NIH awards $58.3M for asthma research, with University of Wisconsin System leading efforts

Contract Overview

Contract Amount: $58,289,849 ($58.3M)

Contractor: University of Wisconsin System

Awarding Agency: Department of Health and Human Services

Start Date: 2009-08-27

End Date: 2014-09-29

Contract Duration: 1,859 days

Daily Burn Rate: $31.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: R&D

Official Description: INNER CITY ASTHMA CONSORTIUM

Place of Performance

Location: MADISON, DANE County, WISCONSIN, 53715

State: Wisconsin Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $58.3 million to UNIVERSITY OF WISCONSIN SYSTEM for work described as: INNER CITY ASTHMA CONSORTIUM 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. Contract duration of 1859 days indicates a long-term research commitment. 4. Cost-plus-fixed-fee contract type allows for flexibility in research scope. 5. No small business set-aside, indicating focus on larger research institutions. 6. Prime contractor is University of Wisconsin System, a significant research entity.

Value Assessment

Rating: good

The contract's value of $58.3 million over approximately five years for R&D in asthma is within a reasonable range for large-scale, multi-year research initiatives. Benchmarking against similar NIH grants for complex biological research suggests this award is competitive. The cost-plus-fixed-fee structure, while common for R&D, requires careful monitoring to ensure cost efficiency and prevent scope creep. The absence of specific performance metrics in the provided data makes a precise value-for-money assessment challenging, but the long-term nature and the reputation of the lead institution suggest a commitment to significant scientific advancement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple qualified entities had the opportunity to bid. This process is designed to foster price discovery and ensure the government receives the best value by leveraging market competition. The number of bidders is not specified, but the open competition suggests a healthy interest in this research area. The agency's commitment to this method implies a desire for a wide range of innovative approaches to asthma research.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and access to a broader pool of innovative solutions. This approach maximizes the chances of securing high-quality research at a competitive cost.

Public Impact

Benefits patients suffering from asthma by funding critical research into its causes, prevention, and treatment. Advances scientific understanding of respiratory diseases, potentially leading to new therapies and public health strategies. Supports the research workforce, including scientists, technicians, and administrative staff at the University of Wisconsin System and its partners. Geographic impact is primarily within Wisconsin due to the lead institution, but research findings have national and global implications for public health.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in cost-plus-fixed-fee R&D contracts.
Ensuring timely progress and achievement of research milestones over the contract's duration.
Managing intellectual property rights and data sharing among multiple research partners.
Effectiveness of the research outcomes in translating to tangible improvements in asthma management.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Led by a reputable academic institution (University of Wisconsin System) with a strong research track record.
Long contract duration suggests a sustained commitment to addressing a significant public health issue.
Focus on a critical area of medical research with direct public health benefits.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on life sciences. The market for biomedical R&D is substantial, driven by government funding agencies like NIH, as well as private investment. Comparable spending benchmarks for large-scale NIH research grants can range from tens to hundreds of millions of dollars, depending on the scope and duration. This contract's value aligns with significant, multi-year research programs aimed at addressing complex health challenges like asthma.

Small Business Impact

The contract does not appear to have a small business set-aside, as indicated by 'sb': false. This suggests that the primary focus was on securing the best research capabilities, which may reside with larger institutions or consortia. While there's no direct set-aside, the prime contractor, the University of Wisconsin System, may engage small businesses as subcontractors for specialized services or equipment, contributing indirectly to the small business ecosystem. However, the primary award mechanism did not prioritize small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the National Institutes of Health (NIH), a division of HHS. Oversight mechanisms would likely include regular progress reports, financial reviews, and potentially site visits to ensure research milestones are met and funds are used appropriately. The Inspector General for HHS provides an additional layer of oversight for federal spending, investigating fraud, waste, and abuse. Transparency is facilitated through public reporting of research grants and outcomes.

Related Government Programs

NIH Research Grants
Asthma and Lung Disease Research Programs
National Center for Health Research
Biomedical Research Funding

Risk Flags

Long contract duration may increase risk of scope drift or changing research priorities.
Cost-plus-fixed-fee structure requires diligent oversight to ensure cost efficiency.
No explicit small business set-aside may limit direct participation opportunities for smaller firms.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $58.3 million to UNIVERSITY OF WISCONSIN SYSTEM. INNER CITY ASTHMA CONSORTIUM

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF WISCONSIN SYSTEM.

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 $58.3 million.

What is the period of performance?

Start: 2009-08-27. End: 2014-09-29.

What is the specific research focus of the Inner City Asthma Consortium and how does it align with NIH priorities?

The Inner City Asthma Consortium (ICAC) was established to conduct research aimed at understanding and reducing asthma disparities, particularly in urban environments. Its research agenda typically focuses on identifying environmental triggers, understanding the biological mechanisms of asthma in diverse populations, and developing and testing interventions to improve asthma control and reduce emergency room visits and hospitalizations. This aligns directly with NIH's strategic priorities to reduce the burden of chronic diseases, address health disparities, and improve the health of all Americans. The focus on urban asthma specifically targets a population that often experiences higher rates of morbidity and mortality from the disease, reflecting NIH's commitment to health equity.

How does the cost-plus-fixed-fee (CPFF) contract type influence the financial risk and oversight for this $58.3 million award?

The Cost-Plus-Fixed-Fee (CPFF) contract type means the contractor (University of Wisconsin System) is reimbursed for all allowable costs incurred during the research, plus a predetermined fixed fee representing profit. This structure is common for R&D where the scope can evolve. For the government, the primary financial risk is that actual costs may exceed initial estimates, although the fixed fee provides some predictability. Robust oversight is crucial to ensure that all costs claimed are reasonable, allocable, and allowable, and that the research progresses efficiently towards its objectives. NIH program officers and contracting specialists would monitor expenditures, review progress reports, and ensure adherence to the research plan to mitigate risks and ensure value for taxpayer money.

What is the track record of the University of Wisconsin System in managing large-scale federal research grants, particularly in the health sciences?

The University of Wisconsin System is a major public research university system with a long and established track record of successfully managing numerous large-scale federal research grants, including significant awards from agencies like the National Institutes of Health (NIH). Its institutions consistently rank among the top universities for federal research and development expenditures. They have demonstrated capabilities in managing complex multi-disciplinary projects, handling substantial budgets, and producing high-impact research outcomes. Their experience in areas like biomedical sciences, public health, and environmental research suggests a strong capacity to effectively administer and execute a contract of this magnitude and scientific focus.

How does the $58.3 million award compare to other NIH funding for asthma research or similar R&D initiatives?

An award of $58.3 million over approximately five years for a consortium-led research initiative like the Inner City Asthma Consortium is substantial and falls within the upper range for major NIH research grants. While NIH funds a vast array of projects, from individual investigator-initiated grants (often in the hundreds of thousands to a few million dollars) to large center grants and program projects, this contract represents a significant investment. Comparable large-scale, multi-institutional research programs addressing complex health issues like cancer, diabetes, or infectious diseases often receive similar or even larger funding allocations over extended periods. This level of funding indicates a strategic priority for NIH and a recognition of the complexity and importance of addressing asthma disparities.

What are the potential risks associated with the long duration (1859 days) of this contract for asthma research?

The long duration of this contract (nearly five years) presents several potential risks. Firstly, scientific priorities and research landscapes can shift rapidly; findings from early years might necessitate adjustments to later research phases, requiring flexibility. Secondly, maintaining consistent project management and team engagement over such an extended period can be challenging. Thirdly, there's a risk of 'research fatigue' or burnout among personnel. Finally, from a financial perspective, longer durations increase the potential for unforeseen cost escalations due to inflation or changes in resource availability. Effective project management, regular strategic reviews, and adaptive planning are crucial to mitigate these risks and ensure the research remains relevant and productive throughout its lifecycle.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except 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: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 21 N PARK ST STE 6401, MADISON, WI, 53715

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $58,289,849

Exercised Options: $58,289,849

Current Obligation: $58,289,849

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline