HHS awards $57.75M cost-plus contract for dose reconstruction services to Oak Ridge Associated Universities

Contract Overview

Contract Amount: $57,750,000 ($57.8M)

Contractor: OAK Ridge Associated Universities, Incorporated

Awarding Agency: Department of Health and Human Services

Start Date: 2024-09-30

End Date: 2026-03-29

Contract Duration: 545 days

Daily Burn Rate: $106.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: DOSE RECONSTRUCTION

Place of Performance

Location: OAK RIDGE, ANDERSON County, TENNESSEE, 37830

State: Tennessee Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $57.8 million to OAK RIDGE ASSOCIATED UNIVERSITIES, INCORPORATED for work described as: DOSE RECONSTRUCTION Key points: 1. Contract awarded on a cost-plus award fee basis, indicating potential for performance incentives. 2. The contract duration of 545 days suggests a focused, project-based need. 3. Awarded by the CDC, highlighting a focus on scientific and technical services. 4. The geographic location of the contractor in Tennessee may have local economic implications. 5. The absence of small business set-aside suggests a focus on specialized capabilities. 6. The contract type implies that costs will be reimbursed, with an additional fee based on performance.

Value Assessment

Rating: fair

Benchmarking the value of this specific 'dose reconstruction' service is challenging without more detailed cost breakdowns and performance metrics. The cost-plus award fee structure allows for flexibility but can lead to higher overall costs if not managed tightly. Comparing it to similar scientific services contracts within HHS or other agencies would require access to granular data on labor rates, overhead, and profit margins, which are not publicly available for this award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when circumstances necessitate a rapid award. The lack of competition means that price discovery through market forces was bypassed, potentially leading to a higher price than if multiple bids were solicited.

Taxpayer Impact: Taxpayers may not have received the benefit of competitive pricing, as the government did not solicit multiple offers to find the lowest cost for these services.

Public Impact

The Centers for Disease Control and Prevention (CDC) benefits from specialized dose reconstruction services. This contract supports scientific and technical services crucial for public health research and analysis. The services delivered are likely to contribute to understanding radiation exposure and its health effects. The primary beneficiaries are likely researchers and public health officials within the CDC. The geographic impact is primarily centered around the contractor's operations in Tennessee, with potential for national-level scientific contributions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing benefits for taxpayers.
Cost-plus award fee structure can lead to cost overruns if not carefully monitored.
Lack of publicly available detailed cost breakdown hinders value-for-money assessment.

Positive Signals

Award to a specialized firm suggests access to unique expertise for critical scientific services.
Cost-plus award fee structure allows for performance-based incentives, potentially driving higher quality outcomes.
Contract duration indicates a defined scope of work for a specific period.

Sector Analysis

The contract falls under the 'All Other Professional, Scientific, and Technical Services' category, which is broad and encompasses a wide range of specialized expertise. This sector is critical for government agencies like the CDC, which rely on external scientific support for complex research and analytical tasks. The market for such services is often characterized by a mix of large, established firms and smaller, niche providers. Benchmarking spending in this area is difficult due to its heterogeneity, but significant federal investment is directed towards scientific and technical consulting across various agencies.

Small Business Impact

This contract does not appear to have a small business set-aside. The sole-source nature of the award further suggests that the primary contractor was selected based on specific capabilities rather than a mandate to engage small businesses. There is no explicit information regarding subcontracting plans for small businesses within this award notice.

Oversight & Accountability

Oversight for this contract would primarily reside with the Centers for Disease Control and Prevention (CDC) contracting officers and program managers. As a cost-plus award fee contract, performance monitoring and cost control are critical oversight functions. While specific Inspector General (IG) jurisdiction is not detailed here, the HHS OIG generally has oversight over HHS contracts to ensure efficiency and prevent fraud, waste, and abuse.

Related Government Programs

Department of Health and Human Services Contracts
Centers for Disease Control and Prevention Contracts
Scientific and Technical Services Contracts
Dose Reconstruction Services
Cost-Plus Award Fee Contracts

Risk Flags

Sole-source award
Cost-plus contract type

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $57.8 million to OAK RIDGE ASSOCIATED UNIVERSITIES, INCORPORATED. DOSE RECONSTRUCTION

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 $57.8 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-03-29.

What is the historical relationship between Oak Ridge Associated Universities, Incorporated and the Department of Health and Human Services, specifically the CDC?

A review of federal procurement data indicates that Oak Ridge Associated Universities, Incorporated (ORAU) has a history of receiving contracts from the Department of Health and Human Services (HHS) and its sub-agencies, including the Centers for Disease Control and Prevention (CDC). ORAU specializes in scientific and technical services, often related to research, workforce development, and management of complex scientific programs. Their past work with HHS likely includes support for various research initiatives, radiation safety programs, and scientific assessments. The specific nature and value of these prior contracts would require a deeper dive into historical contract databases, but their continued awards suggest a sustained and satisfactory performance record with the agency.

How does the 'cost-plus award fee' structure typically impact the final cost compared to other contract types?

The 'cost-plus award fee' (CPAF) contract type reimburses the contractor for allowable costs incurred and provides a fixed fee that is earned only in part, with the remainder being an award fee earned based on the government's evaluation of the contractor's performance against pre-determined criteria. This structure aims to incentivize high performance by offering potential for increased profit (the award fee) beyond the base fee. Compared to a firm-fixed-price contract, CPAF can result in a higher final cost because it includes all allowable costs plus a fee, and there's less direct cost risk for the contractor. However, it offers more flexibility than fixed-price contracts for services where the scope is not precisely defined or is subject to change. It is generally considered more expensive than fixed-price contracts but can be more cost-effective than other cost-reimbursement types if the award fee structure successfully drives superior performance and efficient cost management.

What are the potential risks associated with a sole-source contract award for specialized scientific services?

Sole-source contract awards, while sometimes necessary for unique capabilities, carry several potential risks. The primary risk is the lack of price competition, which can lead to the government paying a higher price than if multiple vendors had bid. This can result in less value for taxpayer money. Another risk is reduced innovation, as the absence of competitive pressure may lessen the incentive for the contractor to find more efficient or novel solutions. Furthermore, sole-source awards can create a perception of favoritism or limit opportunities for other qualified businesses to enter the federal market. Agencies must have strong justification for sole-source awards to ensure they are truly in the government's best interest and that the selected contractor offers the best possible value under the circumstances.

What does 'dose reconstruction' entail in the context of public health and scientific services?

Dose reconstruction is a complex scientific process used to estimate the radiation dose received by individuals or populations from various sources, such as nuclear incidents, occupational exposures, or environmental contamination. It involves detailed analysis of historical records, environmental monitoring data, biological samples, and sophisticated modeling techniques to account for factors like exposure duration, distance from the source, shielding, and radioactive decay. In the context of public health, accurate dose reconstruction is critical for epidemiological studies to assess health risks (e.g., cancer incidence), for medical surveillance programs, and for informing public safety measures and regulatory policies. The CDC utilizes such services to understand the long-term health impacts of radiation exposure and to protect public health.

Are there any indicators within the contract data that suggest potential cost overruns or performance issues?

The provided contract data does not contain explicit indicators of potential cost overruns or performance issues. However, the 'cost-plus award fee' (CPAF) contract type inherently carries a risk of cost escalation if not managed diligently by the government. The 'award fee' component means that the final price will depend on performance evaluations, which, if poorly managed or if performance is subpar, could lead to a lower-than-expected fee but not necessarily a cost overrun in terms of reimbursable expenses. The absence of specific performance metrics or historical performance data in this summary makes it impossible to assess past performance or predict future issues. Robust government oversight is crucial to mitigate potential cost overruns and ensure satisfactory performance under this contract type.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 75D301-24-R-72995

Offers Received: 1

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: $57,750,000

Exercised Options: $57,750,000

Current Obligation: $57,750,000

Actual Outlays: $43,717,783

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline