Vanderbilt University awarded $16.7M for biotechnology R&D, with a 10-year duration

Contract Overview

Contract Amount: $16,758,756 ($16.8M)

Contractor: Vanderbilt University, the

Awarding Agency: Department of Health and Human Services

Start Date: 2007-10-03

End Date: 2017-02-28

Contract Duration: 3,436 days

Daily Burn Rate: $4.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: COST NO FEE

Sector: R&D

Official Description: BIOMEDICAL (APPLIED/EXPLORATORY)

Place of Performance

Location: NASHVILLE, DAVIDSON County, TENNESSEE, 37232

State: Tennessee Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $16.8 million to VANDERBILT UNIVERSITY, THE for work described as: BIOMEDICAL (APPLIED/EXPLORATORY) Key points: 1. Contract duration of 10 years suggests a long-term research commitment. 2. The contract was awarded under full and open competition, indicating a broad search for qualified contractors. 3. The 'Research and Development in Biotechnology' NAICS code points to a focus on scientific advancement. 4. The absence of small business set-aside flags suggests the primary contractor is not a small business. 5. The contract type 'COST NO FEE' implies the government reimburses allowable costs but does not pay a fee to the contractor. 6. The significant duration and value may indicate a high level of complexity and importance for the research.

Value Assessment

Rating: fair

The contract's value of $16.7 million over 10 years averages to $1.67 million per year. Without specific benchmarks for similar applied/exploratory biomedical research contracts, it is difficult to definitively assess value for money. The 'COST NO FEE' contract type suggests that the government is primarily covering research expenses, which can be efficient if the research yields significant results, but also carries risk if outcomes are not as expected. Further analysis would require comparing the scope of work and deliverables to other NIH-funded projects in biotechnology.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that all responsible sources were permitted to submit a bid. This suggests a robust competitive process was employed to select the contractor. The presence of 12 bids (no: 12) implies a healthy level of interest and competition for this research opportunity, which is generally favorable for price discovery and selecting the most capable offeror.

Taxpayer Impact: A full and open competition generally benefits taxpayers by encouraging multiple bidders to offer their best terms, potentially leading to more cost-effective outcomes and ensuring the government secures the most qualified research partner.

Public Impact

The primary beneficiary is Vanderbilt University, which receives funding for its research activities. The services delivered are applied and exploratory research in biotechnology, contributing to scientific knowledge and potential future innovations. The geographic impact is centered in Tennessee (st: TN, sn: TENNESSEE), where Vanderbilt University is located. The contract supports the biomedical research workforce, including scientists, researchers, and support staff at Vanderbilt.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (10 years) could lead to scope creep or evolving research needs not fully anticipated at the outset.
Cost-reimbursement contracts without a fee can sometimes lack strong contractor incentive for cost control if not carefully managed.
The specific outcomes and return on investment for 'applied/exploratory' research can be uncertain, posing a risk to taxpayer funds if not rigorously monitored.

Positive Signals

Awarded through full and open competition, suggesting a competitive process to select the best research proposal.
The significant funding indicates a recognized importance and potential impact of the research area.
The long-term nature of the contract allows for sustained focus and development in a complex scientific field.

Sector Analysis

This contract falls within the Biotechnology Research and Development sector, a rapidly growing area focused on leveraging biological processes for technological advancement. The NAICS code 541711 specifically covers Research and Development in Biotechnology. The biomedical research market is characterized by significant government investment, particularly through agencies like NIH, aiming to foster innovation and address public health challenges. Comparable spending benchmarks would involve analyzing other large-scale, multi-year R&D grants awarded by NIH or similar agencies for biotechnology projects.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (sb: false). As a large university research institution, Vanderbilt University is likely the primary recipient of the funds. There is no explicit information on subcontracting plans for small businesses within this data, but large research grants often involve collaborations or procurement of specialized services, which could potentially include small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the National Institutes of Health (NIH), a division of the Department of Health and Human Services. NIH typically employs program officers and scientific review panels to monitor research progress, ensure compliance with grant terms, and assess the scientific merit of ongoing work. Transparency is facilitated through public databases of federal contracts and research publications stemming from the funded work. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

National Institutes of Health Research Grants
Biotechnology Research and Development Programs
Applied Biomedical Research Funding
University Research Partnerships with Federal Agencies

Risk Flags

Long contract duration may require careful monitoring for scope changes.
Cost-reimbursement contracts can pose risks if not managed with strict cost controls.
Uncertainty inherent in 'applied/exploratory' research requires robust performance oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $16.8 million to VANDERBILT UNIVERSITY, THE. BIOMEDICAL (APPLIED/EXPLORATORY)

Who is the contractor on this award?

The obligated recipient is VANDERBILT UNIVERSITY, THE.

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 $16.8 million.

What is the period of performance?

Start: 2007-10-03. End: 2017-02-28.

What is the specific research focus within biotechnology for this contract?

The provided data identifies the NAICS code as 541711, 'Research and Development in Biotechnology,' and the broader category as 'BIOMEDICAL (APPLIED/EXPLORATORY)'. However, it does not detail the specific research questions, methodologies, or therapeutic areas being investigated. This level of detail is typically found in the contract's statement of work or the grant proposal itself. Applied and exploratory biomedical research can encompass a wide range of fields, from drug discovery and development to diagnostics, medical devices, and fundamental biological mechanisms relevant to human health. Further inquiry would require accessing the full contract documentation or related NIH program announcements.

How does the $1.67 million annual average cost compare to similar NIH biotechnology R&D contracts?

Benchmarking the average annual cost of $1.67 million requires comparing it to similar contracts awarded by the National Institutes of Health (NIH) for 'Research and Development in Biotechnology' (NAICS 541711) with a 'COST NO FEE' award type and a comparable duration (approximately 10 years). Without access to a comprehensive database of NIH contracts filtered by these specific criteria, a precise comparison is challenging. However, NIH grants for large-scale, multi-year research projects, especially those involving established institutions like Vanderbilt University, can range from hundreds of thousands to several million dollars annually, depending on the scope, personnel, equipment, and overhead involved. The $1.67M/year figure appears within a plausible range for significant R&D efforts.

What are the key performance indicators (KPIs) or milestones for this contract?

The provided summary data does not include specific Key Performance Indicators (KPIs) or milestones for this contract. For 'COST NO FEE' research and development contracts, performance is typically assessed based on scientific progress, adherence to research protocols, timely reporting of findings, and the achievement of specific research objectives outlined in the Statement of Work (SOW) or grant proposal. The National Institutes of Health (NIH) would establish these metrics and monitor them through regular progress reports submitted by Vanderbilt University. These could include milestones such as completing specific experimental phases, publishing research findings in peer-reviewed journals, or developing preliminary data for future studies.

What is the track record of Vanderbilt University as a federal contractor, particularly with NIH?

Vanderbilt University has a well-established track record as a recipient of federal research funding, particularly from the National Institutes of Health (NIH). As a major research university, it consistently ranks among the top institutions for NIH funding. This indicates a strong capacity to manage large, complex research grants and comply with federal regulations. While this specific data point represents a single definitive contract, Vanderbilt's broader history suggests experience in conducting high-level biomedical research and fulfilling the requirements of federal funding agencies. Their consistent success in securing grants points to a reliable performance history.

What is the potential return on investment (ROI) for taxpayers given the 'applied/exploratory' nature of the research?

The return on investment (ROI) for taxpayers from 'applied/exploratory' biomedical research is inherently uncertain and often long-term, making direct financial ROI difficult to quantify. The primary value lies in advancing scientific knowledge, potentially leading to breakthroughs in disease prevention, diagnosis, or treatment, which have significant public health and economic benefits. While this contract does not include a fee, suggesting the government is primarily covering costs, successful research outcomes could lead to new therapies, technologies, or a better understanding of diseases, ultimately improving quality of life and reducing healthcare burdens. The 'COST NO FEE' structure means the government bears the research costs without paying a profit margin, which can be cost-effective if the research is successful.

How has federal spending in biotechnology R&D evolved over the life of this contract (2007-2017)?

Federal spending in biotechnology R&D, particularly through agencies like the NIH, has generally seen significant growth and prioritization between 2007 and 2017. This period encompassed advancements in genomics, personalized medicine, and immunotherapy, driving increased investment. While this specific contract represents a portion of that spending, overall federal investment in biomedical R&D aims to foster innovation, address public health crises (like emerging infectious diseases), and maintain a competitive edge in scientific discovery. Trends during this decade often reflected a push towards translational research – moving discoveries from the lab to clinical applications – aligning with the 'applied/exploratory' nature of this contract.

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

Offers Received: 12

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 211 KIRKLAND HALL, NASHVILLE, TN, 37240

Business Categories: Category Business, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $115,786,144

Exercised Options: $78,344,332

Current Obligation: $16,758,756

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline