NIH awards $22.5M for biotechnology R&D to Saint Louis University over 12 years

Contract Overview

Contract Amount: $22,553,829 ($22.6M)

Contractor: Saint Louis University

Awarding Agency: Department of Health and Human Services

Start Date: 2007-11-01

End Date: 2019-09-30

Contract Duration: 4,351 days

Daily Burn Rate: $5.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: COST NO FEE

Sector: R&D

Official Description: BIOMEDICAL (APPLIED/EXPLORATORY)

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS CITY County, MISSOURI, 63103

State: Missouri Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $22.6 million to SAINT LOUIS UNIVERSITY for work described as: BIOMEDICAL (APPLIED/EXPLORATORY) Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. Long duration of over 12 years indicates a sustained research effort. 3. Cost-plus-no-fee contract type may incentivize cost control by the contractor. 4. The contract falls under the 'Research and Development in Biotechnology' NAICS code. 5. The awardee, Saint Louis University, is a research institution with a track record in scientific endeavors. 6. The total award value of $22.5M over 12 years averages approximately $1.87M annually.

Value Assessment

Rating: fair

The contract's value of $22.5M over 12 years, averaging $1.87M annually, appears reasonable for a large-scale biomedical research project. Benchmarking against similar R&D contracts is challenging without more specific details on the research scope and deliverables. The cost-plus-no-fee structure aims to control costs by providing a fixed fee, but the overall value proposition depends heavily on the scientific outcomes achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 12 bids suggests a healthy level of competition for this research and development opportunity. A competitive process generally leads to better price discovery and potentially more innovative solutions.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the government's investment in scientific research.

Public Impact

The primary beneficiary is Saint Louis University, which receives funding to conduct advanced biomedical research. The services delivered are focused on applied and exploratory research within the biotechnology sector. The geographic impact is centered in Missouri, where Saint Louis University is located. The contract supports scientific workforce development through research positions and training opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to scope creep or evolving research needs not fully anticipated.
Cost-plus contract types can sometimes lead to less incentive for extreme cost efficiency compared to fixed-price contracts.
The specific scientific outcomes and their impact are not detailed, making it difficult to assess ultimate value.
Reliance on a single academic institution for such a long-term project might limit exposure to diverse research approaches.

Positive Signals

Awarded through full and open competition, ensuring a broad range of potential offerors.
The large number of bids (12) indicates significant interest and a competitive environment.
The cost-plus-no-fee structure provides a defined profit margin, potentially encouraging focus on research execution.
The long duration allows for sustained, in-depth research critical for complex scientific problems.
The awardee is a recognized academic institution with established research capabilities.

Sector Analysis

This contract falls within the Biomedical (Applied/Exploratory) sector, specifically under NAICS code 541711 (Biotechnology Research and Development). This sector is characterized by significant investment in innovation and scientific discovery. The market size for biotechnology R&D is substantial, driven by advancements in genomics, drug discovery, and medical technologies. This contract represents a portion of the federal government's broader investment in advancing scientific knowledge and developing new biotechnologies.

Small Business Impact

There is no indication that this contract included small business set-asides. Given the nature of the awardee (a large university) and the research focus, it is unlikely that significant subcontracting opportunities for small businesses were a primary consideration, though they may arise organically depending on research needs.

Oversight & Accountability

Oversight is likely managed by the National Institutes of Health (NIH) program officials and contracting officers. Accountability measures would be tied to research milestones and reporting requirements outlined in the contract. Transparency is facilitated through federal contract databases, but detailed scientific progress reports are typically internal to the agency and contractor.

Related Government Programs

National Institutes of Health Research Grants
Biotechnology Research and Development Contracts
Federal Funding for Academic Research
Applied Scientific Research Programs

Risk Flags

Long contract duration may require adaptive management.
Cost-plus contract type necessitates careful cost monitoring.
Scientific outcomes are not yet realized, making definitive value assessment premature.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $22.6 million to SAINT LOUIS UNIVERSITY. BIOMEDICAL (APPLIED/EXPLORATORY)

Who is the contractor on this award?

The obligated recipient is SAINT LOUIS UNIVERSITY.

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 $22.6 million.

What is the period of performance?

Start: 2007-11-01. End: 2019-09-30.

What is the track record of Saint Louis University in securing and managing federal research and development contracts?

Saint Louis University has a history of receiving federal funding for research, primarily through agencies like NIH and NSF. While specific contract management performance data for this particular $22.5M award is not publicly detailed, universities generally operate under rigorous compliance and reporting requirements for federal grants and contracts. Their track record is typically assessed by the agency based on scientific progress, adherence to budget, and timely reporting. As a large research institution, SLU has established administrative structures to manage complex federal awards, though the success of any individual contract hinges on the specific project team and the evolving nature of scientific research.

How does the annual average award value of $1.87M compare to similar biotechnology R&D contracts?

The annual average award value of approximately $1.87M for this contract is within a common range for significant, multi-year biomedical research projects funded by agencies like the NIH. Large-scale R&D efforts, especially those involving exploratory or applied research in biotechnology, often require substantial funding to cover personnel, equipment, consumables, and overhead. Comparable contracts can range from hundreds of thousands to tens of millions of dollars annually, depending on the scope, complexity, and the specific research questions being addressed. Without knowing the precise deliverables and research focus, a direct comparison is difficult, but the figure suggests a substantial, long-term research commitment.

What are the primary risks associated with a Cost-Plus-No-Fee contract for R&D?

A Cost-Plus-No-Fee (CPNF) contract, like this one, reimburses the contractor for allowable costs and pays a predetermined fixed fee. For R&D, the primary risks include potential for cost overruns if research proves more complex or expensive than anticipated, although the fee is fixed. The 'no fee' aspect means the contractor does not earn a profit margin on top of costs, which could theoretically reduce the incentive for efficiency compared to a Cost-Plus-Award-Fee contract. However, for academic institutions, the primary motivation is often the research itself rather than profit. The main risk for the government is ensuring that the research objectives are met within the allocated budget and that the costs incurred are reasonable and allocable to the contract.

How effective is full and open competition in ensuring value for taxpayer money in R&D contracts?

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money in R&D contracts. It allows a wide range of potential offerors, including academic institutions, private companies, and consortia, to compete. This broad competition drives innovation, encourages competitive pricing, and increases the likelihood that the government will receive the best technical approach and value. The requirement for 12 bids on this contract suggests that the process successfully attracted significant interest, supporting the premise that competition enhances value discovery. However, the ultimate value is also dependent on the agency's ability to clearly define requirements and evaluate proposals effectively.

What are the historical spending patterns for biotechnology R&D by the NIH?

The National Institutes of Health (NIH) is consistently one of the largest federal funders of biomedical and health-related research. Historical spending patterns show a significant and growing investment in biotechnology R&D, reflecting its critical role in advancing medical treatments, diagnostics, and public health initiatives. NIH's budget allocates substantial portions to extramural research, supporting universities, research institutions, and private sector entities. Spending within the biotechnology sector covers a wide array of areas, including genomics, proteomics, drug discovery, regenerative medicine, and bio-manufacturing. This contract aligns with NIH's strategic goals to foster innovation and translate scientific discoveries into practical applications.

What are the implications of a 12-year contract duration for research continuity and adaptability?

A 12-year contract duration provides exceptional continuity for long-term, complex research projects that require sustained effort and follow-through. This extended timeline allows researchers to pursue ambitious goals, build upon incremental discoveries, and potentially achieve significant breakthroughs that might not be possible with shorter funding cycles. It also offers stability for the research team and infrastructure. However, such a long duration also presents challenges in adaptability. Scientific fields evolve rapidly, and research priorities may shift. The contract must include mechanisms for periodic review, potential modification of objectives, and flexibility to incorporate new knowledge or pivot research directions if necessary to remain relevant and impactful over its lifespan.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 12

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 221 N GRAND BLVD, SAINT LOUIS, MO, 63103

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

Financial Breakdown

Contract Ceiling: $25,833,197

Exercised Options: $22,553,829

Current Obligation: $22,553,829

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline