NIH awards $4.78M for preclinical medication discovery and abuse liability testing to Virginia Commonwealth University

Contract Overview

Contract Amount: $4,781,242 ($4.8M)

Contractor: Virginia Commonwealth University

Awarding Agency: Department of Health and Human Services

Start Date: 2022-02-22

End Date: 2027-02-21

Contract Duration: 1,825 days

Daily Burn Rate: $2.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: R&D

Official Description: PRECLINICAL MEDICATIONS DISCOVERY AND ABUSE LIABILITY TESTING FOR NIDA NIDA REF. NO. N01DA-22-8959. BASE AWARD.

Place of Performance

Location: RICHMOND, RICHMOND CITY County, VIRGINIA, 23284

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $4.8 million to VIRGINIA COMMONWEALTH UNIVERSITY for work described as: PRECLINICAL MEDICATIONS DISCOVERY AND ABUSE LIABILITY TESTING FOR NIDA NIDA REF. NO. N01DA-22-8959. BASE AWARD. Key points: 1. Contract focuses on critical research into substance abuse, aligning with public health priorities. 2. Virginia Commonwealth University, a known research institution, is the sole awardee. 3. The contract duration of five years suggests a long-term commitment to this research area. 4. The award type is a definitive contract, indicating a firm commitment for the specified period. 5. The NAICS code 541715 points to significant activity in the life sciences research sector. 6. No small business set-aside was applied, suggesting the competition was open to all qualified entities.

Value Assessment

Rating: good

The contract value of $4.78 million over five years for preclinical medication discovery and abuse liability testing appears reasonable for a research-intensive project. Benchmarking against similar contracts for specialized scientific research and development is challenging without more specific details on the scope of work. However, the cost-no-fee contract type suggests that the contractor will be reimbursed for allowable costs up to the agreed-upon amount, which is a common structure for research grants and contracts where the final outcome can be uncertain. This structure incentivizes efficient cost management.

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 proposals. The specific number of bidders is not provided, but the full and open nature suggests a competitive process was initiated. This approach is generally favored to ensure the government receives the best value by considering a wide range of potential contractors and their offerings.

Taxpayer Impact: Full and open competition aims to drive down costs and improve the quality of services by fostering a competitive environment, ultimately benefiting taxpayers through potentially better research outcomes and more efficient use of funds.

Public Impact

The primary beneficiaries are public health initiatives aimed at understanding and combating substance abuse. The services delivered include critical preclinical research, drug discovery, and abuse liability testing. The geographic impact is national, contributing to a broader understanding of addiction and potential treatments. Workforce implications include support for researchers, scientists, and laboratory personnel at Virginia Commonwealth University.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term research projects if not managed diligently.
Reliance on a single institution for critical research may limit diverse perspectives.
The 'cost no fee' structure requires robust financial oversight to ensure cost reasonableness.

Positive Signals

Focus on a critical public health issue (substance abuse) with potential for significant societal benefit.
Award to an established research institution (Virginia Commonwealth University) suggests a strong foundation for the work.
The five-year duration allows for sustained effort and potential for meaningful research breakthroughs.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on life sciences. The NAICS code 541715 covers research and development in the physical, engineering, and life sciences, excluding nanotechnology and biotechnology. This is a significant area of federal spending, particularly within agencies like NIH, which fund cutting-edge scientific inquiry. Comparable spending benchmarks would typically involve analyzing other NIH contracts for similar preclinical research and drug development services, which often represent substantial investments due to the complexity and long timelines involved.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. This means that while small businesses could have bid, there was no specific allocation or preference given to them for this particular award. Subcontracting opportunities for small businesses are not explicitly detailed in the provided data but could potentially arise if Virginia Commonwealth University engages external specialized services.

Oversight & Accountability

Oversight for this contract will likely be managed by the National Institutes of Health (NIH), a division of the Department of Health and Human Services. As a definitive contract with a cost-no-fee structure, NIH program officers and contracting specialists will monitor the progress of the research, review incurred costs for allowability and reasonableness, and ensure adherence to the contract's terms and conditions. Transparency is generally maintained through federal contract databases and public reporting of research outcomes, though specific project details may be proprietary.

Related Government Programs

National Institute on Drug Abuse (NIDA) Research Programs
Substance Abuse and Mental Health Services Administration (SAMHSA) Grants
National Institutes of Health (NIH) Extramural Research
Federal Funding for Biomedical Research
Drug Discovery and Development Contracts

Risk Flags

Research Uncertainty Risk
Cost Management Risk
Project Timeline Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $4.8 million to VIRGINIA COMMONWEALTH UNIVERSITY. PRECLINICAL MEDICATIONS DISCOVERY AND ABUSE LIABILITY TESTING FOR NIDA NIDA REF. NO. N01DA-22-8959. BASE AWARD.

Who is the contractor on this award?

The obligated recipient is VIRGINIA COMMONWEALTH 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 $4.8 million.

What is the period of performance?

Start: 2022-02-22. End: 2027-02-21.

What is the track record of Virginia Commonwealth University in securing and managing federal research grants and contracts, particularly in the area of substance abuse research?

Virginia Commonwealth University (VCU) has a well-established reputation as a major research institution with significant experience in securing and managing federal funding. VCU's Center for Healthy Hearts and the VCU Institute for Drug and Alcohol Studies are examples of centers that have historically received substantial federal support, including from NIH and NIDA. Their track record typically involves successful management of complex, multi-year research projects, adherence to rigorous scientific and ethical standards, and effective financial stewardship. While specific performance metrics for this particular contract are not yet available, VCU's history suggests a strong capability to execute the proposed research on preclinical medication discovery and abuse liability testing.

How does the $4.78 million award compare to other federal contracts for similar preclinical medication discovery and abuse liability testing services?

Comparing this $4.78 million award requires context regarding the scope, duration, and specific research objectives. Federal contracts for preclinical drug discovery and abuse liability testing can vary widely in cost. Contracts awarded by agencies like NIDA or other components of NIH for similar foundational research often range from several hundred thousand dollars to several million dollars over multiple years. The five-year duration of this contract ($4.78M / 5 years ≈ $956,000 per year) suggests a substantial, ongoing research effort. Without knowing the exact deliverables, number of compounds tested, or specific assays employed, a precise benchmark is difficult. However, the award appears to be within a typical range for significant, multi-year preclinical research initiatives funded by federal health agencies.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Key risks for this contract include the inherent uncertainty of scientific research (i.e., failure to identify promising drug candidates), potential for cost overruns if research proves more complex than anticipated, and the possibility of delays due to unforeseen scientific or logistical challenges. Mitigation strategies likely include rigorous project management by VCU, regular progress reporting and oversight by NIH, phased research objectives with go/no-go decision points, and adherence to strict budget controls. The 'cost no fee' contract type also incentivizes VCU to manage costs effectively, as they will only be reimbursed for allowable expenses incurred. NIH's established grant and contract review processes are designed to identify and manage these types of research-related risks.

What is the expected effectiveness of this contract in advancing the understanding of substance abuse and developing potential treatments?

The effectiveness of this contract hinges on its ability to generate high-quality preclinical data that can inform the development of new medications for substance abuse disorders. By focusing on discovery and abuse liability testing, the research aims to identify potential therapeutic targets and compounds early in the drug development pipeline. Success would mean generating reliable data that can guide further investigation, potentially leading to the initiation of clinical trials. The National Institute on Drug Abuse (NIDA) funds such research with the expectation that it will contribute to the scientific knowledge base and ultimately support the development of effective interventions. The five-year timeframe allows for in-depth investigation, increasing the likelihood of generating meaningful insights.

How has federal spending in the area of substance abuse research, particularly through NIDA, evolved over recent years, and how does this contract fit into that trend?

Federal spending on substance abuse research, primarily through NIDA, has generally seen consistent or increasing investment over recent years, reflecting the ongoing public health crisis associated with addiction. NIDA's budget supports a wide range of research, from basic neuroscience to clinical interventions and implementation science. This contract, focusing on preclinical discovery and liability testing, represents a foundational component of the research continuum. It aligns with NIDA's strategic priorities to understand the neurobiology of addiction and to develop novel therapeutic strategies. The sustained funding for such contracts indicates a continued federal commitment to addressing substance abuse through scientific research and drug development.

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: 75N95021R00048

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 912 W FRANKLIN ST, RICHMOND, VA, 23284

Business Categories: Category Business, Educational Institution, Government, Higher Education, U.S. National Government, Not Designated a Small Business, Higher Education (Public), U.S. Regional/State Government

Financial Breakdown

Contract Ceiling: $7,675,104

Exercised Options: $4,781,242

Current Obligation: $4,781,242

Actual Outlays: $3,793,122

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline