs to exceed initial estimates, as the final price is not fixed. This necessitates robust oversight mechanisms, including detailed cost monitoring, regular audits, and strict adherence to the contract's cost principles, to ensure that taxpayer funds are spent appropriately and efficiently. The absence of a fee reduces the contractor's incentive for profit maximization but may require careful management to ensure performance targets are met.

What are the key performance indicators (KPIs) for this respiratory virus surveillance contract?

Key performance indicators (KPIs) for this contract would likely focus on the accuracy, timeliness, and comprehensiveness of the surveillance data collected and reported. Specific KPIs could include the number of individuals sampled and tested, the geographic coverage achieved within Tennessee, the turnaround time for laboratory results, the completeness and accuracy of data entries, and the adherence to reporting schedules to the CDC. Additionally, KPIs might measure the successful identification and characterization of circulating viral strains, including SARS-CoV-2 and other respiratory pathogens. The ability to provide actionable epidemiological insights and support public health decision-making would also serve as a critical measure of success.

What is the potential impact of this contract on public health preparedness for future pandemics?

This contract plays a crucial role in enhancing public health preparedness for future pandemics by establishing and maintaining a robust surveillance infrastructure. By continuously monitoring the prevalence and characteristics of circulating respiratory viruses, including novel or re-emerging pathogens, the program provides early warning signals. This allows public health agencies to rapidly assess the threat landscape, understand transmission dynamics, and inform the development of countermeasures like vaccines and therapeutics. The data generated can also help in evaluating the effectiveness of existing public health interventions and refining response strategies, thereby strengthening the nation's overall resilience against infectious disease outbreaks.

Are there any specific technological or methodological innovations expected from this contract?

While the primary objective is surveillance, contracts of this nature often encourage or necessitate the adoption of innovative technologies and methodologies. This could include the implementation of advanced genomic sequencing techniques to track viral mutations and evolution, the use of sophisticated data analytics and modeling to predict outbreak trajectories, or the integration of real-time data streams from various sources (e.g., electronic health records, wastewater surveillance). The contract may also support the development or refinement of diagnostic assays or epidemiological study designs. The 'Research and Development' classification suggests an openness to exploring and potentially implementing novel approaches to enhance the efficiency, accuracy, and scope of the surveillance efforts.

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 › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 75D301-22-R-72124

Offers Received: 3

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: Vanderbelt University Medical Center

Address: 1161 21ST AVE S STE D3300 MCN, NASHVILLE, TN, 37232

Business Categories: Category Business, Corporate Entity Tax Exempt, Hospital, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $49,995,944

Exercised Options: $49,995,944

Current Obligation: $49,995,944

Actual Outlays: $43,154,785

Subaward Activity

Number of Subawards: 77

Total Subaward Amount: $46,591,679

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline