NIH awards $14.5M to Fred Hutchinson Cancer Research Center for health services, demonstrating strong competition

Contract Overview

Contract Amount: $14,577,205 ($14.6M)

Contractor: Fred Hutchinson Cancer Research Center

Awarding Agency: Department of Health and Human Services

Start Date: 2005-01-15

End Date: 2010-01-14

Contract Duration: 1,825 days

Daily Burn Rate: $8.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 15

Pricing Type: COST NO FEE

Sector: Healthcare

Official Description: CONTRACT INFORMATION SERVICE

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98109

State: Washington Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $14.6 million to FRED HUTCHINSON CANCER RESEARCH CENTER for work described as: CONTRACT INFORMATION SERVICE Key points: 1. Value for money appears reasonable given the long-term nature of the contract and the specialized research services provided. 2. Full and open competition suggests a healthy market for these services, potentially leading to competitive pricing. 3. The contract duration of five years indicates a stable, long-term need for the services. 4. Performance context is tied to health services research, a critical area for public health advancement. 5. Sector positioning is within the broader healthcare and biomedical research industry, a significant area of federal spending.

Value Assessment

Rating: good

The contract value of approximately $14.5 million over five years averages to about $2.9 million annually. Benchmarking this against similar large-scale health services research contracts is challenging without more specific service details. However, the 'Cost No Fee' contract type suggests that the government is primarily reimbursing the contractor for allowable costs, which can be an efficient method for research where final costs are uncertain. The absence of a fee might indicate a focus on direct cost recovery rather than profit, potentially enhancing value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. With 15 bids received, this suggests a robust competitive environment for these health services. A high number of bidders generally supports price discovery and can lead to more favorable pricing for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers as it likely drove down costs and ensured the government received proposals from a wide range of qualified entities, maximizing the chances of selecting the best value.

Public Impact

Beneficiaries include patients and the broader public who benefit from advancements in health services research. Services delivered likely encompass research, data analysis, and potentially clinical support related to ambulatory health care. Geographic impact is national, as research findings can inform health practices across the United States. Workforce implications include support for researchers, technicians, and administrative staff at Fred Hutchinson Cancer Research Center.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if research proves more complex than anticipated, though the 'Cost No Fee' structure aims to mitigate this.
Ensuring the research directly addresses critical public health needs and aligns with NIH priorities requires ongoing monitoring.

Positive Signals

The long-term contract award provides stability for critical research efforts.
Full and open competition indicates a strong market and potential for cost efficiencies.
Awarding to a reputable institution like Fred Hutchinson Cancer Research Center suggests a focus on quality and expertise.

Sector Analysis

This contract falls within the healthcare and biomedical research sector, a substantial area of federal spending focused on improving public health outcomes. The National Institutes of Health (NIH) is a primary funder of such research. Comparable spending benchmarks would involve looking at other large, multi-year research grants and contracts awarded by NIH and other health agencies for similar types of health services research.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the nature of the services and the large contract value, it is likely that larger research institutions are the primary competitors. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in this summary information. The impact on the small business ecosystem is likely minimal for this specific award.

Oversight & Accountability

Oversight is typically managed by the contracting officers and program officials within the National Institutes of Health (NIH). Accountability measures are embedded in the contract terms, requiring adherence to research protocols, reporting requirements, and budget limitations. Transparency is facilitated through contract databases like FPDS-NG, where basic award information is publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

National Institutes of Health Research Grants
Centers for Disease Control and Prevention (CDC) Contracts
Department of Veterans Affairs Health Services Research
Agency for Healthcare Research and Quality (AHRQ) Funding

Risk Flags

Contract duration is long (5 years), requiring sustained oversight.
Contract type 'Cost No Fee' necessitates careful monitoring of allowable costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $14.6 million to FRED HUTCHINSON CANCER RESEARCH CENTER. CONTRACT INFORMATION SERVICE

Who is the contractor on this award?

The obligated recipient is FRED HUTCHINSON CANCER RESEARCH CENTER.

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 $14.6 million.

What is the period of performance?

Start: 2005-01-15. End: 2010-01-14.

What is the specific nature of the 'All Other Miscellaneous Ambulatory Health Care Services' being funded?

The specific nature of 'All Other Miscellaneous Ambulatory Health Care Services' (NAICS code 621999) funded under this contract is not detailed in the provided data. However, given the awardee (Fred Hutchinson Cancer Research Center) and the awarding agency (National Institutes of Health), it is highly probable that these services relate to research activities. This could include patient recruitment for clinical trials, data collection and management for health services research studies, development of patient support programs, or other ancillary health services directly supporting NIH-funded research initiatives, particularly in the area of cancer and related diseases. The 'Cost No Fee' contract type further supports the notion of direct cost reimbursement for research-related expenses.

How does the $14.5 million contract value compare to typical NIH funding for similar research projects?

The $14.5 million contract value over five years, averaging approximately $2.9 million annually, is a substantial but not extraordinary amount for large-scale research projects funded by the National Institutes of Health (NIH). NIH funds a vast portfolio of research, with many grants and contracts ranging from hundreds of thousands to tens of millions of dollars annually, depending on the scope, duration, and complexity of the research. For multi-year, multi-disciplinary health services research initiatives, especially those involving a renowned institution like Fred Hutchinson Cancer Research Center, this level of funding is consistent with significant federal investment in critical health areas. Direct comparisons require detailed knowledge of specific research aims and methodologies, but the award size suggests a project of considerable scope and importance.

What are the primary risks associated with a 'Cost No Fee' contract for health services research?

A 'Cost No Fee' (CNF) contract, while potentially beneficial for ensuring cost recovery in research, carries specific risks. The primary risk for the government is the potential for the contractor to incur higher-than-expected costs without a corresponding increase in the contract's ceiling price, as there is no built-in profit margin to incentivize cost control. This necessitates robust government oversight to ensure that all costs incurred are allowable, reasonable, and allocable to the contract's objectives. For the contractor, the risk lies in not being able to cover all incurred costs if the contract ceiling is reached and the work is not yet complete, or if certain costs are deemed unallowable by the government. Effective management and clear communication are crucial to mitigate these risks.

What is Fred Hutchinson Cancer Research Center's track record with federal contracts, particularly with NIH?

Fred Hutchinson Cancer Research Center (Fred Hutch) is a globally recognized, independent, non-profit research institution. It has a long and well-established history of receiving significant funding from federal agencies, most notably the National Institutes of Health (NIH), as well as the National Cancer Institute (NCI). Their track record typically involves successful management of large-scale, complex research grants and contracts, often focusing on cancer research, virology, and public health. Awards like this one are consistent with their mission and capabilities. While specific performance metrics for individual contracts are not publicly detailed here, their sustained funding and reputation suggest a strong history of meeting federal research objectives and compliance requirements.

How does the number of bids (15) influence the perceived value for taxpayers in this full and open competition?

Receiving 15 bids under a full and open competition is a strong positive signal for taxpayers. It indicates that the government's requirements were clearly defined and accessible to a wide range of potential offerors, fostering a competitive marketplace. A larger pool of bidders generally increases the likelihood that the government will receive proposals offering the best combination of technical merit and price. This competitive pressure can drive down costs, encourage innovation, and ensure that the selected contractor is highly qualified and offers the best value. For taxpayers, this means their funds are more likely to be used efficiently and effectively, securing high-quality services at a competitive price.

Industry Classification

NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › All Other Miscellaneous Ambulatory Health Care Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N02CO4100113

Offers Received: 15

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 1100 FAIRVIEW AVE N, SEATTLE, WA, 07

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

Financial Breakdown

Contract Ceiling: $96,829,522

Exercised Options: $96,829,522

Current Obligation: $14,577,205

Timeline