NIAID Awards $132.6M for Influenza Research and Surveillance Centers of Excellence

Contract Overview

Contract Amount: $132,603,698 ($132.6M)

Contractor: ST Jude Children's Research Hospital Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2014-01-09

End Date: 2023-10-31

Contract Duration: 3,582 days

Daily Burn Rate: $37.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: COST NO FEE

Sector: R&D

Official Description: IGF::OT::IGF NIAID CENTERS OF EXCELLENCE FOR INFLUENZA RESEARCH AND SURVEILLANCE (CEIRS)

Place of Performance

Location: MEMPHIS, SHELBY County, TENNESSEE, 38105

State: Tennessee Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $132.6 million to ST JUDE CHILDREN'S RESEARCH HOSPITAL INC for work described as: IGF::OT::IGF NIAID CENTERS OF EXCELLENCE FOR INFLUENZA RESEARCH AND SURVEILLANCE (CEIRS) Key points: 1. Significant investment in critical public health research. 2. Competition method appears robust, potentially leading to fair pricing. 3. Long contract duration (nearly 10 years) warrants ongoing monitoring for value. 4. Focus on biotechnology R&D aligns with national health priorities.

Value Assessment

Rating: good

The total award of $132.6M over nearly 10 years suggests a substantial commitment. Without specific cost breakdowns or comparable contracts for similar influenza research centers, a precise per-unit cost assessment is difficult. However, the 'COST NO FEE' contract type implies costs are reimbursed as incurred, with profit negotiated separately.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bidders likely participated. This competitive process is expected to drive fair pricing and ensure the government selects the most capable offeror for this critical research.

Taxpayer Impact: Taxpayer funds are directed towards vital research that could lead to significant public health benefits, potentially saving costs associated with influenza outbreaks in the long run.

Public Impact

Supports critical research into influenza, a major public health concern. Aims to enhance surveillance and understanding of influenza viruses. Potential for breakthroughs in vaccine development and treatment strategies. Investment in scientific infrastructure and expertise within the US.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long-term nature of the contract requires sustained oversight.
Potential for scope creep or cost overruns over the contract's duration.

Positive Signals

Awarded through full and open competition.
Addresses a critical area of public health research.
Long-term commitment allows for sustained research progress.

Sector Analysis

This contract falls under Research and Development in Biotechnology, a sector crucial for public health advancements. Spending benchmarks in this area are highly variable due to the specialized nature of research and development, but significant federal investment is common for high-impact scientific initiatives.

Small Business Impact

The data does not indicate if small businesses were involved as subcontractors. Given the nature of large-scale research centers, prime contracts are often awarded to established institutions, but subcontracting opportunities for specialized services may exist.

Oversight & Accountability

The contract is managed by the National Institutes of Health (NIH), a component of HHS. Oversight would involve monitoring research progress, adherence to grant terms, and financial accountability to ensure taxpayer funds are used effectively and efficiently.

Related Government Programs

Research and Development in Biotechnology
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Long contract duration requires sustained oversight.
Potential for cost overruns in research and development.
Reliance on a single awardee for a critical function.
Need for clear performance metrics and deliverables.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $132.6 million to ST JUDE CHILDREN'S RESEARCH HOSPITAL INC. IGF::OT::IGF NIAID CENTERS OF EXCELLENCE FOR INFLUENZA RESEARCH AND SURVEILLANCE (CEIRS)

Who is the contractor on this award?

The obligated recipient is ST JUDE CHILDREN'S RESEARCH HOSPITAL INC.

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 $132.6 million.

What is the period of performance?

Start: 2014-01-09. End: 2023-10-31.

What specific metrics are used to evaluate the success and value of the Centers of Excellence for Influenza Research and Surveillance?

Success metrics likely include the number and impact of research publications, advancements in influenza strain identification and tracking, contributions to vaccine development pipelines, and the effectiveness of surveillance systems in early outbreak detection. The NIH would establish specific performance work statements and key performance indicators to measure the scientific and public health impact of these centers over the contract's lifespan.

How does the 'COST NO FEE' contract type influence the government's ability to control overall spending and ensure cost-effectiveness?

The 'COST NO FEE' structure means the government reimburses the contractor for allowable costs incurred during performance, but the contractor does not earn a profit on these costs. While this can help control direct spending on services, it places a strong emphasis on robust oversight to ensure costs are reasonable, allocable, and necessary. Profit is typically negotiated separately, often as a fixed amount or based on achieving specific milestones.

What is the potential long-term return on investment for the public from this $132.6 million expenditure on influenza research?

The long-term return on investment could be substantial, measured in lives saved, reduced healthcare system burden, and economic productivity gains from mitigating influenza pandemics or severe seasonal outbreaks. Breakthroughs in vaccines, antivirals, or surveillance could prevent billions of dollars in economic losses and immeasurable human suffering, far exceeding the initial investment.

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: BASIC RESEARCH

Offers Received: 10

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 262 DANNY THOMAS PL MAILSTOP # 509, MEMPHIS, TN, 38105

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

Financial Breakdown

Contract Ceiling: $269,600,630

Exercised Options: $132,603,698

Current Obligation: $132,603,698

Actual Outlays: $16,558,711

Subaward Activity

Number of Subawards: 96

Total Subaward Amount: $33,716,172

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline