Over $10.5M in R&D funding awarded to Olive View/UCLA Education and Research Institute for physical, engineering, and life sciences

Contract Overview

Contract Amount: $10,541,885 ($10.5M)

Contractor: Olive View/Ucla Education and Research Institute, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2007-07-19

End Date: 2015-11-10

Contract Duration: 3,036 days

Daily Burn Rate: $3.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST NO FEE

Sector: R&D

Official Description: R&D-OTHER R&D-B RES

Place of Performance

Location: SYLMAR, LOS ANGELES County, CALIFORNIA, 91342

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $10.5 million to OLIVE VIEW/UCLA EDUCATION AND RESEARCH INSTITUTE, INC. for work described as: R&D-OTHER R&D-B RES 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 with defined scopes. 3. Performance period spanned over 8 years, indicating a long-term research initiative. 4. The contract was for Research and Development in the Physical, Engineering, and Life Sciences, a critical sector for innovation. 5. The awardee is an educational and research institute, aligning with the R&D focus. 6. No small business set-asides were utilized, indicating the primary competition was likely among larger entities.

Value Assessment

Rating: good

Benchmarking the value of this R&D contract is challenging without specific deliverables and comparable projects. However, the duration and scope suggest a significant investment in scientific advancement. The 'COST NO FEE' contract type implies that the government reimburses the contractor for allowable costs, with no additional profit margin, which can be cost-effective for the government in certain R&D scenarios where outcomes are uncertain.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 4 bids indicates a reasonable level of competition for this R&D effort. A competitive process generally helps ensure that the government receives fair pricing and the best value available in the market.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces and encourages a wider pool of contractors to vie for government work, leading to potentially better innovation and service delivery.

Public Impact

The primary beneficiaries are likely researchers and institutions involved in physical, engineering, and life sciences, advancing scientific knowledge. The services delivered are research and development activities aimed at scientific discovery and technological innovation. The geographic impact is centered in California, where the awardee is located, but the scientific advancements could have national or global implications. Workforce implications include support for scientists, researchers, technicians, and administrative staff involved in the R&D projects.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'COST NO FEE' contract type, while potentially cost-saving, can sometimes lead to less incentive for cost control by the contractor if not properly managed.
The long performance period of over 8 years requires sustained oversight to ensure continued progress and alignment with research goals.

Positive Signals

Awarded through full and open competition, indicating a robust and fair bidding process.
The contractor is an established educational and research institute, suggesting expertise in the R&D domain.
The contract focused on critical R&D areas, contributing to scientific and technological advancement.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. This sector is crucial for national innovation, economic growth, and addressing societal challenges. Spending in this area is often characterized by long-term investments, high uncertainty, and the pursuit of novel solutions. Comparable spending benchmarks would typically involve looking at other NIH or federal agency grants and contracts awarded for similar scientific research.

Small Business Impact

This contract did not include small business set-asides, as indicated by 'sb': false. The award was made to an educational and research institute, suggesting the primary focus was on specialized research capabilities rather than small business participation. There is no explicit information on subcontracting plans for small businesses within the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the awarding agency, the National Institutes of Health (NIH), a division of HHS. Mechanisms would include regular progress reports, financial reviews, and potentially site visits to ensure research objectives are met and funds are used appropriately. Transparency is generally maintained through public databases like FPDS-NG, though specific research findings are often published in scientific journals.

Related Government Programs

NIH Research Grants
NSF Research and Development Contracts
Department of Energy R&D Programs
Department of Defense Research Projects

Risk Flags

Long contract duration may increase risk of scope creep or changing research priorities.
Cost-reimbursement type contracts require diligent oversight to manage costs effectively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $10.5 million to OLIVE VIEW/UCLA EDUCATION AND RESEARCH INSTITUTE, INC.. R&D-OTHER R&D-B RES

Who is the contractor on this award?

The obligated recipient is OLIVE VIEW/UCLA EDUCATION AND RESEARCH INSTITUTE, 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 $10.5 million.

What is the period of performance?

Start: 2007-07-19. End: 2015-11-10.

What was the specific research focus of this contract, and what were its key objectives?

The contract, NA 541710, was for 'Research and Development in the Physical, Engineering, and Life Sciences.' While the specific objectives are not detailed in the provided data, contracts of this nature from the National Institutes of Health (NIH) typically aim to advance fundamental scientific understanding, develop new technologies, or address specific health-related challenges. Given the awardee is an educational and research institute, the focus was likely on basic or applied research in areas aligned with NIH's mission, such as biomedical engineering, materials science for medical devices, or biological processes relevant to human health. The long duration suggests a project with significant scope and potential for groundbreaking discoveries.

How does the total award amount of over $10.5 million compare to similar R&D contracts in the physical, engineering, and life sciences?

The total award amount of approximately $10.54 million over an 8-year period (3036 days) represents a substantial investment. For R&D contracts, especially those involving complex scientific endeavors in physical, engineering, and life sciences, such figures are not uncommon. Large federal agencies like NIH, NSF, and DOD frequently award contracts in the tens of millions for multi-year research initiatives. To provide a precise comparison, one would need to analyze contracts with identical NAICS codes (541710) and similar performance durations awarded by the same or comparable agencies. However, this amount is within the expected range for significant, long-term federal research funding.

What are the potential risks associated with a 'COST NO FEE' contract for R&D, and how are they mitigated?

A 'COST NO FEE' contract means the government reimburses the contractor for allowable costs incurred but does not pay any profit. For R&D, the primary risk is that the contractor might lack sufficient incentive to control costs rigorously, as their primary goal is to complete the research rather than maximize profit. Another risk is that the scope of R&D can be inherently uncertain, leading to cost overruns if not managed carefully. Mitigation strategies typically involve strong government oversight, detailed cost accounting standards, regular audits, and clear performance metrics. The government must ensure that all reimbursed costs are reasonable, allocable, and necessary for the research objectives. The long-term nature of this contract also necessitates continuous monitoring of progress against milestones.

What is the significance of the contractor being an 'OLIVE VIEW/UCLA EDUCATION AND RESEARCH INSTITUTE, INC.' for this R&D contract?

The identity of the contractor, Olive View/UCLA Education and Research Institute, Inc., is highly significant. It indicates that the contract was awarded to an entity with a strong affiliation to a major academic institution (UCLA) and likely a dedicated research infrastructure. Such institutes are typically well-positioned to conduct cutting-edge research, attract top scientific talent, and possess the necessary facilities and equipment. Awarding R&D contracts to these types of organizations aligns with the government's goal of fostering scientific advancement through collaboration with the academic and research community, leveraging their expertise and innovation potential.

How does the duration of this contract (over 8 years) impact its overall value and risk profile?

The extended duration of over 8 years (3036 days) for this R&D contract has several implications. On the value side, it allows for in-depth exploration of complex scientific questions, development of sophisticated technologies, and the potential for significant, long-term breakthroughs that might not be achievable with shorter-term funding. However, it also increases the risk profile. Over such a long period, research priorities can shift, scientific understanding can evolve rapidly, and unforeseen challenges may arise. Maintaining consistent progress, adapting to new discoveries, and ensuring continued relevance require robust project management and adaptive strategies from both the contractor and the awarding agency. Financial risks also increase due to the extended commitment of funds.

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 › OTHER RESEARCH/DEVELOPMENT

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: 14445 OLIVE VIEW DRIVE, SYLMAR, CA, 91342

Business Categories: Category Business, Educational Institution, Higher Education, Hospital, Nonprofit Organization, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $15,055,298

Exercised Options: $11,818,531

Current Obligation: $10,541,885

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline