NIH awards $14.4M cost-sharing contract for R&D in physical, engineering, and life sciences in Connecticut

Contract Overview

Contract Amount: $14,373,586 ($14.4M)

Contractor: Department of Public Health Connecticut

Awarding Agency: Department of Health and Human Services

Start Date: 2003-06-15

End Date: 2010-07-31

Contract Duration: 2,603 days

Daily Burn Rate: $5.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST SHARING

Sector: R&D

Place of Performance

Location: HARTFORD, HARTFORD County, CONNECTICUT, 06106

State: Connecticut Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $14.4 million to DEPARTMENT OF PUBLIC HEALTH CONNECTICUT for work described as: Key points: 1. Contract awarded on a cost-sharing basis, indicating shared financial responsibility between the government and the contractor. 2. The contract was not competed, raising questions about potential price discovery and value for money. 3. Long duration of over 7 years suggests a significant, ongoing project. 4. The contract falls under the Research and Development in the Physical, Engineering, and Life Sciences NAICS code. 5. Awarded to a single contractor, highlighting a sole-source or limited competition scenario. 6. Geographic location of the contractor is Connecticut.

Value Assessment

Rating: questionable

The contract's value is difficult to assess without a competitive benchmark. As a sole-source award, there's no direct comparison to other bids. The cost-sharing nature implies the government is not bearing the full financial burden, which could be a positive factor. However, the lack of competition prevents a robust assessment of whether the pricing represents fair market value for the R&D services provided over its extensive duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not publicly advertised or competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities or when urgency dictates. The lack of competition limits the government's ability to leverage market forces to achieve the best possible pricing and terms.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also limits opportunities for other qualified businesses to secure government contracts.

Public Impact

The primary beneficiaries are likely researchers and institutions involved in physical, engineering, and life sciences R&D. The contract supports advancements in scientific and technological fields. The geographic impact is concentrated in Connecticut, where the contractor is located. Workforce implications may include employment for scientists, engineers, and support staff within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Long contract duration could lead to cost overruns if not managed effectively.
Cost-sharing mechanism requires careful monitoring to ensure contractor commitment.

Positive Signals

Cost-sharing arrangement can reduce the government's financial exposure.
Focus on R&D aligns with national priorities for innovation.
Contract duration allows for sustained research efforts.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for innovation and economic growth. Comparable spending in this sector often involves significant investment in scientific discovery and technological advancement. The market size for R&D services is substantial, with government agencies like NIH being major funders.

Small Business Impact

There is no indication that this contract included small business set-asides. As a sole-source award, it is unlikely that subcontracting opportunities for small businesses were explicitly mandated or sought through a competitive process. This contract may not directly benefit the small business ecosystem unless the prime contractor voluntarily engages small businesses for subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the National Institutes of Health (NIH), a component of the Department of Health and Human Services. Accountability measures would be defined in the contract terms, focusing on deliverables, milestones, and adherence to the cost-sharing agreement. Transparency may be limited due to the sole-source nature, but contract award data is publicly available.

Related Government Programs

National Institutes of Health Research Grants
Department of Health and Human Services R&D Contracts
Federal Funding for Scientific Research

Risk Flags

Lack of Competition
Potential for Overpricing
Long Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $14.4 million to DEPARTMENT OF PUBLIC HEALTH CONNECTICUT. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is DEPARTMENT OF PUBLIC HEALTH CONNECTICUT.

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 $14.4 million.

What is the period of performance?

Start: 2003-06-15. End: 2010-07-31.

What is the specific nature of the Research and Development being funded under this contract?

The contract falls under the NAICS code 541710, which covers Research and Development in the Physical, Engineering, and Life Sciences. While the specific project details are not provided in the summary data, this classification suggests the research could encompass a wide range of scientific and technological endeavors, from basic scientific inquiry to applied engineering solutions and biomedical advancements. The cost-sharing aspect implies a significant investment from the contractor as well, indicating a project of mutual interest and potential commercialization or significant scientific impact.

How does the cost-sharing arrangement work, and what are its implications for the government's financial commitment?

A cost-sharing arrangement means that both the government and the contractor contribute to the project's costs. The exact ratio or mechanism of cost-sharing is not detailed in the provided data. However, it generally implies that the government's direct financial outlay is less than the total project cost. This can be advantageous for the government by reducing immediate expenditure and ensuring contractor commitment. The implications are that the government's risk is partially mitigated, and the contractor has a vested financial interest in the project's success and efficiency.

What are the potential risks associated with a sole-source contract of this duration?

Sole-source contracts, especially those with a long duration like this one (over 7 years), carry inherent risks. Firstly, the lack of competition means the government may not be getting the best possible price, potentially leading to higher costs than if the contract had been competed. Secondly, long-term sole-source agreements can reduce flexibility; if the contractor's performance declines or market conditions change, it can be difficult and costly to switch providers. There's also a risk of complacency from the contractor, knowing they are the sole provider for an extended period, which could impact innovation and responsiveness.

Can the value of this contract be benchmarked against similar R&D contracts?

Benchmarking the value of this specific R&D contract is challenging due to its sole-source nature and the cost-sharing component. Standard benchmarking typically relies on comparing pricing from multiple competitive bids for similar services. Without such comparisons, assessing whether $14.4 million (total award amount) represents fair value is difficult. While the NAICS code provides a general category, the unique nature of R&D projects, especially those involving cost-sharing and specific scientific goals, makes direct apples-to-apples comparisons problematic. Further analysis would require access to the contract's detailed statement of work and performance metrics.

What is the historical spending pattern for R&D contracts under NAICS code 541710 by the National Institutes of Health?

The National Institutes of Health (NIH) is a major funder of Research and Development in the Physical, Engineering, and Life Sciences (NAICS 541710). Historically, NIH has awarded billions of dollars annually across thousands of contracts and grants within this category. Spending patterns often reflect national research priorities, emerging scientific fields, and public health needs. While this specific $14.4 million contract is a single instance, NIH's overall R&D spending is characterized by a mix of large, long-term research initiatives and smaller, more focused projects, often awarded through competitive processes, though sole-source awards do occur for specialized needs.

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 › N – Health R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: COST SHARING (T)

Contractor Details

Parent Company: Secretary of State Connecticut (UEI: 004534830)

Address: 410 CAPITOL AVE, HARTFORD, CT, 06106

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $165,675,487

Exercised Options: $165,675,487

Current Obligation: $14,373,586

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline