NIH awards $56M for biomedical research to Fred Hutchinson Cancer Research Center over 4.5 years

Contract Overview

Contract Amount: $55,969,871 ($56.0M)

Contractor: Fred Hutchinson Cancer Research Center

Awarding Agency: Department of Health and Human Services

Start Date: 2011-09-01

End Date: 2016-03-31

Contract Duration: 1,673 days

Daily Burn Rate: $33.5K/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: SEATTLE, KING County, WASHINGTON, 98109

State: Washington Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $56.0 million to FRED HUTCHINSON CANCER RESEARCH CENTER for work described as: BIOMEDICAL (BASIC) Key points: 1. Contract awarded on a cost-no-fee basis, indicating research focus rather than fixed-price deliverables. 2. Long duration of 1673 days suggests a sustained research effort. 3. Sole-source award raises questions about potential competition and price discovery. 4. Research falls under NAICS code 541712, focusing on physical, engineering, and life sciences R&D. 5. Contractor is a well-established research institution with a history in biomedical studies. 6. No small business set-aside, suggesting the primary contractor is not a small business.

Value Assessment

Rating: fair

The contract's cost-no-fee structure makes direct value-for-money assessment challenging without detailed cost breakdowns and progress reports. Benchmarking against similar biomedical research grants or contracts is difficult due to the specialized nature of the work and the lack of competitive pricing data. The total award amount of $55.97 million over approximately 4.5 years averages to about $12.44 million annually, which is within a typical range for large-scale, multi-year research projects of this nature, but the absence of competition limits a robust value assessment.

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 approach is typically used when a specific contractor possesses unique capabilities, expertise, or intellectual property essential for the project, or in cases of urgent need. The lack of competition means there was no opportunity for multiple bidders to propose alternative solutions or pricing, potentially leading to higher costs than if a competitive process had been employed. The absence of bidders also prevents an assessment of the market's capacity to deliver similar services.

Taxpayer Impact: For taxpayers, a sole-source award means there is no assurance that the government secured the best possible price or that alternative, potentially more cost-effective, solutions were explored. This can result in less efficient use of public funds compared to a competitively awarded contract.

Public Impact

The primary beneficiaries are researchers at Fred Hutchinson Cancer Research Center, enabling advanced biomedical studies. The services delivered are fundamental research in physical, engineering, and life sciences, contributing to scientific knowledge. The geographic impact is primarily within Washington state, where the research center is located. The contract supports a workforce of scientists, researchers, and support staff involved in cutting-edge biomedical investigations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential for cost savings.
Cost-no-fee structure can make precise budget oversight more complex without detailed performance metrics.
Long contract duration may present challenges in adapting to evolving research needs or priorities.

Positive Signals

Award to a reputable research institution suggests a high likelihood of scientific merit and progress.
Sustained funding over several years provides stability for long-term research projects.
Focus on fundamental research aligns with NIH's mission to advance scientific understanding.

Sector Analysis

This contract falls within the broader Research and Development (R&D) sector, specifically focusing on biomedical research. The market for such specialized research is often characterized by a limited number of highly qualified institutions and principal investigators. Government funding, particularly from agencies like NIH, is a critical driver in this sector. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of each research project, but annual funding in the tens of millions is common for large, multi-year grants to leading research centers.

Small Business Impact

This contract does not appear to have a small business set-aside, nor is there information indicating specific subcontracting goals for small businesses. Given the nature of the work and the size of the award, it is likely that the primary contractor, Fred Hutchinson Cancer Research Center, is a large research institution. The absence of small business considerations in the award details suggests limited direct impact on the small business ecosystem for this specific contract, though the research itself may eventually lead to innovations that benefit various industries.

Oversight & Accountability

Oversight for this contract would primarily fall under the National Institutes of Health (NIH), the awarding agency. As a cost-no-fee contract, oversight would likely focus on monitoring research progress, adherence to scientific protocols, and responsible use of funds. Transparency is generally maintained through research publications and grant reporting requirements. The specific Inspector General jurisdiction would be that of the Department of Health and Human Services (HHS), which oversees NIH.

Related Government Programs

NIH Research Grants
Biomedical Research Funding
Cancer Research Initiatives
Life Sciences R&D Contracts

Risk Flags

Sole-source award
Cost-reimbursement contract type

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $56.0 million to FRED HUTCHINSON CANCER RESEARCH CENTER. BIOMEDICAL (BASIC)

Who is the contractor on this award?

The obligated recipient is FRED HUTCHINSON CANCER RESEARCH CENTER.

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 $56.0 million.

What is the period of performance?

Start: 2011-09-01. End: 2016-03-31.

What is the specific research focus of this contract and how does it align with NIH's strategic priorities?

The contract, awarded under NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences except Biotechnology), is for biomedical research conducted by Fred Hutchinson Cancer Research Center. While the specific research focus isn't detailed in the provided data, NIH's overarching mission is to seek fundamental knowledge about the nature and behavior of living systems and the application of that knowledge to extend healthy life and prevent, alleviate, or cure disease. Contracts like this typically support areas such as cancer, infectious diseases, genetics, immunology, or other critical health challenges, aligning with NIH's strategic priorities to advance scientific discovery and improve public health outcomes.

Can the value for money be assessed given the cost-no-fee structure and sole-source award?

Assessing value for money for this cost-no-fee, sole-source contract is challenging. The cost-no-fee structure means the contractor is reimbursed for allowable costs but does not receive a fixed profit, making direct comparison to fixed-price contracts difficult. The sole-source nature means there was no competitive bidding process to establish a market price or explore alternative solutions. While the annual average cost is within a typical range for large research grants, the lack of competition prevents a definitive assessment of whether the government obtained the best possible value. Oversight would rely heavily on monitoring research progress and the justification of incurred costs.

What are the potential risks associated with a sole-source award for a contract of this magnitude?

A primary risk of a sole-source award is the potential for inflated costs due to the absence of competitive pressure. Without competing bids, there's less incentive for the contractor to offer the lowest possible price. Another risk is the missed opportunity to explore innovative approaches or technologies that other bidders might have proposed. Furthermore, it raises questions about whether the sole-source justification was robust and if alternative sources were adequately considered. For taxpayers, this can translate to less efficient allocation of funds compared to a competitively procured contract.

What is Fred Hutchinson Cancer Research Center's track record with federal research grants and contracts?

Fred Hutchinson Cancer Research Center is a globally recognized cancer research institution and a National Cancer Institute-designated comprehensive cancer center. It has a long and extensive history of receiving federal funding, primarily from the National Institutes of Health (NIH) and the National Cancer Institute (NCI), for a wide range of research projects. Their track record typically involves significant scientific contributions, publications in high-impact journals, and successful management of large, complex research programs. While specific details of past federal awards are not provided here, their established reputation suggests a strong capacity to conduct and manage federally funded research effectively.

How does this contract's duration and funding level compare to similar federal biomedical research efforts?

This contract, with a duration of approximately 1673 days (about 4.5 years) and a total award of $55.97 million, represents a substantial, long-term investment in biomedical research. Annualized, it averages around $12.44 million per year. This funding level and duration are consistent with major research grants awarded by NIH to leading research institutions for complex, multi-disciplinary projects, particularly in areas like cancer research. Many large-scale NIH grants span several years and involve significant funding to support extensive laboratory work, personnel, and infrastructure necessary for cutting-edge scientific inquiry.

What are the implications of the 'Cost No Fee' (Cost) contract type for performance and accountability?

The 'Cost' contract type, specifically 'Cost No Fee' (CNF) in this instance, means the contractor is reimbursed for all allowable direct and indirect costs incurred in performing the research, but receives no fee or profit. This structure is common for research and development efforts where the scope of work can be uncertain and difficult to define precisely upfront, making fixed-price contracts impractical. Accountability under a CNF contract shifts from strict adherence to a fixed price to rigorous oversight of the research process, scientific progress, and the allowability and reasonableness of costs. The government's primary leverage is the ability to audit costs and ensure compliance with research objectives and regulations, rather than penalizing cost overruns, as there is no fee to withhold.

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: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 1100 FAIRVIEW AVE N J6-300, SEATTLE, WA, 98109

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $55,969,871

Exercised Options: $55,969,871

Current Obligation: $55,969,871

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline