DHHS awards $7.7M for Tuberculosis Trials Consortium Services to McGill University Health Centre

Contract Overview

Contract Amount: $7,720,637 ($7.7M)

Contractor: THE Research Institute of the Mcgill University Health Centre

Awarding Agency: Department of Health and Human Services

Start Date: 2021-01-01

End Date: 2026-12-31

Contract Duration: 2,190 days

Daily Burn Rate: $3.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 22

Pricing Type: COST NO FEE

Sector: R&D

Official Description: TUBERCULOSIS TRIALS CONSORTIUM SERVICES

Plain-Language Summary

Department of Health and Human Services obligated $7.7 million to THE RESEARCH INSTITUTE OF THE MCGILL UNIVERSITY HEALTH CENTRE for work described as: TUBERCULOSIS TRIALS CONSORTIUM SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 2190 days (6 years) indicates a long-term research commitment. 3. Research and Development in Biotechnology is a critical sector for public health advancements. 4. The contract type is a Definitive Contract, suitable for long-term, well-defined requirements. 5. The pricing structure is Cost No Fee, common in research and development where outcomes can be uncertain. 6. The awardee, The Research Institute of the McGill University Health Centre, is a significant player in health research.

Value Assessment

Rating: good

The contract value of $7.7 million over six years averages to approximately $1.28 million per year. Benchmarking this against similar large-scale R&D contracts in biotechnology requires access to proprietary databases. However, for a multi-year, complex research consortium, this value appears reasonable, especially considering the specialized nature of tuberculosis research and the involvement of a reputable research institution. The Cost No Fee structure implies that the government reimburses allowable costs incurred by the contractor, with no additional profit margin, which can be a cost-effective approach for research where the scope of work might evolve.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 22 bids suggests a robust level of interest and competition for this research opportunity. A higher number of bidders generally leads to better price discovery and potentially more innovative solutions, as contractors vie to offer the most compelling proposal.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers as it likely drove down costs and ensured the government secured the best value for its investment in tuberculosis research.

Public Impact

The primary beneficiaries are public health organizations and the scientific community involved in combating tuberculosis. Services delivered include critical research and development activities for tuberculosis trials. The geographic impact is likely global, given the nature of tuberculosis research and potential for international collaboration. Workforce implications include employment for researchers, scientists, and support staff at the awardee institution and potentially partner organizations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term research projects, requiring diligent oversight.
Reliance on a single awardee for a significant duration could pose risks if performance issues arise.
The Cost No Fee structure necessitates careful monitoring of expenditures to ensure efficiency.

Positive Signals

Awarded through full and open competition with a substantial number of bids received.
The awardee is a reputable research institution with demonstrated expertise in health research.
The contract supports critical public health research in the area of tuberculosis.

Sector Analysis

The contract falls within the 'Research and Development in Biotechnology (except Nanobiotechnology)' sector, a vital area for addressing global health challenges like tuberculosis. This sector is characterized by significant investment in scientific discovery and innovation. The market size for biotechnology R&D is substantial, with government funding playing a crucial role in advancing foundational research. This contract represents a specific investment in a critical public health area, contributing to the broader landscape of biomedical research.

Small Business Impact

The data indicates that small business participation was not a primary set-aside consideration for this contract (ss: false, sb: false). While the primary awardee is a large research institution, there may be opportunities for small businesses to participate as subcontractors, particularly in specialized areas of research support or technology provision. Further analysis would be needed to determine the extent of small business subcontracting.

Oversight & Accountability

Oversight for this contract is likely managed by the Centers for Disease Control and Prevention (CDC) within the Department of Health and Human Services (DHHS). Given the research and development nature, oversight would focus on adherence to research protocols, ethical standards, progress reporting, and financial accountability. The Cost No Fee structure requires diligent monitoring of incurred costs to ensure compliance with federal regulations and the contract terms. Transparency is typically maintained through regular progress reports and potentially public dissemination of research findings.

Related Government Programs

National Institutes of Health (NIH) Research Grants
Centers for Disease Control and Prevention (CDC) Public Health Programs
Biomedical Research and Development Contracts
Global Health Initiatives

Risk Flags

Long-term contract duration may increase risk of scope creep or changing research priorities.
Cost-reimbursement contracts require diligent financial oversight to prevent overspending.
Reliance on a single entity for a critical research area necessitates strong performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $7.7 million to THE RESEARCH INSTITUTE OF THE MCGILL UNIVERSITY HEALTH CENTRE. TUBERCULOSIS TRIALS CONSORTIUM SERVICES

Who is the contractor on this award?

The obligated recipient is THE RESEARCH INSTITUTE OF THE MCGILL UNIVERSITY HEALTH CENTRE.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $7.7 million.

What is the period of performance?

Start: 2021-01-01. End: 2026-12-31.

What is the track record of The Research Institute of the McGill University Health Centre in managing large federal research grants?

The Research Institute of the McGill University Health Centre is a well-established entity within a major academic medical center, known for its significant contributions to health research. While specific federal grant management history for this exact institute would require deeper database access, institutions of this caliber typically have extensive experience managing large, complex research projects funded by various government agencies, including NIH and CDC. Their track record is generally characterized by scientific rigor, adherence to regulatory compliance, and successful publication of research findings. The awarding of this $7.7 million contract by DHHS suggests a positive assessment of their capabilities and past performance in relevant research areas.

How does the annual value of this contract compare to other large-scale biotechnology R&D contracts?

The annual value of this contract, averaging approximately $1.28 million ($7.7M / 6 years), is moderate for a large-scale, multi-year R&D consortium. Major federal R&D contracts, particularly those involving clinical trials or advanced technology development in biotechnology, can range from tens of millions to hundreds of millions of dollars annually. For instance, large NIH grants or defense-related biotechnology research programs often exceed this figure significantly. However, the specific focus on tuberculosis trials and the nature of the Cost No Fee structure, which limits profit, make direct comparisons challenging without detailed market data on similar specialized research consortia. This contract appears to be a substantial, but not exceptionally large, investment for its specific purpose.

What are the primary risks associated with a six-year Cost No Fee contract for R&D?

A significant risk with a six-year Cost No Fee contract for R&D is the potential for cost overruns if not managed meticulously. While the government reimburses costs, the 'No Fee' aspect means the contractor does not profit, which can disincentivize efficiency if not balanced by strong oversight. Another risk is the evolving nature of scientific research; the initial scope may become outdated or require significant pivots, necessitating contract modifications that could impact timelines and budgets. Contractor performance is also a risk; if the research institute faces internal challenges or fails to meet milestones, the long duration means a prolonged period of underperformance. Finally, ensuring the continued relevance and impact of the research over such a long horizon requires proactive management and adaptation.

What is the expected effectiveness of this contract in advancing tuberculosis research?

The effectiveness of this contract hinges on the successful execution of the research plan by The Research Institute of the McGill University Health Centre. Given the awardee's likely expertise and the competitive bidding process, there is a strong expectation that the contract will contribute meaningfully to advancing tuberculosis research. This could manifest through the development of new diagnostic tools, more effective treatment regimens, or a deeper understanding of TB pathogenesis and transmission. The six-year duration allows for comprehensive study and follow-up, crucial for clinical trials. Ultimately, effectiveness will be measured by the quality of research outcomes, their publication in peer-reviewed journals, and their potential translation into improved public health interventions.

How does this contract's spending compare to historical federal investments in tuberculosis research?

Comparing this $7.7 million contract to historical federal spending on tuberculosis research requires access to comprehensive historical budget data from agencies like DHHS, CDC, and NIH. Federal investment in TB research has fluctuated over decades, often influenced by global TB incidence rates and public health emergencies. While $7.7 million over six years is a significant sum for a single consortium, it represents a portion of the overall federal R&D budget. Historically, major breakthroughs in TB treatment and prevention have been supported by substantial, multi-year federal funding initiatives. This contract appears to align with ongoing efforts to combat a persistent global health threat, likely fitting within a broader strategy of sustained investment rather than a one-off large expenditure.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in Biotechnology (except Nanobiotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 75D301-20-R-67869

Offers Received: 22

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 2155 RUE GUY BUREAU 500, MONTREAL

Business Categories: Category Business, Foreign Owned, International Organization, Nonprofit Organization, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $13,523,501

Exercised Options: $7,795,637

Current Obligation: $7,720,637

Actual Outlays: $4,636,123

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline