NIH awards $18M+ R&D contract to University of Texas Medical Branch for physical, engineering, and life sciences research

Contract Overview

Contract Amount: $18,077,288 ($18.1M)

Contractor: University of Texas Medical Branch AT Galveston

Awarding Agency: Department of Health and Human Services

Start Date: 2002-09-15

End Date: 2015-04-21

Contract Duration: 4,601 days

Daily Burn Rate: $3.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: COST NO FEE

Sector: R&D

Place of Performance

Location: GALVESTON, GALVESTON County, TEXAS, 77555

State: Texas Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $18.1 million to UNIVERSITY OF TEXAS MEDICAL BRANCH AT GALVESTON for work described as: Key points: 1. Contract value exceeds $18 million over its lifecycle, indicating significant investment in research. 2. Full and open competition suggests a robust bidding process, potentially leading to better pricing. 3. Contract duration of over 12 years highlights a long-term commitment to the research objectives. 4. The contract falls under the R&D sector, specifically focusing on physical, engineering, and life sciences. 5. Performance is located in Texas, potentially impacting the local research and development ecosystem.

Value Assessment

Rating: good

The contract's total value of over $18 million spread across more than 12 years suggests a substantial investment in research and development. Benchmarking this against similar long-term R&D contracts requires detailed analysis of specific research areas and scope. However, the 'COST NO FEE' award type indicates that the government reimburses the contractor for allowable costs, with no fee or profit. This structure is common in research settings where the final outcomes can be uncertain, prioritizing the pursuit of knowledge over profit margins. The extensive duration implies a sustained effort and potentially complex research objectives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. With 11 bidders participating, this suggests a healthy level of competition for this research opportunity. A higher number of bidders generally leads to more competitive pricing and a wider range of innovative approaches being considered by the agency. The agency's decision to pursue full and open competition implies a desire to leverage the broadest possible market for the best value.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that likely drives down costs and ensures the government receives the best possible value for its investment in scientific research.

Public Impact

The University of Texas Medical Branch at Galveston is the primary beneficiary, receiving significant funding for its research capabilities. The contract supports research and development in the physical, engineering, and life sciences, potentially leading to advancements in various fields. The geographic impact is centered in Texas, fostering research activities and potentially creating specialized jobs within the state. The contract's focus on R&D may lead to the development of new technologies, treatments, or scientific understanding with broad societal benefits.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 12 years) can sometimes lead to cost overruns if not managed effectively.
The 'COST NO FEE' structure, while common for R&D, requires diligent oversight to ensure costs remain reasonable and aligned with research goals.
The specific research outcomes are not guaranteed, representing an inherent risk in R&D investments.

Positive Signals

Full and open competition with 11 bidders suggests a strong market interest and potential for competitive pricing.
The contract is awarded to a known entity, the University of Texas Medical Branch, implying a degree of established capability.
The focus on R&D aligns with national priorities for scientific advancement and innovation.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically North American Industry Classification System (NAICS) code 541710, which covers Research and Development in the Physical, Engineering, and Life Sciences. This sector is characterized by significant investment in innovation and discovery. Comparable spending benchmarks would involve analyzing other large-scale, multi-year R&D grants and contracts awarded by agencies like NIH to academic institutions and research organizations. The market size for R&D services is substantial, driven by both government funding and private sector investment in scientific advancement.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside (ss: false) nor was there explicit mention of subcontracting goals (sb: false). This suggests that the primary focus of this contract was on securing the best research capabilities through full and open competition, rather than specifically targeting small business participation. Consequently, the direct impact on the small business ecosystem may be limited unless the prime contractor voluntarily engages small businesses as subcontractors for specialized services.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Institutes of Health (NIH), a component of the Department of Health and Human Services. Given the 'COST NO FEE' award type, rigorous financial oversight is crucial to ensure that all reimbursed costs are allowable, reasonable, and allocable to the research objectives. Transparency is typically maintained through periodic reporting requirements from the contractor. While specific Inspector General (IG) jurisdiction is not detailed, the HHS OIG generally has oversight over all HHS programs and contracts, including those managed by NIH, to detect and prevent waste, fraud, and abuse.

Related Government Programs

National Institutes of Health Research Grants
Department of Health and Human Services Research Programs
Federal Funding for Physical Sciences Research
Federal Funding for Engineering Sciences Research
Federal Funding for Life Sciences Research

Risk Flags

Long contract duration
Cost-reimbursement contract type requires diligent oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $18.1 million to UNIVERSITY OF TEXAS MEDICAL BRANCH AT GALVESTON. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF TEXAS MEDICAL BRANCH AT GALVESTON.

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 $18.1 million.

What is the period of performance?

Start: 2002-09-15. End: 2015-04-21.

What is the track record of the University of Texas Medical Branch at Galveston in managing large federal research contracts?

The University of Texas Medical Branch at Galveston (UTMB) has a significant history of managing federal research grants and contracts, particularly from agencies like NIH. As a major academic medical center, UTMB has established infrastructure and expertise in research administration. While specific details on past performance for contracts of this exact magnitude and duration are not provided in this data snippet, UTMB's general profile suggests a capacity to handle complex research endeavors. A deeper dive into their contract performance history, including any past issues or commendations, would be necessary for a comprehensive assessment. However, their consistent receipt of federal funding indicates a generally positive track record in research execution and compliance.

How does the total contract value of $18M+ compare to other R&D contracts in the physical, engineering, and life sciences sector?

A total contract value exceeding $18 million over a period of more than 12 years places this award in the upper tier for individual research contracts within the physical, engineering, and life sciences sector. Many foundational research projects may receive less funding, while large-scale, multi-disciplinary initiatives or clinical trials can exceed this amount. For instance, major biomedical research programs or large engineering development projects funded by agencies like NSF or DoD can reach hundreds of millions of dollars. However, for a single, focused R&D effort awarded to a specific institution, $18M+ represents a substantial commitment, suggesting a project of significant scope, complexity, or long-term potential impact.

What are the primary risks associated with a 'COST NO FEE' contract structure for R&D?

The primary risk associated with a 'COST NO FEE' contract structure, common in research and development, is the potential for cost escalation without a direct profit incentive for the contractor to control expenses. While the government reimburses allowable costs, there is no built-in profit margin to encourage efficiency. This necessitates robust government oversight to scrutinize all claimed costs, ensuring they are reasonable, allocable, and necessary for the research. Another risk is that the contractor might prioritize activities that incur costs over those that might be more efficient but less costly, as their reimbursement is tied to expenditures. Effective management requires clear performance metrics and regular audits to mitigate these risks and ensure taxpayer funds are used judiciously.

What does the presence of 11 bidders signify for the effectiveness of the R&D program?

The presence of 11 bidders for this contract signifies a highly competitive environment for the research opportunity. This level of competition suggests that the research area is of significant interest to multiple organizations, potentially indicating a high perceived value or strategic importance of the work. From an effectiveness standpoint, a robust competition increases the likelihood that the agency selected the most capable and innovative research team. It also implies that the government likely secured favorable terms, potentially leading to more research output or higher quality results for the investment. The diversity of approaches proposed by 11 different bidders could also foster innovation within the chosen research direction.

How has federal spending in R&D for physical, engineering, and life sciences evolved over the contract's duration?

The contract spans from 2002 to 2015. During this period, federal spending in R&D, particularly in the physical, engineering, and life sciences, generally saw fluctuations influenced by economic conditions, national priorities, and specific agency budgets. The early 2000s saw increases driven by initiatives like the American Recovery and Reinvestment Act (ARRA) in response to the 2008 financial crisis, which boosted R&D funding. Life sciences, in particular, have been a consistent area of significant federal investment due to their direct impact on public health. Engineering and physical sciences also receive substantial funding, often tied to national security, energy, or technological advancement. Overall, while specific year-over-year trends varied, the long-term trajectory for federal R&D investment in these fields has been one of growth, albeit with periods of constraint.

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: 11

Pricing Type: COST NO FEE (S)

Contractor Details

Parent Company: University of Texas System

Address: 301 UNIVERSITY BLVD, GALVESTON, TX, 77555

Business Categories: Category Business, Educational Institution, Higher Education, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $22,388,943

Exercised Options: $15,348,116

Current Obligation: $18,077,288

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline