The National Institutes of Health (NIH) Path to Excellence and Innovation (PEI) Initiative’s objective is to raise government contracting awards to Historically Black Colleges and Universities (HBCUs).
The National Institutes of Health (NIH) Path to Excellence and Innovation (PEI) Initiative aims to increase government contracting awards to Historically Black Colleges and Universities (HBCUs). Currently, HBCUs receive less than 1% of NIH contracting dollars, making this initiative a critical step toward unlocking greater research growth and opportunity. Catalyzing Innovation in the Nation’s Biomedical R&D Ecosystem. ADVANCING HBCU RESEARCH COMPETITIVENESS:
Executive Summary
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Background
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Translating National R&D Priorities Into Action
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Conclusion
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EXECUTIVE SUMMARY Presidential Executive Order 14283 establishes a federal directive and a government- wide mandate to increase HBCU participation in research and development, while delegating implementation to executive agencies. Housed within the National Institutes of Health’s (NIH) Small Business Program Office (SBPO), the Path to Excellence and Innovation (PEI) Initiative operationalizes this Executive Order by implementing practical strategies to strengthen HBCUs’ capacity to compete for, secure, and manage NIH contracts and federal funding. The PEI initiative provides infrastructure, hands-on guidance, and partnerships that enable HBCUs to translate their research strengths into measurable outcomes aligned with national R&D priorities. The Carnegie Classification System—which designates institutions as R1, R2, or RCU based on research activity—remains an important national indicator of research performance and institutional capacity. While not a direct measure of federal contracting readiness, Carnegie status influences how institutions are recognized for sustaining research infrastructure, supporting workforce development, and advancing talent-to-workforce pipelines. Many HBCUs are building R&D capacity that is not fully captured by Carnegie classifications but is directly aligned with the Department of Health and Human Services (HHS) and NIH priorities in high-growth, mission-critical R&D-focused NAICS areas. The PEI Initiative complements this system by helping HBCUs strengthen operational capacity, performance indicators, and contracting readiness to compete for NIH opportunities, thereby supporting long-term institutional growth and expanding pathways to participate in federally funded initiatives.
Several strategic findings reinforce the need to maintain and increase investment in the PEI initiative:
Increasing HBCU Access to Federal Research Funding: According to the National Center for Science and Engineering Statistics (NCSES), HBCUs currently receive less than 1% of all national research and development (R&D) funding —$772.6 million in FY2023 compared to $108.1 billion awarded to non-HBCU institutions. This gap highlights the reduced visibility of HBCUs in federal research and development (R&D) investment. The PEI Initiative directly addresses this by providing the support, training, and partnerships needed to help HBCUs compete for NIH grants, contracts, and cooperative agreements. This ensures that these institutions can fully participate in and benefit from federal research opportunities, aligning with EO 14283’s mission to strengthen HBCU capacity and competitiveness. 1,2 3
Expanding NIH-Focused R&D and Contracting Opportunities: HBCUs conduct research aligned with NIH mission priorities, including biomedical research, public health, nutrition, chronic disease, biotechnology, clean energy, and cybersecurity. These institutions also operate within high-growth North American Industry Classification System (NAICS) sectors, highlighting their potential to drive scalable market innovation—a priority emphasized in EO 14283, which calls for promoting “innovation, excellence, and workforce development at HBCUs to contribute to the nation’s science and technology infrastructure.” The PEI Initiative operationalizes this by pairing HBCUs with commercial business partners who provide acquisition lifecycle support, business development guidance, and strategic planning, helping these institutions increase participation in NIH- funded R&D projects, grants, and contracts.
Creating a Sustainable Research Ecosystem Model: PEI fills gaps left by traditional research metrics by offering implementation support through applied R&D metrics, capacity-building strategies, and contract-readiness tools. By fostering partnerships with federal agencies, public stakeholders, and private- sector organizations—as envisioned in EO 14283—PEI equips HBCUs not only to compete but also to lead in innovative research ecosystems that support national priorities. EO 14283 calls for promoting “innovation, excellence, and workforce development at HBCUs to contribute to the nation’s science and technology infrastructure.”
As previously noted, the Carnegie Classification has been the primary national framework for categorizing higher education research activity and infrastructure. In 2025, Carnegie updated its research activity metrics to better capture institutional research capacity. The new R1 designation, characterized by very high research activity, requires at least $50 million in annual research expenditures and the conferral of at least 70 doctoral degrees; 187 institutions currently hold this designation. The R2 designation, indicating high research activity, maintains thresholds of $5 million in expenditures and 20 doctoral degrees awarded annually, with 139 institutions currently recognized. A newly introduced category, Research Colleges and Universities (RCU), recognizes institutions with at least $2.5 million in research expenditures, regardless of doctoral production, and includes 216 institutions nationwide. The new RCU category classifies institutions with measurable research expenditures regardless of doctoral 4 Background
output —a vital designation for many emerging HBCU research institutions. While Carnegie provides an essential framework for assessing research capacity, translating these metrics into actionable pathways for national economic growth— particularly for HBCUs—requires targeted programs, which is the role the PEI Initiative was created to fulfill. Although only one HBCU—Howard University—currently holds R1 designation and 13 hold R2 status, many HBCUs are actively pursuing R2 recognition and now hold the newer RCU classification. Ten R2 HBCUs have participated in prior PEI cohorts or received NIH HBCU IDIQ contracts, and several— including Florida A&M, North Carolina A&T, Prairie View A&M, Southern University, Virginia State, and Delaware State—are 1890 Morrill Act land-grant institutions that address rural community needs through research and workforce development. By strengthening these institutions’ capabilities, the PEI Initiative captures the broad HBCU landscape envisioned in EO 14283 and recognized under the HBCU PARTNERS Act, providing a representative population for building scalable models to advancing advance HBCU research capacity and federal participation.
HBCUs with R2 Carnegie Classification
Clark Atlanta University Delaware State University Florida A&M University Hampton University
Jackson State University Morgan State University North Carolina A&T State University Prairie View A&M University South Carolina State University Southern University
Tennessee State University Texas Southern University Virginia State University
The PEI Initiative Provides A Sustainable Research Partnering Model PEI is more than an initiative—it serves as a model for sustainable research partnerships by fostering collaboration between HBCUs, federal agencies, and the private sector. Where It Began The pilot program (FY 2017–2020) paired six HBCUs with Small Business Partners (SBPs) to pursue federal contracts. These partnerships provided subject matter expertise and agile operational support in areas such as proposal development and cost accounting, enabling HBCUs to expand their procurement capabilities. Building on this success, PEI 2.0 launched in FY 2021, expanding to 21 HBCUs and 43 SBPs—nearly quadrupling participation in three years. Of the 21 institutions onboarded, 13 engaged deeply in program activities, underscoring strong uptake and informing refinements that will support long-term sustainability.
G AO reviews serve as Congress’s primary tool for assessing federal program performance; recognition in such reports signals program effectiveness, strengthens credibility, and informs policy, appropriations, and agency oversight.
To scale this model, the NIH Office of Acquisition and Logistics Management (OALM) awarded an Indefinite Delivery Indefinite Quantity (IDIQ) contract to support PEI’s infrastructure. This mechanism enabled several HBCUs and their partners to receive awards under NAICS code 541990 (“All Other Professional, Scientific, and Technical Services”), creating an unprecedented pathway for institutional participation in federal contracting and research advancement. This achievement was highlighted in a recent Government Accountability Office (GAO) Report.
GAO reviews serve as Congress’s primary tool for assessing federal program performance; recognition in such reports signals program effectiveness, strengthens credibility, and informs policy, appropriations, and agency oversight. These outcomes demonstrate NIH’s alignment with HHS priorities— advancing gold-standard science, strengthening the biomedical research workforce, and expanding responsible research partnerships—while highlighting PEI as a scalable model for building HBCU research capacity, expanding national participation in federally funded research, and supporting federal R&D objectives.
Core Components of the Model PEI’s framework, built on five components (Figure 1), illustrates a model that could inform similar initiatives across the NIH and federal research community:
Figure 1. A Sustainable Framework to Strengthen HBCU Biomedical Research Competitiveness. Illustration created with Napkin AI
1. Formal Agreements (such as Memoranda of Understanding): Promoting foundational partnerships among HBCUs, federal agencies, and peer institutions. 2. Industry and Philanthropic Engagement: Leveraging private-sector partners to enhance funding and research capacity. 3. Federal Partnerships Beyond NIH: Expanding collaboration across agencies and federal laboratories, reinforcing NIH’s leadership in cross-agency engagement. 4. Community and Visibility: Building authentic research communities through shared projects, campus visits, and workforce development opportunities. 5. Standardization and Infrastructure Support: Developing standard practices to address institutional needs, including the PEI HBCU Accelerator, which provides guidance across the acquisition life cycle. The initiative also leverages the Office of Management and Budget (OMB) PEI Database, a resource for NIH, HHS, and other federal officials to conduct market research, share relevant opportunities, and highlight student internship pathways.
Key Achievements
HBCUs continue to build impactful research infrastructure and clinical partnerships. Notably, Hampton University’s Proton Therapy Institute (Hampton Proton)—the first of its kind operated by an HBCU—has engaged in research and clinical innovation partnerships that contribute to national discussions on cancer treatment and research. Hampton University’s work reinforces that its collaborative cancer research initiatives align with goals set by national institutions, including the National Cancer Institute , an accomplishment highlighted by OMB leadership in February 2020. This initiative demonstrates HBCUs’ capacity to operate advanced biomedical facilities and contribute to high-impact translational research.
The National Institute on Drug Abuse (NIDA), on behalf of the National Institute of Neurological Disorders and Stroke (NINDS), awarded contracts to four HBCUs— Bowie State University, Jackson State University, North Carolina Agricultural & Technical State University, and Fayetteville State University, through the Scientific Research Preparatory Program . This program strengthened research development in STEM fields and enhanced student readiness to engage in NIH-level research training, advancing NIH’s mission to cultivate a broad scientific talent pool.
Proton therapy at Hampton University is an example of HBCU research innovation.
As these partnerships matured and institutional alignment was established, measurable outcomes emerged that extended beyond access to infrastructure and into translational impact. Notably, Frederick National Laboratory for Cancer Research (FNLCR) and Morehouse School of Medicine leveraged the Frederick Research Computing Environment (FRCE) to enhance MSM’s data storage and analysis capabilities. Bowie State University engaged with the Federal Laboratory Education Accelerator (FLEX) Program to expand student and faculty participation in federal research environments. Texas Southern University contributed to the NCI Experimental Therapeutics (NExT) Chemical Biology Consortium , a collaboration that engages government, academia, and industry to advance early-stage cancer drug discovery. Collectively, these efforts accelerated translational research and drug discovery by bridging academic innovation with clinical application, while elevating the national visibility of participating institutions and advancing the Executive Order’s directive to strengthen HBCU competitiveness in R&D funding. Federal laboratories have actively promoted research collaboration by sharing resources, emphasizing a broader shift in the research landscape. Through partnerships with the National Cancer Institute (NCI) and the Frederick National Laboratory for Cancer Research (FNLCR)—the nation’s only Federally Funded Research and Development Center (FFRDC) solely dedicated to biomedical research—HBCUs in the PEI 2.0 cohort, including Howard University, Bowie State University, Jackson State University, Morehouse School of Medicine and the University of the Virgin Islands, gained access to collaborative research opportunities and technical infrastructure. These collaborations spanned areas from bioinformatics and data science to experimental therapeutics, highlighting HBCU engagement in cutting-edge science.
While the Carnegie Classification signals institutional research intensity, it does not fully reflect the emerging, specialized R&D capacities at many HBCUs. Through the PEI Initiative, institutions with capabilities aligned to high-income yielding NAICS sectors— such as nanotechnology, biotechnology, and life sciences—can better compete for federal contracts and build impactful technologies even before reaching R1, R2 , or RCU status. Table 1 illustrates FY2020–2025 federal contract volume by NAICS code, with code 541715 alone representing $198.7 billion in research contracting as of August 2025. Institutions, including Howard, Jackson State, Morehouse School of Medicine, Florida A&M, Fisk, and Cheyney, have already leveraged code 541715, demonstrating their readiness to scale. Translating National R&D Priorities into Action through the Partnering Framework
Table 1. NAICS Codes of Interest in U.S. Federal Contracts (FY2020–FY2025)
NAICS Contracts Subcontracts
Total
541715 $198.7 B
$49.9 B $248.5 B
541712
$72.8 B
$25.5 B $98.3 B
541990 $69.4 B
$11.1 B $80.5 B
541710 $51.2 B
$34.7 M $51.2 B
541714 $ 16.9 B
$2.3 B $19.2 B
541720
$6.7 B
$2.2 B $8.9 B
541380
$3.2 B $227.6 M $3.4 B
541713
$1.2 B $356.1 M $1.6 B
This table summarizes federal contract volume and total obligated value for prioritized R&D NAICS codes across the U.S. federal government, including HBCU-associated contracting activity. Data was accessed on 8/20/2025 from HigherGov ( https://www.highergov.com ), an analytics platform that aggregates U.S. government contracting and grants data. The data are sorted from highest to lowest based on the following ranking priority: Contracts > Subcontracts > NAICS code.
Most HBCUs are classified under NAICS code 611310 (Colleges and Universities), which does not capture the depth of their research capabilities. Many HBCUs conduct advanced R&D that aligns with specialized NAICS codes used in the federal contracting space, demonstrating their capacity to operate similarly to small businesses in high-growth sectors. Through this initiative, the NIH HBCU Accelerator aims to formalize these secondary NAICS designations through training, thereby increasing institutional visibility and access to billions of dollars in federal R&D funding. Morgan State University exemplifies the potential power of this model in action. Its National Transportation Center (NTC), SMARTER Center, and Center for Equitable
AI/ML Systems have developed a smartphone-controlled autonomous
wheelchair, showcased at BWI Airport in July 2025, after five years of R&D at Morgan State University. The technology, equipped with cameras, LiDAR, and AI-based navigation, steers users through busy terminals, enabling new levels of independence for the users and increased productivity at the airport. This demonstration, built at scale and visibility by Morgan State, illustrates a clear pathway of technology transfer underway at HBCUs, moving university research from lab to market-ready innovation. This is the work that the PEI initiative aims to elevate by providing a platform through fostering partnerships among relevant federal entities, industry, and the private sector.
Conclusion : PEI Initiative Strengthens Federal ROI and Expands National Innovation Capacity The PEI Initiative supports institutions on the “brink of breakthrough,” such as those between R1 and R2 status, whose growing research capacity is gaining recognition beyond the HBCU community and increasing visibility within the broader federal and scientific landscape. This initiative aims to further advance HBCU research through strategic partnerships and engagement with the translational and research communities. It complements the Carnegie classification by emphasizing not only research scale—$50 million in expenditures and substantial doctoral output—but also strong translational and public-impact potential. In summary, PEI connects HBCUs to federal contracts, public-private partnerships, and translational pathways through a NAICS-based approach—thereby scaling existing institutional strengths into high-value research engagement aligned with HHS priorities and NIH’s unified research strategy. In doing so, PEI operationalizes Executive Order 14283 by translating its directive into measurable outcomes that expand HBCU participation in the federal R&D ecosystem and generate a clear return on federal investment through enhanced research capacity, competitiveness, and national scientific impact.
Footnotes:
National Center for Science and Engineering Statistics (NCSES). 2024. Higher Education Research and Development: Fiscal Year 2023. NSF 25-314. Alexandria, VA: U.S. National Science Foundation. Available at https://ncses.nsf.gov/surveys/higher-education-research-development/2023 1 Center for American Progress. “RELEASE: New Data Reveal Disproportionately Low R&D Funds Awarded to HBCUs.” Press release, September 24, 2025. American Progress. https://www.americanprogress.org/press/release-new-data-reveal-disproportionately-low-rd-funds-awarded- to-hbcus/ 2 American Council on Education. "Issue Brief Highlights the Legacy of Underfunding HBCUs." Higher Ed Today, November 4, 2022. https://www.higheredtoday.org/2022/11/04/issue-brief-highlights-the-legacy-of- underfunding-hbcus/ 3 American Council on Education (ACE) and Carnegie Foundation for the Advancement of Teaching. 2025. 2025 Carnegie Classifications: Research Activity Designations and Methodology Update. Washington, DC: American Council on Education. Available at https://carnegieclassifications.acenet.edu/news/carnegie-classifications- release-2025-research-activity-designations-debut-updated-methodology/. 4
Path to Excellence and Innovation (PEI) Initiative Small Business Program Office Office of Acquisition and Logistics Management National Institutes of Health
NIH Small Business Program Office 301-451-6827 The PEI Initiative Website Email: PEI@nih.gov
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