NIH awards $15.5M contract for R&D in physical, engineering, and life sciences to Beth Israel Deaconess Medical Center

Contract Overview

Contract Amount: $15,500,036 ($15.5M)

Contractor: Beth Israel Deaconess Medical Center, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2003-08-01

End Date: 2010-07-31

Contract Duration: 2,556 days

Daily Burn Rate: $6.1K/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, 02215

State: Massachusetts Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $15.5 million to BETH ISRAEL DEACONESS MEDICAL CENTER, INC. for work described as: Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 2556 days (approximately 7 years) indicates a long-term research commitment. 3. The contract type 'COST NO FEE' suggests that the contractor is reimbursed for allowable costs without an additional fee. 4. The base award amount of $6.06M is significantly less than the total potential value, implying options or future funding. 5. The North American Industry Classification System (NAICS) code 541710 points to a focus on research and development services. 6. The contract was awarded to a single entity, Beth Israel Deaconess Medical Center, Inc.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or performance metrics. The 'COST NO FEE' structure means the government reimburses actual expenses incurred by the contractor. While the base award is $6.06 million, the total potential value is $15.5 million, indicating significant potential for cost growth over the contract's 7-year duration. Without details on the research scope and expected outcomes, it's difficult to assess if this represents good value for money compared to similar R&D efforts.

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. The presence of two bids suggests a degree of competition, though the specifics of the bidding process and the reasons for only two submissions are not detailed. A higher number of bidders typically leads to more competitive pricing and potentially better value for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best possible price and quality through a wide range of potential providers.

Public Impact

The primary beneficiary is the National Institutes of Health (NIH), which will receive research and development services. The contract supports advancements in physical, engineering, and life sciences, potentially leading to new discoveries and innovations. The geographic impact is primarily centered in Massachusetts, where Beth Israel Deaconess Medical Center is located. The contract likely supports a workforce of researchers, scientists, and technical staff at the medical center.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns given the 'COST NO FEE' structure and long duration.
Limited transparency on specific research outcomes and performance metrics.
The total potential value significantly exceeds the base award, requiring careful monitoring of expenditures.

Positive Signals

Awarded through full and open competition, indicating a structured procurement process.
Long contract duration suggests a sustained commitment to critical research areas.
The contractor is a well-established medical center, implying expertise in relevant research fields.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on the physical, engineering, and life sciences. This sector is characterized by innovation, long-term investment, and often involves complex scientific endeavors. Comparable spending benchmarks would depend heavily on the specific research area, but NIH contracts in this domain are substantial, reflecting the agency's mission to advance biomedical and public health research.

Small Business Impact

There is no indication that this contract included small business set-asides, nor is there information on subcontracting plans. Given the nature of the research and the size of the award, it is likely that the primary contractor, Beth Israel Deaconess Medical Center, Inc., will conduct the majority of the work internally. This may limit direct opportunities for small businesses unless they are specifically engaged as subcontractors for specialized services.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officers and program managers within the National Institutes of Health (NIH). Accountability measures would be tied to the research milestones and deliverables outlined in the contract. Transparency is generally maintained through contract databases and public reporting, although specific research findings may be subject to publication schedules and intellectual property considerations.

Related Government Programs

National Institutes of Health Research Grants
Biomedical Research Contracts
Life Sciences R&D Funding
Federal Science and Technology Investment

Risk Flags

Cost Control Risk
Performance Monitoring
Long-Term Funding Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $15.5 million to BETH ISRAEL DEACONESS MEDICAL CENTER, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is BETH ISRAEL DEACONESS MEDICAL CENTER, INC..

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 $15.5 million.

What is the period of performance?

Start: 2003-08-01. End: 2010-07-31.

What is the specific research focus of this contract?

The contract is broadly categorized under 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS code 541710). However, the specific research topics, methodologies, and expected outcomes are not detailed in the provided data. Typically, NIH contracts of this nature support fundamental or applied research aimed at advancing scientific knowledge in areas relevant to public health, medicine, biology, or related engineering and physical sciences. Further details would likely be found in the contract's statement of work or associated documentation.

How does the $15.5 million total potential value compare to similar NIH R&D contracts?

The total potential value of $15.5 million over approximately 7 years places this contract within a significant range for NIH R&D awards. NIH funds a vast array of research projects, with contract values varying widely based on scope, duration, and complexity. Large-scale, multi-year R&D contracts awarded to major research institutions can easily reach tens of millions of dollars. To provide a precise comparison, one would need to analyze contracts with similar NAICS codes, research areas, and contractor types (e.g., academic medical centers) awarded around the same period.

What are the key risks associated with a 'COST NO FEE' contract of this duration?

A 'COST NO FEE' contract means the government reimburses the contractor for allowable costs incurred in performing the contract, but the contractor does not receive an additional profit or fee. Key risks include potential for cost overruns if the contractor's cost management is weak, as there is less financial incentive for efficiency compared to a fixed-price contract. For the government, the risk lies in potentially paying higher costs than anticipated if the scope is not tightly managed or if unforeseen research challenges arise. The long duration (2556 days) amplifies these risks, requiring robust oversight to ensure costs remain reasonable and aligned with research progress.

What is the track record of Beth Israel Deaconess Medical Center, Inc. as a federal contractor?

Beth Israel Deaconess Medical Center, Inc. is a major teaching hospital and research institution affiliated with Harvard Medical School. As such, it has a history of receiving federal funding, primarily through grants and contracts, particularly from agencies like the NIH. While specific details of their past federal contract performance (e.g., number of awards, total value, performance ratings) are not provided here, institutions of this caliber typically have extensive experience managing large, complex research projects funded by the government. Their track record would generally be considered strong in the biomedical research arena.

How does the competition level (2 bidders) impact the value for taxpayers?

Having only two bidders in a 'full and open competition' scenario presents a mixed picture for taxpayers. On one hand, competition inherently drives better pricing and innovation than a sole-source award. On the other hand, only two bidders suggest that the market for this specific R&D requirement might be limited, or that the solicitation may have had specific requirements that narrowed the field. While competition occurred, a higher number of bidders would generally provide greater assurance of achieving the best possible value. The government's ability to negotiate effectively with the two bidders becomes crucial in this context.

What are the implications of the base award ($6.06M) being significantly lower than the total potential award ($15.5M)?

This significant difference indicates that the contract includes substantial option periods or potential for future funding increases, contingent upon factors like continued funding appropriations, contractor performance, and evolving research needs. For taxpayers, it means the total financial commitment could be up to $15.5 million, requiring careful monitoring of how the funds are utilized and whether the research progresses as planned to justify the full expenditure. It also suggests flexibility for the agency to adapt the research scope or duration based on outcomes.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: Caregroup, Inc. (UEI: 071723563)

Address: 330 BROOKLINE AVE, BOSTON, MA, 02215

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

Financial Breakdown

Contract Ceiling: $33,094,607

Exercised Options: $8,371,768

Current Obligation: $15,500,036

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline