NIH awards $25.3M for biomedical research to UNC Chapel Hill over 7 years

Contract Overview

Contract Amount: $25,316,892 ($25.3M)

Contractor: University of North Carolina AT Chapel Hill

Awarding Agency: Department of Health and Human Services

Start Date: 2006-09-30

End Date: 2013-06-30

Contract Duration: 2,465 days

Daily Burn Rate: $10.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: COST NO FEE

Sector: R&D

Official Description: BIOMEDICAL (BASIC)

Place of Performance

Location: CHAPEL HILL, ORANGE County, NORTH CAROLINA, 27599

State: North Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $25.3 million to UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL for work described as: BIOMEDICAL (BASIC) Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is a definitive contract, typically used for complex projects. 3. Research and Development in Physical, Engineering, and Life Sciences is a broad category. 4. The contract duration of approximately 7 years indicates a long-term research commitment. 5. The contractor, University of North Carolina at Chapel Hill, is a known research institution. 6. The contract was awarded by the National Institutes of Health, a primary funder of biomedical research.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or comparable projects. The 'COST NO FEE' contract type suggests that the government reimburses the contractor for allowable costs, with no fee or profit. This is common for non-profit research institutions but can sometimes lead to less incentive for cost control compared to fixed-price contracts. The total award amount of over $25 million spread over seven years averages to approximately $3.6 million per year, which seems reasonable for a large-scale R&D effort at a major university.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This method is generally preferred as it maximizes the pool of potential offerors and is expected to yield the best value for the government. The data does not specify the number of bids received, which would provide further insight into the level of competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it promotes a competitive environment, which can lead to more favorable pricing and innovative solutions.

Public Impact

The primary beneficiaries are researchers at the University of North Carolina at Chapel Hill, who will receive funding to conduct biomedical research. The services delivered are research and development in the physical, engineering, and life sciences, contributing to scientific advancement. The geographic impact is primarily within North Carolina, where the university is located, but the research findings can have national and global implications. The contract supports the academic and research workforce at the university, including faculty, post-doctoral researchers, and students.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness and value for money.
The 'COST NO FEE' contract type may offer less incentive for stringent cost control by the contractor.
The long duration of the contract could pose risks if research directions become obsolete or unproductive.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The contractor is a well-established research institution with a track record in biomedical research.
The contract supports critical research and development in the life sciences, aligning with national health priorities.

Sector Analysis

This contract falls within the broader Research and Development sector, specifically focusing on biomedical sciences. The market for biomedical R&D is substantial, with significant government and private investment. Agencies like NIH are key players, funding a wide array of research projects at universities and private institutions. Comparable spending benchmarks would involve looking at other large, multi-year R&D grants awarded by NIH to academic institutions for similar research areas.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). As this is a definitive contract awarded to a university, it is unlikely to involve significant subcontracting to small businesses unless specific research components are outsourced. The primary focus is on the research capabilities of the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the National Institutes of Health (NIH), likely through program officers and contracting officers. Accountability measures would be tied to the research progress reports and milestones outlined in the contract. Transparency is generally maintained through public databases like FPDS-NG, where contract awards are reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

National Institutes of Health Research Grants
Biomedical Research and Development
University Research Funding
Life Sciences Research Contracts

Risk Flags

Long contract duration may lead to outdated research objectives.
Cost-reimbursement contract type may lack strong cost-control incentives.
Lack of specific performance metrics hinders value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $25.3 million to UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL. BIOMEDICAL (BASIC)

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL.

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 $25.3 million.

What is the period of performance?

Start: 2006-09-30. End: 2013-06-30.

What specific research areas are covered under this 'Research and Development in the Physical, Engineering, and Life Sciences' contract?

The provided data offers a broad classification (NAICS code 541710) for 'Research and Development in the Physical, Engineering, and Life Sciences.' To understand the specific research areas, one would need to consult the contract's statement of work (SOW) or project description, which is not included in the abbreviated data. This could encompass a wide range of disciplines, from molecular biology and genetics to bioengineering and clinical research, depending on the specific aims funded by NIH.

How does the 'COST NO FEE' contract type compare to other contract types used for R&D at universities?

The 'COST NO FEE' (Cost-Reimbursement, No Fee) contract type is common for research institutions like universities, especially non-profits. It means the government reimburses the contractor for all allowable costs incurred in performing the contract, but the contractor does not receive any profit or fee. This contrasts with Cost-Plus-Fixed-Fee (CPFF) contracts, which also reimburse costs but include a pre-negotiated fixed fee. While 'Cost No Fee' can be advantageous for fostering collaboration and exploration in research, it places a strong emphasis on the government's oversight to ensure costs are reasonable and allocable. It may offer less incentive for aggressive cost management compared to fixed-price contracts.

What is the typical track record of the University of North Carolina at Chapel Hill in securing and managing large federal research grants?

The University of North Carolina at Chapel Hill (UNC-CH) is a major public research university with a long and extensive history of securing and managing large federal research grants, particularly from agencies like the National Institutes of Health (NIH). UNC-CH consistently ranks among the top universities for federal research and development expenditures. Its research portfolio spans numerous disciplines, including significant strengths in biomedical sciences, public health, and engineering. The university has established administrative and financial systems designed to handle complex, multi-year grants, ensuring compliance with federal regulations and reporting requirements.

Can we benchmark the average annual spending of $3.6 million against similar biomedical R&D contracts?

Benchmarking the average annual spending of approximately $3.6 million requires access to a database of comparable NIH-funded biomedical R&D contracts with similar scope and duration. Without specific details on the research focus (e.g., basic science vs. clinical trials, specific disease areas), it's difficult to make a precise comparison. However, for a large, multi-year research initiative at a major academic institution, this annual figure is within the expected range for significant R&D efforts funded by NIH. Larger, more complex projects, especially those involving extensive clinical trials or large research teams, can easily exceed this amount annually.

What are the potential risks associated with a definitive contract lasting nearly seven years?

A definitive contract lasting nearly seven years, especially in a rapidly evolving field like biomedical R&D, carries several potential risks. Firstly, the scientific landscape can change dramatically over such a period; research priorities may shift, new technologies may emerge, or initial hypotheses may prove incorrect, potentially rendering the original research objectives less relevant or feasible. Secondly, there's a risk of scope creep or evolving requirements that may not be adequately captured in the initial contract, leading to cost overruns or delays. Thirdly, maintaining consistent project management and scientific direction over an extended period can be challenging, requiring robust communication and adaptation strategies. Finally, the long duration might make it harder to retain key personnel if their career paths diverge.

How does the 'Research and Development in the Physical, Engineering, and Life Sciences' category (NAICS 541710) typically translate into specific contract deliverables?

The NAICS code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences,' is a broad classification. Contract deliverables under this code can vary significantly. For a university like UNC-CH, typical deliverables would include regular progress reports detailing research activities, findings, and methodologies; presentations of results at scientific conferences; publications in peer-reviewed journals; and potentially the development of new techniques, datasets, or preliminary data for future research. For 'COST NO FEE' contracts, the emphasis is often on the diligent pursuit of research objectives and the dissemination of knowledge, rather than specific, tangible products, though prototypes or specific research tools might be developed.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 10

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE University of North Carolina

Address: ADMINISTRATIVE OFFICE BUILDING, SUI, CHAPEL HILL, NC, 27599

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

Financial Breakdown

Contract Ceiling: $26,209,616

Exercised Options: $25,316,892

Current Obligation: $25,316,892

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline