NIH awards $15.8M for R&D in Physical, Engineering, and Life Sciences to Medical College of Wisconsin

Contract Overview

Contract Amount: $15,777,838 ($15.8M)

Contractor: Medical College of Wisconsin

Awarding Agency: Department of Health and Human Services

Start Date: 2002-09-15

End Date: 2010-06-30

Contract Duration: 2,845 days

Daily Burn Rate: $5.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 21

Pricing Type: COST NO FEE

Sector: R&D

Place of Performance

Location: MILWAUKEE, MILWAUKEE County, WISCONSIN, 53226

State: Wisconsin Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $15.8 million to MEDICAL COLLEGE OF WISCONSIN for work described as: Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. Long duration of over 2800 days indicates a substantial, long-term research endeavor. 3. The contract type 'Cost No Fee' implies reimbursement of allowable costs without additional profit. 4. Research and Development in Physical, Engineering, and Life Sciences is a critical area for scientific advancement. 5. The awardee, Medical College of Wisconsin, is a significant research institution. 6. The contract value is moderate for a long-term R&D project of this nature.

Value Assessment

Rating: fair

The contract value of approximately $15.8 million over roughly 7.8 years (2845 days) averages to about $2 million per year. This figure appears reasonable for a sustained research and development effort, especially considering the complexity and potential breakthroughs in physical, engineering, and life sciences. Without specific benchmarks for comparable NIH R&D contracts of this exact scope and duration, a precise value-for-money assessment is challenging. However, the 'Cost No Fee' structure suggests that the government is primarily covering direct costs associated with the research, which can be an efficient way to fund foundational science.

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. This suggests a robust bidding environment where multiple entities likely vied for the award. The presence of 21 offers (no) further supports the notion of significant competition. A competitive process generally leads to better price discovery and potentially more favorable terms for the government, as contractors are incentivized to offer competitive proposals to win the contract.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by fostering a marketplace where the best value is sought. The high number of offers suggests that the government received a range of options, increasing the likelihood of securing a cost-effective solution for critical research.

Public Impact

The primary beneficiaries are researchers and institutions involved in advancing scientific knowledge in physical, engineering, and life sciences. The services delivered are fundamental research and development activities, potentially leading to new technologies, treatments, or scientific understanding. The geographic impact is likely concentrated in Wisconsin, where the Medical College of Wisconsin is located, but the scientific advancements can have a national or global reach. Workforce implications include support for researchers, technicians, and administrative staff at the Medical College of Wisconsin.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Cost No Fee' contract type, while reimbursing costs, may offer less incentive for cost control compared to fixed-price contracts if not rigorously monitored.
The long contract duration could present challenges in adapting to rapidly evolving research landscapes or unforeseen project roadblocks.

Positive Signals

Awarded through full and open competition with 21 offers, indicating a strong market response and potential for competitive pricing.
The Medical College of Wisconsin is a recognized research institution, suggesting a capable awardee with a track record in relevant fields.
The focus on R&D in critical scientific areas aligns with national priorities for innovation and discovery.

Sector Analysis

This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector (NAICS code 541710). This sector is characterized by significant investment from both government and private entities aimed at scientific discovery and technological innovation. The market size is substantial, with billions spent annually by federal agencies on R&D. This specific contract represents a moderate investment within the broader NIH portfolio, supporting foundational research that could lead to future breakthroughs in medicine, technology, or basic science.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, and the awardee, Medical College of Wisconsin, is a large research institution. Therefore, direct subcontracting opportunities for small businesses under this specific award are not explicitly detailed. The primary focus appears to be on the research capabilities of the primary awardee rather than small business utilization.

Oversight & Accountability

Oversight for this contract would typically be managed by the National Institutes of Health (NIH), a component of the Department of Health and Human Services. The 'Cost No Fee' structure necessitates diligent monitoring of allowable costs to ensure fiscal responsibility. Accountability measures would involve regular progress reports, scientific reviews, and adherence to research protocols. Transparency is generally maintained through public databases of federal contracts and NIH's commitment to disseminating research findings.

Related Government Programs

National Institutes of Health Research Grants
Department of Health and Human Services Research and Development Contracts
Federal Funding for Scientific Research
University Research Partnerships

Risk Flags

Long contract duration may increase risk of scope creep or changing research priorities.
Cost-reimbursement contract type requires diligent oversight to ensure cost control.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $15.8 million to MEDICAL COLLEGE OF WISCONSIN. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is MEDICAL COLLEGE OF WISCONSIN.

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 $15.8 million.

What is the period of performance?

Start: 2002-09-15. End: 2010-06-30.

What is the historical spending pattern of the National Institutes of Health (NIH) on Research and Development in the Physical, Engineering, and Life Sciences?

The National Institutes of Health (NIH) is a major federal funder of biomedical and health-related research. Its spending on Research and Development in the Physical, Engineering, and Life Sciences, often categorized under NAICS code 541710, represents a significant portion of its overall budget. Historically, NIH's R&D expenditures have shown a consistent upward trend, driven by advancements in scientific understanding and the need to address public health challenges. While specific dollar amounts fluctuate annually based on appropriations and program priorities, NIH consistently invests billions of dollars in this sector through grants, contracts, and intramural research. This particular contract, valued at approximately $15.8 million over its duration, represents a modest but important investment within the vast NIH research ecosystem, contributing to the agency's broader mission of advancing knowledge and improving health.

How does the 'Cost No Fee' contract type typically function, and what are its implications for value for money?

A 'Cost No Fee' (Cost) contract is a type of cost-reimbursement contract where the contractor is reimbursed for all allowable costs incurred in performing the contract, but receives no fee or profit. This contract type is generally used when the level of risk for the contractor is high, or when the scope of work is not well-defined, making it difficult to establish a fixed price. For the government, the primary advantage is the ability to fund research or development efforts that might otherwise be too risky or uncertain for a fixed-price agreement. The implication for value for money is that the government pays only for the actual costs incurred. However, it places a significant emphasis on robust government oversight to ensure that costs are reasonable, allocable, and allowable. Without a profit motive, contractors may have less inherent incentive to control costs aggressively, making effective monitoring by the contracting agency crucial for ensuring that taxpayer funds are used efficiently.

What is the significance of the Medical College of Wisconsin as an awardee for this R&D contract?

The Medical College of Wisconsin (MCW) is a prominent private graduate medical school and biomedical research institution located in Milwaukee, Wisconsin. As an awardee of this $15.8 million NIH contract, MCW signifies its established capabilities and recognized expertise in the fields of physical, engineering, and life sciences research. Institutions like MCW are critical players in the federal R&D ecosystem, often housing state-of-the-art facilities, attracting top scientific talent, and fostering collaborative research environments. Their involvement suggests a strong potential for successful project execution and meaningful scientific contributions. NIH contracts awarded to such institutions are typically part of a broader strategy to leverage the nation's academic research infrastructure to achieve scientific and health-related objectives.

What does the presence of 21 offers in a 'full and open competition' imply about the market for this type of R&D contract?

The submission of 21 offers for this 'full and open competition' contract indicates a highly competitive market for Research and Development in the Physical, Engineering, and Life Sciences. This large number of bids suggests that the opportunity was attractive to a wide range of potential contractors, including academic institutions, research organizations, and possibly private companies. A robust competitive landscape generally benefits the government by providing a broader selection of qualified bidders, fostering innovation in proposals, and driving down prices or improving terms. For taxpayers, it increases the likelihood that the contract was awarded to the entity offering the best overall value, balancing technical merit, cost, and other factors, rather than simply being the only option available.

How does the long contract duration (2845 days) impact the risk and management of this R&D project?

A contract duration of 2845 days (approximately 7.8 years) for an R&D project presents both opportunities and challenges. On the one hand, such a long timeframe allows for sustained, in-depth research, enabling the exploration of complex scientific questions and the potential for significant, long-term discoveries. It provides stability for researchers and project teams, facilitating continuity and the development of specialized expertise. On the other hand, extended durations increase the inherent risks associated with R&D. Scientific landscapes can evolve rapidly, rendering initial hypotheses obsolete or opening new avenues of inquiry. Project management becomes more complex, requiring adaptive strategies to navigate unforeseen challenges, maintain scientific rigor, and ensure that the project remains aligned with evolving objectives and funding realities. Effective oversight and communication are paramount to mitigate risks and ensure the project's success over its multi-year span.

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

Offers Received: 21

Pricing Type: COST NO FEE (S)

Contractor Details

Address: 8701 W WATERTOWN PLANK RD, MILWAUKEE, WI, 53226

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

Financial Breakdown

Contract Ceiling: $2,358,931

Exercised Options: $2,358,931

Current Obligation: $15,777,838

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline