NIH awards $11.5M for specimen collection and collaboration tools over 10 years

Contract Overview

Contract Amount: $11,495,978 ($11.5M)

Contractor: Folkehelseinstituttet

Awarding Agency: Department of Health and Human Services

Start Date: 2007-04-30

End Date: 2017-04-30

Contract Duration: 3,653 days

Daily Burn Rate: $3.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: R&D

Official Description: MOBA: CONTINUED SPECIMEN COLLECTION, AND TOOLS TO ENHANCE USE AND COLLABORATION

Plain-Language Summary

Department of Health and Human Services obligated $11.5 million to FOLKEHELSEINSTITUTTET for work described as: MOBA: CONTINUED SPECIMEN COLLECTION, AND TOOLS TO ENHANCE USE AND COLLABORATION Key points: 1. Contract awarded via full and open competition, suggesting a robust market. 2. Long contract duration of 10 years may indicate a stable, ongoing need. 3. Research and Development focus aligns with agency's core mission. 4. Cost-plus-fixed-fee contract type allows for flexibility but requires careful oversight. 5. No small business set-aside noted, potentially limiting opportunities for smaller firms. 6. Contract value of $11.5M over a decade averages $1.15M annually.

Value Assessment

Rating: fair

The contract value of $11.5 million over 10 years averages to $1.15 million annually. Without specific details on the scope of 'specimen collection' and 'tools to enhance use and collaboration,' a direct comparison to similar contracts is challenging. However, for a decade-long R&D effort, this annual spend appears moderate, suggesting a potentially reasonable value if the deliverables are met. The Cost No Fee (CNF) contract type means the contractor is reimbursed for allowable costs plus a fixed fee, which can be advantageous for the government if costs are well-controlled.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the government solicited bids from all responsible sources. The presence of a single award suggests that, despite open competition, only one offer was deemed acceptable or the most advantageous. This level of competition is generally positive for price discovery, but the single award warrants a closer look at the bidding process and the number of proposals received.

Taxpayer Impact: Full and open competition is the most taxpayer-favorable method, as it maximizes the pool of potential bidders and encourages competitive pricing. However, a single award from such a competition might suggest that the market for these specialized services is limited, or that the evaluation criteria heavily favored one bidder.

Public Impact

Benefits researchers and public health professionals by providing essential specimen collection capabilities. Enhances collaboration among scientific entities through specialized tools. Supports ongoing research and development initiatives within the Department of Health and Human Services. Contributes to the advancement of public health knowledge and interventions. Impacts the scientific community by facilitating data sharing and research efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to complacency or reduced innovation if not actively managed.
Cost No Fee contract type requires diligent oversight to ensure cost efficiency and prevent overruns.
Lack of small business participation may limit the diversity of solutions and economic impact.

Positive Signals

Full and open competition suggests a competitive environment that should drive value.
The contract supports critical public health research and development activities.
A 10-year award indicates a stable, long-term need and potential for sustained impact.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on life sciences and public health. The NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences) is a broad category. Spending in this area is crucial for scientific advancement and public well-being. Benchmarking requires comparing this contract's value and duration to other NIH or HHS contracts for similar R&D services, which often involve significant investment over extended periods.

Small Business Impact

The contract was not awarded as a small business set-aside, and there is no indication of subcontracting goals for small businesses. This suggests that the primary contractor is likely a large entity, and opportunities for small businesses to participate in this specific contract may be limited unless they are prime contractors themselves or are subcontracted by the awardee. This could reduce the overall economic impact on the small business ecosystem for this particular award.

Oversight & Accountability

Oversight for this Cost No Fee contract would typically be managed by the contracting officer and the program office at NIH. Performance monitoring, cost reviews, and adherence to the contract terms are key oversight mechanisms. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

NIH Research Grants
CDC Public Health Surveillance
Biomedical Research Support
Life Sciences Data Management
Specimen Repository Management

Risk Flags

Long contract duration may not adapt to evolving R&D needs.
Cost No Fee contract type requires stringent cost oversight.
Lack of small business participation limits economic diversity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $11.5 million to FOLKEHELSEINSTITUTTET. MOBA: CONTINUED SPECIMEN COLLECTION, AND TOOLS TO ENHANCE USE AND COLLABORATION

Who is the contractor on this award?

The obligated recipient is FOLKEHELSEINSTITUTTET.

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 $11.5 million.

What is the period of performance?

Start: 2007-04-30. End: 2017-04-30.

What is the specific nature of the 'specimen collection' and 'tools to enhance use and collaboration' being procured?

The provided data does not detail the specific nature of the 'specimen collection' or the 'tools to enhance use and collaboration.' This information is crucial for a comprehensive analysis. 'Specimen collection' could range from biological samples for medical research to environmental samples for testing. 'Tools to enhance use and collaboration' might refer to software platforms, data management systems, or physical infrastructure. Understanding these specifics would allow for a more accurate assessment of the contract's value, risks, and impact, and enable better comparisons with similar procurements.

How many bids were received for this 'full and open competition' contract?

The provided data indicates the contract was awarded under 'FULL AND OPEN COMPETITION' with a single award ('no': 1). However, it does not specify the number of bids received. While 'full and open competition' implies a broad solicitation, a single award could result from various scenarios: a highly specialized requirement attracting few qualified bidders, a very competitive process where one offer was significantly superior, or potentially a less competitive scenario where only one viable proposal was submitted. Knowing the number of bids would provide critical insight into the actual level of competition experienced.

What is the contractor's track record with similar NIH or HHS contracts?

The provided data does not include the name of the contractor, which is essential for assessing their track record. Without the contractor's identity, it is impossible to research their past performance, experience with similar contracts, history of successful delivery, or any past performance issues with the NIH or other federal agencies. A thorough analysis would require identifying the contractor and reviewing their contract history, past performance evaluations, and any relevant litigation or disputes.

How does the annual average cost of $1.15 million compare to similar R&D contracts at NIH?

The annual average cost of approximately $1.15 million for this 10-year, $11.5 million contract is moderate for a Research and Development (R&D) initiative within the National Institutes of Health (NIH). NIH funds a vast array of R&D projects, with individual contract values varying significantly based on scope, duration, and complexity. While this figure is not exceptionally high, its true value benchmark depends heavily on the specific deliverables, the scientific novelty, the personnel involved, and the market rates for comparable specialized R&D services. Without detailed scope information, it's difficult to definitively state if it's high or low compared to specific peer contracts.

What are the potential risks associated with a 10-year contract duration for R&D?

A 10-year contract duration for Research and Development (R&D) presents several potential risks. Firstly, the rapid pace of scientific and technological advancement means that the initial objectives or methodologies might become outdated over such a long period, potentially leading to diminished relevance or effectiveness. Secondly, long-term contracts can sometimes lead to contractor complacency, reducing the incentive for continuous innovation or cost efficiency if not actively managed. Thirdly, predicting R&D needs and associated costs accurately over a decade is challenging, increasing the risk of budget overruns or scope creep if requirements evolve significantly. Robust oversight and flexibility in contract modifications are crucial to mitigate these risks.

What is the significance of the 'Cost No Fee' (CNF) contract type for this R&D effort?

The 'Cost No Fee' (CNF) contract type, also known as Cost contract, means the contractor is reimbursed for all allowable costs incurred in performing the contract, but receives no fee or profit. This type of contract is typically used when the scope of work is uncertain or when the contractor is a non-profit organization or educational institution where profit is not a primary motive. For an R&D effort, CNF can be appropriate if the research path is highly exploratory. However, it places a significant emphasis on the government's ability to effectively audit and control costs, as there is no profit incentive for the contractor to manage expenses efficiently. This necessitates strong government oversight and clear definitions of allowable costs.

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: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: Helse- OG Omsorgsdepartementet (UEI: 518459271)

Address: GEITMYRSVEIEN 75, OSLO

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $49,256,557

Exercised Options: $14,218,602

Current Obligation: $11,495,978

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline