DHHS awards $16M contract to UC for research, facing no small business participation

Contract Overview

Contract Amount: $15,970,175 ($16.0M)

Contractor: University of California

Awarding Agency: Department of Health and Human Services

Start Date: 1999-01-15

End Date: 2015-08-15

Contract Duration: 6,056 days

Daily Burn Rate: $2.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 21

Pricing Type: COST NO FEE

Sector: R&D

Place of Performance

Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90095

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $16.0 million to UNIVERSITY OF CALIFORNIA for work described as: Key points: 1. Contract awarded to a single entity, the University of California. 2. Significant contract duration of over 16 years. 3. No specific small business participation noted. 4. Research and Development sector spending context is crucial.

Value Assessment

Rating: fair

The contract value of $15.97M over 16 years suggests a moderate annual spend. Without specific deliverables or comparable contracts, assessing value is difficult. The 'Cost No Fee' structure implies reimbursement of costs without profit, which can be cost-effective if managed well.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bids were likely considered. However, the long duration and specific nature of research may have limited the pool of qualified bidders, potentially impacting price discovery.

Taxpayer Impact: The long-term nature of this contract means taxpayer funds are committed over an extended period. Effective oversight is needed to ensure the research remains relevant and cost-efficient.

Public Impact

Long-term funding for critical research potentially impacting public health. University of California benefits from sustained federal research grants. Potential for groundbreaking discoveries in health and medicine. Lack of small business involvement may limit broader economic impact.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration may lead to cost overruns or scope creep.
Lack of small business participation.

Positive Signals

Awarded under full and open competition.
Supports critical research initiatives.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on health-related research. Federal spending in this area is substantial, aimed at advancing scientific knowledge and improving public health outcomes. Benchmarks for similar long-term research grants are highly variable.

Small Business Impact

The contract does not indicate any specific provisions for small business participation. This could be due to the specialized nature of the research or a missed opportunity to engage smaller, innovative firms in federal contracting.

Oversight & Accountability

The extensive duration of this contract necessitates robust oversight from the Department of Health and Human Services to ensure milestones are met, costs are controlled, and the research remains aligned with federal objectives.

Related Government Programs

Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Long contract duration increases risk of cost escalation.
Lack of small business participation.
Potential for research to become outdated over 16 years.
Cost-reimbursement contracts can be susceptible to overspending without strict controls.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $16.0 million to UNIVERSITY OF CALIFORNIA. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF CALIFORNIA.

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 $16.0 million.

What is the period of performance?

Start: 1999-01-15. End: 2015-08-15.

What specific research objectives does this contract support, and how do they align with current public health priorities?

The provided data does not specify the research objectives. However, given the awarding agency (NIH), it likely pertains to advancing medical knowledge, disease prevention, or treatment development. Alignment with public health priorities would require reviewing the contract's statement of work and the NIH's strategic research agenda.

What mechanisms are in place to manage costs and ensure value for money over the 16-year contract period?

The 'Cost No Fee' structure suggests reimbursement of allowable costs. Effective management would rely on stringent auditing, regular performance reviews, and clear deliverable milestones. The long duration necessitates adaptive management to account for evolving research landscapes and potential cost fluctuations.

How was the 'full and open competition' process structured to ensure the best possible outcome for this long-term research need?

A full and open competition implies broad solicitation. For a long-term research contract, this likely involved detailed technical proposals, evaluation of research teams' expertise, and assessment of institutional capacity. The agency would have sought proposals demonstrating the most promising approach and highest likelihood of success over the contract's lifespan.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 21

Pricing Type: COST NO FEE (S)

Contractor Details

Address: 6291 BOELTER HALL, LOS ANGELES, CA, 90024

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

Financial Breakdown

Contract Ceiling: $19,558,459

Exercised Options: $16,139,969

Current Obligation: $15,970,175

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline