Rutgers University awarded $23.3M contract for WTCHP Clinical Center of Excellence by HHS

Contract Overview

Contract Amount: $23,288,519 ($23.3M)

Contractor: Rutgers the State University of NEW Jersey

Awarding Agency: Department of Health and Human Services

Start Date: 2022-09-29

End Date: 2026-09-28

Contract Duration: 1,460 days

Daily Burn Rate: $16.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: COST PLUS FIXED FEE

Sector: Healthcare

Official Description: WTCHP CLINICAL CENTER OF EXCELLENCE

Place of Performance

Location: NEWARK, ESSEX County, NEW JERSEY, 07107

State: New Jersey Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $23.3 million to RUTGERS THE STATE UNIVERSITY OF NEW JERSEY for work described as: WTCHP CLINICAL CENTER OF EXCELLENCE Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 3. The duration of 1460 days (4 years) indicates a long-term commitment to the services provided. 4. The awardee, Rutgers University, is an academic institution, potentially bringing specialized research and clinical expertise. 5. The contract is for Outpatient Care Centers, a critical component of healthcare delivery. 6. The contract value of $23.3M over four years suggests a significant investment in this center.

Value Assessment

Rating: good

The contract value of $23.3 million over four years averages to approximately $5.8 million annually. Benchmarking this against similar contracts for clinical centers of excellence is challenging without more specific service details. However, the Cost Plus Fixed Fee structure implies that the government will reimburse allowable costs plus a negotiated fixed fee, which can be a reasonable approach for complex services where cost estimation is difficult. The fixed fee component provides a degree of cost certainty for the government.

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 a bid. The presence of 8 bidders (no) suggests a healthy level of interest and competition for this requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it likely drove down costs and ensured the government received competitive proposals, maximizing the value of the award.

Public Impact

The primary beneficiaries are likely patients requiring specialized clinical services through the WTCHP (Waterborne-Pathogen-Associated Diseases Clinical Center of Excellence). The contract supports the delivery of clinical services, research, and potentially public health initiatives related to waterborne pathogens. The geographic impact is centered in New Jersey, where Rutgers University is located, but the services may have national implications for public health. The contract may support a workforce of researchers, clinicians, and administrative staff at Rutgers University.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require robust oversight to ensure costs are reasonable and the fixed fee is justified.
The specific nature of 'clinical center of excellence' services requires detailed performance metrics to ensure value for money.

Positive Signals

Awarded through full and open competition, indicating a competitive market for these services.
The long contract duration suggests a stable and ongoing need for these critical public health services.
Rutgers University's academic standing may indicate a high level of expertise and commitment to research and development in this area.

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on specialized clinical services and research related to waterborne pathogens. The market for such specialized centers of excellence is often niche, involving academic institutions and research organizations with unique capabilities. Comparable spending benchmarks would depend on the specific services rendered, but contracts for public health research and clinical support can range significantly in value.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the nature of a 'Clinical Center of Excellence' and the award to a large university, it is less likely to be a primary focus for small business set-asides, though subcontracting opportunities may exist.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the Centers for Disease Control and Prevention (CDC) within HHS. Robust financial and performance monitoring will be crucial to ensure that costs are allowable, reasonable, and that the fixed fee is earned. Transparency will depend on HHS's reporting practices regarding contract performance and expenditures.

Related Government Programs

Waterborne Disease Prevention and Control
Public Health Research Grants
Clinical Laboratory Services
Outpatient Healthcare Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight of costs.
Long contract duration necessitates monitoring for performance degradation and evolving needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $23.3 million to RUTGERS THE STATE UNIVERSITY OF NEW JERSEY. WTCHP CLINICAL CENTER OF EXCELLENCE

Who is the contractor on this award?

The obligated recipient is RUTGERS THE STATE UNIVERSITY OF NEW JERSEY.

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 $23.3 million.

What is the period of performance?

Start: 2022-09-29. End: 2026-09-28.

What is the specific mission and scope of the WTCHP Clinical Center of Excellence?

The WTCHP Clinical Center of Excellence, awarded to Rutgers The State University of New Jersey, is likely focused on advancing the understanding, prevention, and treatment of diseases caused by waterborne pathogens. This could encompass a range of activities including clinical diagnostics, patient care for affected individuals, epidemiological research, development of new treatment protocols, and public health advisement. The contract's duration of four years and its Cost Plus Fixed Fee structure suggest a complex, long-term endeavor requiring significant resources and expertise. The specific scope would detail the exact services, research objectives, and performance metrics expected by the Centers for Disease Control and Prevention (CDC) from Rutgers University in this specialized clinical area.

How does the Cost Plus Fixed Fee (CPFF) structure impact cost control and value for money in this contract?

The Cost Plus Fixed Fee (CPFF) contract structure means the government reimburses the contractor (Rutgers University) for all allowable costs incurred, plus a predetermined fixed fee. This structure is often used when the scope of work is complex or uncertain, making it difficult to estimate costs accurately upfront. For value for money, the CPFF structure can be effective if the fixed fee is negotiated competitively and represents a reasonable profit margin for the services rendered. However, it places a greater emphasis on robust government oversight to scrutinize incurred costs and ensure they are reasonable and necessary. The 'plus fee' aspect means the government bears the cost risk, but the fixed fee provides a ceiling on the contractor's profit, incentivizing efficiency to some degree to ensure the fee is realized without excessive cost overruns.

What is Rutgers University's track record with federal contracts, particularly in healthcare and public health research?

Rutgers University, as a major research institution, likely has a significant history of receiving federal grants and contracts, particularly from agencies like the National Institutes of Health (NIH) and the Centers for Disease Control and Prevention (CDC). While specific details of their past performance on contracts of this exact nature (WTCHP Clinical Center of Excellence) are not provided in the summary data, universities typically excel in research and development, clinical trials, and public health initiatives. Their track record would generally be characterized by scientific output, publication of research findings, and adherence to grant and contract terms. Performance on previous HHS or CDC contracts would be a key indicator of their capability to manage this $23.3 million award effectively and deliver on the clinical and research objectives.

What are the potential risks associated with a long-term (4-year) contract for clinical services?

Long-term contracts for clinical services, such as this four-year award, carry several potential risks. Firstly, the rapidly evolving nature of medical science and public health threats means that the initial scope of work might become outdated or insufficient over the contract's duration, requiring modifications or adjustments. Secondly, there's a risk of contractor performance degradation over time, known as 'contractor fatigue,' where initial enthusiasm wanes, potentially impacting service quality or innovation. Thirdly, cost escalation beyond initial projections, even within a CPFF structure, can occur if unforeseen challenges arise or if oversight is not rigorous. Finally, changes in federal administration or budget priorities could impact the continuation or funding of such long-term commitments, although the award itself suggests a current strategic priority.

How does the geographic location (New Jersey) influence the delivery and impact of this contract?

The contract's performance location in New Jersey, where Rutgers University is based, has several implications. It suggests that the primary operational hub for the WTCHP Clinical Center of Excellence will be within the state, potentially leveraging existing infrastructure and personnel at Rutgers. This could lead to direct benefits for the local economy through job creation and resource utilization. For the specific mission, a New Jersey base might facilitate collaboration with state and local health departments, as well as regional healthcare providers, in addressing waterborne disease issues pertinent to the Mid-Atlantic region. However, the national scope of public health often means that while operations are localized, the impact and data generated are intended for broader national or even international application in understanding and combating waterborne pathogens.

Industry Classification

NAICS: Health Care and Social Assistance › Outpatient Care Centers › All Other Outpatient Care Centers

Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 75D301-22-R-72142

Offers Received: 8

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 65 BERGEN ST, NEWARK, NJ, 07107

Business Categories: Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Higher Education (Public)

Financial Breakdown

Contract Ceiling: $52,956,557

Exercised Options: $23,288,519

Current Obligation: $23,288,519

Actual Outlays: $15,348,906

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline