NIH awards $4.28M for transfusion safety research, a sole-source contract to VITALANT

Contract Overview

Contract Amount: $4,284,223 ($4.3M)

Contractor: Vitalant

Awarding Agency: Department of Health and Human Services

Start Date: 2021-04-01

End Date: 2025-03-31

Contract Duration: 1,460 days

Daily Burn Rate: $2.9K/day

Competition Type: NOT COMPETED

Pricing Type: COST NO FEE

Sector: R&D

Official Description: REDS-IV-P BRAZIL TRANSFUSION SAFETY RESEARCH PROGRAM PHASE 2

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $4.3 million to VITALANT for work described as: REDS-IV-P BRAZIL TRANSFUSION SAFETY RESEARCH PROGRAM PHASE 2 Key points: 1. Contract awarded on a sole-source basis, limiting competitive pricing benefits. 2. Research and Development in Physical, Engineering, and Life Sciences sector. 3. Contract duration of 1460 days (4 years) with a fixed price award. 4. No small business set-aside noted, potentially impacting small business participation. 5. Performance period spans from April 2021 to March 2025. 6. Contract type is 'COST NO FEE', indicating focus on research objectives over profit.

Value Assessment

Rating: fair

The contract value of $4.28 million for a 4-year research program appears reasonable given the specialized nature of transfusion safety research. However, without comparable sole-source contracts or detailed cost breakdowns, a precise value-for-money assessment is challenging. The 'COST NO FEE' award type suggests that the primary focus is on achieving research outcomes rather than maximizing contractor profit, which can be a positive indicator for efficient use of funds in R&D.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities, proprietary information, or is the only responsible source. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices or spurred innovation through multiple proposals.

Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible price through competition, potentially leading to higher costs for taxpayers compared to a competed contract.

Public Impact

Benefits patients requiring blood transfusions by advancing safety research. Delivers critical research findings to improve blood product safety and efficacy. Impacts the broader healthcare system by informing transfusion protocols and standards. Supports the scientific workforce engaged in biomedical research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Lack of transparency in cost justification for sole-source awards.
Potential for contractor lock-in due to specialized research.

Positive Signals

Focus on critical public health area: transfusion safety.
Long-term research commitment suggests sustained effort towards objectives.
Award to a known entity (VITALANT) may indicate established expertise.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on life sciences. The market for specialized biomedical research, particularly in areas like transfusion safety, is often characterized by a limited number of highly qualified organizations. While broad R&D spending is substantial, contracts for niche areas like this are less common and often awarded to established research institutions or companies with specific expertise.

Small Business Impact

The contract data indicates that this was not a small business set-aside, nor does it appear to have specific subcontracting goals for small businesses mentioned. Given the specialized nature of the research and the sole-source award, it is unlikely that small businesses were directly involved as prime contractors. Further investigation would be needed to determine if any subcontracting opportunities exist for small businesses within VITALANT's research activities.

Oversight & Accountability

Oversight for this contract would primarily fall under the National Institutes of Health (NIH), a component of the Department of Health and Human Services. As a research grant or contract, progress reports and financial reviews are standard oversight mechanisms. The 'COST NO FEE' award type implies that the contractor is reimbursed for allowable costs incurred, subject to NIH review and approval. Transparency is generally maintained through public databases of federal contracts, though detailed cost justifications for sole-source awards may be less accessible.

Related Government Programs

National Institutes of Health Research Grants
Biomedical Research and Development Contracts
Blood Safety and Public Health Initiatives

Risk Flags

Sole-source award
Lack of competition
Cost-reimbursement elements (implied by 'COST NO FEE')

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $4.3 million to VITALANT. REDS-IV-P BRAZIL TRANSFUSION SAFETY RESEARCH PROGRAM PHASE 2

Who is the contractor on this award?

The obligated recipient is VITALANT.

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 $4.3 million.

What is the period of performance?

Start: 2021-04-01. End: 2025-03-31.

What is VITALANT's track record in transfusion safety research?

VITALANT is a major blood services organization in the United States, involved in blood collection, testing, and distribution. Their involvement in transfusion safety research is a core part of their mission to ensure the safety and efficacy of blood products. They have a history of conducting and participating in research related to transfusion-transmitted infections, immune responses to transfusions, and the development of safer transfusion practices. Their expertise in managing blood supply chains and clinical transfusion services positions them as a key player in this research area. Specific details on their past research funding, publications, and successful outcomes would provide further context on their capabilities for this specific program.

How does the $4.28 million cost compare to similar transfusion safety research programs?

Benchmarking the $4.28 million cost for this 4-year transfusion safety research program is challenging without access to detailed cost breakdowns and a wider array of comparable contracts. However, R&D contracts, especially those involving specialized scientific expertise and long-term study, can range significantly in cost. Factors such as the scope of research, the number of personnel involved, equipment needs, and the complexity of the scientific questions addressed all influence the total award amount. Given that this is a sole-source award to a known entity, the price may reflect established capabilities rather than competitive market rates. A comparative analysis with other NIH-funded R&D projects in similar life science domains, adjusted for scope and duration, would be necessary for a more precise comparison.

What are the primary risks associated with this sole-source contract?

The primary risk associated with this sole-source contract is the lack of competitive pressure, which could lead to suboptimal pricing and potentially less innovation than might arise from a competed process. There's also a risk of contractor dependency, where the government becomes reliant on VITALANT's specific expertise, making future transitions difficult or costly. Furthermore, without a competitive bidding process, the justification for the contract's cost and scope may be less transparent to the public. Ensuring rigorous oversight and performance monitoring becomes crucial to mitigate these risks and ensure the effective use of taxpayer funds.

How effective is the 'COST NO FEE' award type for achieving research objectives?

The 'COST NO FEE' award type is often used for research and development contracts where the final outcome and associated costs are difficult to predict precisely at the outset. This structure allows the contractor to be reimbursed for all allowable costs incurred in performing the contract, but without any additional fee or profit. This can be effective in encouraging contractors to focus on achieving the research objectives rather than maximizing profit margins, potentially leading to more efficient use of funds for pure research. However, it necessitates strong government oversight to ensure that costs are reasonable and directly related to the contract's goals, and it places the financial risk of cost overruns primarily on the government.

What is the historical spending pattern for transfusion safety research by NIH?

Historical spending patterns for transfusion safety research by the National Institutes of Health (NIH) would typically show a consistent investment in this critical public health area. NIH, through various institutes like the National Heart, Lung, and Blood Institute (NHLBI), funds a range of research aimed at improving blood safety, understanding transfusion reactions, and developing new diagnostic and therapeutic approaches. Spending can fluctuate year-to-year based on research priorities, emerging scientific opportunities, and budget allocations. Analyzing past NIH contract and grant awards related to transfusion safety would reveal trends in funding levels, the types of research being supported, and the key institutions and companies receiving these awards, providing context for the current $4.28 million contract.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 6210 E OAK ST, SCOTTSDALE, AZ, 85257

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,284,223

Exercised Options: $4,284,223

Current Obligation: $4,284,223

Actual Outlays: $4,017,923

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $266,018

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 75N92019D00038

IDV Type: IDC

Timeline