Nearly $184M for Dose Reconstruction Services to Support NIOSH's EEOICPA Responsibilities

Contract Overview

Contract Amount: $183,787,840 ($183.8M)

Contractor: OAK Ridge Associated Universities, Incorporated

Awarding Agency: Department of Health and Human Services

Start Date: 2019-08-01

End Date: 2024-09-29

Contract Duration: 1,886 days

Daily Burn Rate: $97.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: DOSE RECONSTRUCTION AND RELATED ACTIVITIES TO SUPPORT NIOSH'S RESPONSIBILITIES UNDER THE EEOICPA

Place of Performance

Location: OAK RIDGE, ANDERSON County, TENNESSEE, 37830

State: Tennessee Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $183.8 million to OAK RIDGE ASSOCIATED UNIVERSITIES, INCORPORATED for work described as: DOSE RECONSTRUCTION AND RELATED ACTIVITIES TO SUPPORT NIOSH'S RESPONSIBILITIES UNDER THE EEOICPA Key points: 1. Contract awarded to Oak Ridge Associated Universities, Inc. for specialized scientific and technical services. 2. Services are critical for administering the Energy Employees Occupational Illness Compensation Program Act (EEOICPA). 3. The contract duration spans nearly five years, indicating a long-term need for these services. 4. Awarded under full and open competition, suggesting a robust market for these specialized services. 5. The cost-plus-award-fee structure incentivizes performance and cost control. 6. The contract is a definitive contract, providing a clear framework for service delivery.

Value Assessment

Rating: good

The total value of $183.8 million over approximately five years for dose reconstruction services appears reasonable given the specialized nature of the work and the supporting agency's mandate. Benchmarking against similar complex scientific support contracts is challenging due to the unique EEOICPA focus. However, the cost-plus-award-fee (CPAF) structure allows for performance-based adjustments, suggesting an effort to ensure value for money. The contract's duration and scope indicate a significant investment in ensuring accurate compensation for eligible individuals.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of two bids suggests a competitive environment for these highly specialized services. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

Benefits former energy industry workers and their survivors seeking compensation for occupational illnesses. Provides essential scientific analysis for determining radiation exposure levels. Supports the Department of Health and Human Services' administration of the EEOICPA. Impacts individuals nationwide who were employed in nuclear weapons production facilities. Ensures fair and accurate compensation decisions for eligible claimants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in cost-plus contract types if not closely monitored.
Reliance on a single contractor for a critical and sensitive function could pose a risk if performance degrades.
Complexity of dose reconstruction may lead to disputes or appeals, increasing administrative burden.

Positive Signals

Awarded through full and open competition, indicating a healthy market and potential for competitive pricing.
Cost-plus-award-fee structure incentivizes contractor performance and efficiency.
Long-term contract duration suggests a stable and reliable service provider for a critical government function.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically under 'All Other Professional, Scientific, and Technical Services' (NAICS 541990). This sector is characterized by highly specialized expertise and often involves complex analytical work. The market for dose reconstruction services is niche, primarily driven by government programs like EEOICPA, and requires a deep understanding of physics, industrial hygiene, and epidemiological data. Comparable spending benchmarks are difficult to establish due to the unique nature of this requirement.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, Oak Ridge Associated Universities, Inc., is a large organization. There is no explicit information provided regarding subcontracting plans with small businesses, which could be an area for further investigation to understand the broader economic impact.

Oversight & Accountability

Oversight for this contract is likely managed by the Centers for Disease Control and Prevention (CDC) within HHS. The cost-plus-award-fee structure implies performance metrics and reviews that inform award fees. Transparency is generally maintained through contract award databases, but specific performance details and audit reports would require deeper investigation. The Inspector General for HHS would have jurisdiction over any potential fraud or mismanagement.

Related Government Programs

Energy Employees Occupational Illness Compensation Program Act (EEOICPA)
National Institute for Occupational Safety and Health (NIOSH) programs
Department of Labor - Black Lung Benefits Program
Department of Veterans Affairs - Agent Orange claims processing

Risk Flags

Potential for cost overruns
Contractor performance variability
Complexity of scientific analysis

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $183.8 million to OAK RIDGE ASSOCIATED UNIVERSITIES, INCORPORATED. DOSE RECONSTRUCTION AND RELATED ACTIVITIES TO SUPPORT NIOSH'S RESPONSIBILITIES UNDER THE EEOICPA

Who is the contractor on this award?

The obligated recipient is OAK RIDGE ASSOCIATED UNIVERSITIES, INCORPORATED.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $183.8 million.

What is the period of performance?

Start: 2019-08-01. End: 2024-09-29.

What is the historical spending trend for NIOSH dose reconstruction services?

Historical spending data for NIOSH's dose reconstruction activities prior to this specific contract award is not detailed in the provided data. However, the current contract's value of approximately $183.8 million over nearly five years suggests a significant and sustained investment in these services. Analyzing previous contract awards to Oak Ridge Associated Universities, Inc. or other entities performing similar functions for NIOSH would be necessary to establish a clear historical spending trend. This would involve reviewing contract databases for prior awards, their values, durations, and the scope of work to understand if spending has increased, decreased, or remained relatively stable over time. Understanding these trends is crucial for budget forecasting and identifying potential shifts in program demand or service costs.

How does the performance of Oak Ridge Associated Universities, Inc. on this contract compare to industry benchmarks?

Assessing the performance of Oak Ridge Associated Universities, Inc. (ORAU) on this specific contract against industry benchmarks requires access to detailed performance metrics, award fee determinations, and potentially contractor past performance reviews. The provided data indicates a Cost Plus Award Fee (CPAF) structure, which implies that ORAU's performance is evaluated against specific criteria, and their fee is adjusted accordingly. Without these granular performance details, a direct comparison to industry benchmarks is not feasible. However, the fact that the contract was awarded under full and open competition and has been active suggests that ORAU has met the necessary performance standards to date. Further analysis would involve examining any publicly available performance reports or contractor rating systems.

What are the primary risks associated with the 'All Other Professional, Scientific, and Technical Services' category for federal contracts?

Contracts within the 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) category often carry unique risks due to their broad and sometimes ill-defined scope. A primary risk is scope creep, where the services required expand beyond the original contract's intent, leading to cost overruns and schedule delays. Another significant risk is the difficulty in clearly defining and measuring performance outcomes, especially for highly specialized or research-oriented tasks, which can complicate oversight and evaluation. Contractor capability and expertise are also critical risks; if the contractor lacks the necessary specialized knowledge or resources, the project's success can be jeopardized. Furthermore, the niche nature of some services within this category can limit competition, potentially leading to higher prices or reliance on a single source.

How does the cost-plus-award-fee (CPAF) structure influence contractor behavior and cost control in this contract?

The Cost Plus Award Fee (CPAF) structure is designed to incentivize contractor performance beyond simply completing the work. In this contract, Oak Ridge Associated Universities, Inc. is reimbursed for its allowable costs, plus a base fee that is a fixed percentage of costs, and an award fee. The award fee is earned based on the government's evaluation of the contractor's performance against pre-defined criteria, which can include factors like technical excellence, timeliness, cost management, and overall mission support. This structure encourages the contractor to not only meet but exceed performance expectations to maximize their total fee. It also provides the government with a mechanism to reward superior performance and, implicitly, to penalize subpar performance through reduced award fees, thereby promoting cost control and efficient service delivery.

What is the significance of the definitive contract type for this federal spending?

A definitive contract, such as the one awarded here, is a contract that contains all the terms and conditions necessary for performance. Unlike letter contracts or other preliminary agreements, a definitive contract is fully negotiated and finalized before work begins. For this federal spending, it signifies that the scope of work, pricing, delivery schedule, and all other essential elements for the dose reconstruction and related activities have been agreed upon by both the government (CDC/NIOSH) and the contractor (ORAU). This provides a clear legal framework, reduces ambiguity, and establishes a firm basis for accountability and performance monitoring throughout the contract's duration, ensuring a predictable process for supporting EEOICPA responsibilities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 75D30118R67998

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 100 ORAU WAY, OAK RIDGE, TN, 37830

Business Categories: Category Business, Corporate Entity Tax Exempt, Foundation, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $183,787,840

Exercised Options: $183,787,840

Current Obligation: $183,787,840

Actual Outlays: $113,031,764

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $347,104

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline