HHS awarded $14.8M to Hennepin Healthcare for biomedical research support over 7 years

Contract Overview

Contract Amount: $14,833,648 ($14.8M)

Contractor: Hennepin Healthcare Research Institute

Awarding Agency: Department of Health and Human Services

Start Date: 2007-02-08

End Date: 2014-06-30

Contract Duration: 2,699 days

Daily Burn Rate: $5.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: R&D

Official Description: BIOMEDICAL (MANAGEMENT/SUPPORT)

Place of Performance

Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55404

State: Minnesota Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $14.8 million to HENNEPIN HEALTHCARE RESEARCH INSTITUTE for work described as: BIOMEDICAL (MANAGEMENT/SUPPORT) Key points: 1. Contract value represents a significant investment in biomedical research infrastructure. 2. Competition dynamics suggest a potentially competitive bidding process for this type of service. 3. Contract duration of nearly 7 years indicates a long-term need for these specialized services. 4. The 'Cost No Fee' contract type implies performance-based incentives or a fixed fee structure. 5. Geographic concentration in Minnesota may point to specific regional research strengths or needs. 6. The North American Industry Classification System (NAICS) code 541710 highlights the focus on R&D.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without more specific service details. However, the total award of $14.8 million over approximately 7 years suggests an average annual spend of roughly $2.1 million. This figure needs to be compared against similar biomedical research support contracts awarded by NIH or other agencies to determine if it represents a fair market value. The 'Cost No Fee' (CNF) contract type, while less common for R&D support, can sometimes indicate a focus on specific deliverables or a unique relationship with the contractor, which warrants further investigation into pricing reasonableness.

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 bids. This suggests a robust bidding environment, which typically leads to better price discovery and potentially more competitive pricing for the government. The number of bidders is not specified, but the 'full and open' designation implies that multiple proposals were likely considered, fostering a competitive landscape.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring the government receives the best value for its investment.

Public Impact

The primary beneficiaries are researchers and institutions within the biomedical field who receive essential management and support services. Services delivered likely include administrative support, project management, data analysis, and potentially specialized technical assistance for research projects. The geographic impact is concentrated in Minnesota, supporting the state's research ecosystem. Workforce implications include the creation or maintenance of jobs for individuals with expertise in research administration and support within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness and efficiency of the support provided.
The long contract duration without clear interim reviews could pose a risk if performance degrades over time.
The 'Cost No Fee' contract type requires careful monitoring to ensure cost control and prevent potential overruns if not structured with clear performance expectations.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded a qualified contractor.
The contract supports critical biomedical research, aligning with national health priorities.
The contractor, Hennepin Healthcare Research Institute, likely possesses specialized expertise in managing and supporting research initiatives.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on biomedical research support. The NAICS code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences,' encompasses a broad range of scientific endeavors. Spending in this area is crucial for advancing medical knowledge and developing new treatments. Comparable spending benchmarks would involve analyzing other NIH or HHS contracts for similar research support services, considering factors like contract duration, scope of work, and the specific scientific disciplines involved.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary focus of this contract is likely on large-scale research support, and opportunities for small business participation would depend on the prime contractor's subcontracting plan, if any, which is not detailed here.

Oversight & Accountability

Oversight for this contract would primarily reside with the awarding agency, the National Institutes of Health (NIH), a division of HHS. Specific oversight mechanisms would include contract administration, performance monitoring, and financial reviews. Accountability measures are typically embedded within the contract terms and conditions, including reporting requirements and potential remedies for non-performance. Transparency is generally facilitated through contract databases like FPDS, where basic award information is publicly available.

Related Government Programs

NIH Research Grants
Biomedical Research Support Services
Health Research Management
Life Sciences R&D Contracts

Risk Flags

Contract duration is long, requiring sustained oversight.
Contract type ('Cost No Fee') necessitates careful cost monitoring.
Specific performance metrics are not detailed, impacting effectiveness assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $14.8 million to HENNEPIN HEALTHCARE RESEARCH INSTITUTE. BIOMEDICAL (MANAGEMENT/SUPPORT)

Who is the contractor on this award?

The obligated recipient is HENNEPIN HEALTHCARE RESEARCH INSTITUTE.

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 $14.8 million.

What is the period of performance?

Start: 2007-02-08. End: 2014-06-30.

What specific management and support services were provided under this contract?

The provided data indicates the contract was for 'BIOMEDICAL (MANAGEMENT/SUPPORT)' under NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences). While specific service details are not in the abbreviated data, such contracts typically encompass a range of activities essential for the smooth operation of research projects. This can include administrative support (e.g., personnel management, procurement assistance, financial tracking), project coordination, data management and analysis, regulatory compliance support, and potentially logistical assistance for research activities. The 'Cost No Fee' (CNF) contract type suggests that the contractor is reimbursed for allowable costs, and the government's payment is not contingent upon the achievement of a specific profit objective, but rather on the incurrence of costs. This often implies a focus on efficient cost management and adherence to the contract's scope of work.

How does the $14.8 million award compare to similar biomedical research support contracts?

Comparing the $14.8 million award requires context regarding the contract's duration and scope. This contract spanned approximately 7 years (from Feb 2007 to June 2014), averaging about $2.1 million annually. To benchmark effectively, one would need to analyze similar 'BIOMEDICAL (MANAGEMENT/SUPPORT)' contracts awarded by NIH or other federal health agencies during a comparable period. Factors such as the specific services rendered (e.g., administrative vs. highly technical support), the size and complexity of the research programs supported, and the geographic location of the contractor would influence pricing. Without access to a detailed database of comparable contracts with granular service descriptions, a precise value-for-money assessment is difficult. However, the 'full and open competition' suggests market forces were engaged to determine a reasonable price.

What are the key risks associated with a 'Cost No Fee' contract for R&D support?

A 'Cost No Fee' (CNF) contract, while reimbursing the contractor for allowable costs, presents unique risks. For the government, the primary risk is ensuring cost control and preventing potential overruns if the contractor does not have a strong incentive to manage expenses efficiently, as profit is not directly tied to performance. There's also a risk that the contractor might prioritize cost recovery over optimal performance or innovation. For the contractor, the risk lies in the potential for disallowed costs or disputes over what constitutes an allowable expense. Effective oversight is crucial for CNF contracts to monitor expenditures, ensure compliance with the contract terms, and verify that the services provided are necessary and reasonable. The long duration of this contract (nearly 7 years) amplifies these risks if robust oversight mechanisms are not consistently applied.

What is the significance of the contractor being Hennepin Healthcare Research Institute?

Hennepin Healthcare Research Institute (HHRI) is a non-profit research organization affiliated with Hennepin Healthcare, a large public hospital system in Minneapolis. Its involvement suggests a contractor with deep ties to the healthcare and medical research community, likely possessing specialized knowledge and infrastructure relevant to biomedical research support. Being an established research institute implies a potential understanding of the scientific objectives and administrative needs of researchers. This background could contribute to the quality and relevance of the support services provided, potentially offering an advantage over general administrative service providers. The award to such an entity aligns with the government's goal of partnering with organizations that have demonstrated expertise in the field.

How has federal spending in biomedical R&D support evolved since this contract was awarded?

Since this contract was awarded (2007-2014), federal spending in biomedical R&D support has generally seen fluctuations driven by budget appropriations, national health priorities, and economic conditions. Agencies like NIH consistently remain major funders of biomedical research. Post-2014, there has been a continued emphasis on areas like precision medicine, cancer research (e.g., Cancer Moonshot), and infectious diseases, likely leading to increased demand for specialized support services. Contract vehicles and types may also evolve, with a greater focus on performance-based contracts and potentially more agile acquisition strategies. While the total dollar amounts awarded for R&D support may have increased or decreased depending on specific fiscal years and program initiatives, the fundamental need for robust management and administrative support for complex research endeavors remains a constant.

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: NIHNIDDK0601

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: Hennepin County (UEI: 068158369)

Address: 914 S 8TH ST STE 600, MINNEAPOLIS, MN, 55404

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

Financial Breakdown

Contract Ceiling: $14,833,648

Exercised Options: $14,833,648

Current Obligation: $14,833,648

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline