NIH awards $37.9M for specialized biological research services to The Broad Institute, Inc
Contract Overview
Contract Amount: $37,876,167 ($37.9M)
Contractor: THE Broad Institute, Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2015-09-25
End Date: 2017-09-24
Contract Duration: 730 days
Daily Burn Rate: $51.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 12
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: IGF::OT::IGF - B5999 SPECIAL STUDIES/ANALYSIS- OTHER
Place of Performance
Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02141
Plain-Language Summary
Department of Health and Human Services obligated $37.9 million to THE BROAD INSTITUTE, INC for work described as: IGF::OT::IGF - B5999 SPECIAL STUDIES/ANALYSIS- OTHER Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 730 days indicates a medium-term engagement for specialized services. 3. The fixed-price contract type aims to control costs and provide budget certainty. 4. The awardee, The Broad Institute, Inc., is a prominent research organization. 5. The North American Industry Classification System (NAICS) code 541380 points to testing laboratories and services. 6. The contract was awarded by the National Institutes of Health (NIH), a major health research agency.
Value Assessment
Rating: good
The contract value of $37.9 million over two years for specialized biological research services appears reasonable given the nature of the work and the reputation of the awardee. Benchmarking against similar large-scale, specialized research contracts is challenging without more specific service details, but the fixed-price structure suggests an effort to manage costs effectively. The award to a well-established institution like The Broad Institute implies access to significant expertise and infrastructure, which can justify the investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 12 bidders suggests a robust level of interest and competition for this specialized research service. A higher number of bidders generally leads to better price discovery and potentially more favorable terms for the government.
Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely drove down prices and ensured the government received competitive proposals for the services rendered.
Public Impact
The primary beneficiaries are researchers and institutions that will utilize the specialized biological research services provided under this contract. The services delivered are critical for advancing scientific understanding and potentially developing new medical treatments or diagnostic tools. The geographic impact is likely national, given the scope of NIH-funded research, though specific project locations may vary. Workforce implications include support for highly skilled scientists, technicians, and research support staff at The Broad Institute and potentially collaborating institutions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if research objectives are not clearly defined and managed.
- Dependence on a single contractor for highly specialized services could pose a risk if performance issues arise.
- Ensuring the long-term sustainability and accessibility of research findings generated under this contract.
Positive Signals
- Award to a leading research institution with a proven track record in biological sciences.
- Fixed-price contract type provides cost certainty for the government.
- Full and open competition with multiple bidders suggests a healthy market for these services.
- The contract supports critical research objectives of the National Institutes of Health.
Sector Analysis
This contract falls within the broader scientific research and development services sector, specifically focusing on biological and life sciences research. The market for such specialized services is characterized by a high degree of expertise, significant investment in infrastructure, and a relatively small number of highly qualified organizations. Comparable spending benchmarks would depend on the specific nature of the biological studies, but NIH's overall budget for research services is substantial, reflecting the importance of this sector.
Small Business Impact
There is no indication that this contract included small business set-asides, nor is there information suggesting significant subcontracting opportunities for small businesses. The nature of the specialized research services likely requires the unique capabilities of a large, established research institution. This contract may not directly benefit the small business ecosystem unless The Broad Institute engages them for specific support services not detailed in the award.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officers and program managers within the National Institutes of Health. Accountability measures are embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases, though detailed project-specific information may be subject to research confidentiality. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- NIH Research Grants
- National Science Foundation (NSF) Research Awards
- Department of Defense Research and Development Contracts
- Biomedical Research Initiatives
Risk Flags
- Potential for research uncertainty impacting deliverables.
- Reliance on specialized expertise of a single awardee.
Tags
health-and-human-services, national-institutes-of-health, research-and-development, biological-research, testing-laboratories, firm-fixed-price, definitive-contract, full-and-open-competition, massachusetts, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $37.9 million to THE BROAD INSTITUTE, INC. IGF::OT::IGF - B5999 SPECIAL STUDIES/ANALYSIS- OTHER
Who is the contractor on this award?
The obligated recipient is THE BROAD INSTITUTE, 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 $37.9 million.
What is the period of performance?
Start: 2015-09-25. End: 2017-09-24.
What is The Broad Institute's track record with federal research contracts, particularly with NIH?
The Broad Institute, Inc. has a significant track record of receiving federal funding, primarily through grants and contracts from agencies like the National Institutes of Health (NIH) and the National Science Foundation (NSF). Their work often involves large-scale genomics, computational biology, and disease research. While specific contract performance details are not publicly available in aggregate, their consistent funding and prominent role in major research initiatives suggest a strong capacity to manage complex federal research projects. Their expertise in areas like genetic sequencing, disease modeling, and drug discovery aligns well with NIH's mission, making them a frequent and capable awardee for such specialized services.
How does the $37.9 million award compare to other NIH contracts for similar biological research services?
The $37.9 million award for specialized biological research services over two years is a substantial but not unprecedented amount for large-scale research projects funded by the NIH. NIH frequently awards contracts and grants in the tens to hundreds of millions of dollars for complex, multi-year research endeavors. The value is commensurate with the specialized expertise, advanced technology, and extensive personnel required for cutting-edge biological research. Benchmarking requires precise definition of the 'specialized services,' but for initiatives involving genomics, proteomics, or advanced cellular research, this figure falls within a typical range for contracts awarded to leading research institutions.
What are the primary risks associated with this type of specialized research contract?
Key risks for this specialized research contract include the inherent uncertainty of scientific discovery, where research outcomes cannot be guaranteed. There's a risk of scope creep if research objectives evolve significantly or are not tightly managed, potentially increasing costs or extending timelines beyond the initial contract. Dependence on a single contractor, even a reputable one like The Broad Institute, poses a risk if unforeseen performance issues, personnel changes, or technological limitations arise. Furthermore, ensuring the timely dissemination and application of research findings can be a challenge, impacting the overall value realization for the government and public.
How effective is the fixed-price contract type in managing costs for complex research?
The fixed-price contract type is intended to provide cost certainty for the government by establishing a set price for the defined scope of work. For complex research, this can be effective if the scope is well-defined and the risks are thoroughly assessed upfront. It incentivizes the contractor to manage their costs efficiently to maximize profit. However, in research where outcomes are uncertain and the scope may need to adapt to new findings, a fixed-price contract can sometimes lead to contractors being hesitant to explore novel avenues or potentially cutting corners to stay within budget. For highly exploratory research, cost-plus contracts might offer more flexibility, but fixed-price is generally preferred when the scope and deliverables are clear.
What is the historical spending pattern for similar biological research services by NIH?
The National Institutes of Health (NIH) consistently allocates a significant portion of its budget to research services, including specialized biological studies. Historical spending patterns show a trend of increasing investment in areas like genomics, bioinformatics, and disease-specific research. NIH utilizes various contract vehicles and grant mechanisms to fund these activities, with awards ranging from small, targeted studies to massive, multi-year research programs. The total annual spending on research services and support by NIH runs into billions of dollars, reflecting its central role in advancing biomedical science. Awards to institutions like The Broad Institute are a recurring feature of this spending landscape.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Testing Laboratories and Services
Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: NHLBICSBHV2015134JS
Offers Received: 12
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 7 CAMBRIDGE CTR, CAMBRIDGE, MA, 02142
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: $37,876,167
Exercised Options: $37,876,167
Current Obligation: $37,876,167
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: YES
Timeline
Start Date: 2015-09-25
Current End Date: 2017-09-24
Potential End Date: 2017-09-24 00:00:00
Last Modified: 2019-06-07
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