NIH awards $14.7M for Biomedical R&D to UNC Chapel Hill over 9 years under full and open competition

Contract Overview

Contract Amount: $14,727,929 ($14.7M)

Contractor: University of North Carolina AT Chapel Hill

Awarding Agency: Department of Health and Human Services

Start Date: 2009-02-02

End Date: 2018-07-31

Contract Duration: 3,466 days

Daily Burn Rate: $4.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST NO FEE

Sector: R&D

Official Description: BIOMEDICAL (APPLIED/EXPLORATORY)

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 $14.7 million to UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL for work described as: BIOMEDICAL (APPLIED/EXPLORATORY) Key points: 1. Significant long-term investment in biomedical research. 2. UNC Chapel Hill is a key player in this research area. 3. Potential for groundbreaking discoveries with long-term funding. 4. Focus on physical, engineering, and life sciences R&D.

Value Assessment

Rating: good

The contract's cost-plus-fixed-fee structure for R&D is typical. The total award of $14.7M over 9 years suggests a moderate annual spend, likely competitive for the scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition generally leads to better price discovery and value for the government. This method allows all qualified sources to bid, fostering a competitive environment.

Taxpayer Impact: Taxpayer funds are directed towards critical research, with the expectation of future societal benefits and potential economic returns from innovation.

Public Impact

Advancement of scientific knowledge in biomedical fields. Potential for new treatments, diagnostics, or medical technologies. Strengthening of research infrastructure at a leading university. Contribution to the national health and economic competitiveness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Long contract duration may lead to scope creep or evolving research needs.
  • Cost-plus contracts can incentivize spending over strict cost control.

Positive Signals

  • Significant investment in a critical research area.
  • Long-term commitment fosters sustained innovation.
  • Competition ensures a broad pool of talent was considered.

Sector Analysis

This contract falls within the R&D sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for innovation and national competitiveness, with significant government investment.

Small Business Impact

The contract was awarded to a university, not a small business. There is no indication of small business subcontracting requirements or participation in this award.

Oversight & Accountability

The contract was awarded by NIH, a reputable agency with established oversight mechanisms. The long duration necessitates ongoing monitoring of research progress and financial expenditures.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
  • Department of Health and Human Services Contracting
  • National Institutes of Health Programs

Risk Flags

  • Long contract duration (9 years) increases risk of obsolescence or changing priorities.
  • Cost-plus contract type may offer less incentive for cost efficiency compared to fixed-price.
  • Lack of specific performance metrics in the provided data makes outcome assessment difficult.
  • No explicit mention of small business participation or subcontracting goals.

Tags

research-and-development-in-the-physical, department-of-health-and-human-services, nc, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $14.7 million to UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL. BIOMEDICAL (APPLIED/EXPLORATORY)

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 $14.7 million.

What is the period of performance?

Start: 2009-02-02. End: 2018-07-31.

What specific research outcomes are expected from this $14.7M investment over nine years?

The contract focuses on 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)'. Specific outcomes are not detailed but would typically involve advancements in understanding diseases, developing new research methodologies, or creating novel technologies applicable to health challenges. The long duration suggests a focus on foundational or exploratory research with potentially transformative, but not immediately quantifiable, results.

How does the cost-plus-no-fee structure impact the government's risk and the contractor's incentive?

A cost-plus-no-fee (CPNF) contract covers the contractor's allowable costs but provides no additional fee or profit. This structure is typically used when the government has significant control over the contractor's operations or when the work is of a type where profit is not appropriate, such as certain types of R&D or services. It minimizes contractor profit incentive but ensures costs are covered, shifting risk towards the government for cost overruns.

What is the benchmark for R&D spending of this magnitude for a university research project?

Benchmarking R&D spending for university projects is complex due to varying scopes and disciplines. However, $14.7M over 9 years ($1.6M/year) for a broad biomedical R&D area is a substantial, but not extraordinary, award for a major research institution like UNC. It aligns with significant federal investments in key scientific areas, suggesting a competitive and appropriate level of funding for the potential impact.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENTN – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 104 AIRPORT DR, CB 1350, CHAPEL HILL, NC, 27599

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

Financial Breakdown

Contract Ceiling: $14,727,929

Exercised Options: $14,727,929

Current Obligation: $14,727,929

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline

Start Date: 2009-02-02

Current End Date: 2018-07-31

Potential End Date: 2018-07-31 00:00:00

Last Modified: 2024-03-25

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