NIH awards $14.7M for immune function research, focusing on vulnerable populations

Contract Overview

Contract Amount: $14,721,678 ($14.7M)

Contractor: Versiti Blood Health, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2005-09-30

End Date: 2011-06-30

Contract Duration: 2,099 days

Daily Burn Rate: $7.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 21

Pricing Type: COST NO FEE

Sector: R&D

Official Description: IMMUNE FUNCTION AND BIODEFENSE IN CHILDREN, ELDERLY, AND IMMUNOCOMPROMISED

Place of Performance

Location: MILWAUKEE, MILWAUKEE County, WISCONSIN, 53201

State: Wisconsin Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $14.7 million to VERSITI BLOOD HEALTH, INC. for work described as: IMMUNE FUNCTION AND BIODEFENSE IN CHILDREN, ELDERLY, AND IMMUNOCOMPROMISED Key points: 1. Contract awarded via full and open competition, suggesting a robust market. 2. Research focuses on critical areas of immune function and biodefense. 3. Long contract duration (2099 months) may indicate a long-term strategic investment. 4. Contract type 'Cost No Fee' suggests a focus on research completion rather than profit. 5. The awardee, Versiti Blood Health, Inc., is a key player in blood health research. 6. Spending aligns with NIH's mission to advance health and reduce disease burden.

Value Assessment

Rating: good

The total award of $14.7 million over approximately 17 years represents a significant investment in a specialized research area. Benchmarking this specific 'Cost No Fee' contract is challenging due to its unique nature and long duration. However, the funding level appears consistent with major research grants awarded by NIH for complex, multi-year projects. The absence of a fee suggests the primary objective is research advancement rather than contractor profit, which can be a value indicator in R&D.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of 21 proposals suggests a competitive environment for this research area. This level of competition is generally favorable for price discovery and ensuring the government receives proposals aligned with its technical requirements at a reasonable cost structure, even for cost-reimbursement contracts.

Taxpayer Impact: Full and open competition ensures that taxpayer funds are used efficiently by fostering a competitive environment that drives innovation and potentially lowers overall research costs.

Public Impact

Benefits children, the elderly, and immunocompromised individuals by advancing understanding of immune function. Delivers critical research findings in biodefense and immune system health. Geographic impact is national, with potential global implications for public health. Workforce implications include support for researchers, technicians, and associated scientific personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (2099 months) could lead to cost overruns if not managed effectively.
Cost-reimbursement contract type requires diligent oversight to ensure funds are spent appropriately.
Research outcomes are inherently uncertain, posing a risk to achieving desired public health impacts.

Positive Signals

Focus on critical public health areas addresses significant societal needs.
Full and open competition suggests a strong pool of qualified offerors.
Awardee has a clear focus on blood health, aligning with the research objectives.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on life sciences and biodefense. The market for such specialized research is driven by government funding agencies like NIH, which invest heavily in understanding and combating diseases and enhancing public health. Comparable spending benchmarks would typically involve other large-scale, multi-year R&D grants awarded by NIH or similar institutions for complex biological research.

Small Business Impact

There is no indication of small business set-asides for this contract, as it was awarded through full and open competition. The nature of advanced biological research often requires specialized facilities and expertise that may be more readily available from larger research institutions or established organizations. Subcontracting opportunities for small businesses are not explicitly detailed but could arise if the prime contractor requires specialized services or supplies.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Institutes of Health (NIH). As a Cost No Fee contract, oversight would focus on ensuring that expenditures are reasonable, allocable, and allowable according to the contract terms and federal regulations. Transparency is maintained through NIH's public reporting of awards and research publications stemming from the work. The Inspector General for the Department of Health and Human Services would have jurisdiction over potential fraud, waste, or abuse.

Related Government Programs

National Biodefense Strategy
NIH Research Grants
Immunology Research Programs
Public Health Preparedness Initiatives

Risk Flags

Unusually long contract duration (2099 months) requires clarification.
Cost-reimbursement contract type necessitates robust cost oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $14.7 million to VERSITI BLOOD HEALTH, INC.. IMMUNE FUNCTION AND BIODEFENSE IN CHILDREN, ELDERLY, AND IMMUNOCOMPROMISED

Who is the contractor on this award?

The obligated recipient is VERSITI BLOOD HEALTH, INC..

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 $14.7 million.

What is the period of performance?

Start: 2005-09-30. End: 2011-06-30.

What is the track record of Versiti Blood Health, Inc. in managing large federal research contracts?

Versiti Blood Health, Inc. has a history of involvement in significant research initiatives, particularly related to blood disorders and transfusion medicine. While specific details on managing large federal contracts of this exact duration and scope are not publicly detailed in this context, their established presence in the blood health sector suggests experience with complex research projects. Federal contract databases would need to be consulted for a comprehensive review of their past performance, including on-time delivery, budget adherence, and quality of research outcomes on similar government-funded endeavors. Their focus on blood health aligns well with the stated objectives of this contract, indicating a potential for successful execution.

How does the $14.7 million award compare to other NIH research grants in immunology and biodefense?

The $14.7 million award for immune function and biodefense research is substantial and falls within the range of major research grants typically awarded by the National Institutes of Health (NIH) for complex, multi-year projects. NIH funds a wide spectrum of research, with individual grants varying significantly based on the scope, duration, and specific aims of the research. Large center grants or program project grants focused on critical areas like immunology and biodefense can easily reach or exceed this funding level over their lifecycle. This award appears to be a significant investment reflecting the importance and complexity of the research objectives.

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

The primary risks associated with a 'Cost No Fee' (CNF) contract type, particularly for long-term research, revolve around cost control and contractor motivation. While CNF contracts are often used when the primary goal is research completion rather than profit, they require stringent oversight to ensure that costs incurred are reasonable, allocable, and necessary for the research. The contractor has less financial incentive to control costs compared to fixed-price contracts. For the government, the risk is that costs could escalate beyond initial projections if not managed diligently. The long duration (2099 months) amplifies this risk, necessitating robust monitoring mechanisms to track expenditures and ensure efficient use of funds throughout the project's lifecycle.

How effective is the 'full and open competition' strategy in ensuring value for taxpayer money in specialized R&D?

Full and open competition is generally considered the most effective strategy for ensuring value for taxpayer money, even in specialized R&D. By allowing all responsible sources to submit proposals, it maximizes the pool of potential contractors, fostering competition that drives innovation and encourages competitive pricing. In R&D, this means the government is more likely to receive proposals that are technically superior and cost-effective. The process allows for a thorough evaluation of technical merit, management approach, and cost realism, ensuring that the selected contractor offers the best overall value. The presence of 21 proposals for this contract indicates a healthy competitive landscape, supporting the likelihood of a value-driven award.

What are the potential long-term implications of a contract duration extending to 2099?

A contract duration extending to the year 2099 is highly unusual and likely represents a data entry error or a placeholder rather than an actual operational end date. Standard federal contracts rarely exceed 5-10 years without specific legislative authority or exceptional circumstances. If interpreted literally, such a duration would pose significant challenges for long-term planning, budget forecasting, and adapting to evolving scientific knowledge and technological advancements. It would necessitate continuous re-evaluation and potential modifications to ensure the research remains relevant and effective over such an extended period. Assuming it's an error, the actual operational duration would need clarification.

What is the significance of the research focus on 'children, elderly, and immunocompromised' populations?

The focus on 'children, elderly, and immunocompromised' populations is highly significant because these groups often exhibit distinct immune responses and are more vulnerable to infections and diseases. Research tailored to these demographics can lead to more effective vaccines, treatments, and preventative strategies specifically designed for their unique physiological needs. Understanding immune function in the elderly is crucial for addressing age-related decline and susceptibility to chronic diseases. Similarly, studying children's developing immune systems is vital for long-term health outcomes. For immunocompromised individuals, research can improve their quality of life and reduce the risk of opportunistic infections, which are often life-threatening.

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 › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: NIHNIAIDDAITBAA0511

Offers Received: 21

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 638 N 18TH ST, MILWAUKEE, WI, 53201

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

Financial Breakdown

Contract Ceiling: $19,628,139

Exercised Options: $19,628,139

Current Obligation: $14,721,678

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline