NIH awards $161M for biomedical research, with WICell Research Institute as primary contractor

Contract Overview

Contract Amount: $16,137,048 ($16.1M)

Contractor: Wicell Research Institute, Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2005-09-30

End Date: 2010-03-15

Contract Duration: 1,627 days

Daily Burn Rate: $9.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST NO FEE

Sector: R&D

Official Description: BIOMEDICAL (BASIC)

Place of Performance

Location: MADISON, DANE County, WISCONSIN, 53726

State: Wisconsin Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $16.1 million to WICELL RESEARCH INSTITUTE, INC for work described as: BIOMEDICAL (BASIC) Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is a definitive contract, typically used for complex projects with defined scopes. 3. Research and Development in Physical, Engineering, and Life Sciences is the primary NAICS code. 4. The contract duration is over 1600 days, indicating a long-term research initiative. 5. The award value of $161.37 million represents significant investment in biomedical research. 6. The contractor, WICELL RESEARCH INSTITUTE, INC, is positioned to deliver critical research outcomes.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or comparable projects. The 'COST NO FEE' contract type suggests that the government reimburses the contractor for allowable costs, with no additional profit. This can be cost-effective if costs are well-managed, but it also places the onus on the contractor to control expenses. Further analysis would require understanding the specific research objectives and expected outcomes to assess true value for money.

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 two bids ('no': 2) suggests a moderate level of competition for this specific award. While competition is generally positive, a low number of bidders could indicate a niche market or specialized requirements that limit the pool of potential contractors.

Taxpayer Impact: A competitive bidding process generally leads to better price discovery and potentially lower costs for taxpayers. However, with only two bidders, the extent of cost savings achieved is less certain compared to scenarios with numerous competing offers.

Public Impact

The primary beneficiaries are likely the scientific community and the public through advancements in biomedical understanding. Services delivered include fundamental research and development in the physical, engineering, and life sciences. The geographic impact is national, with potential global implications from research findings. Workforce implications include support for researchers, technicians, and administrative staff at WICELL RESEARCH INSTITUTE, INC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if research expenses are not meticulously managed under the 'COST NO FEE' structure.
Limited competition (two bidders) may have restricted the potential for achieving the lowest possible price.
The long duration of the contract could introduce risks related to evolving research priorities or technological obsolescence.

Positive Signals

Awarded through full and open competition, ensuring a broad opportunity for qualified entities to bid.
The contract supports critical biomedical research, aligning with national health priorities.
The 'COST NO FEE' structure can incentivize efficient cost management by the contractor.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on biomedical sciences. The market for biomedical R&D is substantial, driven by government funding, pharmaceutical companies, and academic institutions. Comparable spending benchmarks would typically involve analyzing other NIH grants and contracts for similar research areas, considering the scope and duration of the work.

Small Business Impact

The data indicates that small business participation was not a specific set-aside ('sb': false). There is no explicit information on subcontracting plans for small businesses. Without this data, it's difficult to assess the direct impact on the small business ecosystem for this particular contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the National Institutes of Health (NIH), a component of the Department of Health and Human Services. Accountability measures would include regular progress reports, financial audits, and adherence to research protocols. Transparency is generally maintained through public databases of federal contracts, though specific research details may be proprietary.

Related Government Programs

National Institutes of Health Research Grants
Biomedical Research and Development
Life Sciences Research Contracts
Federal Funding for Scientific Advancement

Risk Flags

Cost Control Risk (Cost No Fee)
Long-Term Project Management
Limited Competition Bidders

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $16.1 million to WICELL RESEARCH INSTITUTE, INC. BIOMEDICAL (BASIC)

Who is the contractor on this award?

The obligated recipient is WICELL RESEARCH INSTITUTE, INC.

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 $16.1 million.

What is the period of performance?

Start: 2005-09-30. End: 2010-03-15.

What is the track record of WICELL RESEARCH INSTITUTE, INC. in securing and managing federal research contracts?

Information regarding WICELL RESEARCH INSTITUTE, INC.'s specific track record with federal contracts is not detailed in the provided data. To assess their performance, one would need to examine past contract awards, performance reviews, and any history of contract modifications or disputes. A comprehensive analysis would involve searching federal procurement databases (like SAM.gov or FPDS) for their award history, looking for indicators of successful project completion, adherence to timelines and budgets, and positive past performance ratings. Without this external data, it's impossible to definitively gauge their reliability and expertise in managing large-scale federal research initiatives.

How does the $161.37 million award compare to typical NIH funding for similar biomedical research projects?

The $161.37 million award is a substantial sum, suggesting a significant and potentially long-term research initiative. To benchmark this against typical NIH funding, one would need to analyze the average award sizes for grants and contracts within the 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541710) category, specifically for biomedical research. NIH funding varies widely based on the scope, duration, and complexity of the research. Large, multi-year projects, especially those involving multiple institutions or complex experimental designs, can easily reach or exceed this figure. A detailed comparison would involve examining NIH's funding announcements, program solicitations, and historical award data for similar research areas to determine if this contract represents a typical, above-average, or below-average investment.

What are the primary risks associated with a 'COST NO FEE' contract for biomedical research?

A 'COST NO FEE' contract, also known as a Cost contract without Fee (CPFF), means the government reimburses the contractor for all allowable costs incurred in performing the contract, but the contractor does not receive any profit or fee. The primary risk for the government is that the contractor may have less incentive to control costs rigorously, as their profit is not directly tied to cost savings. This could lead to cost overruns if not managed carefully. For the contractor, the risk lies in not being compensated for their overhead or the value they bring beyond direct costs, potentially leading to financial strain if allowable costs are narrowly defined or if unexpected expenses arise. Effective oversight and clear definitions of allowable costs are crucial to mitigate these risks.

What is the expected impact of this contract on the advancement of biomedical knowledge and potential health outcomes?

This contract, supporting 'Research and Development in the Physical, Engineering, and Life Sciences' with a focus on biomedical areas, is expected to contribute to the fundamental understanding of biological processes, diseases, and potential therapeutic interventions. The specific impact depends heavily on the research objectives outlined in the contract, which are not detailed here. However, significant federal investment in biomedical R&D generally aims to accelerate the discovery of new treatments, diagnostic tools, and preventive strategies. The outcomes could range from basic scientific discoveries that lay the groundwork for future innovations to more applied research with nearer-term potential for improving public health and patient care.

How does the duration of the contract (over 1600 days) influence the assessment of its value and potential risks?

A contract duration exceeding 1600 days (approximately 4.4 years) indicates a long-term commitment to a research project. This extended timeline allows for in-depth investigation, complex experimentation, and the potential for significant scientific breakthroughs that often require sustained effort. From a value perspective, a longer duration can be cost-effective if it enables the completion of a comprehensive research program that might otherwise require multiple, smaller, short-term awards. However, it also introduces risks, such as the potential for research priorities to shift, scientific approaches to become outdated, or key personnel to depart. Robust project management and flexibility in adapting to new findings are essential for maximizing value and mitigating risks over such an extended period.

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 › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: NHLBIRR0519

Offers Received: 2

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 614 WALNUT ST 13TH FL, MADISON, WI, 53726

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $16,137,048

Exercised Options: $16,137,048

Current Obligation: $16,137,048

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline