NIH awards $12M for biomedical research, with a 5-year duration and full and open competition

Contract Overview

Contract Amount: $11,974,858 ($12.0M)

Contractor: Northwestern University

Awarding Agency: Department of Health and Human Services

Start Date: 2007-09-28

End Date: 2012-09-27

Contract Duration: 1,826 days

Daily Burn Rate: $6.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 18

Pricing Type: COST NO FEE

Sector: R&D

Official Description: BIOMEDICAL (APPLIED/EXPLORATORY)

Place of Performance

Location: EVANSTON, COOK County, ILLINOIS, 60208

State: Illinois Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $12.0 million to NORTHWESTERN UNIVERSITY for work described as: BIOMEDICAL (APPLIED/EXPLORATORY) Key points: 1. Contract awarded through full and open competition, suggesting a robust market. 2. Research and Development in Physical, Engineering, and Life Sciences is a broad category with significant federal investment. 3. The contract's duration of 1826 days (5 years) indicates a long-term research objective. 4. The 'COST NO FEE' contract type implies that the government reimburses allowable costs without an additional fee for the contractor. 5. Northwestern University, a large research institution, is the recipient, indicating a focus on established academic research capabilities. 6. The contract falls under the Biomedical (Applied/Exploratory) domain, a critical area for public health advancement.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or comparable projects. The total award of approximately $12 million over five years averages to $2.4 million annually. This figure needs to be assessed against the scope and complexity of the biomedical research being conducted. Given the 'COST NO FEE' structure, the government's primary concern is the efficient use of funds to achieve research objectives rather than profit margins for the contractor.

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 a bid. This suggests a competitive environment where multiple research institutions likely vied for the award. The presence of 18 bids (no=18) further supports a healthy level of competition, which typically drives better pricing and innovation.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective research outcomes and a wider pool of innovative solutions.

Public Impact

The primary beneficiaries are the researchers at Northwestern University, who will receive funding to advance biomedical knowledge. The services delivered are applied and exploratory biomedical research, contributing to scientific understanding and potential future health solutions. The geographic impact is primarily within Illinois, where Northwestern University is located, but the research findings can have national and global implications. Workforce implications include support for researchers, technicians, and administrative staff involved in the project at the university.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the true value for money.
The 'COST NO FEE' structure, while common in research, can sometimes lead to less stringent cost control if not properly monitored.
The long duration of the contract could pose risks if research directions need to pivot significantly due to new discoveries or changing priorities.

Positive Signals

Awarded through full and open competition with a significant number of bids, indicating strong interest and a competitive process.
Northwestern University is a reputable research institution, suggesting a high likelihood of competent execution.
The contract supports critical biomedical research, aligning with national health priorities.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The biomedical research sub-sector is a significant area of federal investment, driven by agencies like NIH. Comparable spending benchmarks would involve analyzing other large, multi-year research grants awarded by NIH to academic institutions for similar exploratory work. The market size for biomedical R&D is substantial, with numerous universities and private entities competing for federal funding.

Small Business Impact

There is no indication that this contract involved small business set-asides. As a research grant to a large university, the primary focus is likely on the institution's research capabilities rather than subcontracting opportunities for small businesses. However, the university may engage small businesses for specialized services or supplies as part of its research operations, though this is not explicitly detailed in the award information.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Institutes of Health (NIH), a component of the Department of Health and Human Services. NIH program officers and contracting officials would monitor progress, review reports, and ensure compliance with the terms of the 'COST NO FEE' definitive contract. Transparency is generally maintained through public research publications and NIH reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

National Institutes of Health Research Grants
Biomedical Research and Development
University Research Funding
Life Sciences Research Contracts

Risk Flags

Long contract duration may require flexibility in research direction.
Cost-reimbursement contracts require diligent oversight to ensure cost control.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $12.0 million to NORTHWESTERN UNIVERSITY. BIOMEDICAL (APPLIED/EXPLORATORY)

Who is the contractor on this award?

The obligated recipient is NORTHWESTERN UNIVERSITY.

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 $12.0 million.

What is the period of performance?

Start: 2007-09-28. End: 2012-09-27.

What specific research areas are being funded under this contract?

The provided data indicates the contract falls under 'BIOMEDICAL (APPLIED/EXPLORATORY)' research and the North American Industry Classification System (NAICS) code '541710' for Research and Development in the Physical, Engineering, and Life Sciences. However, the specific sub-disciplines or research questions being investigated are not detailed. Typically, NIH grants fund a wide array of areas, including but not limited to genetics, immunology, neuroscience, pharmacology, and public health research. Further details would likely be available in the grant proposal documents or through NIH's project portfolio.

How does the $12 million award compare to other NIH biomedical research contracts of similar duration?

The $12 million award over five years, averaging $2.4 million annually, is a substantial but not extraordinary amount for a large-scale biomedical research project at a major university. NIH funds a spectrum of research grants, from smaller exploratory ones to massive program project grants. Contracts of this magnitude are common for projects requiring significant personnel, equipment, and resources over an extended period. Benchmarking would require comparing it against other grants with similar objectives, scope, and institutional capacity, considering factors like the number of principal investigators and the complexity of the research questions.

What are the potential risks associated with a 5-year 'COST NO FEE' research contract?

A significant risk with a long-term 'COST NO FEE' contract is the potential for scope creep or research directions becoming misaligned with evolving scientific understanding or agency priorities over the five-year period. While 'COST NO FEE' contracts reimburse allowable costs, they require diligent oversight to ensure efficient resource utilization and prevent unnecessary expenditures. If the research proves less fruitful than anticipated or encounters unforeseen challenges, the value derived from the investment could be diminished. Effective project management, regular progress reviews, and clear communication channels between NIH and Northwestern University are crucial to mitigate these risks.

What is Northwestern University's track record in securing federal research funding, particularly from NIH?

Northwestern University is a major research institution with a well-established history of securing significant federal funding, including substantial grants from the National Institutes of Health (NIH). While specific data on their overall funding portfolio isn't provided here, universities of its caliber consistently rank among the top recipients of federal research dollars. Their success typically stems from strong research programs, experienced faculty, and a proven ability to manage complex research projects and comply with federal regulations. This particular award suggests continued confidence from NIH in Northwestern's capacity to conduct impactful biomedical research.

How does the 'full and open competition' with 18 bids impact the value for taxpayers?

The 'full and open competition' with 18 bids is a strong positive signal for taxpayers. It indicates that the National Institutes of Health (NIH) cast a wide net, allowing numerous qualified institutions to compete for the research funding. A higher number of bids generally leads to more competitive pricing and a broader range of innovative approaches being considered. This competitive pressure encourages bidders to offer their best value propositions, potentially resulting in more efficient use of taxpayer dollars and higher quality research outcomes compared to a sole-source or limited competition scenario.

What are the implications of the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code for this contract?

The NAICS code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences,' signifies that this contract supports fundamental and applied research across a broad scientific spectrum. For this specific biomedical contract, it means the work likely involves scientific inquiry, experimentation, and analysis aimed at advancing knowledge in areas related to biology, medicine, chemistry, physics, and engineering as they apply to health. This broad classification allows for flexibility in research direction but also necessitates clear project definition and oversight to ensure alignment with the intended biomedical focus and objectives.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: RFPNIHNICHD0711E

Offers Received: 18

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 633 CLARK ST, EVANSTON, IL, 60208

Business Categories: Category Business, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Higher Education (Private)

Financial Breakdown

Contract Ceiling: $42,662,188

Exercised Options: $12,972,574

Current Obligation: $11,974,858

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline