NIH awards $18M+ to IIT Research Institute for preclinical drug toxicology and pharmacology research over 12 years

Contract Overview

Contract Amount: $18,089,554 ($18.1M)

Contractor: IIT Research Institute

Awarding Agency: Department of Health and Human Services

Start Date: 2004-04-01

End Date: 2016-06-30

Contract Duration: 4,473 days

Daily Burn Rate: $4.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: PRECLINICAL TOXICOLOGY AND PHARMACOLOGY OF DRUGS

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60616

State: Illinois Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $18.1 million to IIT RESEARCH INSTITUTE for work described as: PRECLINICAL TOXICOLOGY AND PHARMACOLOGY OF DRUGS Key points: 1. Contract awarded through full and open competition, suggesting a robust market for these specialized research services. 2. The long duration of the contract (over 12 years) indicates a sustained need for these specific research capabilities. 3. The contract type (Cost Plus Fixed Fee) is common for R&D where costs can be uncertain, but requires careful oversight. 4. The awardee, IIT Research Institute, has a significant history with this contract, suggesting consistent performance. 5. The North American Industry Classification System (NAICS) code 541710 points to a highly specialized research and development sector. 6. The contract's value, while substantial, needs to be benchmarked against similar long-term R&D efforts to fully assess value.

Value Assessment

Rating: fair

The total award of over $18 million spread across more than 12 years averages to approximately $1.5 million annually. This figure needs to be benchmarked against similar long-term, complex preclinical research contracts to determine if it represents good value. The Cost Plus Fixed Fee (CPFF) contract type allows for cost reimbursement plus a fixed fee, which can lead to cost overruns if not managed tightly. Without detailed cost breakdowns and comparisons to industry standards for toxicology and pharmacology studies, a definitive value assessment is challenging.

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. This suggests a competitive environment for preclinical toxicology and pharmacology research services. The presence of 8 bids (no) implies a healthy level of interest and competition, which typically drives better pricing and innovation. The agency likely evaluated proposals based on a combination of technical merit, past performance, and price.

Taxpayer Impact: A competitive bidding process generally benefits taxpayers by encouraging lower prices and higher quality services. The multiple bids received suggest that the government was able to secure services at a reasonable market rate, avoiding potential overpayment associated with less competitive solicitations.

Public Impact

The primary beneficiaries are the National Institutes of Health (NIH) and the broader medical research community, which gain access to critical preclinical data for drug development. Services delivered include essential toxicology and pharmacology studies, which are foundational steps in assessing the safety and efficacy of potential new drugs. The geographic impact is primarily centered around the awardee's location in Illinois, but the research supports national health initiatives. The contract supports a specialized scientific workforce in the fields of toxicology, pharmacology, and related life sciences research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract structure can incentivize cost increases if not rigorously monitored, potentially leading to expenditures exceeding initial projections.
The extended duration of the contract (over 12 years) raises questions about the initial scope definition and whether it adequately anticipated the full research trajectory.
Benchmarking the annual spend against comparable R&D contracts is necessary to ensure optimal value for taxpayer dollars over the long term.

Positive Signals

Awarded through full and open competition with multiple bidders, indicating a competitive market and potentially favorable pricing.
The consistent award to IIT Research Institute over an extended period suggests a strong, reliable performance record and established expertise.
The contract supports critical research and development in the life sciences, aligning with national health priorities.

Sector Analysis

This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector (NAICS 541710). This is a highly specialized area focused on scientific discovery and innovation. The market includes academic institutions, private research organizations, and specialized contract research organizations (CROs). Spending in this sector is driven by government funding for basic and applied research, as well as private sector investment in new product development. Comparable spending benchmarks would involve analyzing other large, long-term R&D contracts awarded by agencies like NIH, NSF, or DOD for similar scientific endeavors.

Small Business Impact

The data indicates that small business participation was not a specific set-aside (ss: false, sb: false). The contract was awarded to IIT Research Institute, a large research organization. There is no explicit information on subcontracting plans for small businesses within this data. The focus appears to be on securing specialized research capabilities from established entities rather than promoting small business engagement through set-asides for this particular award.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the National Institutes of Health (NIH), a component of the Department of Health and Human Services. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures and ensure the fixed fee remains appropriate. Transparency is typically managed through contract reporting requirements and potentially through public research findings stemming from the work. The specific Inspector General jurisdiction would be that of HHS.

Related Government Programs

Biomedical Research and Development
Drug Discovery and Development
Contract Research Organizations (CROs)
Life Sciences Research
Toxicology Studies
Pharmacology Research

Risk Flags

Long contract duration may indicate potential for scope creep or evolving research needs.
Cost Plus Fixed Fee contracts require diligent oversight to manage costs effectively.
Lack of specific performance metrics in summary data hinders detailed assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $18.1 million to IIT RESEARCH INSTITUTE. PRECLINICAL TOXICOLOGY AND PHARMACOLOGY OF DRUGS

Who is the contractor on this award?

The obligated recipient is IIT 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 $18.1 million.

What is the period of performance?

Start: 2004-04-01. End: 2016-06-30.

What is the historical spending trend for this specific contract over its lifespan?

The provided data summarizes the total award amount ($18,089,554.46) and the contract duration (April 1, 2004, to June 30, 2016), spanning over 12 years. While the total value is known, the specific annual or quarterly spending breakdown is not detailed in this summary. To analyze the spending trend, one would need access to the contract's financial execution data, showing disbursements over time. This would reveal if spending was consistent, peaked during certain phases, or varied significantly year-to-year. Such a trend analysis is crucial for understanding the project's lifecycle costs and resource allocation patterns.

How does the average annual cost compare to industry benchmarks for similar preclinical toxicology and pharmacology research?

The average annual cost for this contract is approximately $1.5 million ($18M / 12 years). Benchmarking this figure requires access to proprietary databases or industry reports that track pricing for preclinical toxicology and pharmacology services from Contract Research Organizations (CROs). Factors influencing these costs include the types of studies performed (e.g., acute vs. chronic toxicity, specific assays), the species involved, regulatory requirements (e.g., GLP compliance), and the complexity of the compounds being tested. Without specific details on the scope of work performed under this contract and comparative market data, it is difficult to definitively state whether $1.5 million annually represents a competitive rate. However, given the specialized nature and long-term commitment, this figure may be within a reasonable range for complex R&D.

What were the key performance indicators (KPIs) used to evaluate IIT Research Institute's performance under this contract?

The provided summary data does not specify the Key Performance Indicators (KPIs) used for evaluating IIT Research Institute's performance. Typically, for research and development contracts, KPIs would focus on scientific milestones, adherence to research protocols, timely delivery of study reports, quality of data generated, and compliance with Good Laboratory Practices (GLP) where applicable. Given the Cost Plus Fixed Fee structure, performance metrics would also likely include efficient resource utilization and adherence to budget projections for the fixed fee component. A thorough performance review would require access to contract performance reports and deliverables.

What is the track record of IIT Research Institute with government contracts, particularly with NIH?

IIT Research Institute (IITRI) has a substantial track record with government contracts, including significant work with the National Institutes of Health (NIH). The fact that they were awarded and presumably performed on this specific $18M+ contract from 2004 to 2016 indicates a long-standing relationship and demonstrated capability. IITRI is known for its expertise in various research areas, including toxicology, pharmacology, and infectious disease research. Their history suggests they are a capable and established research institution able to meet the complex requirements of federal agencies like NIH. Further investigation into contract databases could reveal the breadth and success rate of their other federal awards.

Were there any significant challenges or issues encountered during the performance of this contract?

The provided summary data does not contain information regarding specific challenges or issues encountered during the performance of this contract. Contract performance can face various hurdles, such as unexpected scientific results, difficulties in recruitment for studies, changes in regulatory requirements, or budget constraints. Without access to contract close-out reports, performance reviews, or any associated contract modifications or disputes, it is impossible to identify any significant challenges. The long duration and consistent award might suggest a relatively smooth execution, but this cannot be confirmed from the given data alone.

How does the total value of this contract compare to other major preclinical research awards made by NIH during the same period?

Comparing the total value of this $18M+ contract to other major preclinical research awards by NIH requires access to NIH's historical contract databases and spending reports for the period of 2004-2016. NIH funds a vast array of research, and contract sizes can vary significantly based on scope, duration, and complexity. This contract, averaging $1.5M annually over 12 years, appears substantial for a single, focused research effort. However, NIH also issues larger multi-year grants and contracts for major research centers, consortia, or large-scale epidemiological studies. A direct comparison would necessitate identifying contracts with similar objectives (preclinical toxicology/pharmacology) and similar contract types (e.g., CPFF, FFP) to establish a relevant benchmark.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 8

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 10 WEST 35TH STREET, CHICAGO, IL, 60616

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $159,319,089

Exercised Options: $123,646,608

Current Obligation: $18,089,554

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline