HHS awarded $27M contract for technical resources to Technical Resources International, Inc

Contract Overview

Contract Amount: $26,970,173 ($27.0M)

Contractor: Technical Resources International, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2002-02-15

End Date: 2008-03-31

Contract Duration: 2,236 days

Daily Burn Rate: $12.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $27.0 million to TECHNICAL RESOURCES INTERNATIONAL, INC. for work described as: Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of over 6 years indicates a long-term need for these services. 3. The Cost Plus Fixed Fee (CPFF) contract type may allow for flexibility but requires careful oversight to manage costs. 4. The contract was awarded to a single vendor, Technical Resources International, Inc. 5. The contract was awarded by the National Institutes of Health, a key agency within HHS. 6. The contract was awarded in 2002 and completed in 2008, reflecting historical spending.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The CPFF structure can lead to cost overruns if not managed diligently. However, the fixed fee component provides some cost certainty for the government. The total award amount of approximately $27 million over more than six years suggests a moderate annual spend.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bidders suggests a moderate level of competition for this requirement. A higher number of bidders typically leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation.

Public Impact

The National Institutes of Health (NIH) benefited from the provision of technical resources. These resources likely supported critical research and administrative functions within NIH. The contract's impact is primarily within the federal research and health sector. Workforce implications would include the personnel employed by Technical Resources International, Inc. to fulfill the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can incentivize contractors to increase costs to achieve a higher fixed fee, necessitating robust oversight.
Limited competition (2 bidders) may not have yielded the most cost-effective solution for taxpayers.
Lack of specific performance metrics makes it difficult to assess the true value for money delivered.

Positive Signals

Awarded through full and open competition, ensuring a broad opportunity for vendors.
Long contract duration (over 6 years) suggests a stable and ongoing need for the services provided.
The fixed fee component of the CPFF contract provides a degree of cost predictability.

Sector Analysis

This contract falls within the professional services sector, specifically supporting government agencies with technical expertise. The IT and professional services market for federal agencies is substantial, with significant spending allocated to contractors providing specialized skills. This contract represents a portion of the broader federal spending on scientific, engineering, and administrative support services.

Small Business Impact

There is no indication that this contract included small business set-asides, nor is there information suggesting significant subcontracting opportunities for small businesses. The award to a single, likely larger, entity may limit direct participation by small businesses in this specific contract's execution.

Oversight & Accountability

The oversight mechanisms for this contract would typically involve contract officers, technical monitors, and potentially an Inspector General's office within HHS. The CPFF structure requires diligent monitoring of costs and performance to ensure accountability and prevent contractor overreach. Transparency would be facilitated through contract databases and reporting requirements.

Related Government Programs

Federal IT Services Contracts
Professional and Technical Services
NIH Research Support Contracts
Health and Human Services Contracts

Risk Flags

Cost Overrun Risk (CPFF)
Limited Competition Impact on Price
Performance Measurement Difficulty

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $27.0 million to TECHNICAL RESOURCES INTERNATIONAL, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is TECHNICAL RESOURCES INTERNATIONAL, 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 $27.0 million.

What is the period of performance?

Start: 2002-02-15. End: 2008-03-31.

What was the specific nature of the technical resources provided under this contract?

While the data provided does not detail the specific technical resources, contracts of this nature with the National Institutes of Health (NIH) typically involve support for scientific research, laboratory operations, data management, IT infrastructure, administrative functions, or program management. These resources are crucial for enabling NIH to fulfill its mission of advancing fundamental knowledge and accelerating the translation of discoveries into improved health.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other contract types used by NIH for similar services?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined or is expected to evolve, allowing for flexibility. It reimburses the contractor for allowable costs plus a fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers less cost certainty for the government but more flexibility for the contractor to adapt to changing requirements. Compared to Cost-Plus-Incentive-Fee (CPIF) contracts, the profit (fixed fee) is predetermined, reducing the incentive for the contractor to control costs as strongly as in CPIF, where the fee can be adjusted based on performance against targets.

What is the typical annual spending for technical resources at NIH, and how does this contract compare?

NIH's annual spending on technical resources and related services can fluctuate significantly based on research priorities and funding levels. With a total award of approximately $27 million over more than six years, this contract represents an average annual value of roughly $4.5 million. This figure is moderate when considering the vast scale of NIH's operations and its extensive network of research grants and contracts, which collectively amount to billions of dollars annually. This specific contract likely supported a particular program or set of functions within NIH.

What are the potential risks associated with a CPFF contract awarded under limited competition?

A Cost Plus Fixed Fee (CPFF) contract carries inherent risks, primarily related to cost control, as the contractor is reimbursed for all allowable costs. When awarded under limited competition (e.g., only two bidders), these risks can be amplified. The government may have less leverage to negotiate favorable pricing, and the contractor might face less pressure to optimize efficiency. Robust government oversight, including detailed cost audits and performance monitoring, is critical to mitigate these risks and ensure that taxpayer funds are used effectively and that the fixed fee remains reasonable for the work performed.

What does the contract award date (2002) suggest about the evolution of federal contracting for technical services?

The 2002 award date places this contract in an era preceding many of the significant shifts in federal IT and services contracting, such as the widespread adoption of cloud computing, agile methodologies, and evolving cybersecurity requirements. Federal contracting has since become more focused on performance-based acquisitions, strategic sourcing, and leveraging commercial best practices. This older contract likely reflects a more traditional approach to service procurement, highlighting the evolution towards more dynamic and outcome-oriented contracting strategies seen today.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 6500 ROCK SPRING DR, BETHESDA, MD, 08

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $265,090,430

Exercised Options: $222,607,314

Current Obligation: $26,970,173

Timeline