NIH awards $14.9M for biotechnology R&D to The University of Iowa over 11 years

Contract Overview

Contract Amount: $14,935,729 ($14.9M)

Contractor: THE University of Iowa

Awarding Agency: Department of Health and Human Services

Start Date: 2007-11-01

End Date: 2018-09-30

Contract Duration: 3,986 days

Daily Burn Rate: $3.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: COST NO FEE

Sector: R&D

Official Description: BIOMEDICAL (APPLIED/EXPLORATORY)

Place of Performance

Location: IOWA CITY, JOHNSON County, IOWA, 52242

State: Iowa Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $14.9 million to THE UNIVERSITY OF IOWA for work described as: BIOMEDICAL (APPLIED/EXPLORATORY) Key points: 1. Contract awarded through full and open competition, suggesting a robust market. 2. Long duration (11 years) may indicate a need for sustained research support. 3. Cost-no-fee contract type implies the government reimburses allowable costs without additional profit. 4. The contract's focus on applied/exploratory biomedical research aligns with NIH's mission. 5. The University of Iowa's extensive contract history with the government warrants review. 6. Performance period spans over a decade, requiring long-term oversight.

Value Assessment

Rating: fair

The total award of $14.9 million over nearly 11 years averages to approximately $1.35 million per year. Without specific benchmarks for similar applied/exploratory biomedical research contracts of this duration and scope, it is difficult to definitively assess value for money. The cost-no-fee structure means the government covers expenses but does not pay profit, which can be cost-effective if managed well. However, the extended timeline necessitates careful monitoring of expenditures to ensure they remain reasonable and aligned with research objectives.

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 13 bids suggests a competitive environment for this type of research. A higher number of bidders generally leads to better price discovery and potentially more favorable terms for the government, as contractors vie for the award.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces and ensures the government accesses the best available research capabilities at competitive prices.

Public Impact

The University of Iowa benefits through sustained funding for its research activities. The contract supports advancements in applied and exploratory biomedical research. The geographic impact is primarily within Iowa, where the university is located. The contract likely supports researchers, technicians, and administrative staff at the university.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (11 years) increases the risk of cost overruns or shifts in research priorities.
Cost-no-fee contracts can sometimes lack strong contractor incentives for efficiency if not properly managed.
The absence of specific performance metrics in the provided data makes it hard to gauge progress.
Potential for scope creep over an extended research period.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
The University of Iowa has a long-standing relationship with the government, suggesting experience.
The contract supports critical biomedical research aligned with national health priorities.

Sector Analysis

This contract falls within the Research and Development in Biotechnology sector, specifically under NAICS code 541711. This sector is characterized by significant investment in scientific discovery and innovation. The total federal spending in this area is substantial, with agencies like NIH being major funders. This contract represents a long-term investment in advancing scientific knowledge and potentially developing new biotechnologies, fitting within the broader landscape of federal R&D funding aimed at addressing public health challenges and fostering economic growth through innovation.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract. Given the nature of advanced biomedical research and the recipient being a large university, it is unlikely that small business subcontracting was a primary focus, though it cannot be ruled out without further information. The contract's scale and duration are more typical of large institutional awards.

Oversight & Accountability

Oversight for this contract would typically be managed by the National Institutes of Health (NIH), a division of HHS. Mechanisms would include regular progress reports from the contractor, financial reviews, and potentially site visits. The Inspector General for HHS would have jurisdiction over any potential fraud, waste, or abuse related to the contract funds. Transparency is generally maintained through contract databases, though specific research progress details may be subject to scientific publication timelines.

Related Government Programs

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

Risk Flags

Long contract duration
Cost-No-Fee structure
Potential for cost overruns
Need for sustained oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $14.9 million to THE UNIVERSITY OF IOWA. BIOMEDICAL (APPLIED/EXPLORATORY)

Who is the contractor on this award?

The obligated recipient is THE UNIVERSITY OF IOWA.

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 $14.9 million.

What is the period of performance?

Start: 2007-11-01. End: 2018-09-30.

What is the track record of The University of Iowa in receiving and managing federal research grants, particularly from NIH?

The University of Iowa has a substantial history of receiving federal funding, including numerous grants and contracts from agencies like the National Institutes of Health (NIH). Its track record generally indicates a capacity to manage complex research projects and comply with federal regulations. Analyzing specific past performance on similar large-scale, long-duration biomedical research contracts would provide a clearer picture of their efficiency, adherence to timelines, and fiscal responsibility. While the sheer volume of awards suggests competence, a deep dive into the outcomes and management of prior comparable contracts would be necessary for a comprehensive assessment of their reliability in executing this specific award.

How does the annual average cost of this contract compare to similar biomedical R&D contracts awarded by NIH?

The annual average cost of approximately $1.35 million for this contract needs to be benchmarked against similar biomedical R&D efforts. Factors such as the specific research area (applied vs. exploratory), the complexity of the scientific questions, the required personnel, and the duration significantly influence costs. NIH funds a wide spectrum of research, from small exploratory grants to large center grants. Without access to a database of comparable contracts detailing scope, duration, and specific research aims, a precise comparison is challenging. However, for a multi-year, institutional-level research endeavor, this annual figure appears within a plausible range for significant scientific undertakings, though detailed benchmarking is required for definitive value assessment.

What are the primary risks associated with a Cost-No-Fee contract structure over an 11-year period?

The primary risks with a Cost-No-Fee (CNF) contract over an extended period like 11 years revolve around cost control and contractor motivation. Since the contractor is reimbursed for allowable costs without profit, there's a potential risk of less stringent cost management if oversight is weak, as the financial incentive for efficiency is reduced compared to fixed-price or cost-plus-incentive-fee contracts. Furthermore, over a long duration, research priorities can shift, or unforeseen challenges may arise, potentially leading to cost overruns that the government must still cover. The government bears the financial risk of cost increases, making robust monitoring of expenditures and research progress crucial to mitigate these risks and ensure the funds are used effectively towards the stated research objectives.

How effective has The University of Iowa been in achieving research milestones in previously funded long-term NIH projects?

Assessing the effectiveness of The University of Iowa in achieving research milestones on past long-term NIH projects requires detailed review of their publication records, patent filings, successful continuation applications, and final reports submitted to NIH. While the university's consistent funding suggests a level of success, specific metrics on milestone achievement are not publicly available in aggregated contract data. A thorough analysis would involve examining project-specific outcomes against stated objectives, the impact of their research findings (e.g., citations, clinical applications), and any instances of project delays or scope changes. Without this granular data, effectiveness is inferred from continued funding and institutional reputation.

What is the historical spending trend for applied/exploratory biotechnology R&D by NIH over the past decade?

NIH's historical spending on applied and exploratory biotechnology R&D has generally shown an upward trend, reflecting the increasing importance and rapid advancements in the field. While specific figures fluctuate annually based on appropriations and strategic priorities, the overall investment in areas like genomics, proteomics, synthetic biology, and regenerative medicine has been substantial. This contract, awarded in 2007 and ending in 2018, falls within a period of significant growth in biotech funding. Analyzing NIH's budget justifications and appropriations reports over this timeframe would reveal the scale and focus of their investments in this sector, contextualizing the $14.9 million award as part of a larger federal commitment to advancing biomedical science.

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: 13

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 105 JESSUP HALL, IOWA CITY, IA, 52242

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

Financial Breakdown

Contract Ceiling: $138,401,509

Exercised Options: $89,747,105

Current Obligation: $14,935,729

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline