HHS awarded $21.4M contract for research support, with 2 bidders and 2 years duration

Contract Overview

Contract Amount: $21,395,459 ($21.4M)

Contractor: Systems Research and Applicati

Awarding Agency: Department of Health and Human Services

Start Date: 1999-10-15

End Date: 2001-09-22

Contract Duration: 708 days

Daily Burn Rate: $30.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $21.4 million to SYSTEMS RESEARCH AND APPLICATI for work described as: Key points: 1. Contract value appears reasonable given the duration and scope of research support services. 2. Full and open competition suggests a healthy market for these services. 3. Limited number of bidders (2) warrants a closer look at competition dynamics. 4. Contract performance period of 708 days provides a reasonable timeframe for service delivery. 5. The contract falls within the broader IT and R&D sectors, supporting administrative functions. 6. Potential for follow-on work exists, depending on the success of this initial award.

Value Assessment

Rating: good

The contract value of approximately $21.4 million over 708 days (roughly 2 years) for research support services appears to be within a reasonable range. Benchmarking against similar contracts for administrative and research support within the Department of Health and Human Services (HHS) would provide a more precise assessment. However, the cost-plus-fixed-fee (CPFF) structure suggests that while the contractor is incentivized to control costs, the government bears the risk of cost overruns. Without specific deliverables or performance metrics, a definitive value-for-money assessment is challenging, but the competitive nature of the award provides some assurance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With two bidders, the level of competition was moderate. While two bidders are better than one, a higher number of bidders typically leads to more robust price discovery and potentially lower prices for the government. The agency's decision to proceed with two bidders suggests that these were the most qualified or competitive offers received.

Taxpayer Impact: Full and open competition, even with a limited number of bidders, generally benefits taxpayers by encouraging a wider range of potential contractors to offer their services, potentially leading to better pricing and innovation.

Public Impact

The primary beneficiaries are likely the various offices within the Department of Health and Human Services that require research support services. Services delivered include administrative and programmatic support crucial for the functioning of research initiatives. The geographic impact is primarily within the agency's operational areas, likely concentrated around HHS headquarters and related research facilities. Workforce implications include the potential for employment opportunities within the contractor's organization, supporting federal research efforts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The cost-plus-fixed-fee (CPFF) contract type can expose the government to cost overruns if not closely monitored.
With only two bidders, there's a risk that the government did not achieve the most competitive pricing possible.
The specific nature of 'research support' is broad and could encompass a wide range of activities, making performance monitoring critical.

Positive Signals

Awarded under full and open competition, indicating a broad market solicitation.
The contract has a defined period of performance, allowing for structured oversight.
The contractor, SYSTEMS RESEARCH AND APPLICATI, has a history of performing government contracts, suggesting some level of established capability.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically supporting research and development activities. The market for such services is competitive, with numerous firms offering expertise in administrative, analytical, and programmatic support. The total federal spending in this broad category is substantial, and this contract represents a small portion of the overall investment in supporting government research functions. Comparable spending benchmarks would focus on contracts for similar support services within federal agencies, particularly those with large research portfolios like HHS.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor is likely a large business. There is no explicit information on subcontracting plans. The absence of a small business set-aside suggests that the competition was open to all business sizes, and the resulting award went to the most competitive offer, which in this case was not a small business.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the program office within the Department of Health and Human Services. The cost-plus-fixed-fee structure necessitates diligent monitoring of costs and performance to ensure value for money. Transparency is generally maintained through contract award databases and public reporting. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or identified during the contract's performance or closeout.

Related Government Programs

HHS Research and Development Support Services
Federal Administrative Support Contracts
Cost-Plus-Fixed-Fee Contracts
Professional, Scientific, and Technical Services

Risk Flags

Moderate competition level (2 bidders) may impact price competitiveness.
CPFF contract type carries inherent cost overrun risk for the government.
Scope of 'research support' requires clear definition and monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $21.4 million to SYSTEMS RESEARCH AND APPLICATI. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is SYSTEMS RESEARCH AND APPLICATI.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $21.4 million.

What is the period of performance?

Start: 1999-10-15. End: 2001-09-22.

What is the track record of SYSTEMS RESEARCH AND APPLICATI with federal contracts, particularly with HHS?

SYSTEMS RESEARCH AND APPLICATI has a history of receiving federal contracts. While specific details on their performance metrics for past contracts are not provided in this data snippet, their presence as a contractor suggests they have met basic eligibility and capability requirements. Further analysis would involve reviewing past performance evaluations, any contract disputes, and the types and values of contracts they have previously held, especially with the Department of Health and Human Services, to gauge their reliability and expertise in delivering similar services.

How does the $21.4 million award compare to similar research support contracts within HHS?

Comparing the $21.4 million award to similar contracts requires access to a broader dataset of HHS procurements for research support. Factors such as contract duration (708 days), specific services rendered, and the level of competition influence pricing. Given the CPFF structure, the total cost is subject to actual expenses incurred plus a fixed fee. A preliminary assessment suggests the value is moderate for a two-year support contract. However, a definitive benchmark would involve analyzing the average cost per day or per service unit for comparable contracts awarded over the last few fiscal years to ensure fair and reasonable pricing.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract?

The primary risk with a CPFF contract is the potential for cost overruns, as the government assumes the risk of actual costs incurred by the contractor. While the fixed fee provides the contractor with a profit incentive, it does not cap the total contract value. Effective risk mitigation requires robust government oversight, including detailed cost monitoring, regular audits, and clear performance standards. Without stringent controls, the contractor might not be sufficiently incentivized to control expenses, potentially leading to the government paying more than anticipated for the services rendered.

How effective is 'full and open competition' when only two bidders participate?

Full and open competition is generally the most effective method for ensuring broad market access and achieving competitive pricing. However, when only two bidders participate, the effectiveness is diminished compared to scenarios with numerous offers. While it still provides a choice and some level of price negotiation, it reduces the pressure on bidders to offer their absolute best pricing. The government must carefully evaluate the proposals to ensure that the pricing is fair and reasonable, and consider if the limited competition might indicate barriers to entry for other potential contractors or a lack of market depth for these specific services.

What is the historical spending trend for research support services at HHS?

Analyzing historical spending trends for research support services at HHS would require access to multi-year federal procurement data. This would involve aggregating spending on contracts with similar objectives, such as administrative, analytical, and programmatic support for R&D. Trends might reveal an increasing or decreasing demand for such services, shifts in contract types utilized (e.g., from CPFF to fixed-price), and average contract values over time. Understanding these patterns can help in forecasting future needs, budgeting, and assessing whether current spending levels are consistent with historical investments or represent a significant deviation.

What are the implications of the 708-day performance period for service delivery and oversight?

A performance period of 708 days, approximately two years, provides a substantial timeframe for the contractor to deliver the specified research support services. This duration allows for the establishment of stable operations and the potential for long-term project engagement. From an oversight perspective, it necessitates consistent monitoring by the government to ensure progress aligns with objectives and that costs remain within expectations. Shorter periods might be suitable for discrete tasks, while longer periods are often used for ongoing support functions, allowing for relationship building but also requiring sustained vigilance to prevent complacency or performance degradation.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 5 KOGER CTR STE 219, NORFOLK

Business Categories: Category Business, Not Designated a Small Business

Timeline