NIH awards $30.6M for biomedical research, with a 6-year duration and 6 bidders

Contract Overview

Contract Amount: $30,599,577 ($30.6M)

Contractor: Seattle Biomedical Research Institute

Awarding Agency: Department of Health and Human Services

Start Date: 2007-09-28

End Date: 2015-07-21

Contract Duration: 2,853 days

Daily Burn Rate: $10.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: BIOMEDICAL (BASIC)

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98109, UNITED STATES OF AMERICA

State: Washington Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $30.6 million to SEATTLE BIOMEDICAL RESEARCH INSTITUTE for work described as: BIOMEDICAL (BASIC) Key points: 1. Contract awarded through full and open competition, suggesting a robust market. 2. Research and Development in Physical, Engineering, and Life Sciences sector. 3. Cost Plus Fixed Fee contract type may incentivize cost control. 4. Duration of over 7 years indicates a long-term research commitment. 5. Seattle Biomedical Research Institute is the primary contractor. 6. Geographic location of awardee is Washington State.

Value Assessment

Rating: good

The contract's value of $30.6 million over nearly 8 years averages to approximately $3.8 million annually. Benchmarking this against similar biomedical research contracts is challenging without more specific service details. However, the presence of 6 bidders in a full and open competition suggests a competitive pricing environment. The Cost Plus Fixed Fee (CPFF) structure, while common in R&D, requires careful monitoring to ensure costs remain reasonable and the fixed fee is justified.

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 participation of 6 bidders suggests a healthy level of competition for this research opportunity. A higher number of bidders generally leads to better price discovery and potentially more innovative solutions, as contractors vie for the award.

Taxpayer Impact: Taxpayers benefit from a competitive process that is likely to yield a fair price for the biomedical research services rendered.

Public Impact

Benefits the National Institutes of Health (NIH) in advancing biomedical research. Supports scientific advancements in the Physical, Engineering, and Life Sciences. Potential for improved public health outcomes through research findings. Impacts the scientific workforce through research grants and employment opportunities. Geographic impact primarily in Washington State where the contractor is located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed tightly.
Long contract duration requires sustained oversight to ensure continued alignment with research goals.
Specific research outcomes and their impact are not detailed, making performance assessment difficult without further data.

Positive Signals

Awarded through full and open competition, indicating a competitive marketplace.
Contractor has a significant duration, suggesting a stable and potentially experienced entity.
Focus on biomedical research aligns with critical public health priorities.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on biomedical research. The R&D sector is characterized by innovation and long-term investment. The market size for biomedical R&D is substantial, driven by government funding, private investment, and the pursuit of medical breakthroughs. This contract represents a portion of the federal government's investment in advancing scientific knowledge and potentially developing new treatments or technologies.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses. The presence of a large contract value and the nature of advanced biomedical research often favor larger, established research institutions. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Institutes of Health (NIH), a component of the Department of Health and Human Services. As a Cost Plus Fixed Fee contract, NIH would be responsible for monitoring expenditures, ensuring compliance with research protocols, and verifying the achievement of milestones. Transparency is generally facilitated through federal contract databases, but specific performance reports and audits would be crucial for a comprehensive assessment.

Related Government Programs

National Institutes of Health Research Grants
Biomedical Research and Development
Life Sciences Research Funding
Federal Health Research Programs

Risk Flags

Long contract duration requires sustained oversight.
CPFF contract type necessitates careful cost monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $30.6 million to SEATTLE BIOMEDICAL RESEARCH INSTITUTE. BIOMEDICAL (BASIC)

Who is the contractor on this award?

The obligated recipient is SEATTLE BIOMEDICAL RESEARCH INSTITUTE.

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 $30.6 million.

What is the period of performance?

Start: 2007-09-28. End: 2015-07-21.

What specific areas of biomedical research does this contract cover, and what are the expected outcomes?

The provided data indicates the contract falls under NAICS code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences.' While the specific sub-fields of biomedical research are not detailed, this broad category encompasses a wide range of activities from basic biological science to applied medical research. Expected outcomes would typically involve the generation of new scientific knowledge, potential discoveries of disease mechanisms, identification of therapeutic targets, or development of diagnostic tools. Without more granular information on the statement of work, precise outcomes remain unspecified. Further review of the contract's statement of work and progress reports would be necessary to detail the specific research aims and anticipated deliverables.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar R&D projects?

The Cost Plus Fixed Fee (CPFF) contract type is common for research and development projects where the scope of work is not precisely defined at the outset, or where innovation is a primary goal. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This differs from fixed-price contracts, where the price is set regardless of actual costs, and cost-reimbursement contracts without a fixed fee, which can offer less incentive for cost control. For R&D, CPFF aims to balance the need for flexibility with contractor incentive to manage costs, as the fee is fixed. However, it requires robust government oversight to ensure costs are reasonable and allocable to the contract. Other R&D contracts might use Cost Plus Incentive Fee (CPIF) to further align contractor and government interests on cost, schedule, and performance targets.

What is the track record of Seattle Biomedical Research Institute with federal contracts, particularly with NIH?

Seattle Biomedical Research Institute (SBRI) has a history of receiving federal funding, primarily through grants and contracts, for its biomedical research endeavors. As a dedicated research institution, its core mission aligns with the objectives of agencies like the National Institutes of Health (NIH). While specific details on SBRI's overall federal contracting performance, including past performance ratings, past disputes, or the volume of contracts held, are not provided in this summary, its ability to secure a contract of this magnitude and duration suggests a demonstrated capability and a positive track record with NIH or similar agencies. A deeper dive into federal procurement databases and agency performance evaluations would offer a more comprehensive view of their contracting history.

How does the annual spending on this contract compare to NIH's overall R&D budget?

This contract represents approximately $3.8 million per year ($30.6 million over ~8 years). The National Institutes of Health (NIH) is the world's largest funder of biomedical research, with an annual budget typically in the tens of billions of dollars. For example, in recent fiscal years, NIH's budget has often exceeded $40 billion. Therefore, this single contract, while substantial in its own right, constitutes a relatively small fraction of NIH's total R&D expenditure. It is one of many investments NIH makes across a vast array of research areas and institutions to fulfill its mission of advancing fundamental knowledge and applying it to enhance health.

What are the potential risks associated with a Cost Plus Fixed Fee contract for long-term biomedical research?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for long-term biomedical research include potential cost overruns if the government's oversight of allowable costs is insufficient, leading to higher overall expenditures than initially anticipated. The fixed fee, while intended to provide profit certainty, might not adequately incentivize efficiency if the base cost estimates are inflated. Furthermore, the long duration (nearly 8 years) increases the risk of scope creep or shifts in research priorities, which can complicate contract management and potentially lead to disputes if not handled through formal contract modifications. Ensuring the contractor maintains focus on the research objectives and adheres to ethical and scientific standards throughout the extended period requires diligent program management and regular performance reviews by the contracting agency.

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: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 307 WESTLAKE AVE N # 500, SEATTLE, WA, 98109

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $30,599,577

Exercised Options: $30,599,577

Current Obligation: $30,599,577

Contract Characteristics

Multi-Year Contract: Yes

Timeline