HHS awards $29.8M for cancer research, raising questions on competition and value

Contract Overview

Contract Amount: $29,825,152 ($29.8M)

Contractor: Cancer Prevention Institute of California

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: $11.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST SHARING

Sector: R&D

Place of Performance

Location: FREMONT, ALAMEDA County, CALIFORNIA, 94538

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $29.8 million to CANCER PREVENTION INSTITUTE OF CALIFORNIA for work described as: Key points: 1. Significant funding for R&D in life sciences. 2. Lack of competition suggests potential for higher costs. 3. Long contract duration may indicate complex, ongoing research needs. 4. Geographic concentration in California.

Value Assessment

Rating: questionable

The award amount of $29.8M over 7 years is substantial for R&D. Without competitive bidding, it's difficult to assess if this represents fair market value or if taxpayers received the best possible price for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and may lead to inflated costs compared to a competitive environment.

Taxpayer Impact: The lack of competition means taxpayers may have overpaid for the research services, as there was no market pressure to drive down costs.

Public Impact

Funding supports critical cancer prevention research. Potential for groundbreaking discoveries in life sciences. Concentration of federal research dollars in California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High award amount
Long contract duration

Positive Signals

Supports vital research area
Long-term commitment to research

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences sector. The $29.8M award over 7 years is a significant investment, but benchmarks for similar sole-source R&D contracts are hard to establish without competitive data.

Small Business Impact

There is no indication that small businesses were involved in this contract, as it was a sole-source award to a specific institute.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the justification for bypassing competition was sound and that the pricing is reasonable.

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 competitive bidding
Potential for overpricing
Limited transparency on justification
Difficulty in assessing value for money

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $29.8 million to CANCER PREVENTION INSTITUTE OF CALIFORNIA. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is CANCER PREVENTION INSTITUTE OF CALIFORNIA.

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 $29.8 million.

What is the period of performance?

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

What was the justification for awarding this contract on a sole-source basis, and was it adequately documented?

The provided data does not include the justification for the sole-source award. Typically, sole-source contracts are used when only one responsible source is available or capable of meeting the agency's needs. A thorough review would require access to the contract file to verify the documented rationale and ensure it aligns with federal procurement regulations.

How does the per-project cost compare to similar, competitively awarded cancer research grants or contracts?

Direct comparison is challenging due to the sole-source nature and the specific scope of work. However, a benchmark analysis against competitively awarded grants for similar research areas and durations would be necessary to assess cost-effectiveness. The absence of competition prevents a definitive value assessment.

What are the measurable outcomes and milestones associated with this $29.8M award, and how is progress being tracked?

The data does not specify the measurable outcomes or milestones. Effective oversight would require the agency to have a robust system for tracking progress against defined objectives, deliverables, and performance metrics to ensure the research is on track and taxpayer funds are being used efficiently.

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

Address: 32960 ALVARADO NILES RD #, UNION CITY, CA, 14

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

Financial Breakdown

Contract Ceiling: $415,386,045

Exercised Options: $415,386,045

Current Obligation: $29,825,152

Timeline