NIH awards $10.9M for physical science R&D, highlighting long-term investment in research and development

Contract Overview

Contract Amount: $10,892,880 ($10.9M)

Contractor: Centre for Applied Microbiolog

Awarding Agency: Department of Health and Human Services

Start Date: 2004-09-24

End Date: 2010-09-29

Contract Duration: 2,196 days

Daily Burn Rate: $5.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: R&D-PHYSICAL SCIENCE-A RES/EXPL DEV

Plain-Language Summary

Department of Health and Human Services obligated $10.9 million to CENTRE FOR APPLIED MICROBIOLOG for work described as: R&D-PHYSICAL SCIENCE-A RES/EXPL DEV Key points: 1. Contract value represents a significant, multi-year investment in scientific advancement. 2. The award was made under full and open competition, suggesting a robust market for these services. 3. A duration of nearly six years indicates a substantial project scope and commitment. 4. The contract type (Cost Plus Fixed Fee) suggests a need for flexibility in research environments. 5. This award falls within the broader category of physical sciences research, a critical area for innovation.

Value Assessment

Rating: good

The contract value of $10.9 million over approximately six years suggests a moderate annual spend for specialized R&D. Benchmarking against similar long-term physical science research contracts would provide a clearer picture of value for money. The Cost Plus Fixed Fee structure, while common for R&D, can sometimes lead to higher costs if not managed tightly, but it allows for adaptation to unforeseen research challenges. Without specific performance metrics or comparable contract data, a definitive value assessment is challenging, but the duration and scope imply a substantial undertaking.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This competitive process is generally expected to drive better pricing and innovation. The presence of 9 bids suggests a healthy level of interest and capability within the market for this type of specialized research. A competitive landscape like this typically benefits the government by ensuring a range of technical solutions and cost proposals are considered.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and access to a wider pool of innovative solutions. This process helps ensure that federal funds are used efficiently by fostering a market-driven approach to contract awards.

Public Impact

The primary beneficiaries are researchers and institutions involved in physical science R&D, advancing scientific knowledge. The services delivered likely involve fundamental research, experimentation, and development in physical sciences. The geographic impact is potentially national, supporting scientific progress across the country through funded research. Workforce implications include support for scientists, technicians, and research staff employed by the contractor and potentially collaborating institutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to manage costs effectively and prevent scope creep.
The long duration of the contract necessitates sustained performance monitoring to ensure research objectives are met.
Ensuring the fixed fee remains appropriate throughout the contract lifecycle requires careful review and justification.

Positive Signals

Awarded under full and open competition, indicating a competitive marketplace for these services.
The substantial value and long duration suggest a significant and potentially impactful research project.
The contract supports critical R&D in physical sciences, aligning with national innovation goals.

Sector Analysis

This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically NAICS code 541710. This sector is characterized by innovation, scientific discovery, and the application of theoretical knowledge to practical problems. Federal spending in this area is crucial for maintaining a competitive edge in technology and science. Comparable spending benchmarks would typically involve analyzing other large-scale R&D grants and contracts awarded by agencies like NIH, NSF, and DOD for similar scientific endeavors.

Small Business Impact

The contract does not indicate any specific small business set-aside provisions (ss: false, sb: false). Given the specialized nature of physical science R&D and the contract value, it is likely that larger, established research institutions or companies were the primary bidders. There is no explicit information on subcontracting plans for small businesses, which would typically be detailed in the contract's statement of work or associated documents. Further analysis would be needed to determine if small businesses were indirectly involved or if opportunities were missed.

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 Cost Plus Fixed Fee contract, rigorous financial and performance oversight is expected to ensure that funds are used appropriately and that research milestones are achieved. Transparency would be facilitated through NIH's reporting mechanisms and potentially through public dissemination of research findings. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

National Institutes of Health Research Grants
National Science Foundation Basic Research Funding
Department of Defense Research and Development Programs
Physical Sciences and Engineering Research Initiatives

Risk Flags

Potential for cost overruns inherent in CPFF contracts.
Need for robust oversight to ensure research objectives are met within budget.
Complexity of tracking performance metrics for long-term R&D projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $10.9 million to CENTRE FOR APPLIED MICROBIOLOG. R&D-PHYSICAL SCIENCE-A RES/EXPL DEV

Who is the contractor on this award?

The obligated recipient is CENTRE FOR APPLIED MICROBIOLOG.

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 $10.9 million.

What is the period of performance?

Start: 2004-09-24. End: 2010-09-29.

What is the specific area of physical science research funded by this contract?

The provided data indicates the contract falls under NAICS code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences.' While the broad category is 'R&D-PHYSICAL SCIENCE-A RES/EXPL DEV,' the specific sub-discipline or research focus is not detailed in the summary data. Typically, NIH funds a wide array of research, including but not limited to materials science, chemistry, physics, and engineering related to biological and health applications. To understand the precise research area, one would need to consult the contract's statement of work or related project descriptions from the National Institutes of Health.

How does the $10.9 million award compare to typical NIH R&D funding for similar projects?

The $10.9 million award over approximately six years translates to an average annual value of roughly $1.8 million. This figure is within the range for significant, multi-year research projects funded by the NIH. NIH supports a spectrum of research, from small pilot studies to large center grants and program projects. Larger, multi-disciplinary centers or clinical trials can easily exceed tens of millions of dollars. For a focused R&D effort in physical sciences, $1.8 million annually is a substantial but not extraordinary amount, suggesting a project of considerable scope and potential impact, likely involving a dedicated research team and significant resources.

What are the key performance indicators (KPIs) or deliverables expected under this contract?

The provided data does not specify the key performance indicators (KPIs) or deliverables for this contract. For a Cost Plus Fixed Fee R&D contract, deliverables typically include research progress reports, interim and final scientific reports, data sets, publications, and potentially prototypes or methodologies developed. Performance would be assessed based on the achievement of research objectives, adherence to scientific rigor, timely reporting, and effective utilization of funds. The specific KPIs would be detailed in the contract's Statement of Work (SOW) and would be tailored to the unique goals of the physical science research being undertaken.

What is the track record of the contractor, 'CENTRE FOR APPLIED MICROBIOLOG', with the federal government?

The provided data lists the contractor as 'CENTRE FOR APPLIED MICROBIOLOG' with an award value of $10,892,880. However, this name appears to be a specific entity, and without further information such as a Unique Entity ID (UEI) or DUNS number, it is difficult to definitively ascertain its broader federal contracting history. A search for 'CENTRE FOR APPLIED MICROBIOLOG' in federal procurement databases might reveal past performance, other awards, and compliance records. If this is a specialized research institute, its track record might be more focused on scientific output and grant funding rather than extensive federal contract history.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

Cost Plus Fixed Fee (CPFF) contracts, while offering flexibility for R&D where costs can be uncertain, carry inherent risks. A primary risk is that the contractor may have less incentive to control costs compared to fixed-price contracts, as allowable costs are reimbursed. The 'fixed fee' component provides some incentive for efficiency, but it is applied to the estimated cost, not the final cost. This structure can lead to cost overruns if initial estimates are inaccurate or if the scope of work expands significantly. Effective government oversight is crucial to monitor expenditures, ensure the reasonableness of costs, and manage the scope to prevent uncontrolled cost growth beyond the initial estimates.

How does this contract align with the strategic goals of the National Institutes of Health (NIH)?

This contract aligns with the NIH's overarching mission to seek fundamental knowledge about the nature and behavior of living systems and the application of that knowledge to enhance health, lengthen life, and prevent illness. While the contract is categorized under physical sciences R&D (NAICS 541710), NIH often funds research at the intersection of physical sciences and biology/medicine. This could involve developing new imaging technologies, novel materials for medical devices, advanced analytical techniques for biological samples, or computational modeling for health-related phenomena. Such investments are crucial for driving innovation in biomedical research and developing future healthcare solutions.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 9

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: NO DATA FROM D AND B, NO DATA FROM D AND B

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $10,892,880

Exercised Options: $10,892,880

Current Obligation: $10,892,880

Contract Characteristics

Multi-Year Contract: Yes

Parent Contract

Parent Award PIID: 266030062

IDV Type: IDC

Timeline