NIH awarded $21.8M for R&D in Physical, Engineering, and Life Sciences to Research Triangle Institute

Contract Overview

Contract Amount: $21,805,377 ($21.8M)

Contractor: Research Triangle Institute

Awarding Agency: Department of Health and Human Services

Start Date: 2005-12-01

End Date: 2010-11-30

Contract Duration: 1,825 days

Daily Burn Rate: $11.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: R AND D - OTHER R AND D RES

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27709

State: North Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $21.8 million to RESEARCH TRIANGLE INSTITUTE for work described as: R AND D - OTHER R AND D RES Key points: 1. Contract value of $21.8M over 5 years suggests a significant investment in research. 2. The contract was awarded under full and open competition, indicating a broad search for qualified bidders. 3. A single award for a large R&D contract may indicate specialized capabilities required. 4. The cost-plus-fixed-fee (CPFF) structure allows for flexibility in research but requires careful cost monitoring. 5. Research Triangle Institute's selection implies a strong track record in relevant scientific fields. 6. The duration of 1825 days (5 years) points to a long-term research objective.

Value Assessment

Rating: good

The contract value of $21.8 million over five years averages approximately $4.36 million per year. Benchmarking this against similar R&D contracts in the physical, engineering, and life sciences requires detailed market analysis. However, for a single large-scale research project awarded to one entity, this annual spend is within a reasonable range for complex scientific endeavors. The CPFF structure means the government pays for allowable costs plus a fixed fee, which can be efficient if costs are well-managed and the research scope is well-defined.

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 data indicates there were 3 bids received. While the number of bidders is relatively low for a large federal contract, full and open competition generally promotes price discovery and allows the government to select the best value. The specific nature of the R&D may have limited the pool of highly qualified and capable offerors.

Taxpayer Impact: Taxpayers benefit from the assurance that the government sought the most capable and cost-effective solution through a competitive process, rather than a sole-source award.

Public Impact

The primary beneficiaries are the researchers and institutions involved in advancing scientific knowledge. The contract supports the delivery of research and development services in the physical, engineering, and life sciences. The geographic impact is centered in North Carolina, where Research Triangle Institute is located. Workforce implications include employment for scientists, engineers, technicians, and support staff at Research Triangle Institute.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not rigorously managed.
Limited number of bidders (3) could suggest potential barriers to entry or a highly specialized field.
Long contract duration may require adaptive management to ensure continued relevance of research objectives.

Positive Signals

Awarded through full and open competition, maximizing potential for best value.
Research Triangle Institute is a well-established research organization, suggesting a high likelihood of successful project execution.
Significant investment indicates commitment to advancing critical scientific and technological areas.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. This is a broad category encompassing fundamental and applied research across numerous scientific disciplines. The market for federal R&D is substantial, with agencies like NIH investing heavily to drive innovation and address public health challenges. Comparable spending benchmarks would depend on the specific sub-discipline of the R&D, but $21.8 million over five years represents a significant, focused investment.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While Research Triangle Institute is a large research organization, there may be opportunities for small businesses to participate as subcontractors, depending on the specific research tasks and project needs. The impact on the small business ecosystem would likely be indirect, through potential subcontracting opportunities rather than direct prime awards.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the National Institutes of Health (NIH). The Cost Plus Fixed Fee (CPFF) structure necessitates robust financial oversight to ensure that costs are allowable, allocable, and reasonable. Transparency is facilitated through contract reporting mechanisms. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

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

Risk Flags

Cost Overrun Risk (CPFF)
Scope Creep Potential
Limited Bidder Pool

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $21.8 million to RESEARCH TRIANGLE INSTITUTE. R AND D - OTHER R AND D RES

Who is the contractor on this award?

The obligated recipient is RESEARCH TRIANGLE INSTITUTE.

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 $21.8 million.

What is the period of performance?

Start: 2005-12-01. End: 2010-11-30.

What is the historical spending pattern of the National Institutes of Health (NIH) on Research and Development in Physical, Engineering, and Life Sciences?

The National Institutes of Health (NIH) is a major federal funder of biomedical and health-related research. Its annual budget consistently allocates billions of dollars towards R&D across various scientific domains. Historically, NIH's spending in the physical, engineering, and life sciences has been substantial, supporting both basic and applied research through grants, contracts, and intramural research. The specific allocation to 'Physical, Engineering, and Life Sciences' (NAICS code 541710) can fluctuate based on national research priorities and emerging scientific opportunities. For instance, in recent years, significant investments have been directed towards areas like genomics, neuroscience, infectious diseases, and biomedical engineering. The $21.8 million awarded to Research Triangle Institute represents a portion of this broader R&D investment, indicative of NIH's ongoing commitment to advancing scientific frontiers in these critical fields.

How does the awarded amount of $21.8 million compare to other R&D contracts awarded by NIH for similar research areas?

Comparing the $21.8 million award to other NIH R&D contracts requires access to a comprehensive database of federal procurements. However, for a single, multi-year contract focused on specific R&D objectives, $21.8 million is a substantial sum, suggesting a project of significant scope and complexity. NIH awards a wide range of R&D funding, from small grants to large center grants and complex contracts. Contracts of this magnitude are typically awarded for multi-disciplinary research initiatives, development of advanced technologies, or large-scale clinical research support. While many NIH awards are smaller grants, larger contract awards like this one are crucial for targeted, long-term research endeavors that require dedicated resources and a specific contractor focus. The competitive nature of this award suggests that the price was deemed fair and reasonable in relation to the proposed technical approach and expected outcomes.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D, and how are they mitigated?

Cost Plus Fixed Fee (CPFF) contracts, like the one awarded to Research Triangle Institute, carry inherent risks, primarily related to cost control. The government agrees to pay all allowable costs incurred by the contractor, plus a fixed fee representing profit. This structure can incentivize contractors to incur costs, as they are reimbursed, and the fee remains constant regardless of the final cost. Risks include potential cost overruns if the research scope is not well-defined or if unforeseen challenges arise. Mitigation strategies employed by agencies like NIH include rigorous cost monitoring, detailed review of incurred costs, strong program management to ensure adherence to research objectives, and clear definition of allowable costs in the contract. The fixed fee also provides some incentive for the contractor to manage costs efficiently to maximize their profit margin within the fixed fee.

What is Research Triangle Institute's track record in securing and executing large federal R&D contracts?

Research Triangle Institute (RTI) is a well-established non-profit research institute with a long history of successfully competing for and executing large federal R&D contracts across various agencies and scientific domains. RTI has extensive experience in areas relevant to physical, engineering, and life sciences, often undertaking complex, multi-disciplinary projects. Their track record includes work for agencies such as the National Institutes of Health (NIH), the Environmental Protection Agency (EPA), the Department of Defense (DoD), and others. They are known for their scientific expertise, research infrastructure, and project management capabilities. Securing a $21.8 million contract from NIH under full and open competition is indicative of their strong proposal, competitive pricing, and demonstrated ability to meet the stringent requirements of federal R&D funding.

How does the competition level (3 bidders) for this contract potentially impact the value for taxpayers?

A competition with three bidders for a large R&D contract generally provides a reasonable level of price discovery for taxpayers. While more bidders could theoretically lead to lower prices, three offerors suggest that the field was not so specialized as to preclude multiple capable entities from bidding. This level of competition allows the government to compare technical approaches and proposed costs from multiple sources, increasing the likelihood of selecting the best value solution. If the research area were highly niche, a sole-source or limited competition award might be necessary, potentially leading to higher costs. Therefore, three bidders strike a balance, indicating sufficient competition to drive reasonable pricing while acknowledging the specialized nature of advanced R&D.

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: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3040 CORNWALLIS ROAD, RESEARCH TRIANGLE PARK, NC, 27709

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $114,253,012

Exercised Options: $94,161,196

Current Obligation: $21,805,377

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline