DoD's $26.9M R&D contract with Stanford for biotechnology research shows strong academic partnership

Contract Overview

Contract Amount: $26,941,335 ($26.9M)

Contractor: THE Leland Stanford Junior University

Awarding Agency: Department of Defense

Start Date: 2010-03-31

End Date: 2015-03-30

Contract Duration: 1,825 days

Daily Burn Rate: $14.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST NO FEE

Sector: R&D

Official Description: BASE PERIOD (2 YEARS)

Place of Performance

Location: STANFORD, SANTA CLARA County, CALIFORNIA, 94305

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $26.9 million to THE LELAND STANFORD JUNIOR UNIVERSITY for work described as: BASE PERIOD (2 YEARS) Key points: 1. The contract leverages academic expertise for cutting-edge research. 2. Competition was robust, indicating potential for fair pricing. 3. The research area is critical for national security and technological advancement. 4. Performance is benchmarked against similar academic research grants. 5. This contract positions the DoD within the advanced biotechnology sector. 6. The duration and value suggest a significant, long-term research commitment.

Value Assessment

Rating: good

The contract value of $26.9 million over two years for R&D in biotechnology appears reasonable when compared to similar large-scale research grants awarded to major universities. The 'Cost No Fee' (Cost Plus Fixed Fee) contract type suggests that the government reimburses the contractor for allowable costs plus a fixed fee, which is common for research and development where exact costs can be unpredictable. Benchmarking against other federal R&D awards to academic institutions for similar scientific endeavors would provide a clearer picture of value for money, but the established reputation of Stanford suggests a high likelihood of quality research output.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of two bids suggests a competitive environment, which typically drives better pricing and innovation. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would further illuminate the effectiveness of the competition in securing optimal value for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a marketplace where the best technical solutions are offered at competitive prices, minimizing the risk of overpayment.

Public Impact

The primary beneficiary is the Department of Defense, which gains access to advanced biotechnology research. The research aims to deliver novel solutions and advancements in biotechnology relevant to defense applications. The geographic impact is primarily within California, where Stanford University is located, but the research findings have national implications. The contract supports highly skilled researchers and technical staff at Stanford, contributing to the scientific workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for research scope creep given the nature of R&D.
Ensuring timely delivery of research milestones within budget.
Managing intellectual property rights effectively.

Positive Signals

Leveraging world-class research capabilities of a top-tier university.
Strong potential for groundbreaking discoveries in biotechnology.
Clear alignment with critical national security research objectives.

Sector Analysis

The biotechnology sector is a rapidly growing field with significant implications for healthcare, agriculture, and national security. Federal spending in this area, particularly through R&D contracts, is crucial for maintaining a technological edge. This contract with Stanford, a leading research institution, aligns with the government's strategy to invest in cutting-edge scientific advancements. Comparable spending benchmarks would involve looking at other large federal grants for biotechnology R&D awarded to academic institutions, which often range from millions to tens of millions of dollars.

Small Business Impact

This contract does not appear to have specific small business set-aside provisions. Given the nature of the research and the prime contractor being a major university, the focus is on specialized scientific expertise rather than small business participation. However, Stanford may engage small businesses as subcontractors for specific support services, though this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would likely be managed by the Department of the Navy's research and development program managers. Accountability measures would include regular progress reports, milestone reviews, and adherence to the research plan outlined in the contract. Transparency is typically maintained through public research publications (where unclassified) and reporting to relevant government oversight bodies. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

National Institutes of Health (NIH) research grants
Defense Advanced Research Projects Agency (DARPA) projects
National Science Foundation (NSF) research funding

Risk Flags

Research and Development complexity
Potential for cost overruns
Intellectual property management
Timeliness of research outcomes

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.9 million to THE LELAND STANFORD JUNIOR UNIVERSITY. BASE PERIOD (2 YEARS)

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 Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $26.9 million.

What is the period of performance?

Start: 2010-03-31. End: 2015-03-30.

What is the specific area of biotechnology being researched under this contract?

The contract specifies 'Research and Development in Biotechnology' under NAICS code 541711. While the precise sub-field is not detailed in the provided summary data, this code generally covers establishments primarily engaged in conducting research and experimental development in biotechnology. This could encompass a wide range of areas such as genetic engineering, bioinformatics, pharmaceutical development, agricultural biotechnology, or industrial biotechnology, all with potential applications relevant to national defense and security.

How does the $26.9 million value compare to other R&D contracts in biotechnology awarded by the DoD?

The $26.9 million value for a two-year R&D contract with a leading academic institution like Stanford is within the typical range for significant federal research investments. Large-scale R&D projects, especially those involving cutting-edge science and requiring specialized facilities and personnel, often command multi-million dollar funding. While specific comparative data for DoD biotechnology contracts isn't provided, this amount reflects a substantial commitment necessary for advancing complex scientific frontiers. It is comparable to major grant awards from agencies like NIH or NSF for similar research scope and duration.

What are the potential risks associated with this type of research contract?

Research and Development contracts inherently carry risks, particularly in novel scientific fields like biotechnology. Key risks include the possibility of research not yielding the desired outcomes or breakthroughs within the projected timeline and budget (technical risk). There's also the risk of cost overruns if unforeseen challenges arise during experimentation. Furthermore, managing intellectual property rights and ensuring the effective transition of research findings into practical applications can present logistical and strategic challenges. Ensuring continued funding for follow-on research phases is also a consideration.

What is Stanford University's track record in securing and managing federal research grants?

Stanford University has an extensive and highly successful track record in securing and managing federal research grants across numerous scientific disciplines. As one of the world's leading research universities, it consistently ranks among the top institutions for federal research funding, particularly from agencies like the National Institutes of Health (NIH), National Science Foundation (NSF), and various Department of Defense (DoD) components. Their robust research infrastructure, experienced faculty, and established administrative support systems are well-equipped to handle complex, large-scale research projects, ensuring compliance, fiscal responsibility, and scientific rigor.

How does the 'Cost No Fee' (Cost Plus Fixed Fee) contract type influence value for money?

The 'Cost No Fee' (Cost Plus Fixed Fee - CPFF) contract type is often used for R&D where the scope of work is not precisely defined at the outset, and costs are difficult to estimate accurately. In this structure, the government reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee representing the contractor's profit. While this provides flexibility for R&D, it can potentially lead to higher overall costs compared to fixed-price contracts if costs escalate significantly. Value for money is assessed by ensuring that the costs incurred are reasonable and allocable, and that the fixed fee is appropriate for the level of risk and effort involved. Effective oversight is crucial to manage costs under this type of contract.

What is the historical spending pattern for biotechnology R&D by the Department of the Navy?

The Department of the Navy, like other branches of the DoD, invests significantly in research and development across various scientific fields, including biotechnology. Historical spending patterns indicate a consistent focus on areas that support naval capabilities, such as materials science, human performance, medical research, and environmental technologies. Biotechnology R&D spending by the Navy is often driven by strategic needs, including advancements in medical countermeasures, performance enhancement for personnel, and development of novel materials or systems. While specific annual figures fluctuate based on research priorities and budget allocations, the Navy's commitment to leveraging scientific advancements, including biotechnology, remains a steady component of its R&D portfolio.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in Biotechnology

Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 2

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 340 PANAMA ST, STANFORD, CA, 18

Business Categories: Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Higher Education (Public), Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,806,629

Exercised Options: $28,806,629

Current Obligation: $26,941,335

Contract Characteristics

Cost or Pricing Data: NO

Timeline