NIH Spends $28.7M on Cell Phone Radiation Study, Raising Questions on Value and Competition

Contract Overview

Contract Amount: $28,681,355 ($28.7M)

Contractor: IIT Research Institute

Awarding Agency: Department of Health and Human Services

Start Date: 2005-08-18

End Date: 2017-04-03

Contract Duration: 4,246 days

Daily Burn Rate: $6.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: STUDIES TO EVALUATE TOXIC AND CARCINOGENIC POTENTIAL OF CELL PHONE RADIO FREQUENCY RADIATION IN LAB ANIMALS FOR NTP

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60616

State: Illinois Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $28.7 million to IIT RESEARCH INSTITUTE for work described as: STUDIES TO EVALUATE TOXIC AND CARCINOGENIC POTENTIAL OF CELL PHONE RADIO FREQUENCY RADIATION IN LAB ANIMALS FOR NTP Key points: 1. Significant investment in a long-term study on a prevalent technology. 2. Lack of competition raises concerns about price discovery and potential overspending. 3. The study's duration and cost warrant scrutiny regarding its effectiveness and taxpayer impact. 4. Focus on R&D in life sciences, but the specific application to public health is key.

Value Assessment

Rating: questionable

The $28.7 million cost over 12 years for this definitive contract appears high, especially given the lack of competitive bidding. Benchmarking against similar long-term toxicology studies is difficult without more data, but the extended duration suggests significant resource allocation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for taxpayers, as there was no market pressure to ensure the most cost-effective solution was chosen.

Taxpayer Impact: The lack of competition on a nearly $29 million contract means taxpayers may have paid a premium, as the government did not explore potentially lower-cost alternatives or more efficient research methodologies.

Public Impact

Long-term health effects of cell phone use are a public concern. The study's findings could influence public health guidelines and regulations. Significant taxpayer funds are allocated to understanding potential risks of a widely used technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High cost over extended period
Potential for research bias in sole-source contract

Positive Signals

Addresses a relevant public health concern
Long-term data collection

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector can vary widely, but large, long-term toxicology studies like this represent a significant investment, often requiring specialized expertise.

Small Business Impact

The contract was awarded to IIT Research Institute, a large research organization. There is no indication that small businesses were involved in this specific contract, either as prime contractors or subcontractors.

Oversight & Accountability

The long duration and significant cost of this definitive contract suggest a need for robust oversight to ensure progress, adherence to research protocols, and responsible use of funds. The lack of competition makes oversight even more critical.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Lack of competition
High cost
Long contract duration
Potential for cost overruns (Cost Plus Fixed Fee)
Sole-source award

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $28.7 million to IIT RESEARCH INSTITUTE. STUDIES TO EVALUATE TOXIC AND CARCINOGENIC POTENTIAL OF CELL PHONE RADIO FREQUENCY RADIATION IN LAB ANIMALS FOR NTP

Who is the contractor on this award?

The obligated recipient is IIT RESEARCH INSTITUTE.

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 $28.7 million.

What is the period of performance?

Start: 2005-08-18. End: 2017-04-03.

What was the justification for awarding this contract on a sole-source basis, and were there any attempts to explore competitive options?

The provided data indicates the contract was 'NOT COMPETED.' Without further documentation, the specific justification for a sole-source award remains unclear. Typically, sole-source contracts are justified when only one responsible source is available, or for urgent and compelling reasons. The lack of competition here raises concerns about whether the government adequately explored competitive avenues or received the best possible pricing.

How does the $28.7 million cost compare to similar long-term toxicology studies, and what is the expected return on investment for public health?

Benchmarking this $28.7 million cost against similar long-term toxicology studies is challenging without access to detailed cost breakdowns and scope of work for comparable projects. The return on investment is primarily measured by the scientific validity and impact of the findings on public health policy and individual behavior. The extended duration suggests a comprehensive approach, but the ultimate value depends on the study's conclusions and their actionable implications.

What mechanisms were in place to ensure the scientific integrity and objectivity of a study conducted under a sole-source, cost-plus contract?

Given the sole-source nature and cost-plus contract type, robust oversight mechanisms are crucial for ensuring scientific integrity and objectivity. This would typically involve independent scientific review boards, clear research protocols, regular progress reporting, and potentially external monitoring by the funding agency (NIH). The long duration necessitates sustained vigilance to prevent scope creep or methodological drift, ensuring the study remains focused and unbiased.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Illinois Institute of Technology (UEI: 042084434)

Address: 10 WEST 35TH STREET, CHICAGO, IL, 60616

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

Financial Breakdown

Contract Ceiling: $49,460,606

Exercised Options: $33,274,345

Current Obligation: $28,681,355

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline