NIH's $32M Biomedical Research Contract Awarded to The General Hospital Corporation

Contract Overview

Contract Amount: $31,962,264 ($32.0M)

Contractor: THE General Hospital Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 1998-09-29

End Date: 2012-08-30

Contract Duration: 5,084 days

Daily Burn Rate: $6.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST NO FEE

Sector: Healthcare

Official Description: BIOMEDICAL (BASIC)

Place of Performance

Location: BOSTON, SUFFOLK County, MASSACHUSETTS, 02114

State: Massachusetts Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $32.0 million to THE GENERAL HOSPITAL CORPORATION for work described as: BIOMEDICAL (BASIC) Key points: 1. Contract awarded for biomedical research services, indicating a focus on foundational scientific inquiry. 2. The contract duration of over 5000 days suggests a long-term commitment to research objectives. 3. Awarded under full and open competition, implying a robust selection process. 4. The 'Cost No Fee' contract type suggests that the government reimburses allowable costs without an additional profit margin for the contractor. 5. This contract falls under the 'Biomedical (Basic)' category, highlighting its role in fundamental scientific advancement. 6. The contracting agency is the National Institutes of Health (NIH), a primary funder of biomedical research in the US.

Value Assessment

Rating: fair

The contract type 'Cost No Fee' (CNF) is less common for research and development compared to cost-plus-fee contracts. While it aims to control costs by eliminating profit, it can sometimes disincentivize contractor efficiency if not managed carefully. Benchmarking 'value for money' is challenging without specific performance metrics or comparable CNF contracts in the biomedical basic research sector. The absence of a fee might suggest a focus on cost recovery rather than profit generation, potentially indicating a fair price if costs are well-managed and research outcomes are achieved.

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 competitive process was utilized to select the contractor, which typically leads to better price discovery and potentially more favorable terms for the government. The presence of two bids (no) suggests a moderate level of competition for this specific award.

Taxpayer Impact: Full and open competition generally benefits taxpayers by ensuring that the government receives offers from multiple sources, driving down prices and improving the quality of services through selection of the best value proposal.

Public Impact

The primary beneficiaries are researchers and institutions involved in basic biomedical science, advancing fundamental knowledge. The services delivered are likely related to laboratory research, data analysis, and scientific investigation in the biomedical field. The geographic impact is primarily within Massachusetts, where The General Hospital Corporation is located, but the research findings can have a global impact. Workforce implications include support for scientists, technicians, and administrative staff involved in the research project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Cost No Fee' contract type, while cost-conscious, may require diligent oversight to ensure efficient resource utilization and prevent cost overruns.
Long contract duration (5084 days) necessitates sustained monitoring to ensure continued alignment with research goals and evolving scientific landscapes.
Lack of specific performance metrics in the provided data makes it difficult to quantitatively assess the contractor's performance and value delivery.

Positive Signals

Awarded through full and open competition, indicating a structured and fair selection process.
The contract is with a recognized institution (The General Hospital Corporation), suggesting established research capabilities.
The focus on basic biomedical research aligns with NIH's mission to advance scientific knowledge for health improvement.

Sector Analysis

This contract falls within the broader 'Healthcare' and 'Research & Development' sectors, specifically focusing on basic biomedical research. The market for biomedical research funding is substantial, with significant government investment through agencies like NIH. This contract represents a portion of that investment, supporting foundational scientific exploration that can lead to future medical breakthroughs. Comparable spending benchmarks would involve analyzing other NIH grants and contracts awarded for similar basic research projects, considering factors like research area, duration, and institutional capacity.

Small Business Impact

The provided data does not indicate any small business set-aside provisions (sb: false). Therefore, this contract was not specifically targeted towards small businesses. There is no information on subcontracting plans. The impact on the small business ecosystem is likely minimal unless The General Hospital Corporation engages small businesses as subcontractors for specialized services or supplies.

Oversight & Accountability

Oversight for NIH contracts is typically managed by program officials and contracting officers within the agency. Accountability measures are tied to the terms of the 'Cost No Fee' contract, requiring the contractor to adhere to approved budgets and research protocols. Transparency is generally maintained through public databases like FPDS-NG, where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

National Institutes of Health Grants
Biomedical Research and Development Contracts
Basic Science Research Funding
Federal Health Research Programs

Risk Flags

Limited competition (2 bidders)
Long contract duration requires sustained oversight
Cost No Fee structure may impact contractor incentives

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $32.0 million to THE GENERAL HOSPITAL CORPORATION. BIOMEDICAL (BASIC)

Who is the contractor on this award?

The obligated recipient is THE GENERAL HOSPITAL CORPORATION.

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 $32.0 million.

What is the period of performance?

Start: 1998-09-29. End: 2012-08-30.

What is the historical spending pattern for The General Hospital Corporation with the federal government, particularly with NIH?

Analyzing the historical spending patterns of The General Hospital Corporation with the federal government, specifically the National Institutes of Health (NIH), is crucial for understanding their track record and reliability as a contractor. While this specific contract represents a significant award of approximately $32 million over its duration, a comprehensive review would involve examining all prior awards, their values, durations, and the nature of services provided. A pattern of successful contract completions, timely delivery of research outcomes, and adherence to regulatory requirements would indicate a positive track record. Conversely, a history of contract disputes, cost overruns, or performance issues could raise concerns. Without access to a complete historical database of all their federal awards, it is difficult to provide a definitive assessment, but this $32 million award suggests a substantial and ongoing relationship with NIH.

How does the 'Cost No Fee' (CNF) contract type compare to other common contract types for biomedical research, and what are its implications for value?

The 'Cost No Fee' (CNF) contract type is less common for research and development compared to cost-plus-fixed-fee (CPFF) or other incentive-based fee structures. In a CNF contract, the government reimburses the contractor for all allowable costs incurred in performing the contract, but the contractor does not receive any profit or fee. This structure is typically used when the scope of work is well-defined, and the primary objective is to control costs. For biomedical research, this can be advantageous as it removes the profit motive, potentially leading to lower overall expenditures if costs are managed efficiently. However, it can also reduce the contractor's incentive to innovate or exceed basic requirements, as there is no financial reward for doing so. The value proposition of a CNF contract hinges on effective cost control and the contractor's commitment to the research mission rather than profit maximization. Benchmarking its value requires comparing the cost efficiency and research outcomes against similar projects funded through other contract types.

What are the potential risks associated with a long-duration contract (5084 days) for basic biomedical research?

Long-duration contracts, such as this 5084-day (approximately 14-year) award for basic biomedical research, present several potential risks. Firstly, the scientific landscape can change dramatically over such a period. Discoveries made early in the contract could render the original research objectives obsolete or require significant pivots, potentially leading to inefficiencies or the need for contract modifications. Secondly, maintaining consistent oversight and engagement from the contracting agency (NIH) over such an extended timeframe can be challenging, potentially leading to a lapse in monitoring performance or adherence to evolving best practices. Thirdly, there's a risk of 'scope creep' if the research objectives are not tightly managed, leading to increased costs beyond initial projections. Finally, contractor personnel turnover over such a long period could impact institutional knowledge and research continuity. Mitigating these risks requires robust contract management, regular performance reviews, and flexibility to adapt to scientific advancements.

Given the 'Cost No Fee' structure, how is contractor performance and accountability measured for this biomedical research contract?

For a 'Cost No Fee' (CNF) contract, contractor performance and accountability are primarily measured through adherence to the approved research plan, budget, and regulatory compliance, rather than profit margins. The government reimburses allowable costs, so accountability focuses on ensuring those costs are reasonable, allocable, and necessary for the research objectives. Performance metrics would likely be tied to milestones within the research project, the quality of scientific data generated, adherence to ethical guidelines, and timely reporting of findings. The contracting officer and program officials at NIH would be responsible for monitoring progress against the research plan and ensuring that the contractor is utilizing resources effectively and efficiently. Failure to meet research objectives or maintain compliance could lead to non-reimbursement of costs or contract termination, serving as the primary accountability mechanism.

What is the significance of awarding a basic biomedical research contract under 'Full and Open Competition' with only two bidders?

Awarding a basic biomedical research contract under 'Full and Open Competition' signifies that the government sought proposals from all interested and qualified sources, ensuring a broad search for the best value. However, the fact that only two bids were received (as indicated by 'no': 2) suggests a potentially limited competitive landscape for this specific requirement. This could be due to several factors: the highly specialized nature of the research, the specific requirements of the solicitation, the reputation or capabilities of the incumbent contractor, or the overall market size for such services. While 'Full and Open Competition' is the preferred method, a low number of bidders can sometimes lead to less aggressive pricing than if there were numerous competitors. It implies that the government likely selected the best proposal among the two submitted, but the potential for even greater cost savings or innovation from a more robust competition might have been missed.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: Partners Healthcare System, Inc

Address: 55 FRUIT ST, BOSTON, MA, 02114

Business Categories: Category Business, Hospital, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,962,264

Exercised Options: $31,962,264

Current Obligation: $31,962,264

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline