NIH awards $10.5M for R&D in Physical, Engineering, and Life Sciences to The General Hospital Corporation

Contract Overview

Contract Amount: $10,491,241 ($10.5M)

Contractor: THE General Hospital Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2001-05-15

End Date: 2006-11-08

Contract Duration: 2,003 days

Daily Burn Rate: $5.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST NO FEE

Sector: R&D

Place of Performance

Location: BOSTON, SUFFOLK County, MASSACHUSETTS, 02114

State: Massachusetts Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $10.5 million to THE GENERAL HOSPITAL CORPORATION for work described as: Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration spans over five years, indicating a significant, long-term research initiative. 3. The award type is 'Cost No Fee', which typically means the contractor is reimbursed for allowable costs but does not receive a profit. 4. The contract falls under the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code. 5. The contract was awarded by the National Institutes of Health (NIH), a leading biomedical research agency. 6. The contract was awarded in 2001, with performance extending into 2006, providing historical context for current spending.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or performance metrics. The 'Cost No Fee' structure implies that the government aims to cover direct research expenses without additional profit for the contractor. However, the total award amount of $10.5 million over approximately five years suggests a substantial investment in research. Without comparable contracts for similar R&D projects, it's difficult to definitively assess if this represents excellent value for money. The lack of profit margin might indicate a focus on cost recovery for the research institution.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This method is generally preferred as it maximizes the pool of potential offerors and is expected to foster competitive pricing. The number of bids received is not specified, but the open competition suggests that multiple entities likely vied for this award, potentially leading to a more favorable price for the government.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of obtaining the best possible value by encouraging a wide range of proposals and potentially driving down costs through competitive pressure.

Public Impact

The primary beneficiaries are likely researchers and institutions involved in physical, engineering, and life sciences, advancing scientific knowledge. The services delivered are research and development activities, contributing to scientific and technological advancements. The geographic impact is primarily within Massachusetts, where The General Hospital Corporation is located. Workforce implications include employment for scientists, researchers, technicians, and support staff at the contractor's facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the true value and impact of the R&D investment.
The 'Cost No Fee' contract type, while potentially cost-saving, may offer less incentive for contractor efficiency or innovation compared to profit-bearing contracts.
Limited information on the number of bidders prevents a full assessment of the competitive landscape and its impact on pricing.
The contract's age (awarded in 2001) means its direct relevance to current market conditions or technological advancements may be limited.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
The substantial funding indicates a significant investment in critical research areas by a major federal agency (NIH).
The long-term nature of the contract (over five years) suggests a sustained commitment to the research objectives.
The contractor, The General Hospital Corporation, is likely a reputable institution, implying a degree of established capability.

Sector Analysis

The contract falls under the Research and Development (R&D) sector, specifically within NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences). This sector is characterized by innovation and scientific discovery. Federal spending in R&D is crucial for advancing technology, improving public health, and maintaining national competitiveness. Comparable spending benchmarks would involve analyzing other NIH grants and contracts awarded for similar research endeavors, considering the specific scientific disciplines and project scopes.

Small Business Impact

There is no indication that this contract included small business set-asides, as the 'ss' field is false. Furthermore, the 'sb' field is also false, suggesting no specific small business participation goals were mandated for this award. Consequently, the direct impact on the small business ecosystem appears minimal, with no explicit provisions for subcontracting opportunities with small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the National Institutes of Health (NIH), a component of the Department of Health and Human Services. As a research grant or contract, oversight would likely involve monitoring research progress, adherence to ethical guidelines, and proper use of funds. Transparency is generally facilitated through public databases like FPDS, although detailed project reports may not always be publicly accessible. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

National Institutes of Health Research Grants
Department of Health and Human Services R&D Contracts
Federal Funding for Biomedical Research
Physical and Engineering Sciences Research Support
Life Sciences Innovation Initiatives

Risk Flags

Contract awarded over five years ago.
Contract type is 'Cost No Fee', potentially impacting cost control incentives.
Limited information on the number of bidders in the full and open competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $10.5 million to THE GENERAL HOSPITAL CORPORATION. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is THE GENERAL HOSPITAL CORPORATION.

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 $10.5 million.

What is the period of performance?

Start: 2001-05-15. End: 2006-11-08.

What was the specific research focus of this contract awarded to The General Hospital Corporation?

The provided data indicates the contract (ID: DCA) was awarded under NAICS code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences,' by the National Institutes of Health (NIH). While the specific research focus is not detailed in the summary data, this broad category suggests the work likely involved scientific inquiry and experimentation within fields such as biology, chemistry, physics, materials science, or engineering, aiming to generate new knowledge or develop new technologies. The 'Cost No Fee' award type implies the government was primarily reimbursing the contractor for direct research expenses incurred in pursuing these objectives, rather than paying for a specific product or service with a profit margin. Further details on the research scope would typically be found in the contract's statement of work or associated documentation.

How does the $10.5 million award compare to other R&D contracts in the physical, engineering, and life sciences sector?

The $10.5 million award over approximately five years represents a significant investment, averaging around $2.1 million per year. Within the vast landscape of federal R&D spending, particularly through agencies like NIH, this amount is substantial but not exceptionally large. NIH alone awards billions annually across numerous research areas. To provide a precise comparison, one would need to analyze the average award size for contracts under NAICS 541710 during the contract period (2001-2006) or for similar research institutions. However, it's safe to say this contract was a considerable funding stream for the specific research it supported, likely enabling a dedicated team and resources for the duration.

What are the potential risks associated with a 'Cost No Fee' contract for R&D?

A 'Cost No Fee' (CNF) contract, while potentially beneficial for ensuring cost recovery for essential research, carries specific risks. Primarily, it can reduce the contractor's incentive to control costs rigorously, as they are reimbursed for allowable expenses without a direct profit motive tied to efficiency. This could lead to less stringent cost management compared to fixed-price or cost-plus-incentive-fee contracts. Furthermore, defining and monitoring 'allowable costs' can be complex and may lead to disputes. For R&D, where outcomes are inherently uncertain, the lack of a profit incentive might also subtly discourage the contractor from pursuing highly innovative or potentially risky approaches that could yield significant breakthroughs but might also incur higher, unrecoverable costs if unsuccessful.

What does the 'full and open competition' designation imply about the contractor selection process and potential value?

The designation 'full and open competition' signifies that the contract was solicited broadly, allowing any responsible source to submit an offer. This is generally considered the most effective method for achieving fair market prices and ensuring the government receives the best value. It implies that multiple organizations had the opportunity to compete, potentially leading to a more competitive bidding environment. While the number of bids received isn't specified, the process itself suggests that the award was made after evaluating various proposals based on established criteria. This open approach increases the likelihood that the selected contractor, The General Hospital Corporation, offered a compelling combination of technical capability and cost-effectiveness relative to other potential bidders.

How has federal spending in R&D, particularly in life sciences, evolved since this contract was awarded in 2001?

Federal spending in R&D, especially within the life sciences, has seen significant growth and shifts since 2001. Driven by advancements in areas like genomics, biotechnology, and personalized medicine, agencies like NIH have consistently increased their R&D budgets, albeit with fluctuations based on economic conditions and national priorities. The total federal R&D obligations have grown substantially over the past two decades. While this specific contract represented a $10.5 million investment in 2001-2006, current R&D funding levels are considerably higher, reflecting inflation, increased research scope, and the emergence of new scientific frontiers. The nature of R&D projects has also evolved, with greater emphasis on data science, AI in research, and interdisciplinary approaches.

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: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: COST NO FEE (S)

Contractor Details

Parent Company: Partners Healthcare System, Inc (UEI: 825636988)

Address: 55 FRUIT ST, BOSTON, MA, 90

Business Categories: Category Business, Hospital, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $33,826,992

Exercised Options: $32,084,163

Current Obligation: $10,491,241

Timeline