NIAID awards $86.7M for influenza research, spanning 7 years of critical surveillance and development

Contract Overview

Contract Amount: $86,755,630 ($86.8M)

Contractor: ST Jude Children's Research Hospital Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2007-03-30

End Date: 2014-03-31

Contract Duration: 2,558 days

Daily Burn Rate: $33.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 22

Pricing Type: COST NO FEE

Sector: R&D

Official Description: NIAID CENTERS OF EXCELLENCE FOR INFLUENZA RESEARCH AND SURVEILLANCE

Place of Performance

Location: MEMPHIS, SHELBY County, TENNESSEE, 38105

State: Tennessee Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $86.8 million to ST JUDE CHILDREN'S RESEARCH HOSPITAL INC for work described as: NIAID CENTERS OF EXCELLENCE FOR INFLUENZA RESEARCH AND SURVEILLANCE Key points: 1. Contract value represents a significant investment in pandemic preparedness and influenza mitigation strategies. 2. The award was made under full and open competition, suggesting a robust market for these specialized research services. 3. Performance duration of over 2000 days indicates a long-term commitment to advancing influenza research capabilities. 4. The focus on 'Centers of Excellence' suggests a strategic approach to consolidating expertise and resources for maximum impact. 5. This contract likely supports a broad range of activities from basic research to applied surveillance and vaccine development.

Value Assessment

Rating: good

Benchmarking the value of this contract is challenging without specific performance metrics or comparable awards. However, the $86.7 million over approximately seven years suggests a substantial, but potentially reasonable, investment for establishing and maintaining specialized research centers focused on a critical public health threat like influenza. The 'Cost No Fee' contract type implies that the government reimburses allowable costs incurred by the contractor, with no additional profit margin, which can be cost-effective for research where outcomes are uncertain.

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 proposals. This approach generally fosters a competitive environment, encouraging multiple bidders to offer their best technical solutions and pricing. The presence of 22 proposals suggests a healthy level of interest and capability within the research community for this type of work.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it increases the likelihood of securing the most cost-effective and technically superior research services by leveraging market forces.

Public Impact

The public benefits from enhanced understanding and preparedness for influenza outbreaks, potentially saving lives and reducing economic disruption. Services delivered include advanced research, surveillance, and development of countermeasures against influenza viruses. The geographic impact is national, with potential global implications due to the nature of infectious disease research. Workforce implications include support for scientists, researchers, technicians, and administrative staff at the awardee institution and potentially collaborating entities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long-term nature of the contract could lead to contractor lock-in if not managed carefully.
Reliance on a single 'Center of Excellence' model might concentrate risk if unforeseen issues arise at that specific institution.

Positive Signals

Focus on 'Centers of Excellence' consolidates expertise, potentially leading to more efficient and impactful research outcomes.
Full and open competition suggests a strong pool of qualified researchers and institutions were considered.
The 'Cost No Fee' contract type minimizes direct profit for the contractor, focusing resources on research activities.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on life sciences. The market for infectious disease research is substantial, driven by ongoing public health needs and government funding priorities. NIAID's investment in 'Centers of Excellence' aligns with a strategy to build robust, long-term capabilities in critical areas like influenza, rather than funding numerous smaller, short-term projects. Comparable spending benchmarks would typically involve other large-scale, multi-year research grants or contracts awarded by agencies like NIH or CDC for similar disease-specific research initiatives.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Given the nature and scale of establishing 'Centers of Excellence,' it is likely that the primary awardee is a large research institution. Further analysis would be needed to determine if significant subcontracting opportunities exist for small businesses within the scope of this research.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Institutes of Health (NIH), a division of the Department of Health and Human Services. Mechanisms likely include regular progress reports, financial reviews, and programmatic assessments by scientific and administrative staff. The 'Cost No Fee' structure requires diligent monitoring of allowable costs. Transparency is generally maintained through public reporting of research findings and contract awards, though specific internal oversight details may not be publicly disclosed.

Related Government Programs

National Institute of Allergy and Infectious Diseases (NIAID) Research Programs
Centers for Disease Control and Prevention (CDC) Influenza Surveillance
Department of Health and Human Services Public Health Initiatives
National Institutes of Health (NIH) Research Grants

Risk Flags

Long-term contract duration requires sustained oversight.
Potential for cost inefficiencies in 'Cost No Fee' arrangements if not closely monitored.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $86.8 million to ST JUDE CHILDREN'S RESEARCH HOSPITAL INC. NIAID CENTERS OF EXCELLENCE FOR INFLUENZA RESEARCH AND SURVEILLANCE

Who is the contractor on this award?

The obligated recipient is ST JUDE CHILDREN'S RESEARCH HOSPITAL 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 $86.8 million.

What is the period of performance?

Start: 2007-03-30. End: 2014-03-31.

What is the historical spending trend for NIAID's influenza research programs over the past decade?

Analyzing historical spending trends for NIAID's influenza research is crucial for context. While this specific $86.7 million contract spans from 2007 to 2014, NIAID's overall budget and specific allocations for influenza research have likely fluctuated based on perceived threats, scientific advancements, and public health emergencies. For instance, funding may have increased significantly around major influenza seasons or pandemics like H1N1. Understanding these trends helps assess whether the $86.7 million award represents a consistent investment, a surge in response to a specific need, or a deviation from typical funding patterns. Without access to NIAID's detailed historical budget breakdowns by program area, a precise trend analysis is difficult, but it's reasonable to assume that influenza research remains a high-priority, consistently funded area within NIAID's portfolio.

How does the cost per year of this contract compare to similar influenza research initiatives?

This contract, valued at approximately $86.7 million over roughly 7 years (2007-2014), equates to an average annual cost of about $12.4 million. Comparing this to similar influenza research initiatives requires identifying comparable 'Centers of Excellence' or large-scale research grants focused on influenza. Factors influencing cost include the scope of research (basic science vs. clinical trials vs. surveillance), the number of participating institutions, and the specific objectives. If other 'Centers of Excellence' for influenza research, funded by NIH or international bodies, operate with similar annual budgets, this contract could be considered within a comparable range. However, if other initiatives achieve comparable research outputs for significantly less annual investment, it might suggest opportunities for greater cost-efficiency in future awards. The 'Cost No Fee' structure also influences the cost comparison, as it excludes profit margins typically seen in other contract types.

What are the key performance indicators (KPIs) used to measure the success of these NIAID Centers of Excellence?

The success of NIAID's Centers of Excellence for Influenza Research and Surveillance is likely measured through a combination of scientific, operational, and public health-related Key Performance Indicators (KPIs). Scientifically, KPIs could include the number and impact of peer-reviewed publications, advancements in understanding influenza virus biology and pathogenesis, development of novel diagnostic tools, or progress in vaccine and therapeutic candidate research. Operationally, metrics might involve the efficiency and reliability of surveillance networks, the timeliness of data reporting, and the effective management of research resources. From a public health perspective, success could be gauged by the contribution of the centers' work to informing public health policy, improving pandemic preparedness strategies, and ultimately, reducing the burden of influenza disease. Specific KPIs are typically detailed in the contract's Statement of Work and are subject to regular review by NIAID program officers.

What is the track record of St. Jude Children's Research Hospital in managing large federal research grants and contracts?

St. Jude Children's Research Hospital has a well-established and highly regarded track record in managing large-scale, complex research initiatives, including significant federal grants and contracts. As a leading pediatric research institution, it consistently secures substantial funding from various federal agencies, including NIH, CDC, and others, for groundbreaking work in areas like cancer, infectious diseases, and genetics. Their experience encompasses managing multi-year projects, complex budgets, large scientific teams, and rigorous compliance requirements associated with federal funding. The hospital is known for its strong financial stewardship, robust administrative infrastructure, and commitment to scientific excellence. Receiving and managing a contract of this magnitude ($86.7 million) from NIAID further underscores their capability and trustworthiness as a federal research partner.

What are the potential risks associated with relying on a 'Cost No Fee' contract for long-term research?

While 'Cost No Fee' (CNF) contracts can be cost-effective by eliminating contractor profit, they introduce specific risks, particularly for long-term research. One primary risk is the potential for scope creep or inefficient resource utilization, as the contractor may have less financial incentive to control costs beyond ensuring allowable expenses are met. Ensuring that the contractor remains motivated to achieve research objectives efficiently, rather than simply incurring costs, requires strong government oversight and clearly defined performance metrics. Another risk is contractor burnout or reduced innovation if the lack of profit margin impacts their ability to invest in infrastructure, personnel development, or exploratory research outside the direct scope. Furthermore, if the contractor faces unexpected cost overruns not covered by the 'cost' aspect, they might be disincentivized to continue, potentially jeopardizing the project's continuity. Careful monitoring of progress and adherence to the statement of work is paramount.

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: BASIC RESEARCH

Offers Received: 22

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 332 N LAUDERDALE ST, MEMPHIS, TN, 38105

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

Financial Breakdown

Contract Ceiling: $270,983,148

Exercised Options: $181,796,588

Current Obligation: $86,755,630

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline