Rutgers University receives $16.25M for R&D in physical, engineering, and life sciences from NIH

Contract Overview

Contract Amount: $16,252,812 ($16.3M)

Contractor: Rutgers, the State University

Awarding Agency: Department of Health and Human Services

Start Date: 2008-07-14

End Date: 2011-08-31

Contract Duration: 1,143 days

Daily Burn Rate: $14.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: BIOMEDICAL (APPLIED/EXPLORATORY)

Place of Performance

Location: PISCATAWAY, MIDDLESEX County, NEW JERSEY, 08854

State: New Jersey Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $16.3 million to RUTGERS, THE STATE UNIVERSITY for work described as: BIOMEDICAL (APPLIED/EXPLORATORY) Key points: 1. Contract awarded through full and open competition, suggesting a robust selection process. 2. The definitive contract type indicates a long-term agreement for services. 3. Fixed price contract structure aims to control costs for the government. 4. The contract duration of over 3 years suggests a significant project scope. 5. Focus on applied/exploratory biomedical research aligns with NIH's mission. 6. Awarded by the National Institutes of Health, a leading biomedical research agency.

Value Assessment

Rating: good

The contract value of $16.25 million for a period of approximately three years appears reasonable for applied biomedical research, especially considering the specialized nature of R&D. Benchmarking against similar contracts for biomedical research and development by NIH would provide a more precise assessment of value for money. The firm fixed-price structure suggests an effort to ensure cost predictability, which is a positive indicator for value.

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 a bid. The fact that it was competed openly suggests a healthy market for the services sought by NIH. While the number of bidders is not specified, open competition generally leads to better price discovery and potentially more competitive pricing for the government.

Taxpayer Impact: Full and open competition ensures that taxpayer funds are used efficiently by fostering a competitive environment that drives down costs and encourages innovation.

Public Impact

The primary beneficiary is Rutgers, The State University, which will conduct critical biomedical research. The services delivered are research and development in the physical, engineering, and life sciences, with a focus on applied/exploratory biomedical areas. The geographic impact is primarily New Jersey, where Rutgers is located. The contract supports the scientific workforce through research positions and potentially student involvement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term R&D contracts if not managed tightly.
Ensuring timely delivery of research milestones within the fixed-price structure can be challenging.

Positive Signals

Award to a reputable university like Rutgers suggests strong technical capabilities.
Firm fixed-price contract provides cost certainty for the government.
Long duration allows for in-depth research and development.

Sector Analysis

This contract falls within the broader 'Research and Development in the Physical, Engineering, and Life Sciences' sector, specifically NAICS code 541712. This sector is characterized by innovation and scientific advancement, often involving significant investment. Comparable spending in this area by agencies like NIH is substantial, reflecting the government's commitment to advancing scientific knowledge and developing new technologies. The market includes universities, research institutions, and private R&D firms.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large university, Rutgers is not a small business. There is no explicit information on subcontracting plans for small businesses within this award, which is common for large research grants to academic institutions. The focus is likely on internal research capacity rather than a broad subcontracting ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the National Institutes of Health (NIH) program officials and contracting officers. They are responsible for monitoring progress, ensuring compliance with the contract terms, and verifying that research objectives are met. The firm fixed-price nature of the contract provides a degree of financial oversight. Transparency is generally maintained through public research publications and NIH reporting requirements.

Related Government Programs

National Institutes of Health Research Grants
Biomedical Research and Development Contracts
University Research Partnerships
Applied Science Research Funding

Risk Flags

Potential for research delays
Uncertainty in achieving specific scientific outcomes
Fixed-price rigidity for R&D complexities

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $16.3 million to RUTGERS, THE STATE UNIVERSITY. BIOMEDICAL (APPLIED/EXPLORATORY)

Who is the contractor on this award?

The obligated recipient is RUTGERS, THE 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 $16.3 million.

What is the period of performance?

Start: 2008-07-14. End: 2011-08-31.

What is the track record of Rutgers University in securing and managing federal research grants, particularly from NIH?

Rutgers University has a long history of receiving federal funding for research, including significant support from the National Institutes of Health (NIH). As a major research institution, it consistently ranks among top universities for federal research expenditures. NIH grants are a cornerstone of its research portfolio, covering a wide array of biomedical disciplines. The university's experience in managing complex, multi-year research projects, including those with firm fixed-price elements, is extensive. Their track record generally indicates a strong capacity for scientific innovation, project management, and compliance with federal regulations, although specific performance on any single contract can vary based on project complexity and duration.

How does the $16.25 million award compare to other NIH contracts for similar R&D services?

The $16.25 million award to Rutgers for applied/exploratory biomedical R&D over approximately three years is a substantial but not extraordinary amount for a major research initiative funded by NIH. NIH funds a vast number of research projects, with contract values ranging from small grants for specific experiments to large, multi-year programs. Contracts in the $5-20 million range for multi-year R&D at leading universities are common, especially for projects with significant scope or requiring specialized equipment and personnel. To provide a precise benchmark, one would need to compare it against contracts awarded under the same or similar NAICS codes (e.g., 541712) and for similar research areas (biomedical, physical, engineering sciences) within the same time frame, considering factors like the number of bidders and contract type.

What are the primary risks associated with this specific contract, and how are they mitigated?

Key risks for this R&D contract include potential delays in research progress, challenges in achieving desired scientific outcomes, and the possibility of cost overruns if the fixed-price structure proves too rigid for unforeseen research complexities. Mitigation strategies likely involve robust project management by Rutgers, clear communication channels with NIH program officers, and adherence to defined research milestones. NIH's oversight, including regular progress reports and reviews, helps identify and address issues early. The firm fixed-price nature itself acts as a risk mitigation tool for the government by capping the total expenditure, though it places more financial risk on the contractor if costs escalate unexpectedly.

How effective is the 'full and open competition' process in ensuring value for money for this type of R&D contract?

Full and open competition is generally considered the most effective method for ensuring value for money in federal contracting, including for R&D. It allows a wide range of qualified entities, such as universities and research institutions, to propose solutions, fostering a competitive environment that drives innovation and potentially lowers prices. For R&D, this process can also lead to the selection of the most scientifically promising or technically capable approach. While NIH may have specific criteria for evaluating research proposals beyond just price, open competition ensures that the government receives proposals from multiple sources, allowing for a thorough evaluation of technical merit, approach, and cost-effectiveness, thereby maximizing the value derived from taxpayer funds.

What are the historical spending patterns of NIH in the 'Research and Development in the Physical, Engineering, and Life Sciences' category?

The National Institutes of Health (NIH) is consistently one of the largest federal funders of biomedical research and development. Historical spending patterns show a significant and growing investment in the 'Research and Development in the Physical, Engineering, and Life Sciences' category (NAICS 541712 and related codes). NIH's budget allocations prioritize areas like basic science, translational research, and applied research aimed at understanding, preventing, diagnosing, and treating diseases. Spending in this sector is driven by national health priorities, emerging scientific opportunities, and the need to maintain U.S. leadership in biomedical innovation. Over the years, NIH has demonstrated a sustained commitment to funding a diverse portfolio of research, supporting numerous institutions and researchers across the country.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3 RUTGERS PLZA, NEW BRUNSWICK, NJ, 08901

Business Categories: Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Higher Education (Public)

Financial Breakdown

Contract Ceiling: $16,252,812

Exercised Options: $16,252,812

Current Obligation: $16,252,812

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline