HHS awards $144M to Stanford University for R&D, highlighting long-term investment in physical, engineering, and life sciences
Contract Overview
Contract Amount: $14,428,822 ($14.4M)
Contractor: THE Leland Stanford Junior University
Awarding Agency: Department of Health and Human Services
Start Date: 2002-09-15
End Date: 2009-09-29
Contract Duration: 2,571 days
Daily Burn Rate: $5.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 21
Pricing Type: COST NO FEE
Sector: R&D
Place of Performance
Location: STANFORD, SANTA CLARA County, CALIFORNIA, 94305
Plain-Language Summary
Department of Health and Human Services obligated $14.4 million to THE LELAND STANFORD JUNIOR UNIVERSITY for work described as: Key points: 1. Significant investment in R&D, indicating a focus on scientific advancement. 2. Stanford University is a well-established research institution, suggesting strong technical capabilities. 3. The contract duration of 2571 days points to a long-term project with potential for substantial outcomes. 4. The 'Cost No Fee' contract type suggests a focus on research progress over strict profit margins.
Value Assessment
Rating: good
The contract value of $144.3M over 7 years is substantial for R&D. Benchmarking is difficult without specific deliverables, but it appears reasonable for a large-scale, long-term research initiative at a leading institution.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method likely ensured the government received competitive proposals and fair pricing for the research services.
Taxpayer Impact: The significant investment aims to advance scientific knowledge, which has the potential for long-term societal benefits and economic growth, justifying the taxpayer expenditure.
Public Impact
Advancement of scientific knowledge in physical, engineering, and life sciences. Potential for groundbreaking discoveries with broad societal and economic impacts. Strengthens the research ecosystem by funding a leading academic institution. Long-term commitment to research fosters innovation and technological progress.
Waste & Efficiency Indicators
Waste Risk Score: 56 / 10
Warning Flags
- Long contract duration could lead to scope creep or changing research priorities.
- Cost-plus contracts can sometimes lead to less cost efficiency if not managed tightly.
Positive Signals
- Awarded via full and open competition.
- Contracting with a highly reputable research institution.
- Focus on critical R&D areas.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences (NAICS 541710). Federal spending in this sector is crucial for innovation and national competitiveness, with significant investments typically made by agencies like HHS.
Small Business Impact
The contract was awarded to a large university, The Leland Stanford Junior University, indicating no direct benefit or set-aside for small businesses in this specific award. However, subcontracts could potentially involve small businesses.
Oversight & Accountability
The long duration and 'Cost No Fee' nature of this definitive contract necessitate robust oversight from the Department of Health and Human Services to ensure research objectives are met efficiently and taxpayer funds are used appropriately.
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.
- Cost-based contract type.
- Potential for scientific uncertainty.
- Lack of specific performance metrics in provided data.
Tags
research-and-development-in-the-physical, department-of-health-and-human-services, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $14.4 million to THE LELAND STANFORD JUNIOR UNIVERSITY. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is THE LELAND STANFORD JUNIOR UNIVERSITY.
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 $14.4 million.
What is the period of performance?
Start: 2002-09-15. End: 2009-09-29.
What specific research outcomes were achieved during the contract period, and how do they align with the initial objectives?
Detailed outcome reports would be necessary to assess the value. Given the 'Cost No Fee' structure, the primary value lies in the advancement of scientific knowledge and potential breakthroughs. A review of publications, patents, and subsequent research building upon this work would indicate success.
What were the key risks identified during the full and open competition, and how were they mitigated?
Risks in R&D contracts often include scientific uncertainty, project delays, and budget overruns. Mitigation strategies likely involved rigorous proposal evaluation, clear milestone definitions, and ongoing scientific review by NIH. The 'Cost No Fee' structure might imply a higher risk tolerance for the contractor.
How effective was the 'Cost No Fee' contract type in driving research progress compared to other pricing arrangements for similar R&D efforts?
The 'Cost No Fee' structure incentivizes the contractor to focus on achieving research goals rather than maximizing profit. Its effectiveness depends on the specific research domain and the contractor's internal controls. For fundamental research, it can be effective, but requires strong government oversight to prevent inefficiency.
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: 651 SERRA ST, STANFORD, CA, 94305
Business Categories: Category Business, Educational Institution, Higher Education, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,090,488
Exercised Options: $2,090,488
Current Obligation: $14,428,822
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2002-09-15
Current End Date: 2009-09-29
Potential End Date: 2012-09-10 00:00:00
Last Modified: 2024-11-23
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