NIH awards $19.6M for operations research, with a significant portion for Iowa State University

Contract Overview

Contract Amount: $19,604,329 ($19.6M)

Contractor: State University of Iowa

Awarding Agency: Department of Health and Human Services

Start Date: 2003-08-01

End Date: 2012-09-30

Contract Duration: 3,348 days

Daily Burn Rate: $5.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST NO FEE

Sector: R&D

Official Description: OPERATIONS RESEARCH&QUANTITATIVE

Place of Performance

Location: IOWA CITY, JOHNSON County, IOWA, 52242

State: Iowa Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $19.6 million to STATE UNIVERSITY OF IOWA for work described as: OPERATIONS RESEARCH&QUANTITATIVE Key points: 1. Contract value of $19.6 million over 9 years indicates a substantial investment in research and development. 2. The award to Iowa State University suggests a focus on academic partnerships for specialized research needs. 3. A long duration of 3348 days points to a complex, multi-year research objective. 4. The contract type 'COST NO FEE' implies the government reimburses allowable costs but does not pay a fee, often used when the scope is uncertain or for non-profit entities. 5. The North American Industry Classification System (NAICS) code 541710 signifies research and development in physical, engineering, and life sciences. 6. The contract was awarded by the National Institutes of Health (NIH), a leading federal agency for biomedical and public health research.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or comparable projects. The 'COST NO FEE' structure suggests a focus on cost recovery rather than profit, which can be cost-effective for the government if managed well. However, the absence of a fee can sometimes lead to less incentive for efficiency compared to fixed-price contracts. The total award of $19.6 million over nearly a decade averages to approximately $2.18 million per year, which appears reasonable for large-scale R&D.

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 moderate level of competition for this specific research area. While two bidders is better than one, it is on the lower end for a contract of this magnitude and duration, potentially limiting the full benefits of competitive pricing.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a competitive process, though the limited number of bidders here warrants attention.

Public Impact

The primary beneficiary is Iowa State University, which receives significant funding for its research capabilities. The contract supports advancements in physical, engineering, and life sciences research, potentially leading to new discoveries and innovations. The geographic impact is centered in Iowa, supporting the state's research infrastructure and academic community. The contract likely involves researchers, scientists, and technical staff at the university, contributing to the scientific workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'COST NO FEE' contract type may reduce contractor incentive for cost efficiency.
Only two bids were received, suggesting potentially limited competition for this research area.
The long contract duration could pose risks if research objectives or priorities shift significantly over time.

Positive Signals

Awarded under full and open competition, maximizing the pool of potential offerors.
The contract supports a major research institution (Iowa State University), leveraging established expertise.
The research area (NAICS 541710) aligns with NIH's mission to advance health and scientific knowledge.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The federal government is a significant funder of R&D, with agencies like NIH investing billions annually to drive scientific discovery and innovation. Comparable spending benchmarks would typically involve other large, multi-year research grants awarded to universities or research institutions for similar scientific disciplines.

Small Business Impact

There is no indication of small business set-asides for this contract, and the awardee is a large university. Subcontracting opportunities for small businesses are not explicitly detailed but could arise if the university partners with smaller entities for specific research components or services.

Oversight & Accountability

Oversight would primarily be conducted by the National Institutes of Health (NIH) program officials and contracting officers. Accountability measures would be tied to the research milestones and deliverables outlined in the contract. Transparency is generally maintained through federal contract databases, though specific research progress reports are typically internal to the agency and contractor.

Related Government Programs

National Institutes of Health Research Grants
Federal Funding for University Research
Science and Technology Research Contracts
Physical, Engineering, and Life Sciences R&D

Risk Flags

Long contract duration may increase risk of scope creep or changing research priorities.
Limited number of bidders (2) could indicate potential issues with market research or solicitation attractiveness.
'COST NO FEE' structure may reduce contractor incentive for cost efficiency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $19.6 million to STATE UNIVERSITY OF IOWA. OPERATIONS RESEARCH&QUANTITATIVE

Who is the contractor on this award?

The obligated recipient is STATE UNIVERSITY OF IOWA.

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 $19.6 million.

What is the period of performance?

Start: 2003-08-01. End: 2012-09-30.

What specific research objectives does this contract aim to achieve within the physical, engineering, and life sciences?

The provided data does not specify the exact research objectives. However, the NAICS code 541710 indicates a broad scope covering fundamental and applied research in areas such as physics, chemistry, biology, materials science, computer science, and various engineering disciplines. Given the awardee is Iowa State University and the funding agency is NIH, the research likely pertains to biomedical engineering, health sciences, or related life science fields that have potential applications in public health or medical advancements. Further details would typically be found in the contract's statement of work or associated research proposals.

How does the $19.6 million award compare to typical NIH funding for similar R&D projects?

The $19.6 million award over approximately 9 years represents a significant, long-term investment. NIH funds a wide range of projects, from small grants of a few hundred thousand dollars to large center grants and center core grants that can exceed $10 million annually. This particular contract, averaging over $2 million per year, aligns with funding levels for major research centers, large-scale collaborative projects, or multi-disciplinary research initiatives. It suggests a project of substantial scope and duration, likely involving a considerable research team and resources.

What are the potential risks associated with a 'COST NO FEE' contract structure for this type of research?

A 'COST NO FEE' contract means the government reimburses the contractor for allowable costs incurred in performing the contract, but does not pay any profit or fee. For research and development, especially with non-profit entities like universities, this structure can be appropriate as it focuses on covering research expenses. However, a key risk is that the contractor may have less financial incentive to control costs or improve efficiency compared to a contract with a profit margin. This could potentially lead to higher overall costs for the government if not managed with rigorous oversight and clear performance metrics.

What is the significance of Iowa State University being the sole awardee for this substantial research funding?

The award to Iowa State University signifies that the institution was deemed the most qualified entity to meet the specific research needs outlined in the solicitation. Universities often receive such large grants due to their established research infrastructure, access to specialized equipment, and pool of expert faculty and researchers. This award highlights Iowa State's strengths in the physical, engineering, and life sciences relevant to the NIH's mission. It also suggests that the competition, while open, may have resulted in Iowa State University offering the best combination of technical approach, capability, and cost for this particular research endeavor.

How does the contract's duration (3348 days) impact the assessment of its value and risk?

The contract's duration of 3348 days (approximately 9.2 years) indicates a long-term commitment to a research program. This extended timeline allows for in-depth investigation, development, and potential realization of complex research goals. From a value perspective, it suggests a stable funding stream for the research team and institution, enabling sustained progress. However, it also introduces risks. Research priorities can evolve, scientific understanding can shift, and unforeseen challenges may arise over such a long period. The government must maintain strong oversight to ensure the research remains relevant and on track, and the contract should include mechanisms for review and potential modification.

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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

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

Address: 2 GILMORE HALL, IOWA CITY, IA, 01

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

Financial Breakdown

Contract Ceiling: $41,846,762

Exercised Options: $19,604,279

Current Obligation: $19,604,329

Timeline