NIH awards $37.5M for Biomedical Research to Westat, Inc. over 9 years
Contract Overview
Contract Amount: $37,464,868 ($37.5M)
Contractor: Westat, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2004-09-01
End Date: 2014-01-15
Contract Duration: 3,423 days
Daily Burn Rate: $10.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: BIOMEDICAL (BASIC)
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $37.5 million to WESTAT, INC. for work described as: BIOMEDICAL (BASIC) Key points: 1. Significant long-term investment in biomedical research. 2. Westat, Inc. secured a substantial contract. 3. Potential for innovation and health advancements. 4. Focus on R&D in life sciences.
Value Assessment
Rating: fair
The contract value of $37.5M over 9 years averages approximately $4.17M annually. Benchmarking this against similar large-scale, long-term biomedical research contracts is difficult without more specific service details, but the duration suggests a significant, ongoing need.
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 generally promotes price discovery and ensures the government receives competitive pricing.
Taxpayer Impact: Taxpayer funds are supporting critical biomedical research, with the potential for significant public health benefits. The competitive award process aims to ensure efficient use of these funds.
Public Impact
Supports advancements in health and medicine. Funds critical research infrastructure and expertise. Potential for new treatments and diagnostic tools.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may not reflect evolving research needs.
- Cost-plus fixed fee can incentivize cost overruns if not managed tightly.
Positive Signals
- Supports a vital scientific sector.
- Long-term commitment fosters research stability.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on life sciences. Annual spending in this area can vary significantly based on federal priorities and agency budgets, but NIH is a major funder of biomedical R&D.
Small Business Impact
The data does not indicate if small businesses were involved as subcontractors. The primary awardee, Westat, Inc., is a large research organization, suggesting limited direct opportunities for small businesses on this specific prime contract.
Oversight & Accountability
Oversight would typically be managed by the National Institutes of Health (NIH) through contract performance reviews and financial audits. The long duration necessitates consistent monitoring to ensure research objectives are met and funds are used appropriately.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Cost-plus-fixed-fee structure carries inherent cost escalation risks.
- Long contract duration may not adapt to rapidly changing research landscapes.
- Lack of specific research area details hinders assessment of alignment with current needs.
- Potential for cost overruns without stringent government oversight.
Tags
research-and-development-in-the-physical, department-of-health-and-human-services, md, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $37.5 million to WESTAT, INC.. BIOMEDICAL (BASIC)
Who is the contractor on this award?
The obligated recipient is WESTAT, 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 $37.5 million.
What is the period of performance?
Start: 2004-09-01. End: 2014-01-15.
What specific research areas are being funded under this contract, and how do they align with current public health priorities?
The provided data categorizes the contract under 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541710) and specifies 'BIOMEDICAL (BASIC)'. However, detailed research areas are not specified. Alignment with public health priorities would require reviewing NIH's strategic research goals and the specific project proposals funded by this contract.
How does the cost-plus-fixed-fee structure impact the government's ability to control costs for this long-term research project?
Cost-plus-fixed-fee (CPFF) contracts allow the contractor to recover all allowable costs plus a predetermined fixed fee representing profit. While CPFF can be useful for R&D where costs are uncertain, it carries a risk of cost escalation if the government's oversight and controls are not robust. The fixed fee provides some incentive for efficiency, but the primary cost control relies on diligent monitoring of allowable expenses.
What is the potential return on investment for taxpayers, considering the long duration and basic research focus?
The return on investment for basic research is often long-term and indirect, manifesting as scientific breakthroughs, new technologies, and improved public health outcomes rather than immediate financial returns. While the $37.5M investment is substantial, the potential societal benefits from advancements in biomedical understanding could far outweigh the initial cost over decades.
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: 2
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Address: 1650 RESEARCH BLVD, ROCKVILLE, MD, 08
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $37,464,868
Exercised Options: $37,464,868
Current Obligation: $37,464,868
Contract Characteristics
Multi-Year Contract: Yes
Timeline
Start Date: 2004-09-01
Current End Date: 2014-01-15
Potential End Date: 2014-01-15 00:00:00
Last Modified: 2015-02-06
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