NIH awards $30M for R&D services to University of Rochester over 11 years

Contract Overview

Contract Amount: $30,172,299 ($30.2M)

Contractor: University of Rochester

Awarding Agency: Department of Health and Human Services

Start Date: 2007-02-28

End Date: 2018-07-31

Contract Duration: 4,171 days

Daily Burn Rate: $7.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 22

Pricing Type: COST NO FEE

Sector: R&D

Official Description: R&D-OTHER SVC & DEVELOP-ADV DEV

Place of Performance

Location: ROCHESTER, MONROE County, NEW YORK, 14642

State: New York Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $30.2 million to UNIVERSITY OF ROCHESTER for work described as: R&D-OTHER SVC & DEVELOP-ADV DEV Key points: 1. Significant long-term investment in advanced development. 2. University of Rochester is a sole awardee, raising questions about competition. 3. Contract duration of over 11 years presents potential for cost escalation. 4. Focus on R&D in physical, engineering, and life sciences.

Value Assessment

Rating: fair

The contract type is 'COST NO FEE', which is common for R&D but offers less price certainty. The award value of $30M over 11 years suggests a moderate annual spend, but without specific deliverables or unit costs, a direct pricing benchmark is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

While the contract was awarded under full and open competition, the long duration and specific nature of R&D may have limited the number of actual bidders. The 'COST NO FEE' structure prioritizes research progress over strict cost control.

Taxpayer Impact: Taxpayer funds are supporting advanced research, with the potential for significant scientific or technological breakthroughs. However, the long duration and cost-reimbursement nature warrant oversight to ensure efficient use of funds.

Public Impact

Supports cutting-edge research in critical scientific fields. Long-term commitment allows for sustained innovation and development. Potential for discoveries with broad societal benefits. University of Rochester gains significant research funding.

Waste & Efficiency Indicators

Waste Risk Score: 70 / 10

Warning Flags

Long contract duration increases risk of cost overruns.
Cost-reimbursement structure may reduce incentive for cost efficiency.
Lack of specific unit cost data hinders precise value assessment.

Positive Signals

Supports critical R&D in vital scientific areas.
Long-term award fosters stable research environment.
University of Rochester is a reputable research institution.

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for innovation but can be less predictable than other sectors due to the inherent uncertainties of research.

Small Business Impact

The awardee is a university, not a small business. There is no indication that small businesses were subcontracted, suggesting limited direct impact on the small business sector for this specific contract.

Oversight & Accountability

The 'COST NO FEE' contract type requires robust oversight from the Department of Health and Human Services to ensure that costs incurred are reasonable and necessary for the research objectives. Regular reporting and audits are essential.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Long contract duration (11+ years).
Cost-reimbursement contract type ('COST NO FEE').
Limited visibility into specific deliverables and unit costs.
Potential for scope creep over the extended period.
Lack of direct small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $30.2 million to UNIVERSITY OF ROCHESTER. R&D-OTHER SVC & DEVELOP-ADV DEV

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF ROCHESTER.

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 $30.2 million.

What is the period of performance?

Start: 2007-02-28. End: 2018-07-31.

What specific research milestones or deliverables are expected over the 11-year period, and how are they being tracked to ensure progress and value for money?

The contract details likely outline specific research objectives and potentially interim milestones. Effective oversight would involve regular progress reports from the University of Rochester, peer reviews, and potentially site visits by NIH program officers to assess the advancement of the research and ensure alignment with the stated goals and taxpayer investment.

Given the 'COST NO FEE' structure and long duration, what mechanisms are in place to mitigate the risk of cost overruns and ensure efficient use of taxpayer funds?

While 'COST NO FEE' contracts prioritize research over strict cost control, agencies typically implement mechanisms like budget reviews, expenditure monitoring, and requiring justification for significant cost increases. The long duration necessitates proactive management and potential re-evaluation of funding levels if research directions or costs significantly deviate from initial projections.

How does the scientific output and impact of this contract compare to other similar R&D investments made by NIH in related fields?

A comprehensive comparison would require analyzing publications, patents, citations, and the translation of research findings into practical applications stemming from this contract against benchmarks from similar NIH-funded projects. Evaluating the novelty, significance, and broader impact of the research is key to assessing its effectiveness relative to other investments.

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 › Community and Regional Development 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: 601 ELM WOOD AVE, ROCHESTER, NY, 14642

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

Financial Breakdown

Contract Ceiling: $35,083,660

Exercised Options: $31,059,266

Current Obligation: $30,172,299

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline