NIH awards $13.7M for biomedical research to University of Miami over 8 years

Contract Overview

Contract Amount: $13,715,213 ($13.7M)

Contractor: University of Miami

Awarding Agency: Department of Health and Human Services

Start Date: 2006-09-30

End Date: 2013-06-30

Contract Duration: 2,465 days

Daily Burn Rate: $5.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 23

Pricing Type: COST NO FEE

Sector: R&D

Official Description: BIOMEDICAL (BASIC)

Place of Performance

Location: MIAMI, MIAMI-DADE County, FLORIDA, 33124

State: Florida Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $13.7 million to UNIVERSITY OF MIAMI for work described as: BIOMEDICAL (BASIC) Key points: 1. Contract value represents a significant investment in basic biomedical research. 2. Long contract duration suggests a sustained need for the research services. 3. The award was made under full and open competition, indicating broad market access. 4. Research and Development in Physical, Engineering, and Life Sciences is a key federal spending category. 5. The contract type (Cost No Fee) implies that the government reimburses allowable costs without a fixed profit margin. 6. The total number of modifications (23) suggests ongoing adjustments and potential scope changes throughout the contract's life.

Value Assessment

Rating: fair

The total award amount of $13.7 million over nearly 8 years averages to approximately $1.7 million per year. This figure needs to be benchmarked against similar basic biomedical research grants and contracts awarded by NIH to assess value for money. Without specific comparable data on research scope and outcomes, it's difficult to definitively assess if this represents excellent value. The 'Cost No Fee' contract type means the government covers actual costs incurred, which can sometimes lead to less price pressure compared to fixed-price contracts, but is common for R&D where outcomes are uncertain.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple potential bidders had the opportunity to submit proposals. This approach is generally favored for maximizing competition and potentially achieving better pricing and innovation. The fact that it was competed broadly implies that the University of Miami's proposal was deemed the most advantageous among those submitted.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and innovative solutions, ensuring federal funds are used efficiently.

Public Impact

The University of Miami is the primary beneficiary, receiving funding to conduct critical biomedical research. The research services delivered are in the area of physical, engineering, and life sciences, potentially leading to advancements in health and medicine. The geographic impact is primarily within Florida, where the University of Miami is located, supporting local research infrastructure and personnel. The contract supports a workforce of researchers, technicians, and administrative staff at the University of Miami.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Cost No Fee' contract type can sometimes lead to less stringent cost control compared to fixed-price contracts if not managed carefully.
The long duration and multiple modifications (23) could indicate evolving research needs or potential scope creep, requiring diligent oversight.
The lack of specific performance metrics or outcome-based evaluations in the provided data makes it challenging to assess the effectiveness and efficiency of the research conducted.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process and potential for strong proposals.
The significant funding amount indicates a commitment to advancing biomedical research, which can have long-term societal benefits.
The contract supports a recognized academic institution, likely contributing to scientific knowledge and training.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on basic biomedical research. The federal government is a major funder of R&D, with agencies like NIH investing billions annually to advance scientific understanding and develop new technologies and treatments. Comparable spending benchmarks would involve looking at other NIH grants and contracts awarded for similar basic science research projects, considering factors like the specific scientific discipline, the institution's research capacity, and the project's scope and duration.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside requirement for this contract (ss: false, sb: false). As a large research grant to a university, the primary focus is on the research capabilities of the institution. However, the University of Miami may engage small businesses as subcontractors for specific services or supplies needed to support the research, though this is not explicitly detailed in the summary data. The impact on the small business ecosystem would likely be indirect, depending on any subcontracting opportunities that arise.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Institutes of Health (NIH), the awarding agency. Mechanisms likely include regular progress reports from the University of Miami, financial reviews to ensure costs are allowable and reasonable, and potentially site visits or reviews by NIH program officers. Transparency is generally maintained through public databases like FPDS-NG, where contract actions are recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

National Institutes of Health Research Grants
Biomedical Research Funding
University Research Contracts
Basic Science Research Awards
Federal R&D Spending

Risk Flags

Long contract duration
Cost-reimbursement contract type
High number of modifications

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $13.7 million to UNIVERSITY OF MIAMI. BIOMEDICAL (BASIC)

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF MIAMI.

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 $13.7 million.

What is the period of performance?

Start: 2006-09-30. End: 2013-06-30.

What was the specific research focus of this contract awarded to the University of Miami?

The contract, NA 541710, falls under the North American Industry Classification System (NAICS) code 541710, which is defined as 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology).' While the data specifies 'BIOMEDICAL (BASIC)' as the description, it doesn't detail the precise research questions or methodologies. Typically, NIH funding under this category supports foundational scientific investigations aimed at understanding fundamental biological processes, disease mechanisms, or developing novel approaches for health interventions. The University of Miami, through its various research centers and departments, would have outlined a specific research plan in its proposal, likely focusing on areas within their established expertise, such as molecular biology, genetics, immunology, or neuroscience, depending on the specific NIH institute or center that awarded the grant.

How does the $13.7 million award compare to other NIH biomedical research contracts of similar duration?

Benchmarking the $13.7 million award requires comparing it to similar contracts awarded by the National Institutes of Health (NIH) for basic biomedical research over an approximate 8-year period (2465 days). NIH funds a vast array of research projects, with award sizes varying significantly based on the scope, complexity, and specific scientific area. For instance, large-scale, multi-disciplinary centers or clinical trials might receive substantially more funding, while smaller, investigator-initiated grants could be in the hundreds of thousands or low millions. An average annual spend of roughly $1.7 million ($13.7M / ~7.7 years) for a basic biomedical research contract is within a plausible range for significant institutional research efforts. However, a precise comparison would necessitate analyzing contracts with identical NAICS codes, similar funding mechanisms (e.g., grants vs. contracts), and comparable research objectives to determine if this represents a competitive or outlier value.

What are the potential risks associated with a 'Cost No Fee' contract type for biomedical research?

The 'Cost No Fee' (CNF) contract type, while common for research and development where outcomes are inherently uncertain, presents specific risks. The primary risk for the government is the potential for cost overruns without a corresponding increase in profit for the contractor, which can sometimes disincentivize aggressive cost management. The contractor is reimbursed for allowable, allocable, and reasonable costs incurred in performing the work. This means the government bears the financial risk if the research proves more expensive than initially anticipated. For the government, effective oversight is crucial to ensure that costs claimed are indeed necessary for the research and are not excessive. Without a fixed profit margin, the contractor's incentive is primarily to complete the research scope, but the financial burden of unexpected expenses falls on the government.

What does the number of contract modifications (23) suggest about the project's execution?

A total of 23 modifications over the contract's duration (approximately 8 years) suggests a dynamic research project. Modifications can encompass a wide range of changes, including adjustments to the period of performance, funding allocations, scope of work, or personnel. For a research contract, such modifications are not necessarily negative; they often reflect the iterative nature of scientific inquiry, where research directions may evolve based on preliminary findings, new scientific opportunities, or unforeseen challenges. However, a high number of modifications can also indicate potential issues such as initial under-scoping, changes in government requirements, or difficulties in execution. Diligent contract management and clear communication between the agency and the contractor are essential to ensure modifications align with the original research objectives and represent good value for taxpayer money.

How does the geographic location (Florida) influence the impact of this federal spending?

Federal spending on research conducted in Florida, such as this $13.7 million award to the University of Miami, has a direct economic and scientific impact on the state. It injects funds into the local economy through salaries for researchers and staff, procurement of supplies and services, and potentially indirect spending by employees. Furthermore, it supports and enhances Florida's research infrastructure and reputation in the biomedical field. This can foster a more robust scientific community, attract further investment, and contribute to the development of a skilled workforce in biotechnology and healthcare sectors within the region. The research outcomes themselves may also have long-term benefits for public health, potentially impacting residents both within Florida and beyond.

What is the significance of the NAICS code 541710 in understanding this contract?

The North American Industry Classification System (NAICS) code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' provides a crucial classification for this contract. It indicates that the work performed involves systematic study to gain new knowledge and understanding, applying scientific and technical principles to engineering and life sciences challenges, excluding specific biotechnology applications. This classification helps categorize the federal spending within a broader economic context, allowing for comparisons with other R&D activities across different agencies and sectors. It signals that the contract is focused on fundamental scientific exploration and innovation rather than product development or manufacturing, aligning with the 'BIOMEDICAL (BASIC)' description.

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

Offers Received: 23

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 1507 LEVANTE AVENUE ROOM 207, CORAL GABLES, FL, 33124

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

Financial Breakdown

Contract Ceiling: $14,796,982

Exercised Options: $13,715,213

Current Obligation: $13,715,213

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline