NIH awards $20.6M for biomedical R&D to University of Utah, highlighting a significant investment in biotechnology research

Contract Overview

Contract Amount: $20,582,925 ($20.6M)

Contractor: University of Utah

Awarding Agency: Department of Health and Human Services

Start Date: 2011-09-27

End Date: 2016-09-29

Contract Duration: 1,829 days

Daily Burn Rate: $11.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: R&D

Official Description: BIOMEDICAL (APPLIED/EXPLORATORY)

Place of Performance

Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84112

State: Utah Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $20.6 million to UNIVERSITY OF UTAH for work described as: BIOMEDICAL (APPLIED/EXPLORATORY) Key points: 1. The contract's value represents a substantial commitment to advancing biotechnology research. 2. Limited competition dynamics may influence pricing and innovation. 3. The duration of the contract suggests a long-term research objective. 4. Performance context is tied to the specific research outcomes of the University of Utah. 5. This contract positions the University of Utah as a key player in federally funded biomedical research. 6. The absence of a small business set-aside indicates a focus on specialized research capabilities.

Value Assessment

Rating: fair

The total award of $20.6 million over approximately five years for biomedical research is a significant sum. Benchmarking this against similar R&D contracts requires detailed analysis of the specific research scope and deliverables. Without more comparable data on the exact nature of the 'Research and Development in Biotechnology' and the specific outcomes expected, it is difficult to definitively assess value for money. However, the 'COST NO FEE' contract type suggests that the government aims to cover actual costs incurred by the contractor, which can sometimes lead to higher overall spending if not tightly managed.

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 among multiple vendors. This approach is typically used when a specific entity possesses unique capabilities, expertise, or intellectual property essential for the project. The lack of competition means that price discovery through market forces was bypassed, and the government relied on negotiation to establish a fair price. This can be efficient for highly specialized research but may forgo potential cost savings from a competitive bidding process.

Taxpayer Impact: For taxpayers, a sole-source award means that the government did not leverage competitive pressures to potentially lower the contract's cost. While justified for unique capabilities, it necessitates robust oversight to ensure the negotiated price accurately reflects the value and effort required.

Public Impact

The University of Utah is the primary beneficiary, receiving funding to advance its research capabilities. The contract supports research and development in biotechnology, potentially leading to new medical treatments or diagnostic tools. The geographic impact is primarily within Utah, where the university is located, but the research findings could have national and global implications. The contract supports academic researchers and potentially students, contributing to the development of the scientific workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in a 'COST NO FEE' contract without stringent oversight.
Lack of competitive pressure could lead to less aggressive cost management by the contractor.
The sole-source nature limits opportunities for other institutions or companies to contribute and innovate.

Positive Signals

The University of Utah is a reputable institution with established research capabilities.
The long contract duration (approx. 5 years) indicates a commitment to a significant research endeavor.
The focus on biotechnology R&D aligns with national priorities for health and scientific advancement.

Sector Analysis

The contract falls within the Research and Development in Biotechnology sector, a critical area for scientific advancement and public health. This sector is characterized by high innovation, long development cycles, and significant government investment. The market size for biotechnology R&D is substantial, with numerous academic institutions and private companies vying for federal grants and contracts. This specific award to the University of Utah represents a portion of the broader federal spending aimed at fostering innovation in life sciences.

Small Business Impact

This contract was not competed and does not appear to have a small business set-aside. The nature of advanced biomedical research often requires specialized facilities and expertise typically found in larger institutions or established research organizations, making it less common for small businesses to be the primary awardees in such specific R&D areas. There is no indication of subcontracting requirements for small businesses within the provided data.

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. Given it's a 'COST NO FEE' contract, rigorous financial oversight and progress reporting are crucial to ensure funds are used appropriately and research milestones are met. Transparency would be managed through periodic reports and potentially public dissemination of research findings, subject to any proprietary or national security considerations.

Related Government Programs

Biotechnology Research Grants
National Institutes of Health Funding
University Research Contracts
Applied Research and Development

Risk Flags

Sole-source award may limit cost savings.
Cost-reimbursement contract type requires diligent oversight to manage spending.
Long contract duration necessitates phased performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $20.6 million to UNIVERSITY OF UTAH. BIOMEDICAL (APPLIED/EXPLORATORY)

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF UTAH.

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 $20.6 million.

What is the period of performance?

Start: 2011-09-27. End: 2016-09-29.

What is the specific research focus of this $20.6 million contract awarded to the University of Utah?

The contract, identified under NAICS code 541711 (Research and Development in Biotechnology), is for 'Research and Development in Biotechnology.' While the specific research focus is not detailed in the provided data, this NAICS code generally encompasses activities such as basic research, applied research, and experimental development in the fields of biotechnology. This could include areas like genetic engineering, molecular biology, biopharmaceuticals, diagnostics, and other life science innovations. The University of Utah's specific research strengths and proposals would have determined the precise scope of work funded by this contract.

How does the University of Utah's track record in receiving federal R&D funding compare to other institutions?

The University of Utah is a significant recipient of federal research funding, particularly from agencies like NIH. While this specific contract is a substantial award, it is one among many for major research universities. Institutions like the University of Utah consistently rank among the top recipients of federal R&D dollars, competing for grants and contracts based on scientific merit, institutional capacity, and faculty expertise. A comprehensive comparison would require analyzing total federal R&D funding received by peer institutions over similar periods, looking at funding sources (e.g., NIH, NSF, DoD), and the specific research areas funded.

What are the potential risks associated with a 'COST NO FEE' contract for biomedical R&D?

A 'COST NO FEE' contract, while common in R&D, carries inherent risks. The primary risk is that the government agrees to reimburse the contractor for all allowable costs incurred, without a fixed profit margin. This can lead to cost overruns if the research proves more expensive than initially estimated or if project scope changes significantly. Without robust oversight and clear performance metrics, there's a risk that costs could escalate without a commensurate increase in research progress or value. Ensuring that only reasonable and necessary costs are reimbursed is paramount for taxpayer protection.

How does the duration of this contract (approx. 5 years) impact the assessment of program effectiveness?

The approximately five-year duration of this contract suggests a long-term research objective, which is typical for complex R&D projects in biotechnology. This extended timeline allows for in-depth investigation, iterative development, and the potential for significant scientific breakthroughs. Assessing program effectiveness over such a period requires phased evaluations, milestone tracking, and ultimately, a review of the research outcomes against the initial objectives. Short-term assessments might not capture the full impact or potential of the research, while a longer view allows for a more comprehensive understanding of its success and contribution to the field.

What does the 'NOT COMPETED' status imply about the selection process and potential alternatives?

The 'NOT COMPETED' status indicates that the contract was awarded on a sole-source basis, meaning the government did not solicit proposals from multiple sources. This typically occurs when only one source is capable of meeting the agency's needs, often due to unique capabilities, intellectual property, or specialized expertise. While this ensures the use of a specific, qualified entity, it bypasses the competitive process that could potentially lead to lower prices or innovative solutions from other vendors. The justification for not competing is critical for ensuring the government obtained the best value under the circumstances.

Can we benchmark the $20.6 million award against historical federal spending in biotechnology R&D?

Benchmarking the $20.6 million award requires context within the broader landscape of federal spending on biotechnology R&D. Agencies like NIH consistently allocate billions of dollars annually to this sector, funding a wide array of projects from basic science to applied development. This specific contract represents a significant, but not extraordinary, investment for a multi-year R&D effort at a major research institution. To benchmark effectively, one would compare it to the average award size for similar R&D projects, the total federal R&D budget for biotechnology, and the funding levels of peer institutions over comparable timeframes.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in Biotechnology

Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: RFPNIHNINDS1101

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 201 PRESIDENTS CIR RM 408, SALT LAKE CITY, UT, 84112

Business Categories: Category Business, Educational Institution, Government, Higher Education, U.S. National Government, Not Designated a Small Business, Higher Education (Public), U.S. Regional/State Government, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,928,329

Exercised Options: $20,582,925

Current Obligation: $20,582,925

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline