NIH awards $2.35M for infectious disease R&D, with 3 bidders competing for this delivery order

Contract Overview

Contract Amount: $2,354,672 ($2.4M)

Contractor: Southern Research Institute

Awarding Agency: Department of Health and Human Services

Start Date: 2022-05-19

End Date: 2027-04-30

Contract Duration: 1,807 days

Daily Burn Rate: $1.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: NONCLINICAL SERVICES FOR THE DEVELOPMENT OF INTERVENTIONAL AGENTS FOR INFECTIOUS DISEASES

Place of Performance

Location: BIRMINGHAM, JEFFERSON County, ALABAMA, 35205

State: Alabama Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.4 million to SOUTHERN RESEARCH INSTITUTE for work described as: NONCLINICAL SERVICES FOR THE DEVELOPMENT OF INTERVENTIONAL AGENTS FOR INFECTIOUS DISEASES Key points: 1. Contract focuses on critical infectious disease research, aligning with national health priorities. 2. Competition was robust for this specific delivery order, suggesting potential for competitive pricing. 3. The contract type (Cost Plus Fixed Fee) allows for flexibility in research but requires careful cost oversight. 4. Performance period extends over four years, indicating a long-term commitment to the research objective. 5. The contractor, Southern Research Institute, is positioned within the biotechnology R&D sector. 6. Geographic focus is Alabama, potentially impacting local economic development in the biotech sector.

Value Assessment

Rating: good

The contract value of $2.35 million for a 5-year period for nonclinical services in infectious disease R&D appears reasonable. Benchmarking against similar contracts for early-stage biotechnology research and development is challenging due to the specialized nature of the work. However, the fixed fee component within the Cost Plus Fixed Fee structure provides some predictability for the government. Further analysis would require comparing specific research milestones and deliverables against industry standards and the pricing of comparable research services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with three bidders vying for this specific delivery order. The presence of multiple bidders indicates a healthy level of interest and competition for this research area. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive proposals. The specific details of the bidding process and the relative strengths of each proposal would provide further insight into the effectiveness of the competition.

Taxpayer Impact: The full and open competition for this delivery order suggests that taxpayer dollars are being used efficiently by allowing multiple qualified entities to compete, potentially driving down costs and improving the quality of research outcomes.

Public Impact

The primary beneficiaries are the American public, through advancements in the development of interventions for infectious diseases. The services delivered are nonclinical research and development aimed at creating new treatments or preventative measures. The geographic impact is concentrated in Alabama, where Southern Research Institute is located, potentially supporting local scientific workforce and infrastructure. Workforce implications include employment for scientists, researchers, and support staff involved in biotechnology and infectious disease research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently.
The specialized nature of R&D may make it difficult to precisely benchmark costs against broader industry averages.
Long-term research projects carry inherent risks of scientific uncertainty and potential for delays.

Positive Signals

Awarded under full and open competition, indicating a competitive marketplace for these services.
The contract supports critical national health objectives related to infectious diseases.
The contractor has a specific NAICS code (541714) indicating specialization in biotechnology R&D.

Sector Analysis

The contract falls within the Research and Development in Biotechnology (except Nanobiotechnology) sector, a rapidly evolving field critical for public health. This sector is characterized by significant investment in innovation, often driven by government funding and private sector partnerships. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of R&D projects, but federal investment in infectious disease research is substantial and ongoing, reflecting its strategic importance.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the specialized nature of the research and the prime contractor's likely capabilities, it is possible that larger, established research institutions are the primary participants in this space. Further investigation into subcontracting opportunities would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the National Institutes of Health (NIH). Accountability measures are embedded in the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is generally maintained through contract databases, though specific research progress details may be proprietary. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

National Institutes of Health Research Grants
Biotechnology Research and Development Contracts
Infectious Disease Countermeasures Development
Federal Funding for Biomedical Research

Risk Flags

Cost Overrun Risk (CPFF)
Scientific Uncertainty Risk
Long-Term Project Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.4 million to SOUTHERN RESEARCH INSTITUTE. NONCLINICAL SERVICES FOR THE DEVELOPMENT OF INTERVENTIONAL AGENTS FOR INFECTIOUS DISEASES

Who is the contractor on this award?

The obligated recipient is SOUTHERN RESEARCH INSTITUTE.

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 $2.4 million.

What is the period of performance?

Start: 2022-05-19. End: 2027-04-30.

What is Southern Research Institute's track record with federal contracts, particularly in R&D?

Southern Research Institute has a history of engaging in research and development activities, often supported by federal funding. While specific details on their past performance for NIH or similar agencies would require a deeper dive into contract databases, their specialization in areas like biotechnology and infectious diseases suggests experience relevant to this award. Analyzing their past contract awards, performance reviews, and any documented issues would provide a clearer picture of their reliability and expertise in executing complex R&D projects for the government. Their established presence in the R&D sector indicates a capacity to handle such contracts.

How does the $2.35 million award compare to typical NIH funding for similar nonclinical R&D projects?

The $2.35 million award for a 5-year period for nonclinical R&D in infectious diseases is within a common range for NIH grants and contracts supporting early-stage research. NIH funds a wide spectrum of projects, from small pilot studies to large-scale multi-year initiatives. The specific amount often depends on the scope of work, the complexity of the research, and the number of milestones to be achieved. Without knowing the precise objectives and deliverables of this particular contract, a direct comparison is difficult. However, it aligns with the agency's mission to fund significant research endeavors aimed at advancing scientific knowledge and developing medical interventions.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

The primary risks associated with a CPFF contract for R&D involve potential cost overruns and the contractor's incentive to control expenses. While the fixed fee provides a guaranteed profit margin for the contractor, the 'cost plus' portion means the government reimburses allowable costs. If research proves more complex or time-consuming than initially anticipated, costs can escalate beyond initial projections. Effective oversight is crucial to ensure that all costs are reasonable, allocable, and allowable, and that the contractor is making diligent efforts to manage expenses efficiently. The government bears a significant portion of the cost risk in CPFF agreements.

What is the expected impact of this contract on the development of new infectious disease interventions?

This contract is expected to contribute to the pipeline of new interventions for infectious diseases by funding critical nonclinical research. This phase of research is essential for understanding disease mechanisms, identifying potential therapeutic targets, and developing early-stage candidates before they move into clinical trials. The specific focus on 'interventional agents' suggests the work aims to produce tangible developments that could eventually lead to vaccines, treatments, or diagnostic tools. The success of this contract will be measured by the scientific advancements and the identification of promising candidates that can progress to later stages of development.

How has federal spending in biotechnology R&D, specifically related to infectious diseases, trended in recent years?

Federal spending in biotechnology R&D, particularly concerning infectious diseases, has seen a significant increase in recent years, driven by global health security concerns and advancements in scientific understanding. Agencies like NIH, BARDA, and DOD consistently allocate substantial resources to combatting existing and emerging infectious threats. This trend reflects a strategic prioritization of biodefense and public health preparedness. The COVID-19 pandemic further accelerated investment and highlighted the importance of robust R&D capabilities in this sector. Consequently, contracts like this one are part of a broader, sustained federal commitment to strengthening the nation's capacity in infectious disease research.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2000 9TH AVE S, BIRMINGHAM, AL, 35205

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

Financial Breakdown

Contract Ceiling: $2,354,672

Exercised Options: $2,354,672

Current Obligation: $2,354,672

Actual Outlays: $626,787

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 75N93018D00006

IDV Type: IDC

Timeline