NIH awards $119M for Biomedical R&D to American Type Culture Collection over 7 years
Contract Overview
Contract Amount: $119,442,799 ($119.4M)
Contractor: American Type Culture Collection
Awarding Agency: Department of Health and Human Services
Start Date: 2003-09-30
End Date: 2010-09-29
Contract Duration: 2,556 days
Daily Burn Rate: $46.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: BIOMEDICAL (BASIC)
Place of Performance
Location: MANASSAS, PRINCE WILLIAM County, VIRGINIA, 20110, UNITED STATES OF AMERICA
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $119.4 million to AMERICAN TYPE CULTURE COLLECTION for work described as: BIOMEDICAL (BASIC) Key points: 1. Significant investment in fundamental biomedical research. 2. Competition was full and open, suggesting market-driven pricing. 3. Contract duration of 7 years presents long-term commitment risk. 4. Focus on R&D aligns with sector trends in life sciences.
Value Assessment
Rating: good
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. However, the award amount of $119M over 7 years suggests a substantial project requiring this structure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, indicating a robust process for selecting the contractor. This method generally promotes competitive pricing and ensures the best value is sought.
Taxpayer Impact: Taxpayer funds are directed towards critical research and development, with the expectation of future advancements and economic benefits.
Public Impact
Supports advancements in biomedical sciences, potentially leading to new treatments or technologies. Investment in research infrastructure and scientific expertise. Potential for long-term economic and health benefits for the public.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration may exceed actual need.
- Cost Plus Fixed Fee structure requires diligent oversight to control costs.
Positive Signals
- Full and open competition ensures market fairness.
- Supports critical R&D in a vital sector.
Sector Analysis
This contract falls under the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for innovation and national competitiveness.
Small Business Impact
No specific information is provided regarding small business participation in this contract. Further analysis would be needed to determine if small businesses were involved or could have been.
Oversight & Accountability
The contract was awarded by the Department of Health and Human Services (NIH), a major federal agency with established oversight mechanisms for research grants and contracts.
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
- Long contract duration (7 years).
- Cost Plus Fixed Fee contract type.
- Potential for scope creep in R&D projects.
- Lack of specific small business participation data.
Tags
research-and-development-in-the-physical, department-of-health-and-human-services, va, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $119.4 million to AMERICAN TYPE CULTURE COLLECTION. BIOMEDICAL (BASIC)
Who is the contractor on this award?
The obligated recipient is AMERICAN TYPE CULTURE COLLECTION.
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 $119.4 million.
What is the period of performance?
Start: 2003-09-30. End: 2010-09-29.
What is the expected return on investment for this $119M biomedical research award?
The return on investment for basic biomedical research is often long-term and indirect, manifesting as scientific breakthroughs, new medical treatments, improved public health, and economic growth through innovation. Quantifying a precise ROI is challenging due to the fundamental nature of the research, but the societal benefits can be immense.
What are the primary risks associated with a 7-year Cost Plus Fixed Fee contract for R&D?
Key risks include potential cost overruns if the fixed fee is not adequately justified by the scope, and the possibility that research objectives may shift over the long duration, requiring contract modifications. Ensuring robust oversight and clear performance metrics is crucial to mitigate these risks and maintain cost control.
How effectively does this contract leverage competition to ensure value for taxpayer money?
The use of 'full and open competition' is a strong indicator that the government sought multiple bids and evaluated them to secure the best value. This process inherently drives competitive pricing and encourages contractors to offer efficient solutions, maximizing the value derived from taxpayer funds.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 10801 UNIVERSITY BLVD, MANASSAS, VA, 20110
Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $119,282,757
Exercised Options: $65,795,049
Current Obligation: $119,442,799
Timeline
Start Date: 2003-09-30
Current End Date: 2010-09-29
Potential End Date: 2010-09-29 00:00:00
Last Modified: 2016-12-07
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