Duke University awarded $26.5M contract for National Cord Blood Inventory, spanning over 15 years
Contract Overview
Contract Amount: $26,476,048 ($26.5M)
Contractor: Duke University
Awarding Agency: Department of Health and Human Services
Start Date: 2020-07-10
End Date: 2035-09-03
Contract Duration: 5,533 days
Daily Burn Rate: $4.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: NATIONAL CORD BLOOD INVENTORY
Place of Performance
Location: DURHAM, ORANGE County, NORTH CAROLINA, 27705
Plain-Language Summary
Department of Health and Human Services obligated $26.5 million to DUKE UNIVERSITY for work described as: NATIONAL CORD BLOOD INVENTORY Key points: 1. Contract value appears reasonable given the extensive 15-year duration and critical nature of the service. 2. Full and open competition was utilized, suggesting a robust process for selecting the contractor. 3. The long contract duration presents potential risks related to evolving technology and changing needs. 4. This contract supports a vital national resource for potential medical treatments. 5. The fixed-price nature of the contract provides cost certainty for the government. 6. The contractor, Duke University, is a well-established research institution.
Value Assessment
Rating: good
The contract's total value of $26.5 million over approximately 15 years averages to about $1.77 million per year. This appears to be a fair valuation for managing a critical national inventory of cord blood units, which requires significant infrastructure, specialized personnel, and long-term data management. Benchmarking against similar large-scale biological inventory management contracts is difficult due to the unique nature of cord blood banking, but the annual cost seems aligned with the complexity and importance of the service.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of 6 bidders suggests a competitive environment, which typically drives better pricing and service offerings. This level of competition is a positive sign for achieving value for taxpayer money.
Taxpayer Impact: Full and open competition ensures that the government explores the widest possible range of solutions and pricing, leading to a more cost-effective outcome for taxpayers.
Public Impact
The primary beneficiaries are patients who may require cord blood stem cells for life-saving treatments, such as those for leukemia and other blood disorders. The contract ensures the continued operation and expansion of the National Cord Blood Inventory, a critical public health resource. The geographic impact is national, as the inventory serves the entire United States. The contract supports specialized jobs in fields such as laboratory science, data management, and medical research.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (over 15 years) may lead to technology obsolescence or increased costs if market conditions change significantly.
- Reliance on a single entity for such a critical national resource could pose a risk if the contractor faces unforeseen operational challenges.
- Potential for scope creep or changes in requirements over such an extended period, which could impact the overall cost and effectiveness.
Positive Signals
- Award to a reputable institution (Duke University) with established research and medical capabilities.
- Utilizing full and open competition increases the likelihood of selecting the most capable and cost-effective provider.
- The firm-fixed-price contract structure provides budget certainty and limits the government's exposure to cost overruns.
- The contract supports a vital national health resource with direct patient benefit potential.
Sector Analysis
The healthcare sector, specifically the area of biotechnology and public health resources, is characterized by long-term investments and specialized expertise. Managing a national inventory of biological materials like cord blood requires adherence to strict regulatory standards, advanced laboratory techniques, and robust data management systems. The market for such services is relatively niche, often involving academic institutions or specialized bio-banks. This contract fits within the broader federal strategy to enhance public health preparedness and medical research capabilities.
Small Business Impact
There is no indication that this contract includes specific small business set-asides. Given the specialized nature of cord blood inventory management, it is likely that the prime contractor, Duke University, will subcontract for specific services. Analysis of subcontracting plans would be necessary to determine the extent of small business participation and its impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract is likely managed by the Health Resources and Services Administration (HRSA) within the Department of Health and Human Services. Mechanisms would include regular performance reviews, financial audits, and adherence to reporting requirements outlined in the contract. The firm-fixed-price nature provides a degree of accountability for cost control. Transparency is generally maintained through contract awards databases and public reporting of federal spending.
Related Government Programs
- National Institutes of Health (NIH) research grants
- Centers for Disease Control and Prevention (CDC) public health initiatives
- Food and Drug Administration (FDA) regulatory oversight of biological products
Risk Flags
- Long contract duration may increase risk of technological obsolescence.
- Potential for contractor performance issues over an extended period.
- Reliance on a single entity for a critical national resource.
Tags
healthcare, biotechnology, public-health, research-and-development, national-inventory, cord-blood, duke-university, department-of-health-and-human-services, health-resources-and-services-administration, definitive-contract, firm-fixed-price, full-and-open-competition
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $26.5 million to DUKE UNIVERSITY. NATIONAL CORD BLOOD INVENTORY
Who is the contractor on this award?
The obligated recipient is DUKE UNIVERSITY.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Health Resources and Services Administration).
What is the total obligated amount?
The obligated amount is $26.5 million.
What is the period of performance?
Start: 2020-07-10. End: 2035-09-03.
What is Duke University's track record in managing large-scale biological inventories or similar complex health-related projects?
Duke University is a leading research institution with extensive experience in biomedical research, including areas related to stem cells and regenerative medicine. While specific details on managing a national-scale cord blood inventory prior to this award are not readily available in the provided data, Duke's established infrastructure, research capabilities, and history of managing complex grants and projects suggest a strong foundation for undertaking this contract. Their involvement in numerous NIH-funded studies and clinical trials indicates a capacity for rigorous scientific management, data integrity, and regulatory compliance, all critical for the National Cord Blood Inventory.
How does the annual cost of this contract compare to similar national biological inventory management efforts?
Direct comparisons for managing a national cord blood inventory are challenging due to its unique scope and purpose. However, the average annual cost of approximately $1.77 million ($26.5M / 15 years) for the National Cord Blood Inventory appears reasonable when considering the specialized infrastructure, long-term storage requirements, rigorous quality control, data management, and the critical nature of maintaining a diverse and viable stem cell supply. For context, other large-scale biological sample repositories or bio-banks, while varying in specific services and scale, often incur significant annual operational costs related to specialized facilities, cryopreservation, and sophisticated tracking systems. This contract's value seems aligned with the complexity and national importance of the asset being managed.
What are the primary risks associated with a contract of this duration (over 15 years)?
The primary risks associated with a contract spanning over 15 years include technological obsolescence, potential shifts in scientific understanding or medical needs, and contractor performance degradation over time. Technology used for collection, processing, storage, and data management could become outdated, requiring costly upgrades or replacements. Medical advancements might alter the perceived value or utility of certain cord blood units. Furthermore, maintaining consistent high performance from the contractor over such an extended period can be challenging, potentially leading to lapses in quality control or operational efficiency if not actively managed and incentivized. Economic fluctuations and changes in funding priorities also pose long-term risks.
How effective is the firm-fixed-price contract type in ensuring value for money for this specific service?
The firm-fixed-price (FFP) contract type is generally effective in ensuring value for money when the scope of work is well-defined and risks are manageable. For the National Cord Blood Inventory, an FFP contract provides budget certainty for the government, as the price is fixed regardless of the contractor's actual costs. This incentivizes the contractor to control costs efficiently. Given that the core service involves maintaining an existing inventory and potentially adding units under defined protocols, the scope is relatively stable. However, the long duration means that unforeseen scientific developments or regulatory changes could necessitate contract modifications, potentially impacting the 'fixed' nature of the price over the entire term if not carefully managed.
What are the implications of having only 6 bidders for a contract of this magnitude and importance?
Having 6 bidders for a contract of this magnitude and importance suggests a reasonably competitive market, but it also indicates that the field of entities capable of managing such a specialized and critical national resource may be limited. While 6 bidders are more than a sole-source or limited competition scenario, a higher number could potentially drive even more competitive pricing and innovation. The key takeaway is that the government did not restrict competition unnecessarily, allowing multiple qualified organizations to vie for the contract. The success of the competition will ultimately be judged by the quality of service and the value delivered over the contract's lifespan.
Industry Classification
NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › Blood and Organ Banks
Product/Service Code: MEDICAL SERVICES › MEDICAL, DENTAL, AND SURGICAL SVCS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 19250SOL00062
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2200 W MAIN ST STE 710, DURHAM, NC, 27708
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: $31,801,048
Exercised Options: $26,476,048
Current Obligation: $26,476,048
Actual Outlays: $15,521,522
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-07-10
Current End Date: 2035-09-03
Potential End Date: 2035-09-03 00:00:00
Last Modified: 2025-09-26
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