NIH Awards $104M to St. Jude for Influenza Research and Response Centers

Contract Overview

Contract Amount: $103,894,240 ($103.9M)

Contractor: ST Jude Children's Research Hospital Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2021-04-01

End Date: 2029-02-28

Contract Duration: 2,890 days

Daily Burn Rate: $36.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: COST NO FEE

Sector: R&D

Official Description: AWARD OF THE BASE TO ST. JUDE FOR CEIRR CONTRACT 75N93021C00016. THIS CONTRACT WILL SUPPORT NIAID CENTERS OF EXCELLENCE FOR INFLUENZA RESEARCH AND RESPONSE (CEIRR).

Place of Performance

Location: MEMPHIS, SHELBY County, TENNESSEE, 38105

State: Tennessee Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $103.9 million to ST JUDE CHILDREN'S RESEARCH HOSPITAL INC for work described as: AWARD OF THE BASE TO ST. JUDE FOR CEIRR CONTRACT 75N93021C00016. THIS CONTRACT WILL SUPPORT NIAID CENTERS OF EXCELLENCE FOR INFLUENZA RESEARCH AND RESPONSE (CEIRR). Key points: 1. Significant investment in influenza research infrastructure. 2. Focus on Centers of Excellence model for coordinated response. 3. Long-term contract (2021-2029) indicates sustained need. 4. Potential for breakthroughs in pandemic preparedness.

Value Assessment

Rating: good

The contract value of $103.9M over approximately 8 years suggests a substantial but potentially reasonable investment for establishing and operating multiple research centers. Benchmarking against similar large-scale R&D center grants would be necessary for a precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method is expected to yield fair pricing and identify the most capable offeror for this critical research mission.

Taxpayer Impact: Taxpayer funds are being invested in critical public health research aimed at improving pandemic preparedness and response, potentially saving costs in the long run through better disease management.

Public Impact

Enhances national capacity to study and combat influenza. Supports advanced research infrastructure and expertise. Aims to improve public health outcomes and pandemic readiness. Invests in scientific innovation for disease prevention and treatment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to cost overruns if not managed effectively.
Reliance on a single awardee for multiple centers may limit diverse approaches.
Scope creep could increase costs beyond initial estimates.

Positive Signals

Addresses a critical public health need (influenza research).
Utilizes a competitive process for award.
Establishes dedicated centers for focused research efforts.
Long-term funding promotes stability and sustained progress.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for scientific advancement and national security, with significant government investment aimed at innovation and problem-solving.

Small Business Impact

The data indicates this contract was awarded to St. Jude Children's Research Hospital, a large research institution. There is no explicit indication of small business participation in this specific award, suggesting the primary focus was on established research capabilities.

Oversight & Accountability

The National Institutes of Health (NIH), a component of HHS, is responsible for overseeing this contract. Robust oversight will be crucial to ensure research milestones are met, funds are used efficiently, and the Centers of Excellence effectively contribute to influenza research and response goals.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Potential for cost overruns
Research outcome uncertainty
Long-term dependency on a single entity
Need for robust scientific oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $103.9 million to ST JUDE CHILDREN'S RESEARCH HOSPITAL INC. AWARD OF THE BASE TO ST. JUDE FOR CEIRR CONTRACT 75N93021C00016. THIS CONTRACT WILL SUPPORT NIAID CENTERS OF EXCELLENCE FOR INFLUENZA RESEARCH AND RESPONSE (CEIRR).

Who is the contractor on this award?

The obligated recipient is ST JUDE CHILDREN'S RESEARCH HOSPITAL INC.

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 $103.9 million.

What is the period of performance?

Start: 2021-04-01. End: 2029-02-28.

How will the effectiveness of the CEIRR contract be measured to ensure optimal use of taxpayer funds for influenza research?

Effectiveness will likely be measured through defined research milestones, publication of findings in peer-reviewed journals, development of new diagnostic tools or therapies, and contributions to public health policy and pandemic preparedness strategies. Regular progress reports and scientific reviews by NIH will be critical for monitoring and evaluating the impact of the funded research centers.

What are the primary risks associated with a long-term, high-value contract for establishing research centers, and how are they mitigated?

Key risks include potential cost overruns due to research complexities or scope creep, and the possibility of research not yielding expected breakthroughs. Mitigation strategies involve stringent contract management, performance-based milestones, regular scientific reviews, and clear communication channels between NIH and St. Jude to address challenges proactively and ensure alignment with research objectives.

Does the 'Cost No Fee' (Cost-Reimbursement) contract type adequately incentivize efficiency and innovation for this R&D effort?

Cost-reimbursement contracts, especially 'Cost No Fee', are common in R&D where the scope and outcomes are uncertain. While they cover allowable costs, they offer less direct profit incentive for efficiency compared to fixed-price contracts. However, the focus here is on achieving research objectives, and NIH oversight is expected to ensure responsible spending and progress.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 75N93019R00028

Offers Received: 9

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 262 DANNY THOMAS PL, MEMPHIS, TN, 38105

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

Financial Breakdown

Contract Ceiling: $204,624,246

Exercised Options: $103,894,240

Current Obligation: $103,894,240

Actual Outlays: $72,823,478

Subaward Activity

Number of Subawards: 32

Total Subaward Amount: $9,036,306

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline