NIH invests over $10M in MSU for adjuvant lead pipeline development

Contract Overview

Contract Amount: $10,488,178 ($10.5M)

Contractor: Montana State University

Awarding Agency: Department of Health and Human Services

Start Date: 2003-12-30

End Date: 2009-12-29

Contract Duration: 2,191 days

Daily Burn Rate: $4.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST NO FEE

Sector: R&D

Official Description: ESTABLISH A PIPELINE OF NEW ADJUVANT LEADS

Place of Performance

Location: BOZEMAN, GALLATIN County, MONTANA, 59717

State: Montana Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $10.5 million to MONTANA STATE UNIVERSITY for work described as: ESTABLISH A PIPELINE OF NEW ADJUVANT LEADS Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. Significant investment in establishing a pipeline for new adjuvant leads. 3. Long-term contract duration of 2191 days indicates a sustained research effort. 4. Focus on a specific scientific area suggests targeted advancement in medical research. 5. Awarded under full and open competition, implying a broad search for qualified entities.

Value Assessment

Rating: fair

The contract value of approximately $10.5 million over six years for R&D services is difficult to benchmark without specific details on the research scope and deliverables. The 'COST NO FEE' award type suggests that the government reimburses allowable costs incurred by the contractor, which can sometimes lead to less price certainty compared to fixed-price contracts. Further analysis would require understanding the specific milestones and expected outcomes to assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that the government solicited proposals from all responsible sources. The presence of 6 bids suggests a reasonable level of interest and competition for this research and development opportunity. This broad competition is generally favorable for price discovery and ensuring the government receives competitive proposals.

Taxpayer Impact: Full and open competition helps ensure that taxpayer funds are used efficiently by driving down costs through a competitive bidding process.

Public Impact

Benefits the National Institutes of Health (NIH) in advancing its research objectives. Services delivered include the establishment of a pipeline for new adjuvant leads, crucial for vaccine development. Geographic impact is primarily focused on Montana State University's research facilities. Workforce implications include employment of researchers and support staff at the university.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'COST NO FEE' contract type can present challenges in controlling overall expenditure if costs escalate beyond initial projections.
Lack of specific performance metrics in the provided data makes it difficult to assess the progress and effectiveness of the research.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Long contract duration indicates a commitment to a potentially impactful research area.
Focus on a critical area like adjuvant development aligns with public health goals.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on life sciences and medical research. The market for adjuvant development is a specialized segment within the broader pharmaceutical and biotechnology industries. Comparable spending benchmarks would typically involve other NIH grants or contracts awarded for similar early-stage research initiatives, often characterized by high uncertainty and long development timelines.

Small Business Impact

The provided data does not indicate any specific small business set-asides or subcontracting requirements for this contract. Given the nature of the research and the prime contractor (Montana State University), it is likely that the focus is on academic research capabilities rather than a broad subcontracting network involving small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Institutes of Health (NIH), a component of the Department of Health and Human Services. Accountability measures would be tied to the research progress reports and milestones outlined in the contract. Transparency is generally maintained through public databases of federal contracts, though specific research details may be proprietary.

Related Government Programs

NIH Research Grants
Biotechnology Research Contracts
Vaccine Development Programs

Risk Flags

Cost-reimbursement contract type requires diligent oversight to manage expenditures.
Long contract duration necessitates sustained monitoring of research progress and objectives.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $10.5 million to MONTANA STATE UNIVERSITY. ESTABLISH A PIPELINE OF NEW ADJUVANT LEADS

Who is the contractor on this award?

The obligated recipient is MONTANA STATE 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 $10.5 million.

What is the period of performance?

Start: 2003-12-30. End: 2009-12-29.

What is the specific scientific objective of establishing a 'pipeline of new adjuvant leads'?

Establishing a pipeline of new adjuvant leads refers to the process of identifying, developing, and validating novel substances that can enhance the immune response to vaccines. Adjuvants are critical components of many vaccines, as they help to boost the body's immune system to recognize and fight off diseases more effectively. A 'pipeline' suggests a systematic approach to discovering and advancing multiple potential adjuvant candidates through various stages of research and development. This could involve screening chemical libraries, optimizing existing adjuvant structures, or exploring entirely new mechanisms of immune stimulation. The ultimate goal is to have a portfolio of promising adjuvants ready for further testing and potential inclusion in future vaccine formulations, thereby improving vaccine efficacy and potentially reducing the required antigen dose.

How does the 'COST NO FEE' contract type typically function, and what are its implications for cost control?

A 'COST NO FEE' (CNF) contract is a type of cost-reimbursement contract where the government agrees to pay the contractor for all allowable, allocable, and reasonable costs incurred in performing the contract, but does not provide any additional fee or profit. This type of contract is often used when the level of risk or uncertainty in the effort is high, making it difficult to establish a firm fixed price. For cost control, the government relies heavily on robust oversight, detailed cost monitoring, and clear definitions of allowable costs. The contractor is incentivized to manage costs to avoid exceeding the contract's ceiling, but the absence of a fee means there's no direct profit motive tied to cost efficiency. This can sometimes lead to less aggressive cost management compared to fixed-price contracts, necessitating strong government oversight to ensure fiscal responsibility and prevent cost overruns.

What is the typical duration and funding pattern for NIH research contracts of this nature?

NIH research contracts, especially those involving early-stage R&D like developing adjuvant leads, often have multi-year durations to allow for the complex and iterative nature of scientific discovery. Durations of six years, as seen in this contract (2191 days), are not uncommon for foundational research projects. Funding is typically awarded incrementally, often on a year-by-year basis, contingent upon satisfactory progress and the availability of funds. While the total award amount might be stated upfront, the actual disbursement of funds is usually tied to achieving specific milestones and adhering to the approved research plan. This phased funding approach allows NIH to monitor progress and re-evaluate the project's direction or continued funding if necessary, providing flexibility in managing research investments.

What does the North American Industry Classification System (NAICS) code 541710 signify in the context of this contract?

The NAICS code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences,' precisely categorizes the nature of the work performed under this contract. It indicates that the research conducted by Montana State University is focused on scientific inquiry and experimentation within these broad fields. For this specific contract, the 'Life Sciences' aspect is paramount, relating to the development of biological agents (adjuvants) to stimulate immune responses. This code helps classify the contract within the federal procurement system, allowing for analysis of spending trends across different scientific domains and identifying the types of organizations (like universities and specialized research firms) that typically receive such awards. It signals a commitment to advancing fundamental scientific knowledge with potential applications in medicine and public health.

How does the 'MONTANA STATE UNIVERSITY' as a contractor influence the expected outcomes and management of this contract?

Montana State University, as a recipient of this federal contract, brings a strong academic research background to the project. Universities typically excel in fundamental research, innovation, and training the next generation of scientists. The outcomes are likely to be focused on scientific discovery, publication of findings, and the development of novel concepts or early-stage technologies, rather than immediate commercialization. Contract management will involve oversight from the NIH program officials and grants management specialists, ensuring adherence to research protocols, ethical standards, and financial accountability. While universities may have less experience with the stringent reporting and compliance demands of large-scale defense or commercial contracts, their core mission aligns well with the R&D objectives of agencies like the NIH, fostering scientific advancement.

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 › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 6

Pricing Type: COST NO FEE (S)

Contractor Details

Address: 307 MONTANA HALL, BOZEMAN, MT, 01

Business Categories: Category Business, Educational Institution, Government, Higher Education, Nonprofit Organization, Not Designated a Small Business, U.S. Regional/State Government

Financial Breakdown

Contract Ceiling: $14,388,589

Exercised Options: $12,355,730

Current Obligation: $10,488,178

Contract Characteristics

Multi-Year Contract: Yes

Timeline