NIH awards $22.6M for epilepsy therapy screening, with University of Utah as sole contractor

Contract Overview

Contract Amount: $22,560,343 ($22.6M)

Contractor: University of Utah

Awarding Agency: Department of Health and Human Services

Start Date: 2016-09-26

End Date: 2022-03-22

Contract Duration: 2,003 days

Daily Burn Rate: $11.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: R&D

Official Description: IGF::OT::IGF OTHER FUNCTIONS NINDS EPILEPSY THERAPY SCREENING PROGRAM

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 $22.6 million to UNIVERSITY OF UTAH for work described as: IGF::OT::IGF OTHER FUNCTIONS NINDS EPILEPSY THERAPY SCREENING PROGRAM Key points: 1. Contract value appears reasonable given the specialized R&D nature. 2. Sole contractor raises questions about competitive pricing and innovation. 3. Long contract duration (over 5 years) warrants close performance monitoring. 4. Focus on a critical health area (epilepsy) indicates significant public health relevance. 5. Biotechnology R&D sector is characterized by high upfront investment and long development cycles. 6. Contract aligns with NIH's mission to support fundamental biomedical research.

Value Assessment

Rating: fair

The contract value of $22.6 million over approximately five years for specialized research and development in epilepsy therapy screening is difficult to benchmark without more granular data on similar projects. However, given the complexity and long-term nature of R&D, the cost appears within a plausible range for a single-institution effort. The 'COST NO FEE' award type suggests the government is primarily reimbursing the contractor for incurred costs, which can be efficient if well-managed, but also carries risks of cost overruns if not rigorously overseen. Further analysis would require comparing the scope of work and deliverables to other NIH-funded epilepsy research grants.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not competed among multiple potential bidders. While sole-source awards can be appropriate for highly specialized research where only one entity possesses the unique expertise or resources, it limits the potential for price competition and may not yield the best value for taxpayer dollars. The absence of a competitive process means there is no direct comparison to other offers, making it challenging to assess if the negotiated price reflects market rates or if alternative solutions were overlooked.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as they forgo the benefits of competitive bidding, potentially paying a premium for specialized services.

Public Impact

Patients suffering from epilepsy stand to benefit from advancements in therapy screening and potential new treatments. The research delivered will contribute to the scientific understanding of epilepsy and its potential therapeutic interventions. The geographic impact is primarily within Utah, where the University of Utah conducts the research, but the findings have national and global implications for epilepsy treatment. The contract supports highly skilled researchers and technical staff within the biotechnology and medical research fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing and innovation.
Lack of competition may obscure potential cost efficiencies or alternative approaches.
Long contract duration requires sustained oversight to ensure progress and prevent scope creep.

Positive Signals

Addresses a critical unmet medical need in epilepsy therapy.
Leverages specialized expertise at a leading research institution.
Contract aligns with NIH's mission to advance biomedical knowledge.

Sector Analysis

This contract falls within the Research and Development in Biotechnology sector, specifically focusing on medical research. This sector is characterized by significant investment in innovation, long development timelines, and a high degree of scientific specialization. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of R&D, but NIH consistently funds a large portfolio of such contracts to advance medical science. The market size for epilepsy treatments is substantial, driving demand for research in this area.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The focus on a large university research institution suggests that the primary work will be performed in-house or through collaborations that may not prioritize small business participation. This contract is unlikely to have a direct positive impact on the small business ecosystem within this specific R&D niche.

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. As a 'COST NO FEE' contract, rigorous financial oversight is crucial to ensure that only allowable costs are reimbursed. The contract's long duration necessitates regular performance reviews and milestone tracking. Transparency would be enhanced through public reporting of research findings, though specific contract spending details might be less accessible due to its sole-source nature and research focus.

Related Government Programs

NIH Research Grants
Biotechnology Research and Development
Medical Therapy Development
Epilepsy Research Funding

Risk Flags

Sole-source award raises concerns about competition and potential value.
Lack of performance metrics in provided data makes effectiveness assessment difficult.
Contract duration requires ongoing monitoring for scope creep and efficiency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $22.6 million to UNIVERSITY OF UTAH. IGF::OT::IGF OTHER FUNCTIONS NINDS EPILEPSY THERAPY SCREENING PROGRAM

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 $22.6 million.

What is the period of performance?

Start: 2016-09-26. End: 2022-03-22.

What is the University of Utah's track record in epilepsy research and therapy development?

The University of Utah has a recognized history in biomedical research, including neuroscience and the study of neurological disorders. Its Department of Neurology and other affiliated research centers have been involved in various studies related to epilepsy, including basic science, clinical trials, and translational research. Specific to this contract, the University's established infrastructure, experienced research teams, and prior NIH funding in related areas likely contributed to its selection. A deeper dive into their publication record, previous grant successes, and specific expertise in therapy screening methodologies would provide further context on their capabilities and suitability for this sole-source award.

How does the $22.6 million contract value compare to similar epilepsy research initiatives funded by NIH?

Benchmarking this $22.6 million contract against similar NIH-funded epilepsy research initiatives is challenging without precise comparative data on scope, duration, and deliverables. NIH funds a wide array of epilepsy research, from basic science grants to clinical trials, with varying award sizes. Large, multi-year R&D contracts awarded to single institutions for specialized screening programs can indeed reach tens of millions of dollars. However, the 'sole-source' nature of this award means we lack a competitive baseline. To assess value, one would need to compare the specific research objectives, methodologies, and expected outcomes against other large-scale epilepsy research projects, considering factors like the number of research personnel, equipment costs, and the novelty of the therapeutic targets.

What are the primary risks associated with a sole-source award for specialized R&D like this?

The primary risks associated with a sole-source award for specialized R&D include potential lack of competitive pricing, reduced incentive for innovation, and limited market validation. Without competition, the contractor may not feel pressured to offer the most cost-effective solution, potentially leading to higher costs for the government. Furthermore, the absence of alternative proposals might mean that more innovative or efficient approaches are not explored. There's also a risk that the government might overpay if the negotiated price doesn't accurately reflect the true market value of the services. Finally, sole-source awards can sometimes raise concerns about fairness and transparency in the procurement process, even when justified by unique capabilities.

How effective is the 'COST NO FEE' contract type for managing R&D projects with uncertain outcomes?

The 'COST NO FEE' (CNF) contract type is designed for R&D efforts where the outcome is uncertain and the primary goal is to reimburse the contractor for allowable costs incurred in pursuing the research objectives. It is often used when the scope of work is not well-defined or when the contractor possesses unique expertise. While CNF contracts can facilitate research by allowing flexibility and covering necessary expenses, they carry risks for the government. The government bears the financial risk if costs escalate beyond initial estimates, and robust oversight is essential to ensure costs are reasonable, allocable, and necessary. Without a fee, the contractor's incentive is primarily to complete the research scope rather than to maximize profit, but careful monitoring is still required to ensure efficient resource utilization and progress towards defined milestones.

What are the historical spending patterns for epilepsy therapy screening research at NIH?

NIH's historical spending on epilepsy therapy screening research is distributed across various institutes and centers, with the National Institute of Neurological Disorders and Stroke (NINDS) often playing a lead role. Funding levels fluctuate based on research priorities, scientific opportunities, and budgetary allocations. While specific figures for 'epilepsy therapy screening' as a distinct category are not readily available without deep database queries, NIH consistently invests hundreds of millions annually in epilepsy research broadly. This includes funding for basic science, translational research, clinical studies, and drug development. Contracts like the one awarded to the University of Utah represent a portion of this broader investment, often directed towards specific, high-priority research goals that require specialized capabilities.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: RFPNIHNINDS1602

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 201 S PRESIDENT CIRCLE 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

Financial Breakdown

Contract Ceiling: $22,560,343

Exercised Options: $22,560,343

Current Obligation: $22,560,343

Actual Outlays: $2,850,012

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $684,988

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline