Stanford University receives $20.3M for biotechnology R&D, awarded via full and open competition

Contract Overview

Contract Amount: $20,351,258 ($20.4M)

Contractor: THE Leland Stanford Junior University

Awarding Agency: Department of Health and Human Services

Start Date: 2008-09-26

End Date: 2013-09-25

Contract Duration: 1,825 days

Daily Burn Rate: $11.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 18

Pricing Type: COST NO FEE

Sector: R&D

Official Description: BIOMEDICAL (APPLIED/EXPLORATORY)

Place of Performance

Location: STANFORD, SANTA CLARA County, CALIFORNIA, 94305

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $20.4 million to THE LELAND STANFORD JUNIOR UNIVERSITY for work described as: BIOMEDICAL (APPLIED/EXPLORATORY) Key points: 1. Value for money assessed through comparison to similar biomedical research contracts. 2. Competition dynamics indicate a robust market for specialized research services. 3. Risk indicators include the long duration of the contract and cost-plus nature. 4. Performance context is within the National Institutes of Health's mission to advance health. 5. Sector positioning is in applied and exploratory biomedical research, a critical area for public health.

Value Assessment

Rating: good

The contract value of $20.3 million over five years for biomedical R&D appears reasonable when benchmarked against similar large-scale research grants awarded by NIH. The 'Cost No Fee' (CNF) contract type suggests that the contractor is reimbursed for allowable costs without an additional fee, which can be a cost-effective approach for research where the scope may evolve. However, a detailed cost breakdown and comparison to specific, comparable projects would be needed for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified bidders had the opportunity to submit proposals. The presence of 18 bids (as indicated by 'no': 18) points to a healthy level of competition for this research area. This broad competition is generally favorable for price discovery and ensures that the government can select the most capable and cost-effective solution.

Taxpayer Impact: A high number of bidders in full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment that drives down costs and encourages innovation.

Public Impact

The primary beneficiary is the National Institutes of Health (NIH) and the broader U.S. public, through advancements in biomedical understanding and potential future health solutions. Services delivered include applied and exploratory research in biotechnology, contributing to the scientific knowledge base. The geographic impact is primarily centered in California, where Stanford University is located, but the research findings have national and global implications. Workforce implications include support for researchers, technicians, and administrative staff at Stanford, fostering scientific talent.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Cost No Fee' (CNF) contract type, while potentially cost-saving, can sometimes lead to less incentive for strict cost control by the contractor compared to fixed-price contracts.
The long contract duration (1825 days) requires sustained oversight to ensure continued progress and adherence to research objectives.
The broad nature of 'Biomedical (Applied/Exploratory)' research can present challenges in defining specific, measurable outcomes upfront.

Positive Signals

Awarded to a reputable research institution (Stanford University) with a strong track record in scientific endeavors.
The contract was subject to full and open competition, indicating a competitive selection process.
The research area (Biotechnology) is critical for national health and economic competitiveness.

Sector Analysis

The contract falls within the Research and Development (R&D) sector, specifically focusing on Biotechnology. This sector is characterized by significant investment, long development cycles, and high innovation potential. The market for biomedical R&D services is substantial, with government agencies like NIH being major funders. Comparable spending benchmarks would involve analyzing other large grants awarded for similar research initiatives by NIH and other federal agencies.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). As a large research grant awarded to a major university, the primary focus is on scientific capability rather than small business participation. However, Stanford University may engage small businesses as subcontractors for specialized services or supplies, though this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Institutes of Health (NIH), the awarding agency. As a research grant, oversight likely focuses on adherence to research protocols, ethical guidelines, progress reporting, and responsible use of funds. Transparency is generally maintained through public research publications and NIH's reporting mechanisms. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

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

Risk Flags

Long contract duration
Cost-reimbursement contract type
Broad research scope

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $20.4 million to THE LELAND STANFORD JUNIOR UNIVERSITY. BIOMEDICAL (APPLIED/EXPLORATORY)

Who is the contractor on this award?

The obligated recipient is THE LELAND STANFORD JUNIOR 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 $20.4 million.

What is the period of performance?

Start: 2008-09-26. End: 2013-09-25.

What is the historical spending pattern of the National Institutes of Health (NIH) on biomedical R&D contracts with universities?

The National Institutes of Health (NIH) is a primary funder of biomedical research in the United States, consistently awarding billions of dollars annually to universities, research institutions, and private companies. Historical spending patterns show a significant and growing investment in areas like biotechnology, genomics, and disease-specific research. These awards often take the form of grants and cooperative agreements, with a substantial portion directed towards academic institutions like Stanford University. The agency's budget allocation prioritizes basic and applied research, aiming to translate scientific discoveries into clinical applications. Over the past decade, NIH's funding has seen fluctuations based on federal appropriations, but the overall trend reflects a sustained commitment to advancing medical knowledge and improving public health through robust research funding.

How does the 'Cost No Fee' (CNF) contract type compare to other contract types in terms of cost-effectiveness for R&D?

The 'Cost No Fee' (CNF) contract type is often used for research and development efforts where the scope is uncertain or likely to evolve significantly. In a CNF contract, the government reimburses the contractor for all allowable costs incurred during the performance of the contract, but the contractor does not receive any additional profit or fee. This can be cost-effective for the government, especially in early-stage research, as it avoids paying a profit margin. However, it places a greater emphasis on the contractor's internal cost controls and ethical conduct, as there is less direct financial incentive for efficiency compared to fixed-price contracts. For R&D, where innovation and exploration are key, CNF can facilitate a focus on scientific objectives rather than strict cost adherence, but it requires robust government oversight to manage expenditures effectively.

What are the key performance indicators (KPIs) typically used to evaluate the success of biomedical R&D contracts?

Evaluating the success of biomedical R&D contracts involves a multi-faceted approach, as outcomes can be long-term and complex. Key performance indicators (KPIs) often include the successful completion of research milestones as outlined in the contract's statement of work. Scientific output, such as peer-reviewed publications, presentations at conferences, and patent applications, are crucial indicators of progress and impact. For applied research, the development of prototypes, methodologies, or diagnostic tools is important. Ultimately, the long-term success is measured by the potential for the research to lead to new treatments, therapies, or a better understanding of diseases, contributing to public health advancements. NIH program officers closely monitor these indicators throughout the contract lifecycle.

What is Stanford University's track record in receiving and managing federal research grants, particularly from NIH?

Stanford University has a long and distinguished track record of securing and successfully managing federal research grants, including a substantial portfolio from the National Institutes of Health (NIH). As one of the leading research universities globally, Stanford consistently ranks among the top recipients of federal research funding. Its faculty are engaged in cutting-edge research across numerous disciplines, including biomedical sciences. The university has well-established administrative structures and experienced personnel dedicated to grant management, ensuring compliance with federal regulations, ethical standards, and reporting requirements. This extensive experience positions Stanford as a highly capable and reliable partner for complex, long-term research endeavors funded by agencies like NIH.

How does the geographic location of the research (California) potentially influence the contract's execution and outcomes?

The geographic location of the research at Stanford University in California places it within a vibrant and well-established biotechnology and life sciences hub. This ecosystem offers significant advantages, including access to a highly skilled workforce, a dense network of collaborators (both academic and industry), specialized research facilities, and a strong pool of potential subcontractors and suppliers. Proximity to other leading research institutions and biotech companies can foster innovation through shared knowledge and potential partnerships. While the research itself may have global implications, conducting it within such a dynamic environment can accelerate progress, facilitate recruitment of top talent, and provide access to cutting-edge resources, potentially enhancing the overall execution and outcomes of the contract.

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: 18

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 651 SERRA ST, STANFORD, CA, 94305

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

Financial Breakdown

Contract Ceiling: $31,608,780

Exercised Options: $20,351,258

Current Obligation: $20,351,258

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline