NIH awards $14.2M for biotechnology R&D to Institute for Systems Biology over 5 years

Contract Overview

Contract Amount: $14,265,280 ($14.3M)

Contractor: Institute for Systems Biology

Awarding Agency: Department of Health and Human Services

Start Date: 2008-09-26

End Date: 2013-09-25

Contract Duration: 1,825 days

Daily Burn Rate: $7.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 18

Pricing Type: COST NO FEE

Sector: R&D

Official Description: BIOMEDICAL (APPLIED/EXPLORATORY)

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98103

State: Washington Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $14.3 million to INSTITUTE FOR SYSTEMS BIOLOGY for work described as: BIOMEDICAL (APPLIED/EXPLORATORY) Key points: 1. Contract value represents a significant investment in applied biotechnology research. 2. Full and open competition suggests a robust market for these specialized R&D services. 3. Contract duration of 5 years indicates a long-term commitment to the research objectives. 4. The 'Cost No Fee' contract type implies reimbursement of allowable costs without additional profit. 5. This award falls within the 'Research and Development in Biotechnology' NAICS code. 6. The contractor, Institute for Systems Biology, is a dedicated research institution.

Value Assessment

Rating: good

The contract value of $14.2 million over five years, averaging approximately $2.85 million annually, appears reasonable for specialized biomedical R&D. Benchmarking against similar contracts for applied biotechnology research would provide a more precise value-for-money assessment. The 'Cost No Fee' structure suggests a focus on covering research expenses rather than profit, which can be cost-effective for the government when research outcomes are uncertain.

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 bids. The data does not specify the number of bidders, but this procurement method generally fosters competitive pricing and encourages a wider pool of qualified contractors to participate, potentially leading to better value for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the chances of obtaining the best possible price and quality for the services rendered, preventing potential overpricing associated with less competitive methods.

Public Impact

The primary beneficiaries are researchers and institutions involved in advancing biotechnology, potentially leading to new medical treatments or diagnostic tools. The contract supports applied and exploratory research in biotechnology, contributing to scientific knowledge and innovation. The geographic impact is likely concentrated around the Institute for Systems Biology's facilities, but the research findings can have a global impact. Workforce implications include support for scientists, technicians, and administrative staff engaged in cutting-edge research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for research to not yield commercially viable or immediately applicable results, given the exploratory nature.
Reliance on a single contractor for a significant duration could limit flexibility if research needs evolve rapidly.

Positive Signals

Award to a specialized research institute suggests expertise and focus on the specific R&D area.
Long-term contract provides stability for sustained research efforts and development of complex projects.
Full and open competition indicates a healthy market and potential for high-quality research proposals.

Sector Analysis

This contract falls within the Biomedical R&D sector, specifically focusing on applied and exploratory research in biotechnology. The market for such specialized research is driven by government funding, pharmaceutical companies, and academic institutions. Comparable spending benchmarks would involve analyzing other NIH grants and contracts awarded for similar research areas, considering the project scope and duration.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a definitive contract awarded through full and open competition, there is no explicit mention of small business subcontracting requirements. The impact on the small business ecosystem would depend on whether the prime contractor engages small businesses as subcontractors, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the National Institutes of Health (NIH), a division of HHS. Mechanisms likely include regular progress reports, financial reviews, and adherence to research protocols. Accountability is ensured through contract terms and performance metrics. Transparency is generally maintained through public databases like FPDS-NG, although specific research details may be proprietary.

Related Government Programs

National Institutes of Health Research Grants
Biotechnology Research and Development Programs
Applied Biomedical Research Contracts
National Center for Advancing Translational Sciences (NCATS) Funding

Risk Flags

Cost Overruns Risk (due to Cost No Fee structure)
Research Outcome Uncertainty
Long-term Contract Lock-in

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $14.3 million to INSTITUTE FOR SYSTEMS BIOLOGY. BIOMEDICAL (APPLIED/EXPLORATORY)

Who is the contractor on this award?

The obligated recipient is INSTITUTE FOR SYSTEMS BIOLOGY.

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 $14.3 million.

What is the period of performance?

Start: 2008-09-26. End: 2013-09-25.

What is the track record of the Institute for Systems Biology in securing and managing federal research grants and contracts?

The Institute for Systems Biology (ISB) has a history of receiving federal funding, primarily from agencies like the National Institutes of Health (NIH) and the National Science Foundation (NSF). As a dedicated research institution, its core mission involves securing grants to conduct cutting-edge scientific research. While specific performance metrics for past contracts are not detailed in this data, ISB's continued ability to secure significant funding suggests a positive track record in research execution and grant management. Further analysis would involve reviewing their publication record, successful grant renewals, and any documented performance issues on prior federal awards.

How does the $14.2 million award compare to other NIH contracts for similar biotechnology R&D projects?

The $14.2 million award over five years, averaging roughly $2.85 million annually, is a substantial but not extraordinary amount for a significant R&D initiative funded by the NIH. The NIH funds a vast array of research projects, with contract values varying widely based on scope, duration, and complexity. Projects in areas like 'Research and Development in Biotechnology' can range from smaller exploratory grants to large-scale, multi-year programs. To benchmark effectively, one would need to compare this contract against others within the same NAICS code (541711) and specific research focus (Biotechnology), considering factors like the number of research personnel, required equipment, and expected deliverables. Without more specific comparable contract data, it's difficult to definitively state if this represents a premium or a discount.

What are the primary risks associated with this 'Cost No Fee' contract type for the government?

The 'Cost No Fee' (CNF) contract type, while potentially cost-effective, carries specific risks for the government. The primary risk is that the contractor may not be sufficiently motivated to control costs, as all allowable expenses are reimbursed without an incentive for efficiency or profit. This can lead to cost overruns if not meticulously monitored. Additionally, the government bears the full financial risk if the research project encounters unforeseen challenges or fails to achieve its objectives. Effective oversight and stringent cost accounting standards are crucial to mitigate these risks and ensure that taxpayer funds are used judiciously.

What is the expected program effectiveness or outcome based on the contract details?

The contract details specify the objective as 'Research and Development in Biotechnology' (NAICS 541711) and categorize the work as 'BIOMEDICAL (APPLIED/EXPLORATORY)'. This indicates the program aims to advance scientific understanding and potentially develop new applications within the biomedical field. The 'Cost No Fee' structure suggests a focus on exploration and discovery, where definitive outcomes may not be guaranteed. Program effectiveness will ultimately be measured by the scientific advancements, publications, potential for future innovation, and the achievement of milestones outlined in the research plan, rather than a specific product or service delivery.

How has federal spending in 'Research and Development in Biotechnology' evolved over recent years, and where does this contract fit?

Federal spending in 'Research and Development in Biotechnology' has generally seen consistent growth, driven by national priorities in healthcare, defense, and economic competitiveness. Agencies like the NIH, NSF, and DoD are major contributors. This $14.2 million contract, awarded by NIH, represents a specific investment within this broader trend. Analyzing historical spending data for NAICS code 541711 would reveal overall budget allocations, identify key funding agencies, and highlight areas of increasing research focus. This contract fits within the applied and exploratory research segment, contributing to the foundational knowledge and potential breakthroughs that underpin the broader biotechnology sector.

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: 18

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 1441 N 34TH ST, SEATTLE, WA, 98103

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $23,429,589

Exercised Options: $14,265,280

Current Obligation: $14,265,280

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline