HHS awards $2.6M for tobacco policy analysis, with Industrial Economics Inc. securing the contract

Contract Overview

Contract Amount: $2,603,471 ($2.6M)

Contractor: Industrial Economics Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2020-07-14

End Date: 2024-06-01

Contract Duration: 1,418 days

Daily Burn Rate: $1.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: TOBACCO PRODUCTS POLICY AND REGULATORY ANALYSIS SUPPORT SERVICES

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20993

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.6 million to INDUSTRIAL ECONOMICS INC for work described as: TOBACCO PRODUCTS POLICY AND REGULATORY ANALYSIS SUPPORT SERVICES Key points: 1. Contract value appears reasonable given the duration and scope of policy analysis services. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract's duration and task order nature indicate ongoing support needs for regulatory analysis. 4. Performance context involves complex regulatory environments requiring specialized economic and policy expertise. 5. This contract falls within the broader category of management consulting services for government agencies.

Value Assessment

Rating: good

The contract value of approximately $2.6 million over a period of nearly four years (July 2020 to June 2024) for policy and regulatory analysis support services seems within a reasonable range for specialized consulting. Benchmarking against similar contracts for policy analysis and economic consulting for federal agencies suggests that the overall award amount is not exceptionally high or low. The time and materials pricing structure, while requiring careful oversight, allows for flexibility in addressing evolving analytical needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. While the specific number of bidders is not provided, this procurement method generally fosters a competitive environment, which can lead to more favorable pricing and a wider selection of qualified contractors. The use of a BPA Call suggests that a broader contract vehicle was already in place, and this specific task order was competed among eligible vendors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining services at competitive market rates, preventing potential overspending and ensuring value for money.

Public Impact

The primary beneficiaries are the Food and Drug Administration (FDA) and the Department of Health and Human Services (HHS), who receive critical data and analysis for tobacco regulation. Services delivered include policy analysis, regulatory impact assessments, and economic modeling related to tobacco products. The geographic impact is national, as FDA regulations affect the entire United States. Workforce implications include the need for specialized economists, policy analysts, and researchers, likely provided by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in time and materials contracts if not closely managed.
Ensuring the contractor's analysis remains objective and free from bias is crucial for regulatory integrity.

Positive Signals

Contract awarded through full and open competition, suggesting a robust selection process.
The contractor, Industrial Economics Inc., likely possesses specialized expertise in economic consulting for regulatory bodies.
The long-term nature of the contract indicates a sustained need and potential for building institutional knowledge.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management and general management consulting. The market for regulatory analysis and economic consulting is competitive, with numerous firms offering specialized expertise. Comparable spending in this area often involves significant investment by agencies like the FDA to understand the economic and social impacts of proposed regulations, ensuring evidence-based policymaking.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). As a result, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from set-aside requirements. The primary focus was on securing the best value through full and open competition.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract specialist at the FDA. Performance monitoring, review of deliverables, and approval of invoices are standard accountability measures. Transparency is generally maintained through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

FDA Tobacco Regulatory Programs
Public Health Policy Analysis
Economic Impact Assessments
Administrative Management Consulting

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Need for rigorous oversight to ensure quality and objectivity of analytical work.
Dependence on contractor expertise requires careful vetting and performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.6 million to INDUSTRIAL ECONOMICS INC. TOBACCO PRODUCTS POLICY AND REGULATORY ANALYSIS SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is INDUSTRIAL ECONOMICS INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Food and Drug Administration).

What is the total obligated amount?

The obligated amount is $2.6 million.

What is the period of performance?

Start: 2020-07-14. End: 2024-06-01.

What is the track record of Industrial Economics Inc. with federal contracts, particularly with the FDA?

Industrial Economics Inc. (IEc) has a history of performing work for federal agencies, including the FDA. While specific details on all past contracts are not provided here, their specialization in environmental and economic consulting suggests a capacity to handle complex analytical tasks. For this specific contract, the FDA awarded them a significant task order under a broader BPA framework. A deeper dive into IEc's contract history, including past performance reviews and any disputes or challenges, would provide a more comprehensive understanding of their reliability and effectiveness in delivering government services.

How does the value of this contract compare to similar policy analysis services procured by the FDA or other health agencies?

The total award of approximately $2.6 million over nearly four years for tobacco policy and regulatory analysis support services appears to be within a reasonable range for specialized consulting engagements of this nature. Federal agencies frequently procure expert analytical services to inform complex regulatory decisions. Contracts for economic impact studies, policy analysis, and regulatory support can range from hundreds of thousands to several million dollars, depending on the scope, duration, and required expertise. Without specific benchmarks for identical services, it's challenging to make a precise comparison, but the value seems commensurate with the duration and the specialized nature of the work.

What are the primary risks associated with this type of 'Time and Materials' contract for policy analysis?

Time and Materials (T&M) contracts, like this one, carry inherent risks primarily related to cost control. The main concern is the potential for cost overruns if the contractor's labor hours are not efficiently managed or if the scope of work expands without adequate oversight. For policy analysis, there's also a risk that the 'materials' component could become inflated or that the time spent on analysis might not directly correlate with the quality or utility of the final product. Effective risk mitigation requires robust government oversight, clear task definitions, regular progress reviews, and strict monitoring of labor hours and direct costs.

How effective has the FDA been in leveraging external analysis for its tobacco regulatory efforts?

The FDA's reliance on external analytical support, such as through this contract with Industrial Economics Inc., suggests a strategic approach to gathering data and expertise for its complex tobacco regulatory agenda. Agencies often use contractors to supplement internal capabilities, access specialized knowledge, or conduct objective analyses. The effectiveness of this specific contract would be measured by the quality and utility of the analysis provided, and how well that analysis informed FDA's policy decisions and regulatory actions. Publicly available reports or FDA's own assessments of its regulatory outcomes could offer insights into the impact of such contracted support.

What are the historical spending patterns for policy and regulatory analysis support services at the FDA?

Historical spending patterns for policy and regulatory analysis support services at the FDA are likely substantial, given the agency's broad mandate and the complexity of regulating products like tobacco. Agencies typically allocate significant budgets to research, data analysis, and economic impact assessments to ensure regulations are scientifically sound and economically viable. While specific historical figures for this exact service category are not detailed here, the FDA consistently invests in expert analysis to support its mission. Trends may show an increase in spending on such services as regulatory challenges evolve and new scientific evidence emerges.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 2067 MASSACHUSETTS AVE STE 4, CAMBRIDGE, MA, 02140

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,603,471

Exercised Options: $2,603,471

Current Obligation: $2,603,471

Actual Outlays: $1,972,896

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Parent Contract

Parent Award PIID: 75F40118A10041

IDV Type: BPA

Timeline