HHS awarded UNC Chapel Hill $16.2M for R&D in Biotechnology over 2.3 years

Contract Overview

Contract Amount: $16,196,643 ($16.2M)

Contractor: University of North Carolina AT Chapel Hill

Awarding Agency: Department of Health and Human Services

Start Date: 2010-11-15

End Date: 2017-04-05

Contract Duration: 2,333 days

Daily Burn Rate: $6.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: R&D

Official Description: TAS::75 0872::TAS ARIC DATA COORDINATING CENTER

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 $16.2 million to UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL for work described as: TAS::75 0872::TAS ARIC DATA COORDINATING CENTER Key points: 1. Contract value of $16.2M for over two years suggests a significant investment in specialized research. 2. The 'Research and Development in Biotechnology' NAICS code indicates a focus on advanced scientific endeavors. 3. A definitive contract type implies a clear scope of work and established terms. 4. The contract duration of 2333 days (approx. 6.4 years) is substantial for a research project. 5. The absence of small business set-asides or subcontracting requirements warrants further investigation into broader economic impact. 6. The contract was not competed, raising questions about potential cost efficiencies and market alternatives.

Value Assessment

Rating: fair

The contract value of $16.2M over approximately 6.4 years averages to about $2.5M annually. Benchmarking this against similar large-scale biotechnology R&D contracts is challenging without more specific details on the project's scope and deliverables. However, the cost-plus-fixed-fee (CPFF) structure, while not explicitly stated but implied by 'COST NO FEE' and the nature of R&D, can sometimes lead to higher costs if not tightly managed. The lack of competition makes a direct value-for-money assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This typically occurs when a specific entity possesses unique capabilities, intellectual property, or is the only responsible source capable of performing the work. The lack of competition limits the government's ability to leverage market forces to potentially drive down costs or explore innovative solutions from a wider pool of contractors.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of competitive bidding. The government missed an opportunity to explore alternative approaches or cost-saving measures that competition might have revealed.

Public Impact

The primary beneficiary is the University of North Carolina at Chapel Hill, which receives significant funding for its research activities. The contract supports research and development in the field of biotechnology, potentially leading to advancements in medicine, agriculture, or environmental science. The geographic impact is concentrated in North Carolina, where the university is located, supporting local research infrastructure and personnel. Workforce implications include employment for researchers, technicians, and administrative staff at UNC Chapel Hill.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price discovery and potential cost savings for taxpayers.
Sole-source awards can sometimes indicate a lack of market research or a reliance on incumbent contractors without exploring alternatives.
The 'COST NO FEE' award type, while common in R&D, requires robust oversight to ensure costs remain reasonable and aligned with project goals.

Positive Signals

Funding a leading research institution like UNC Chapel Hill can foster significant scientific innovation.
The long contract duration suggests a sustained commitment to a potentially impactful research area.
The specific NAICS code points to a focus on a high-demand and critical scientific field.

Sector Analysis

The biotechnology sector is a rapidly growing and highly innovative field, characterized by significant R&D investment. Federal spending in this area often supports basic research, drug development, and advanced scientific exploration. This contract, focused on 'Research and Development in Biotechnology,' aligns with the government's role in fostering scientific advancement and addressing national health priorities. Comparable spending benchmarks are difficult to establish without knowing the specific research focus, but large federal grants to universities for R&D are common.

Small Business Impact

This contract does not appear to have involved small business set-asides, as indicated by 'sb': false. The absence of subcontracting requirements also suggests that the primary contractor, UNC Chapel Hill, is expected to perform the majority of the work internally. This means the direct economic impact on the small business ecosystem is likely minimal for this specific award, though the university may engage small businesses indirectly through its broader operations.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services (HHS), specifically the National Institutes of Health (NIH), which is the awarding agency. As a cost-reimbursement type contract (implied by 'COST NO FEE'), rigorous financial oversight and auditing are crucial to ensure that expenditures are reasonable, allocable, and allowable. Transparency would be facilitated through NIH's contract award databases and potentially through public reporting of research outcomes, though specific details on internal oversight mechanisms are not provided.

Related Government Programs

National Institutes of Health Research Grants
Biotechnology Research and Development Programs
University Research Funding
Federal Grants for Scientific Advancement

Risk Flags

Sole-source award may limit price competition.
Lack of small business subcontracting noted.
Contract duration is lengthy, requiring sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $16.2 million to UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL. TAS::75 0872::TAS ARIC DATA COORDINATING CENTER

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 $16.2 million.

What is the period of performance?

Start: 2010-11-15. End: 2017-04-05.

What specific research objectives were funded by this $16.2M contract awarded to the University of North Carolina at Chapel Hill?

The provided data indicates the contract was for 'Research and Development in Biotechnology' under NAICS code 541711. However, the specific research objectives, such as the particular area of biotechnology being investigated (e.g., genomics, drug discovery, synthetic biology), the intended outcomes, or the scientific questions being addressed, are not detailed in the available information. Further investigation into the contract's statement of work or related NIH funding announcements would be necessary to ascertain the precise research goals and expected deliverables.

How does the $16.2M contract value compare to other federal R&D funding for biotechnology at major universities?

The $16.2M awarded over approximately 6.4 years (2333 days) represents an average annual funding of roughly $2.5M. This figure is substantial but falls within the typical range for large-scale, multi-year federal research grants to major academic institutions. Agencies like NIH, NSF, and DOE routinely award grants in the millions of dollars for complex R&D projects. Without knowing the specific scope and novelty of the research, a precise comparison is difficult, but it is consistent with significant federal investment in high-priority scientific areas.

What are the potential risks associated with a sole-source award for a large R&D contract?

Sole-source awards for large R&D contracts carry several potential risks. Firstly, the absence of competition means the government may not be achieving the best possible price or value for its investment, as market forces are not engaged to drive efficiency. Secondly, it can limit the exploration of innovative approaches or technologies that might have been proposed by other qualified entities. Thirdly, it can create a perception of favoritism or a lack of transparency, even if the award is justified. Finally, if the sole-source contractor underperforms, the government has fewer immediate alternatives for recourse or replacement.

What is the historical spending pattern for 'Research and Development in Biotechnology' (NAICS 541711) by the Department of Health and Human Services?

The provided data only pertains to a single contract. To understand historical spending patterns for NAICS 541711 by HHS, a comprehensive analysis of federal procurement databases (like FPDS or USASpending) would be required. This would involve querying for all contracts awarded under this NAICS code by HHS over several fiscal years. Such an analysis would reveal trends in total spending, the number of contracts awarded, the prevalence of competitive versus sole-source awards, and the primary recipients of this funding, providing a broader context for the $16.2M award.

What is the track record of the University of North Carolina at Chapel Hill as a federal contractor, particularly for R&D grants?

The University of North Carolina at Chapel Hill (UNC-CH) is a major research institution and a frequent recipient of federal grants, particularly from agencies like NIH. Its track record as a federal contractor for R&D is generally strong, characterized by numerous awards across various scientific disciplines. While this specific data point shows a large, sole-source definitive contract, UNC-CH's broader history likely includes many competitively awarded grants and contracts. Assessing its overall performance would require reviewing past award data, audit reports, and any documented instances of success or challenges in fulfilling federal research obligations.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in Biotechnology

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

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), Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,196,643

Exercised Options: $16,196,643

Current Obligation: $16,196,643

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline