NIH awards $79M for biomedical research to University of South Florida, a sole-source contract

Contract Overview

Contract Amount: $79,024,601 ($79.0M)

Contractor: University of South Florida

Awarding Agency: Department of Health and Human Services

Start Date: 2007-09-14

End Date: 2014-08-15

Contract Duration: 2,527 days

Daily Burn Rate: $31.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: R&D

Official Description: BIOMEDICAL (BASIC)

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33620

State: Florida Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $79.0 million to UNIVERSITY OF SOUTH FLORIDA for work described as: BIOMEDICAL (BASIC) Key points: 1. Contract awarded on a sole-source basis, limiting competitive pricing benefits. 2. Research and Development in Physical, Engineering, and Life Sciences sector. 3. Long contract duration of 2527 days suggests a sustained research effort. 4. Cost-plus-no-fee contract type may incentivize cost incurrence without direct profit motive. 5. University of South Florida is the sole awardee, indicating specialized capabilities or existing relationship. 6. Geographic focus on Florida for this biomedical research initiative.

Value Assessment

Rating: fair

The total award of $79,024,601 for biomedical research over approximately 7 years represents a significant investment. Benchmarking this value is challenging without specific details on the research scope and deliverables. The 'Cost No Fee' (CNF) contract type means the contractor is reimbursed for allowable costs but does not receive a fee or profit. This can be cost-effective for the government in certain research scenarios, but it requires robust oversight to ensure costs are reasonable and necessary. Without comparable sole-source contracts for similar research at the University of South Florida, a precise value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when a specific entity possesses unique capabilities, proprietary information, or when it's impractical or not cost-effective to solicit offers from multiple sources. The lack of competition means that the government did not benefit from the price discovery and potential cost savings that a competitive bidding process could have provided. The justification for a sole-source award would need to be thoroughly documented by the agency.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers compared to competitively awarded contracts, as the government does not have the benefit of multiple bids to drive down prices. It also limits opportunities for other qualified organizations to secure federal funding.

Public Impact

The University of South Florida is the primary beneficiary, receiving substantial funding for its research activities. The contract supports advanced biomedical research, potentially leading to new discoveries and treatments. The geographic impact is concentrated in Florida, where the university is located and research will be conducted. The contract likely supports a workforce of researchers, technicians, and administrative staff at the university.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Cost-reimbursement nature requires stringent oversight to control expenditures.
Long contract duration could pose risks if research objectives shift or become obsolete.

Positive Signals

Focus on a single, potentially specialized research institution.
Cost No Fee structure can align incentives towards efficient cost management.
Sustained funding supports long-term research goals.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences, excluding biotechnology. The National Institutes of Health (NIH) is a major funder of biomedical research in the U.S. The total federal spending on R&D is substantial, and contracts like this represent a significant portion of that investment. Benchmarking this specific award against other NIH grants or contracts for similar basic biomedical research would provide further context on its scale and scope within the broader scientific landscape.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. The University of South Florida, as the prime contractor, is an academic institution. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific prime contract is likely minimal, unless the university voluntarily engages small businesses for specific support services.

Oversight & Accountability

Oversight for this contract would primarily fall under the National Institutes of Health (NIH), a division of the Department of Health and Human Services. As a cost-reimbursement contract, NIH would be responsible for monitoring the contractor's expenditures to ensure they are reasonable, allocable, and allowable. Regular progress reports and financial reviews are standard oversight mechanisms. The specific Inspector General for HHS would have jurisdiction over potential fraud, waste, or abuse related to this award.

Related Government Programs

NIH Research Grants
Biomedical Research Funding
University Research Contracts
Cost-Reimbursement Contracts
Sole-Source R&D Awards

Risk Flags

Sole-source justification required.
Cost-reimbursement requires robust oversight.
Long contract duration may pose relevance risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $79.0 million to UNIVERSITY OF SOUTH FLORIDA. BIOMEDICAL (BASIC)

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF SOUTH FLORIDA.

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 $79.0 million.

What is the period of performance?

Start: 2007-09-14. End: 2014-08-15.

What is the specific research objective and expected outcome of this $79M biomedical research contract?

The provided data indicates the contract is for 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' under NAICS code 541712, awarded to the University of South Florida by the National Institutes of Health (NIH). However, the specific research objective and expected outcomes are not detailed in the provided data snippet. Typically, NIH contracts of this magnitude support significant, multi-year research projects aimed at advancing scientific knowledge in areas like disease mechanisms, therapeutic development, or fundamental biological processes. The 'Cost No Fee' (CNF) contract type suggests a focus on reimbursing direct research costs without a profit motive for the university, implying the primary goal is the advancement of research itself rather than commercialization by the contractor. Further details would be found in the contract's statement of work.

How does the 'Cost No Fee' (CNF) contract type compare to other contract types used for similar NIH research?

The 'Cost No Fee' (CNF) contract type is a variation of cost-reimbursement contracts where the contractor (in this case, the University of South Florida) is reimbursed for all allowable direct and indirect costs incurred in performing the contract, but receives no fee or profit. This contrasts with other cost-reimbursement types like Cost Plus Fixed Fee (CPFF), where a fixed fee is added to the costs, or Cost Plus Incentive Fee (CPIF), where the fee varies based on performance against targets. For NIH research, CNF can be advantageous when the primary goal is pure scientific discovery and the government wants to avoid incentivizing profit-seeking behavior, focusing instead on efficient execution of the research plan. It requires robust government oversight to ensure costs are controlled and reasonable, as there's no profit motive to drive efficiency. Other research contracts might use CPFF if there's a well-defined scope and the government wants to provide a predictable profit for the contractor's effort.

What are the potential risks associated with a sole-source award for a long-duration research contract?

Sole-source awards for long-duration research contracts, like this $79M NIH award to the University of South Florida, carry several potential risks. Firstly, the absence of competition means the government may not achieve the best possible price or value, as there's no market pressure to drive down costs. Secondly, without competitive proposals, the government might have less assurance that the chosen contractor is the most innovative or capable, even if they possess unique expertise. For long-duration contracts (2527 days), there's a risk that the research landscape, technology, or scientific understanding could evolve significantly, potentially making the original research objectives less relevant or requiring substantial modifications. This necessitates strong contract management and flexibility to adapt. Finally, sole-source awards can sometimes face public or congressional scrutiny regarding fairness and justification, especially if alternatives were perceived to exist.

What is the historical spending pattern for biomedical research at the University of South Florida with NIH?

The provided data snippet focuses on a single definitive contract awarded on September 14, 2007, with an end date of August 15, 2014, totaling $79,024,601. This data point alone does not provide a comprehensive historical spending pattern. To assess this, one would need to analyze all contracts and grants awarded to the University of South Florida by the NIH over an extended period. This would involve querying federal procurement databases (like FPDS or USASpending) for all transactions between these two entities. Such an analysis would reveal trends in award amounts, contract types (competitive vs. sole-source), research areas funded, and the consistency of funding. Without this broader dataset, it's impossible to determine if this $79M award represents a typical level of funding, an increase, or a decrease compared to past NIH support for the university's biomedical research.

How does the $79M award compare to the total NIH budget or typical grant sizes for biomedical research?

The $79,024,601 award to the University of South Florida represents a substantial single contract. To contextualize this, the National Institutes of Health (NIH) is the primary agency of the U.S. Department of Health and Human Services, responsible for conducting and supporting medical research. Its annual budget typically runs into the tens of billions of dollars (e.g., over $40 billion in recent years). While $79 million is a significant sum for a single contract, it is a relatively small fraction of the overall NIH budget. NIH funds a vast array of research through various mechanisms, including grants, cooperative agreements, and contracts. Typical NIH research grants can range widely, from hundreds of thousands to millions of dollars per year, depending on the scope, duration, and type of research. Large center grants or specialized contracts can reach tens of millions. Therefore, this $79M award, especially given its long duration (approx. 7 years), is on the higher end for a single award but fits within the scale of major NIH research initiatives.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 4202 E FOWLER AVE ADM, TAMPA, FL, 33620

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

Financial Breakdown

Contract Ceiling: $79,024,601

Exercised Options: $79,024,601

Current Obligation: $79,024,601

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline