NIH awards $9.9M for biomedical research to UNC Chapel Hill over 11 years

Contract Overview

Contract Amount: $9,903,860 ($9.9M)

Contractor: University of North Carolina AT Chapel Hill

Awarding Agency: Department of Health and Human Services

Start Date: 2004-07-20

End Date: 2015-07-16

Contract Duration: 4,013 days

Daily Burn Rate: $2.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: R&D

Official Description: BIOMEDICAL (BASIC)

Place of Performance

Location: CHAPEL HILL, ORANGE County, NORTH CAROLINA, 27514, UNITED STATES OF AMERICA

State: North Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $9.9 million to UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL for work described as: BIOMEDICAL (BASIC) Key points: 1. Contract awarded on a cost-no-fee basis, indicating research focus over profit. 2. Long duration of over 11 years suggests a sustained research effort. 3. Sole-source award raises questions about potential competition and value. 4. Research and Development in Physical, Engineering, and Life Sciences sector. 5. Contractor is a major research university with a strong track record. 6. Geographic focus on North Carolina for this research initiative.

Value Assessment

Rating: fair

The contract's cost-no-fee structure is typical for basic research grants, making direct value-for-money comparisons difficult. The total award of $9.9 million over more than 11 years averages to approximately $900,000 per year, which is within a reasonable range for significant biomedical research projects. However, without specific deliverables or performance metrics, assessing the true value is challenging. Benchmarking against similar long-term, sole-source research grants would be necessary for a more precise evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This approach is often used for specific research projects where a particular institution or researcher possesses unique expertise or capabilities essential for the project's success. While it ensures access to specialized knowledge, it limits the potential for price discovery through competitive bidding and may not always yield the lowest cost.

Taxpayer Impact: Sole-source awards can mean taxpayers do not benefit from competitive pricing, potentially leading to higher costs if alternatives were available. However, for highly specialized research, it can ensure the best possible expertise is utilized, maximizing the return on investment in scientific advancement.

Public Impact

The University of North Carolina at Chapel Hill benefits as the primary research institution. The contract supports advanced biomedical research, potentially leading to new medical treatments or understanding of diseases. The geographic impact is concentrated in North Carolina, fostering local research capabilities. The project likely involves researchers, technicians, and support staff, contributing to the scientific workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have led to a higher price than a competed contract.
Long contract duration without clear performance milestones could pose a risk to achieving specific research outcomes.
Cost-no-fee structure can sometimes lack strong incentives for cost control.

Positive Signals

Award to a reputable research institution like UNC Chapel Hill suggests a high likelihood of scientific merit.
Sustained funding over a long period allows for in-depth, complex research that may not be feasible with shorter grants.
Focus on biomedical research aligns with national health priorities.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on biomedical research. The market for biomedical R&D is characterized by significant government funding, academic institutions, and private sector pharmaceutical and biotech companies. NIH is a primary source of funding for basic and applied research in this area. Comparable spending benchmarks would involve looking at other large, long-term research grants awarded by NIH to universities for similar scientific endeavors.

Small Business Impact

This contract does not appear to involve small business set-asides, as it was awarded directly to a large research university. There is no indication of subcontracting requirements for small businesses within the provided data. The focus is on direct research execution by the primary awardee.

Oversight & Accountability

Oversight for this contract would primarily fall under the National Institutes of Health (NIH), a component of the Department of Health and Human Services. NIH program officers would monitor research progress and adherence to grant terms. As a research grant, formal oversight mechanisms might differ from procurement contracts, focusing more on scientific milestones and ethical conduct. Transparency is generally maintained through public research publications and NIH reporting.

Related Government Programs

National Institutes of Health Research Grants
Biomedical Research and Development
University Research Funding

Risk Flags

Sole-source award may limit competition and potentially increase costs.
Long contract duration without explicit performance milestones could pose a risk to achieving specific research objectives.
Cost-reimbursement contracts can sometimes lack strong incentives for cost containment compared to fixed-price contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $9.9 million to UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL. BIOMEDICAL (BASIC)

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL.

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 $9.9 million.

What is the period of performance?

Start: 2004-07-20. End: 2015-07-16.

What is the specific research area funded by this contract?

The contract is categorized under NAICS code 541710, which pertains to Research and Development in the Physical, Engineering, and Life Sciences. Given the awarding agency (National Institutes of Health - NIH) and the contractor (University of North Carolina at Chapel Hill), it is highly probable that the research focuses on a specific area within biomedical sciences. This could range from basic biological mechanisms, disease pathology, to the development of new diagnostic tools or therapeutic approaches. The 'BIOMEDICAL (BASIC)' designation further confirms the focus on fundamental scientific inquiry within the health sciences.

How does the total award amount compare to typical NIH grants for similar research?

The total award of $9.9 million over approximately 11 years averages to about $900,000 per year. This figure is substantial and falls within the upper range for large, multi-year research grants awarded by the NIH. Many NIH grants, especially for basic science or large centers, can range from several hundred thousand to over a million dollars annually. The duration also suggests a significant, long-term research program, which often requires substantial funding to sustain personnel, equipment, and resources over an extended period. Benchmarking would require comparing this to other NIH R01, U01, or center grants in similar biomedical fields.

What are the potential risks associated with a sole-source award for this research?

The primary risk of a sole-source award is the potential lack of competitive pressure, which could lead to a less favorable price or terms than if multiple bidders had competed. For research, this could mean the funding might not be as cost-efficient as it could be. Additionally, it limits the opportunity to discover potentially innovative approaches or alternative research methodologies that other institutions might have proposed. However, NIH often justifies sole-source awards for research when a specific institution or researcher possesses unique, indispensable expertise or resources critical to the project's success, mitigating the risk of project failure.

What is the track record of the University of North Carolina at Chapel Hill in receiving and managing federal research grants?

The University of North Carolina at Chapel Hill (UNC-Chapel Hill) has a long and distinguished history of receiving and managing federal research grants, particularly from agencies like the NIH. As a major public research university, it consistently ranks among the top institutions for federal research expenditures. UNC-Chapel Hill has established infrastructure, experienced research administration, and numerous faculty with proven track records in securing and executing complex research projects. Their consistent success in obtaining significant funding indicates a strong capacity for scientific innovation and responsible fiscal management of grant funds.

What are the implications of the 'Cost No Fee' (Cost-Reimbursement) contract type for this research?

A 'Cost No Fee' contract type, often seen in research grants, means the contractor (UNC-Chapel Hill) is reimbursed for the actual allowable costs incurred in performing the research, but does not receive any additional profit or fee. This structure is common for basic research where the outcomes are uncertain and the focus is on scientific exploration rather than delivering a specific product or service with a defined profit margin. It incentivizes the contractor to conduct the research diligently and manage costs responsibly, as they are only compensated for the expenses directly related to the project, without an added profit motive.

How does the duration of this contract (over 11 years) impact the research and its potential outcomes?

The extended duration of over 11 years is highly beneficial for complex biomedical research that often requires long-term investigation, follow-up, and iterative development. It allows researchers to pursue ambitious scientific questions, build substantial datasets, and potentially observe long-term effects or trends that would be missed in shorter-term projects. This sustained funding provides stability for research teams, enabling them to focus on scientific advancement without the constant pressure of seeking new funding cycles. It also allows for the exploration of more challenging and potentially groundbreaking research avenues that may not yield immediate results.

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: NOT COMPETED

Offers Received: 1

Pricing Type: COST NO FEE (S)

Contractor Details

Parent Company: THE University of North Carolina (UEI: 142363428)

Address: ADMINISTRATIVE OFFICE BUILDING, SUI, CHAPEL HILL, NC, 27599

Business Categories: Category Business, Educational Institution, Higher Education, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $128,439,069

Exercised Options: $85,325,975

Current Obligation: $9,903,860

Timeline