NIH awards $11.3M contract to UNC Chapel Hill for physical, engineering, and life sciences R&D

Contract Overview

Contract Amount: $11,288,603 ($11.3M)

Contractor: University of North Carolina AT Chapel Hill

Awarding Agency: Department of Health and Human Services

Start Date: 2005-09-30

End Date: 2013-11-27

Contract Duration: 2,980 days

Daily Burn Rate: $3.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: COST NO FEE

Sector: R&D

Official Description: TAS::75 0844::TAS NATIONAL CHILDRENS STUDY

Place of Performance

Location: CHAPEL HILL, ORANGE County, NORTH CAROLINA, 27516

State: North Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $11.3 million to UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL for work described as: TAS::75 0844::TAS NATIONAL CHILDRENS STUDY Key points: 1. Contract awarded via full and open competition, suggesting a broad search for qualified bidders. 2. The contract duration of 2980 days (over 8 years) indicates a long-term research commitment. 3. The 'Cost No Fee' (Cost) contract type implies the government reimburses allowable costs but does not pay a fee to the contractor. 4. The primary NAICS code (541710) points to significant investment in research and development activities. 5. The contract was awarded to a single entity, the University of North Carolina at Chapel Hill, a known research institution. 6. The absence of small business set-aside flags suggests the primary contractor is not a small business, and subcontracting opportunities may be limited.

Value Assessment

Rating: fair

The contract value of $11.3 million over approximately 8 years for R&D in physical, engineering, and life sciences is difficult to benchmark without specific details on the research scope. The 'Cost No Fee' contract type is common for research where outcomes are uncertain, but it places the cost risk on the government. Without comparable contracts for similar research projects, assessing the value for money is challenging. The pricing is based on reimbursing costs, which can be less predictable than fixed-price contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that all responsible sources were permitted to submit a bid. The presence of 11 bids suggests a competitive process. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government, although the 'Cost No Fee' structure means the primary focus is on cost reimbursement rather than a fixed price.

Taxpayer Impact: A full and open competition with 11 bidders is generally favorable for taxpayers as it increases the likelihood of obtaining the best value and competitive pricing for the research services rendered.

Public Impact

The primary beneficiary is the National Institutes of Health (NIH) and the broader scientific community through the advancement of knowledge in physical, engineering, and life sciences. The services delivered are research and development activities, contributing to scientific discovery and potential technological or medical breakthroughs. The geographic impact is primarily within North Carolina, where the University of North Carolina at Chapel Hill is located, but the research findings can have national and global implications. The contract supports academic researchers and potentially graduate students at the university, contributing to the scientific workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-reimbursement contracts can lead to cost overruns if not managed carefully.
The long duration of the contract may present challenges in adapting to evolving research needs or technological advancements.
Lack of specific performance metrics makes it difficult to assess the efficiency of the research conducted.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
The contract supports critical research and development in vital scientific fields.
The long-term nature of the award suggests a stable funding environment for the research project.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically NAICS code 541710, which covers R&D in the Physical, Engineering, and Life Sciences. This sector is characterized by significant government investment aimed at fostering innovation and scientific advancement. Comparable spending benchmarks are difficult to establish without knowing the specific research area, but federal R&D spending is a substantial portion of the overall federal budget, with agencies like NIH being major contributors.

Small Business Impact

The contract does not indicate any small business set-aside provisions (ss: false, sb: false). This suggests that the primary contract was not specifically targeted towards small businesses. While the prime contractor, the University of North Carolina at Chapel Hill, is likely not a small business, there may be opportunities for small businesses to participate as subcontractors, depending on the project's needs and the university's subcontracting plan. The absence of explicit set-asides means small businesses would need to compete for subcontracting roles.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Institutes of Health (NIH), a division of the Department of Health and Human Services. As a cost-reimbursement contract, rigorous financial oversight is expected to ensure that all reimbursed costs are allowable, reasonable, and allocable to the research objectives. Transparency would be facilitated through periodic reporting requirements from the contractor. The specific Inspector General for HHS would likely have jurisdiction over audits and investigations related to potential fraud, waste, or abuse.

Related Government Programs

National Institutes of Health Research Grants
Department of Health and Human Services Research Programs
Federal Funding for Physical Sciences Research
Federal Funding for Engineering Research
Federal Funding for Life Sciences Research

Risk Flags

Long contract duration may increase risk of scope creep or obsolescence.
Cost-reimbursement contracts require diligent oversight to manage costs.
Lack of specific performance metrics makes outcome assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $11.3 million to UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL. TAS::75 0844::TAS NATIONAL CHILDRENS STUDY

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 $11.3 million.

What is the period of performance?

Start: 2005-09-30. End: 2013-11-27.

What is the specific research focus of this contract awarded to the University of North Carolina at Chapel Hill?

The contract, identified by TAS 75 0844, is for 'Research and Development in the Physical, Engineering, and Life Sciences' under NAICS code 541710. While the broad category is provided, the specific research focus is not detailed in the provided data. Contracts of this nature typically fund projects aimed at advancing scientific knowledge, developing new technologies, or addressing specific health or societal challenges within these scientific domains. Further details would likely be found in the contract's statement of work or associated research proposals, which are not publicly available in this data snippet. The University of North Carolina at Chapel Hill is a major research institution with extensive capabilities across various scientific disciplines, suggesting the project could span a wide range of potential research areas.

How does the $11.3 million award compare to other R&D contracts in the physical, engineering, and life sciences?

Benchmarking the $11.3 million award requires context regarding the scope, duration, and specific research area. This contract spans approximately 8 years (2980 days), making the annual average approximately $1.4 million. Federal R&D spending is extensive, with agencies like NIH awarding numerous grants and contracts. Large-scale, multi-year research initiatives can easily reach tens or hundreds of millions of dollars. For instance, major biomedical research programs or large engineering projects often exceed this amount significantly. However, for a specific, focused R&D project within a particular sub-discipline, $11.3 million over 8 years could represent a substantial investment. Without knowing the precise research objectives and deliverables, a direct comparison to 'similar' contracts is challenging, but it appears to be a significant, long-term commitment for a single research entity.

What are the primary risks associated with a 'Cost No Fee' contract type for this research project?

The 'Cost No Fee' (Cost) contract type means the government agrees to pay the contractor for all allowable, allocable, and reasonable costs incurred in performing the contract, but provides no additional fee or profit. The primary risk for the government is cost overrun; since there is no fixed price or fee incentive for the contractor to control costs, the total expenditure could exceed initial estimates if research proves more expensive than anticipated. The government bears the financial risk of unforeseen expenses. For the contractor, the risk is that incurred costs might be deemed unallowable or unreasonable by the government, leading to non-reimbursement. This contract type is often used when the scope of work is uncertain or when research outcomes are difficult to predict, making fixed-price arrangements impractical.

Given the 11 bids received, what does this indicate about the contractor's track record and the competitiveness of the research area?

Receiving 11 bids for a 'full and open competition' contract suggests a healthy level of interest and competition within this specific R&D area. It implies that multiple entities were capable of and interested in undertaking the research described in the solicitation. For the selected contractor, the University of North Carolina at Chapel Hill, this indicates they were successful in a competitive process against numerous other bidders. It doesn't directly speak to their past track record on *this specific type* of contract or research, but it confirms their ability to win competitive awards. A high number of bidders generally suggests that the research area is not overly specialized or dominated by a few firms, and that the government's solicitation was well-publicized and accessible, potentially leading to better value for taxpayers.

How has federal spending in 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541710) trended historically?

Federal spending in NAICS code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences,' has historically been a significant component of the overall federal R&D budget. Agencies like the National Science Foundation (NSF), National Institutes of Health (NIH), Department of Defense (DoD), and Department of Energy (DOE) are major contributors. While specific year-over-year trends fluctuate based on appropriations, economic conditions, and national priorities, there has been a general upward trend in federal R&D investment over the long term, reflecting a commitment to scientific advancement and innovation. However, R&D funding can be subject to budget constraints and shifts in political focus, leading to periods of slower growth or even decreases in specific areas. The $11.3M award represents a small fraction of the total federal spending in this broad category.

What are the potential implications of this contract for the scientific workforce and future research?

This contract provides sustained funding for research activities at the University of North Carolina at Chapel Hill, which directly supports the scientific workforce by employing researchers, technicians, and potentially students. It offers opportunities for career development, training, and the generation of intellectual property. The long-term nature of the award (over 8 years) provides stability, allowing researchers to pursue complex, long-term projects that might not be feasible with shorter funding cycles. The outcomes of this research could lead to new discoveries, publications, patents, and potentially spin-off technologies or therapies, thereby contributing to the broader scientific ecosystem and potentially influencing future research directions and funding priorities.

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 › Community and Regional Development R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 11

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE University of North Carolina (UEI: 142363428)

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: $13,415,183

Exercised Options: $13,415,183

Current Obligation: $11,288,603

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline