NIH awards $26.4M contract for structural biology research to Seattle Children's Hospital

Contract Overview

Contract Amount: $26,433,026 ($26.4M)

Contractor: Seattle Children's Hospital

Awarding Agency: Department of Health and Human Services

Start Date: 2022-09-01

End Date: 2027-08-31

Contract Duration: 1,825 days

Daily Burn Rate: $14.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST NO FEE

Sector: R&D

Official Description: TO PROVIDE SCIENTIFIC SUPPORT TO THE CENTERS FOR RESEARCH ON STRUCTURAL BIOLOGY OF INFECTIOUS DISEASES.

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98105

State: Washington Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $26.4 million to SEATTLE CHILDREN'S HOSPITAL for work described as: TO PROVIDE SCIENTIFIC SUPPORT TO THE CENTERS FOR RESEARCH ON STRUCTURAL BIOLOGY OF INFECTIOUS DISEASES. Key points: 1. Contract supports critical research into infectious diseases. 2. Value appears reasonable given the multi-year duration and specialized nature of the work. 3. Full and open competition suggests a competitive bidding process. 4. Contract type (Cost No Fee) indicates risk is primarily borne by the government. 5. Research and Development in Biotechnology sector is a key area for public health. 6. Geographic concentration in Washington state.

Value Assessment

Rating: good

The contract value of $26.4 million over five years, averaging approximately $5.28 million annually, appears reasonable for specialized scientific research. Benchmarking against similar contracts for structural biology research would provide a more precise assessment, but the duration and scope suggest a fair price. The 'Cost No Fee' contract type means the government covers all allowable costs, which is common in R&D where outcomes can be uncertain.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a healthy level of competition for this specialized research requirement. This competitive process is expected to drive price discovery and ensure the government receives competitive proposals.

Taxpayer Impact: Full and open competition benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and prevent price gouging.

Public Impact

Benefits the public through advancements in understanding and combating infectious diseases. Delivers scientific research services focused on structural biology. Geographic impact is primarily in Washington state, where the contractor is located. Workforce implications include employment for scientists, researchers, and support staff at Seattle Children's Hospital.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Cost No Fee' contract structure places the financial risk on the government, which is typical for R&D but requires diligent oversight of costs.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
The contract supports critical scientific research with potential public health benefits.
Long-term award (5 years) provides stability for research continuity.

Sector Analysis

This contract falls within the Research and Development in Biotechnology sector, specifically focusing on structural biology of infectious diseases. This is a critical area for public health, with significant government investment. The market for such specialized research is often characterized by a limited number of highly qualified institutions and researchers. Comparable spending benchmarks would likely be found within NIH's broader portfolio of biomedical research grants and contracts.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss: false'. There is no specific information provided regarding subcontracting plans for small businesses. The focus on specialized research at a large institution like Seattle Children's Hospital may limit direct opportunities for small businesses unless they are engaged as subcontractors for specific services.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Institutes of Health (NIH), a component of the Department of Health and Human Services. As a 'Cost No Fee' contract, rigorous financial oversight is crucial to ensure that all costs incurred by the contractor are allowable, allocable, and reasonable. Transparency is generally maintained through contract awards databases and reporting requirements, though specific research progress reports are typically proprietary.

Related Government Programs

National Institutes of Health Research Grants
Biotechnology Research and Development Contracts
Infectious Disease Research Programs

Risk Flags

Cost Overruns Risk (inherent in Cost-reimbursement contracts)
Research Outcome Uncertainty (inherent in R&D)
Dependency on Key Personnel (common in specialized research)

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $26.4 million to SEATTLE CHILDREN'S HOSPITAL. TO PROVIDE SCIENTIFIC SUPPORT TO THE CENTERS FOR RESEARCH ON STRUCTURAL BIOLOGY OF INFECTIOUS DISEASES.

Who is the contractor on this award?

The obligated recipient is SEATTLE CHILDREN'S HOSPITAL.

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 $26.4 million.

What is the period of performance?

Start: 2022-09-01. End: 2027-08-31.

What is the track record of Seattle Children's Hospital in securing and managing federal research contracts, particularly in biotechnology?

Seattle Children's Hospital has a significant history of receiving federal funding for research, primarily through grants and contracts from agencies like the National Institutes of Health (NIH). While specific details on their track record for managing contracts of this exact nature (Cost No Fee, structural biology) are not provided in this data snippet, their status as a major children's hospital and research institution implies established infrastructure and expertise in managing complex research projects. Federal databases often track past performance and award history, which would be a key resource for a deeper dive. Their ability to win this contract under full and open competition suggests a competitive proposal and a demonstrated capability to meet NIH's rigorous scientific and administrative standards.

How does the annual value of this contract compare to typical NIH funding for similar structural biology research projects?

The annual value of this contract is approximately $5.28 million ($26.4M / 5 years). This figure falls within a common range for large, multi-year research projects funded by the NIH, especially those involving complex scientific endeavors like structural biology of infectious diseases. NIH funds a wide spectrum of research, from individual investigator grants (often in the hundreds of thousands annually) to large center grants and contracts that can reach several million dollars per year. Given the specialized nature, the need for advanced equipment, and the team of researchers required, this contract's annual value appears to be in line with substantial, high-impact research initiatives within the biomedical field.

What are the primary risks associated with a 'Cost No Fee' contract for scientific research, and how are they mitigated?

The primary risk with a 'Cost No Fee' contract is that the government bears the financial burden of all allowable costs, regardless of the research outcome. If the research proves unsuccessful or encounters unforeseen cost overruns, the government still pays for the incurred expenses. Mitigation strategies include robust government oversight of contractor expenditures, requiring detailed budget justifications, regular progress reporting, and clear performance metrics. The contracting agency (NIH) must ensure that the contractor's accounting systems are sound and that all costs are reasonable, allocable, and necessary for the research. Furthermore, the selection process itself, through full and open competition, aims to identify contractors with a proven ability to manage research effectively and within projected parameters.

What is the expected impact of this contract on the development of new treatments or preventative measures for infectious diseases?

This contract is expected to significantly advance the understanding of the structural biology of infectious diseases. By elucidating the three-dimensional structures of critical viral or bacterial components, researchers can identify vulnerabilities. This knowledge is foundational for the rational design of new drugs, vaccines, and diagnostic tools. For instance, understanding the structure of a viral protein involved in cell entry could lead to the development of inhibitors that block infection. Similarly, knowing the structure of a bacterial enzyme essential for survival could pave the way for novel antibiotics. The multi-year duration and substantial funding suggest a commitment to in-depth investigation with the potential for impactful discoveries.

How does the geographic concentration of this contract in Washington state align with national R&D investment patterns?

Washington state, particularly the Seattle area, is a well-established hub for biotechnology and biomedical research, with significant investment from both federal agencies like NIH and private sector entities. The presence of major research institutions such as Seattle Children's Hospital, the University of Washington, and Fred Hutch, along with numerous biotech companies, creates a vibrant ecosystem. Federal R&D investments often concentrate in areas with existing strengths and infrastructure, fostering collaboration and innovation. Therefore, awarding this contract to an institution in Washington aligns with national patterns of directing significant research funding to regions recognized for their scientific capacity and potential for impactful discoveries in areas like infectious diseases.

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: 75N930R00009

Offers Received: 3

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 4800 SAND POINT WAY NE, SEATTLE, WA, 98105

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: $32,903,521

Exercised Options: $26,433,026

Current Obligation: $26,433,026

Actual Outlays: $16,636,526

Subaward Activity

Number of Subawards: 47

Total Subaward Amount: $9,848,558

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline