NIH awards $20M for COVID-19 imaging research, but competition was limited

Contract Overview

Contract Amount: $20,208,932 ($20.2M)

Contractor: University of Chicago

Awarding Agency: Department of Health and Human Services

Start Date: 2020-08-21

End Date: 2023-06-30

Contract Duration: 1,043 days

Daily Burn Rate: $19.4K/day

Competition Type: NOT COMPETED

Pricing Type: COST NO FEE

Sector: R&D

Official Description: MEDICAL IMAGING AND DATA RESOURCE CENTER (MIDRC)FOR RAPID RESPONSE TO COVID-19 PANDEMIC

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60637

State: Illinois Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $20.2 million to UNIVERSITY OF CHICAGO for work described as: MEDICAL IMAGING AND DATA RESOURCE CENTER (MIDRC)FOR RAPID RESPONSE TO COVID-19 PANDEMIC Key points: 1. Contract awarded to a single source, raising questions about price competitiveness. 2. Research and Development in Physical, Engineering, and Life Sciences sector. 3. Performance period spans over three years, indicating a substantial research effort. 4. No small business set-aside, potentially limiting opportunities for smaller entities. 5. Geographic focus on Illinois for this specific award. 6. Contract type is Cost No Fee, suggesting reimbursement of allowable costs.

Value Assessment

Rating: questionable

The contract value of approximately $20 million for the Medical Imaging and Data Resource Center (MIDRC) for COVID-19 response is difficult to benchmark without comparable sole-source awards in this specific research area. The 'Cost No Fee' contract type means the government reimburses the contractor for allowable costs, which can sometimes lead to less price discipline compared to fixed-price contracts. Further analysis of the contractor's proposed budget and actual incurred costs would be necessary to fully assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the University of Chicago was the only entity considered. This limits the opportunity for competitive bidding and price discovery. While sole-source awards can be justified for specialized research or urgent needs, the lack of competition means the government did not benefit from multiple proposals to drive down costs or identify the best overall value.

Taxpayer Impact: The absence of competition for this significant award means taxpayers may not have received the most cost-effective solution. Without competing bids, there's a risk that the negotiated price might be higher than what could have been achieved in a competitive environment.

Public Impact

The University of Chicago benefits as the primary research institution. Services delivered include research and development in medical imaging and data resources. Geographic impact is primarily in Illinois, where the research is conducted. Workforce implications include employment for researchers, data scientists, and support staff at the University of Chicago.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential value for taxpayers.
Cost-reimbursement contract type may lack strong cost control incentives.
Lack of transparency on specific cost breakdowns without further data.
Limited public information on the specific research deliverables and their impact.

Positive Signals

Addresses a critical public health need related to the COVID-19 pandemic.
Awarded to a known research institution, potentially leveraging existing expertise.
Long performance period suggests a comprehensive research approach.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for medical imaging and data resource development is highly specialized, often involving academic institutions and research consortia. Benchmarking this award is challenging due to its specific focus on rapid pandemic response and its sole-source nature, but it represents a significant investment in critical research infrastructure.

Small Business Impact

This contract was not awarded as a small business set-aside, nor is there an indication of significant subcontracting opportunities for small businesses. The primary awardee is a large research institution, suggesting that the focus was on specialized research capabilities rather than broad small business engagement.

Oversight & Accountability

Oversight for this contract would typically fall under the National Institutes of Health (NIH) and the Department of Health and Human Services (HHS). As a 'Cost No Fee' contract, rigorous financial oversight and auditing of incurred costs are crucial to ensure accountability and prevent overspending. Transparency regarding research progress and findings would be expected through regular reporting.

Related Government Programs

National Institutes of Health Research Grants
COVID-19 Public Health Initiatives
Medical Data Resource Centers
Biomedical Research and Development

Risk Flags

Sole-source award
Cost-reimbursement contract
Limited competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $20.2 million to UNIVERSITY OF CHICAGO. MEDICAL IMAGING AND DATA RESOURCE CENTER (MIDRC)FOR RAPID RESPONSE TO COVID-19 PANDEMIC

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF CHICAGO.

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 $20.2 million.

What is the period of performance?

Start: 2020-08-21. End: 2023-06-30.

What is the track record of the University of Chicago in managing large-scale federal research grants, particularly in medical imaging?

The University of Chicago has a strong track record in medical research and has historically managed numerous federal grants, including those from NIH. Its involvement in the Medical Imaging and Data Resource Center (MIDRC) for COVID-19 indicates a capacity to handle complex, large-scale projects. While specific details on past performance for similar sole-source awards are not provided here, the institution's general reputation and existing infrastructure suggest a competent recipient for this type of funding. Further due diligence would involve reviewing specific past performance evaluations and any audit findings related to their federal contracts.

How does the 'Cost No Fee' contract type compare to other contract types in terms of value for money in R&D settings?

The 'Cost No Fee' (CNF) contract type is often used when the scope of work is uncertain or when the contractor is a non-profit research institution where profit is not an objective. In CNF contracts, the government reimburses the contractor for all allowable costs incurred in performing the contract, but the contractor receives no fee or profit. While this can be advantageous for research where innovation and exploration are paramount and profit motives might stifle creativity, it can also present challenges in cost control. Unlike fixed-price contracts, there is less incentive for the contractor to minimize costs, as all reasonable expenses are covered. Therefore, rigorous oversight and auditing of incurred costs are essential to ensure value for money and prevent potential overruns.

What are the potential risks associated with a sole-source award for a critical research initiative like the MIDRC?

The primary risk associated with a sole-source award for a critical research initiative like the MIDRC is the lack of competitive pressure, which can lead to suboptimal pricing and potentially less innovation. Without multiple bidders, the government cannot be assured it is receiving the best possible value or that the chosen contractor's approach is the most efficient or effective. There's also a risk that the government might overlook alternative solutions or more capable contractors that could have emerged from a competitive process. Furthermore, sole-source awards can sometimes raise concerns about fairness and transparency, potentially leading to public or congressional scrutiny if not adequately justified.

What is the expected impact of the MIDRC research on future pandemic preparedness and response?

The Medical Imaging and Data Resource Center (MIDRC) is expected to significantly enhance future pandemic preparedness and response by establishing a robust infrastructure for collecting, standardizing, and sharing medical imaging data. This will enable researchers worldwide to rapidly analyze imaging patterns associated with novel infectious diseases, accelerating the development of diagnostic tools and treatment strategies. By creating a centralized, accessible repository, MIDRC aims to foster collaboration, reduce data silos, and improve the speed and accuracy of medical insights derived from imaging during public health emergencies. Ultimately, this research contributes to building a more resilient healthcare system capable of responding effectively to future outbreaks.

How does the $20 million award compare to historical federal spending on similar medical imaging research initiatives?

The $20 million award for the MIDRC for COVID-19 response represents a substantial investment in a specific research area. However, comparing it directly to historical federal spending on 'similar' initiatives is complex due to the unique nature of pandemic response and the specific focus on medical imaging data infrastructure. Federal spending on R&D, particularly within NIH, can fluctuate significantly based on national priorities and emerging health crises. While $20 million is a considerable sum for a single award, it should be viewed within the broader context of the multi-billion dollar federal investment in COVID-19 research and response efforts. Without more granular data on specific comparable projects, a precise historical benchmark is difficult to establish.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 5801 S ELLIS AVE, CHICAGO, IL, 60637

Business Categories: Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Higher Education (Private), Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,208,932

Exercised Options: $20,208,932

Current Obligation: $20,208,932

Actual Outlays: $20,208,932

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 75N92020D00021

IDV Type: IDC

Timeline