NIH awards $192.6M for AIDS research, with Westat Inc. leading R&D efforts

Contract Overview

Contract Amount: $192,586,425 ($192.6M)

Contractor: Westat, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2007-12-01

End Date: 2016-07-21

Contract Duration: 3,155 days

Daily Burn Rate: $61.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: AIDS RESEARCH (BASIC)

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $192.6 million to WESTAT, INC. for work described as: AIDS RESEARCH (BASIC) Key points: 1. Value for money assessed through cost-plus-fixed-fee structure, aiming for efficient research outcomes. 2. Competition dynamics indicate a full and open process, suggesting a robust market for AIDS research services. 3. Risk indicators include the complexity of R&D and the long-term nature of AIDS research. 4. Performance context is within the broader National Institutes of Health mission to advance health knowledge. 5. Sector positioning places this contract within the critical life sciences and public health research domain.

Value Assessment

Rating: good

The contract's cost-plus-fixed-fee (CPFF) structure allows for flexibility in research while providing cost control. Benchmarking against similar R&D contracts in the life sciences sector would provide a clearer picture of value. The total award amount of $192.6 million over its duration suggests a significant investment in a complex research area. Without specific cost breakdowns or comparable project data, a precise value-for-money assessment is challenging, but the CPFF structure is a common and generally accepted method for managing R&D expenditures.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of 3 bidders suggests a competitive environment for this type of research. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government. The specific details of the bidding process and the evaluation criteria would further illuminate the effectiveness of the competition.

Taxpayer Impact: A full and open competition ensures that taxpayer funds are used efficiently by fostering a competitive environment that drives down costs and encourages innovation among contractors.

Public Impact

Beneficiaries include the global community through advancements in AIDS research and potential treatments. Services delivered encompass critical research and development activities aimed at understanding and combating AIDS. Geographic impact is broad, with findings potentially benefiting populations worldwide. Workforce implications include employment for researchers, scientists, and support staff involved in the project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically focusing on AIDS research. This is a critical area within the broader healthcare and biotechnology market. Comparable spending benchmarks would involve looking at other large-scale R&D grants and contracts awarded by NIH and other federal health agencies for complex scientific endeavors. The market for such specialized research services is driven by scientific expertise, institutional capacity, and a proven track record in managing complex projects.

Small Business Impact

The data indicates that small business participation was not a primary focus for this contract, as the 'ss' (small business set-aside) and 'sb' (small business) flags are false. This suggests the contract was awarded based on specialized capabilities rather than a mandate to support small businesses. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in the provided summary. The impact on the small business ecosystem would likely be indirect, through potential innovation spillover or by freeing up larger entities to focus on specific R&D areas.

Oversight & Accountability

Oversight for this contract would primarily fall under the National Institutes of Health (NIH), a component of the Department of Health and Human Services (HHS). NIH has established program officers and contracting officers responsible for monitoring contractor performance, adherence to research protocols, and financial accountability. Inspector General jurisdiction would typically reside within HHS, providing an independent layer of oversight for fraud, waste, and abuse. Transparency is facilitated through public reporting of research outcomes and contract awards, though detailed internal performance metrics may not be publicly accessible.

Related Government Programs

Risk Flags

Tags

aids-research, health-and-human-services, national-institutes-of-health, westat-inc, research-and-development, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, maryland, life-sciences, biotechnology, public-health

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $192.6 million to WESTAT, INC.. AIDS RESEARCH (BASIC)

Who is the contractor on this award?

The obligated recipient is WESTAT, 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 $192.6 million.

What is the period of performance?

Start: 2007-12-01. End: 2016-07-21.

What is the track record of Westat, Inc. in managing large-scale federal research and development contracts, particularly in the health sector?

Westat, Inc. has a significant history of managing large-scale federal contracts, particularly within the health and social science research domains. As a research organization, their core business involves conducting studies, surveys, and data analysis for government agencies. Their experience with the National Institutes of Health (NIH) and other health-focused bodies suggests a familiarity with the regulatory environment, research methodologies, and reporting requirements pertinent to complex scientific endeavors like AIDS research. While specific performance metrics for this particular AIDS research contract are not detailed here, Westat's longevity and continued awards from federal agencies indicate a generally positive track record in delivering on research objectives and managing project finances.

How does the $192.6 million award compare to other federal spending on AIDS research over a similar period?

The $192.6 million awarded to Westat, Inc. represents a substantial, but not unprecedented, investment in AIDS research by the federal government. The National Institutes of Health (NIH) is the primary federal agency funding biomedical research, including significant allocations towards HIV/AIDS. Over the contract's duration (approximately 9 years, from 2007 to 2016), annual federal spending on HIV/AIDS research has fluctuated but has consistently been in the billions of dollars across various agencies like NIH and CDC. This specific contract, therefore, is a significant component of NIH's direct funding for R&D in this area, likely focusing on specific research questions or projects within the broader national strategy.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for AIDS research, and how are they mitigated?

The primary risk with a CPFF contract for complex R&D like AIDS research is that the 'cost plus' element can incentivize the contractor to incur higher costs, as their fee is a percentage of those costs. This could lead to less cost-consciousness than a fixed-price contract. Additionally, defining the 'fixed fee' accurately upfront for long-term, evolving research can be challenging. Mitigation strategies employed by the government include rigorous oversight by program officials to ensure costs are reasonable and allocable, detailed review of incurred costs, and clear definition of research objectives and deliverables in the contract. The 'fixed fee' component provides a ceiling on the contractor's profit, offering some predictability for the government.

What is the expected impact of this contract on the development of new treatments or preventative measures for AIDS?

This contract is expected to contribute significantly to the body of knowledge surrounding AIDS, potentially accelerating the development of new treatments and preventative measures. By funding dedicated research and development efforts through Westat, Inc., the NIH aims to advance scientific understanding of the virus, its transmission, and its effects on the human body. The outcomes could include identifying new drug targets, improving existing therapies, developing more effective diagnostic tools, or contributing to the understanding needed for vaccine development. The specific impact depends on the precise research questions being addressed under the contract, but the substantial funding indicates a focus on critical, high-impact areas of AIDS research.

How has federal spending on AIDS research evolved over the past two decades, and where does this contract fit in?

Federal spending on AIDS research has seen substantial growth and evolution over the past two decades, driven by scientific breakthroughs and public health imperatives. Initially focused on understanding the basic science of HIV and its pathogenesis, funding has expanded to encompass treatment development, prevention strategies, and addressing the social determinants of health related to the epidemic. This contract, awarded between 2007 and 2016, falls within a period of sustained, significant federal investment. It represents a specific, large-scale R&D initiative within the broader NIH portfolio, contributing to the ongoing efforts to combat the epidemic through scientific inquiry and innovation.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENTN – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1650 RESEARCH BLVD RM RE164, ROCKVILLE, MD, 20850

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $300,628,886

Exercised Options: $300,628,886

Current Obligation: $192,586,425

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline

Start Date: 2007-12-01

Current End Date: 2016-07-21

Potential End Date: 2016-07-21 00:00:00

Last Modified: 2018-07-27

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