NIH invests $24.6M in Tularemia Vaccine Development, a 10-year effort by the University of New Mexico

Contract Overview

Contract Amount: $24,633,873 ($24.6M)

Contractor: University of NEW Mexico

Awarding Agency: Department of Health and Human Services

Start Date: 2005-09-29

End Date: 2016-04-28

Contract Duration: 3,864 days

Daily Burn Rate: $6.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST NO FEE

Sector: R&D

Official Description: TULAREMIA VACCINE DEVELOPMENT TEAM

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87131

State: New Mexico Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $24.6 million to UNIVERSITY OF NEW MEXICO for work described as: TULAREMIA VACCINE DEVELOPMENT TEAM Key points: 1. The contract represents a significant, long-term investment in vaccine research and development. 2. Full and open competition suggests a robust market for this specialized research area. 3. The duration of the contract (over 10 years) indicates a complex and potentially high-risk research endeavor. 4. Performance context is critical given the extended timeline and the nature of vaccine development. 5. Sector positioning is within the life sciences R&D, a key area for public health advancement. 6. The 'Cost No Fee' contract type implies reimbursement of allowable costs without additional profit, common in early-stage research.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging due to its long duration and specialized R&D nature. The total award of $24.6 million over nearly 11 years averages to approximately $2.2 million per year, which is not inherently high for complex biological research. However, without specific milestones or deliverables, assessing value-for-money is difficult. The 'Cost No Fee' structure suggests the government is primarily covering research expenses rather than paying for a finished product, which can be cost-effective if successful but carries risk if research stalls.

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 entities were likely invited to bid. With 3 bidders identified, this suggests a reasonable level of competition for this specialized research area. This competitive process should theoretically lead to a fair price discovery, although the 'Cost No Fee' structure shifts the focus from profit margins to the reasonableness of incurred costs.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple vendors to offer their best proposals, potentially leading to more efficient use of funds and innovative solutions.

Public Impact

The primary beneficiaries are public health and national security, through the development of a vaccine against tularemia. The services delivered are critical research and development activities aimed at creating a viable vaccine. The geographic impact is primarily centered in New Mexico, where the University of New Mexico is located, but the ultimate benefit is national. Workforce implications include employment for scientists, researchers, and support staff at the University of New Mexico.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (nearly 11 years) increases the risk of cost overruns or shifts in research priorities.
The 'Cost No Fee' contract type can be complex to manage, requiring rigorous oversight of allowable costs.
Vaccine development is inherently risky, with no guarantee of a successful outcome despite significant investment.

Positive Signals

Awarded through full and open competition, suggesting a competitive environment and potentially better value.
The University of New Mexico has a strong track record in scientific research, providing a degree of confidence in their capabilities.
The sustained investment over a decade signals a commitment to addressing a critical public health need.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on life sciences and biotechnology. The market for vaccine development is highly specialized, involving academic institutions and pharmaceutical companies. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of tularemia and the specific R&D phase. However, federal investment in vaccine R&D is substantial, driven by public health needs and biodefense initiatives.

Small Business Impact

There is no indication of small business set-asides for this contract, which is typical for large-scale, long-term research and development efforts often undertaken by established institutions. Subcontracting opportunities for small businesses are possible but not explicitly detailed in the provided data. The primary focus appears to be on the core research capabilities of the prime contractor.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services (HHS) and the National Institutes of Health (NIH). Given the 'Cost No Fee' structure, oversight would focus on the allowability, allocability, and reasonableness of incurred costs. Transparency is generally maintained through contract reporting mechanisms, and the Inspector General for HHS would have jurisdiction over potential fraud, waste, or abuse.

Related Government Programs

National Institutes of Health (NIH) Research Grants
Department of Defense (DoD) Biodefense Programs
Centers for Disease Control and Prevention (CDC) Vaccine Research
National Institute of Allergy and Infectious Diseases (NIAID) Funding

Risk Flags

Long contract duration increases risk of scope creep or changing requirements.
Cost-reimbursement nature requires diligent oversight of expenditures.
Vaccine development is inherently high-risk with uncertain outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $24.6 million to UNIVERSITY OF NEW MEXICO. TULAREMIA VACCINE DEVELOPMENT TEAM

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF NEW MEXICO.

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 $24.6 million.

What is the period of performance?

Start: 2005-09-29. End: 2016-04-28.

What is the University of New Mexico's track record in vaccine development and infectious disease research?

The University of New Mexico (UNM) has a significant history in scientific research, including infectious diseases and vaccine development. UNM's Health Sciences Center is a major hub for biomedical research in the region. While specific details on past tularemia vaccine projects are not provided, UNM has been involved in various research initiatives funded by federal agencies like NIH and DoD. Their established infrastructure, experienced research personnel, and previous successes in securing competitive grants indicate a strong foundation for undertaking complex R&D projects like this one. The 'Cost No Fee' contract type suggests NIH's confidence in UNM's ability to manage research expenses effectively towards achieving project goals.

How does the $24.6 million investment compare to other federal vaccine development contracts?

Comparing the $24.6 million investment over nearly 11 years requires context. This averages to approximately $2.2 million annually, which is moderate for a dedicated, long-term vaccine development program. Federal investments in vaccine R&D vary widely based on the disease, stage of development (basic research vs. clinical trials), and urgency. Large-scale clinical trials or development of vaccines for high-priority threats can cost hundreds of millions or even billions of dollars. This contract appears to represent a sustained, foundational investment in early-stage or specific research for tularemia, rather than a full-scale late-stage development or mass production effort. It is a significant commitment but likely falls within the typical range for specialized, multi-year R&D projects.

What are the primary risks associated with this long-term vaccine development contract?

The primary risks associated with this contract are inherent to long-term scientific research and vaccine development. Firstly, scientific risk is paramount: the research may not yield a viable vaccine candidate, or unforeseen biological challenges could halt progress. Secondly, there's a risk of cost escalation, even under a 'Cost No Fee' structure, if research proves more complex or requires more resources than initially anticipated. Thirdly, programmatic risk exists; shifts in federal funding priorities or changes in leadership within NIH could impact the project's continuity. Finally, the long duration (nearly 11 years) increases the risk of personnel turnover and the potential for outdated technology or methodologies to be used if not actively managed.

What does the 'Cost No Fee' contract type imply about the government's expectations and risk?

The 'Cost No Fee' (CNF) contract type implies that the government agrees to reimburse the contractor (University of New Mexico) for all allowable, allocable, and reasonable costs incurred in performing the contract, but provides no additional fee or profit. This structure is typically used for research and development efforts where the final outcome is uncertain, and the government's primary goal is to fund the necessary work rather than pay for a specific deliverable with a profit margin. It suggests the government is bearing the financial risk of the research itself, while the contractor is incentivized to manage costs efficiently to ensure the project's completion within the allocated budget. This approach is common when the government is investing in basic or applied research where the potential benefits outweigh the upfront financial risk.

How does the duration of this contract (3864 days) impact the assessment of its value?

The contract's duration of 3864 days (approximately 10 years and 7 months) significantly impacts the assessment of its value by introducing long-term considerations. While the total award of $24.6 million may seem substantial, spreading it over such an extended period means the annual investment is relatively modest ($~2.2M/year). This long timeframe is indicative of the complex, multi-stage nature of vaccine development, which often involves extensive basic research, preclinical testing, and potentially early-stage clinical evaluation. Assessing value requires looking beyond the total sum to the progress made against defined milestones (if any) and the potential long-term impact of a successful vaccine. The extended duration also increases risks related to scientific relevance, technological obsolescence, and contractor stability, necessitating robust oversight.

What is the significance of NIH awarding this contract under 'Full and Open Competition'?

Awarding this contract under 'Full and Open Competition' signifies that the National Institutes of Health (NIH) sought proposals from all responsible sources capable of providing the required research and development services. This process typically involves publicizing the requirement, allowing multiple organizations to submit bids. The fact that there were 3 bidders indicates a competitive landscape for this specialized area of tularemia vaccine development. Full and open competition is generally preferred as it maximizes the potential for obtaining the best value by leveraging market forces, encouraging innovation, and ensuring fair pricing. It suggests NIH was confident that multiple entities possessed the necessary expertise and resources to undertake this complex project.

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 › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: NIHNIAIDDMID0522

Offers Received: 3

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: SCHOOLES HALL RM 102, ALBUQUERQUE, NM, 87131

Business Categories: Category Business, Educational Institution, Higher Education, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $24,633,873

Exercised Options: $24,633,873

Current Obligation: $24,633,873

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline