NIH awards $6.4M contract for infectious disease bioinformatics, with $32.2M in total potential value

Contract Overview

Contract Amount: $32,225,955 ($32.2M)

Contractor: University of Chicago

Awarding Agency: Department of Health and Human Services

Start Date: 2019-09-15

End Date: 2024-09-14

Contract Duration: 1,826 days

Daily Burn Rate: $17.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST NO FEE

Sector: R&D

Official Description: PURPOSE: AWARD BASE CONTRACT IN THE AMOUNT OF $6,438,323 FOR THE SERVICE ENTITLED "BIOINFORMATICS RESOURCE CENTERS FOR INFECTIOUS DISEASES."

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60637

State: Illinois Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $32.2 million to UNIVERSITY OF CHICAGO for work described as: PURPOSE: AWARD BASE CONTRACT IN THE AMOUNT OF $6,438,323 FOR THE SERVICE ENTITLED "BIOINFORMATICS RESOURCE CENTERS FOR INFECTIOUS DISEASES." Key points: 1. Contract focuses on critical bioinformatics resources for infectious diseases, aligning with public health priorities. 2. The award was made under full and open competition, suggesting a robust market for these specialized services. 3. Performance period of 5 years indicates a long-term commitment to developing and maintaining these vital resources. 4. The contractor, University of Chicago, has a significant role in this research and development sector. 5. Potential for significant follow-on work exists given the nature of R&D contracts in this field.

Value Assessment

Rating: good

The base contract value of $6.4 million for bioinformatics resources is a starting point. The total potential value of $32.2 million suggests significant growth and expansion opportunities within the contract. Benchmarking against similar R&D contracts for specialized scientific services is challenging without more granular data on specific deliverables. However, the cost-no-fee (CPFF) structure implies that the government reimburses allowable costs and pays a fixed fee, which can be efficient if costs are well-managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of 4 bids suggests a competitive environment, which typically leads to better pricing and innovation. The level of competition is a positive sign for price discovery and ensures that the government is likely receiving a fair market price for the services.

Taxpayer Impact: Taxpayers benefit from a competitive process that drives efficiency and potentially lower costs for essential public health research infrastructure.

Public Impact

Researchers and public health officials benefit from access to advanced bioinformatics tools and data for infectious disease research. The contract supports the development and maintenance of critical infrastructure for understanding and combating infectious diseases. Geographic impact is national, as the resources are intended for broad use within the scientific community. Workforce implications include support for scientists, bioinformaticians, and research staff at the University of Chicago and potentially collaborating institutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if research objectives prove more complex than anticipated under the cost-no-fee structure.
Dependence on a single contractor for critical bioinformatics infrastructure could pose a risk if performance falters.
The long-term nature of the contract requires ongoing monitoring to ensure continued alignment with evolving infectious disease threats.

Positive Signals

Award to a reputable academic institution (University of Chicago) suggests strong research capabilities.
Full and open competition indicates a healthy market and potential for innovation.
The substantial total potential value suggests a commitment to sustained development of vital public health resources.

Sector Analysis

This contract falls within the Research and Development in Biotechnology sector, specifically focusing on bioinformatics for infectious diseases. This is a critical area for public health, requiring specialized expertise and infrastructure. The market for such services is driven by government funding for health research and development, with academic institutions and specialized biotech firms being key players. Comparable spending benchmarks would typically be found within NIH's broader R&D portfolio for infectious disease research and data management.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. The primary awardee is a large academic institution. Further analysis would be needed to determine if small businesses are involved in the supply chain or as subcontractors, which is common in large R&D efforts.

Oversight & Accountability

Oversight is likely managed by the National Institutes of Health (NIH) program officials who will monitor progress, deliverables, and adherence to the contract terms. The cost-no-fee structure necessitates careful review of incurred costs. Transparency is generally maintained through contract award databases and public reporting of research outcomes, though specific internal oversight mechanisms are not detailed here.

Related Government Programs

National Institute of Allergy and Infectious Diseases (NIAID) programs
Centers for Disease Control and Prevention (CDC) infectious disease surveillance
Biomedical Advanced Research and Development Authority (BARDA) initiatives

Risk Flags

Potential for scope creep in R&D projects.
Reliance on specific technological advancements.
Need for continuous adaptation to evolving scientific knowledge.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $32.2 million to UNIVERSITY OF CHICAGO. PURPOSE: AWARD BASE CONTRACT IN THE AMOUNT OF $6,438,323 FOR THE SERVICE ENTITLED "BIOINFORMATICS RESOURCE CENTERS FOR INFECTIOUS DISEASES."

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 $32.2 million.

What is the period of performance?

Start: 2019-09-15. End: 2024-09-14.

What is the University of Chicago's track record with similar NIH bioinformatics contracts?

The University of Chicago has a strong history of receiving federal grants and contracts, particularly from agencies like the NIH, for biomedical research. While specific details on their past performance on identical bioinformatics contracts require deeper database searches, their status as a major research university suggests significant experience in managing complex research projects. Their ability to secure this contract, especially under full and open competition, implies a demonstrated capability and a competitive proposal. Further investigation into their past performance reviews and any prior awards for 'Bioinformatics Resource Centers' or similar initiatives would provide a more precise assessment of their track record.

How does the total potential value of $32.2 million compare to similar bioinformatics resource center contracts?

The total potential value of $32.2 million for this contract, which includes a base of $6.4 million and potential future work, is substantial for a specialized bioinformatics resource center. Benchmarking requires comparing it to other contracts specifically for 'Bioinformatics Resource Centers' or similar large-scale data infrastructure projects within infectious diseases. Given the critical nature of infectious disease research and the complexity of bioinformatics, this level of funding suggests a comprehensive scope of work, potentially encompassing data management, analysis tools, and user support over several years. It aligns with the significant investment the NIH makes in foundational research infrastructure.

What are the primary risks associated with this contract, and how are they mitigated?

Primary risks include potential cost overruns (though mitigated by the cost-no-fee structure requiring justification for all expenses), contractor performance issues (mitigated by NIH oversight and performance metrics), and the risk of the technology or research focus becoming obsolete (mitigated by the contract's flexibility and the contractor's presumed adaptability). Another risk is the long-term dependence on a single entity for critical resources, which could be addressed through contingency planning or fostering alternative resources. The NIH's role in monitoring progress and ensuring deliverables are met is crucial for mitigating these risks.

How effective are Bioinformatics Resource Centers in advancing infectious disease research?

Bioinformatics Resource Centers (BRCs) are highly effective in advancing infectious disease research by providing essential computational tools, databases, and expertise that individual research labs may lack. They accelerate discovery by enabling researchers to analyze large datasets, identify patterns, predict disease outbreaks, and develop diagnostic and therapeutic strategies. BRCs foster collaboration and standardization within the scientific community. For infectious diseases, they are crucial for tracking pathogen evolution, understanding transmission dynamics, and developing countermeasures. The sustained funding indicated by this contract underscores their recognized value in public health.

What has been the historical spending trend for infectious disease bioinformatics at NIH?

NIH's spending on infectious disease bioinformatics has likely shown a consistent upward trend over the past decade, mirroring the increasing importance of computational biology and data science in biomedical research. Agencies like the National Institute of Allergy and Infectious Diseases (NIAID) and the National Institute of General Medical Sciences (NIGMS) are major funders of such resources. The growth in genomic sequencing, high-throughput screening, and epidemiological modeling necessitates significant investment in the infrastructure and expertise provided by BRCs. This contract's substantial potential value is indicative of this ongoing commitment and the expanding scope of bioinformatics in combating infectious diseases.

What is the significance of the 'Cost No Fee' (CPFF) contract type for this R&D effort?

The 'Cost No Fee' (CPFF) contract type is common for research and development efforts where the scope of work can be uncertain and evolve. Under CPFF, the government reimburses the contractor for all allowable costs incurred in performing the contract and pays a fixed fee representing profit. This structure incentivizes the contractor to control costs while allowing flexibility to adapt research directions as discoveries are made. For the government, it means paying for actual effort expended, which can be advantageous in R&D where outcomes are not guaranteed. However, it requires robust oversight to ensure costs are reasonable and allocable to the contract.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in Biotechnology (except Nanobiotechnology)

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: NIHAI201800005

Offers Received: 4

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: $42,775,845

Exercised Options: $32,225,955

Current Obligation: $32,225,955

Actual Outlays: $21,947,453

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $3,744,810

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline