Nearly $60 million awarded to UPenn for Influenza Research and Response Centers of Excellence

Contract Overview

Contract Amount: $59,273,750 ($59.3M)

Contractor: Trustees of the University of Pennsylvania, the

Awarding Agency: Department of Health and Human Services

Start Date: 2021-04-01

End Date: 2027-09-21

Contract Duration: 2,364 days

Daily Burn Rate: $25.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: COST NO FEE

Sector: R&D

Official Description: AWARD OF THE BASE TO UPENN FOR CEIRR CONTRACT 75N93021C00015. THIS CONTRACT WILL SUPPORT THE NIAID CENTERS OF EXCELLENCE FOR INFLUENZA RESEARCH AND RESPONSE (CEIRR)

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19104

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $59.3 million to TRUSTEES OF THE UNIVERSITY OF PENNSYLVANIA, THE for work described as: AWARD OF THE BASE TO UPENN FOR CEIRR CONTRACT 75N93021C00015. THIS CONTRACT WILL SUPPORT THE NIAID CENTERS OF EXCELLENCE FOR INFLUENZA RESEARCH AND RESPONSE (CEIRR) Key points: 1. The contract focuses on supporting the NIAID Centers of Excellence for Influenza Research and Response (CEIRR). 2. This award represents a significant investment in understanding and combating influenza. 3. The contract duration spans over five years, indicating a long-term commitment to research. 4. The chosen contractor, UPenn, has a track record in scientific research. 5. The contract type is a definitive contract, suggesting a clear scope of work. 6. The funding mechanism is Cost No Fee, common for research and development contracts.

Value Assessment

Rating: good

The award of nearly $60 million to the University of Pennsylvania for the CEIRR contract appears reasonable given the scope of supporting a Centers of Excellence for Influenza Research and Response. Benchmarking this specific contract is challenging without more granular data on similar multi-year R&D initiatives. However, the Cost No Fee structure suggests that the government will reimburse allowable costs, with no additional profit margin for the contractor, which can be cost-effective for complex research where outcomes are uncertain. The duration of the contract (over 5 years) also suggests a comprehensive, long-term research effort.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The number of bidders (9) suggests a healthy level of interest and competition for this significant research initiative. A competitive process like this is generally expected to yield a fair price and identify the most capable contractor for the task.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that drives down costs and encourages innovation.

Public Impact

The primary beneficiaries are public health organizations and researchers who will gain insights into influenza. The contract will deliver critical research and response capabilities for influenza. The geographic impact is national, focusing on advancing influenza research across the United States. Workforce implications include support for researchers, scientists, and administrative staff at UPenn and potentially collaborating institutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term R&D projects.
Ensuring continued alignment with evolving public health priorities.
Managing the complexity of multi-year research funding and deliverables.

Positive Signals

UPenn's established research infrastructure and expertise.
The long-term nature of the contract allows for sustained research focus.
Full and open competition likely secured a capable and cost-effective solution.

Sector Analysis

This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically focusing on infectious diseases. The market for federal health research is substantial, with agencies like NIH consistently funding critical scientific endeavors. This contract aligns with the government's strategic interest in pandemic preparedness and response, building upon existing research infrastructure and expertise to address influenza threats.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The focus is on a large research institution, suggesting that the primary awardee is expected to handle the bulk of the work. Further analysis would be needed to determine if any subcontracting opportunities for small businesses exist within the scope of this large research grant.

Oversight & Accountability

Oversight for this contract will likely be managed by the National Institutes of Health (NIH), a division of the Department of Health and Human Services. Standard contract oversight mechanisms, including performance reviews, financial audits, and milestone tracking, are expected. Transparency will be maintained through regular reporting requirements from the contractor and potential public dissemination of research findings, subject to appropriate review and publication protocols.

Related Government Programs

National Institutes of Health (NIH) Research Grants
Centers for Disease Control and Prevention (CDC) Infectious Disease Programs
Influenza Research Programs
Public Health Emergency Preparedness

Risk Flags

Long-term R&D projects carry inherent uncertainty in outcomes and cost.
Ensuring continued scientific relevance and adaptation to evolving influenza strains.
Potential for administrative overhead in managing a large research center.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $59.3 million to TRUSTEES OF THE UNIVERSITY OF PENNSYLVANIA, THE. AWARD OF THE BASE TO UPENN FOR CEIRR CONTRACT 75N93021C00015. THIS CONTRACT WILL SUPPORT THE NIAID CENTERS OF EXCELLENCE FOR INFLUENZA RESEARCH AND RESPONSE (CEIRR)

Who is the contractor on this award?

The obligated recipient is TRUSTEES OF THE UNIVERSITY OF PENNSYLVANIA, THE.

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 $59.3 million.

What is the period of performance?

Start: 2021-04-01. End: 2027-09-21.

What is the track record of the University of Pennsylvania in securing and managing large federal research grants, particularly in the area of infectious diseases?

The University of Pennsylvania has a long and distinguished history of securing and managing federal research grants. As a major research institution, UPenn consistently ranks among the top universities for federal research and development expenditures. Specifically in infectious diseases and public health, UPenn has numerous research centers and faculty dedicated to understanding, preventing, and treating a wide range of pathogens. Their experience with large-scale, multi-year projects funded by agencies like NIH provides a strong foundation for managing the CEIRR contract. Historical data from federal procurement databases would likely show a consistent pattern of successful grant management and scientific output from UPenn in related fields, indicating a low risk associated with their ability to execute this contract effectively.

How does the nearly $60 million award compare to other federal investments in influenza research centers or similar public health initiatives?

The nearly $60 million award for the CEIRR contract represents a substantial, but not unprecedented, investment in influenza research infrastructure. Federal agencies like the National Institutes of Health (NIH) and the Centers for Disease Control and Prevention (CDC) allocate significant funding annually to infectious disease research, including influenza. Awards for Centers of Excellence or major research initiatives can range from tens to hundreds of millions of dollars over several years, depending on the scope and duration. For instance, other NIH-funded centers focusing on specific diseases or research areas often receive similar levels of funding. This award appears to be in line with the government's commitment to establishing robust research capabilities for critical public health threats like influenza, especially considering the five-year duration of the contract.

What are the primary performance metrics and deliverables expected under this CEIRR contract, and how will they be measured?

While specific performance metrics and deliverables are not detailed in the provided summary, contracts supporting Centers of Excellence for Influenza Research and Response (CEIRR) typically focus on advancing scientific understanding of influenza viruses, improving surveillance methods, developing better diagnostics and therapeutics, and enhancing vaccine technologies. Key deliverables would likely include peer-reviewed publications, presentations at scientific conferences, data sharing, development of novel research tools or models, and potentially contributions to public health policy or preparedness strategies. Performance measurement would involve regular progress reports, scientific reviews of published work, and assessments of the contractor's ability to meet defined milestones and objectives. The 'Cost No Fee' structure implies that the government is investing in the research process and outcomes, necessitating rigorous oversight of progress and scientific merit.

Given the 'Cost No Fee' contract type, what are the potential risks and benefits for the government in terms of cost control and research flexibility?

The 'Cost No Fee' (CNF) contract type is primarily used for research and development efforts where the final cost is difficult to estimate upfront, and the focus is on achieving specific research objectives rather than delivering a fixed product at a fixed price. For the government, the primary benefit is that it reimburses the contractor only for allowable, allocable, and reasonable costs incurred in performing the contract, without an additional profit margin. This can be cost-effective for complex R&D. However, a key risk is the potential for cost overruns if the research proves more expensive than anticipated, as the government bears the cost risk. Flexibility is a benefit, as it allows the research direction to adapt to new discoveries or challenges without extensive contract modifications. Effective oversight is crucial to manage costs and ensure the research remains focused and efficient.

What is the historical spending pattern for influenza research and response programs funded by the National Institutes of Health (NIH)?

The National Institutes of Health (NIH) consistently allocates substantial funding towards influenza research and response programs, reflecting its critical importance to public health. Annual spending can fluctuate based on emerging threats, research priorities, and specific initiatives like the CEIRR program. Historically, NIH's influenza research portfolio has supported a wide range of activities, including basic virology, immunology, epidemiology, vaccine development, and antiviral drug research. Funding often flows through various institutes within NIH, with the National Institute of Allergy and Infectious Diseases (NIAID) being a primary source. While exact figures vary year to year, federal budget documents and NIH's own reporting indicate billions of dollars invested annually across all infectious diseases, with influenza being a significant component. The nearly $60 million for this specific CEIRR contract is a notable investment within that broader context.

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: 75N93019R00028

Offers Received: 9

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 3451 WALNUT ST STE 440A, PHILADELPHIA, PA, 19104

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

Financial Breakdown

Contract Ceiling: $131,637,288

Exercised Options: $59,273,750

Current Obligation: $59,273,750

Actual Outlays: $40,194,347

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $1,290,330

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline