HHS awards $47M for R&D in Biotechnology to Deloitte Consulting LLP for data quality standards

Contract Overview

Contract Amount: $47,092,964 ($47.1M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Health and Human Services

Start Date: 2022-09-26

End Date: 2026-04-26

Contract Duration: 1,308 days

Daily Burn Rate: $36.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 165

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: DPMWP 217/CDRH-2022-112765 - DEVELOP STANDARDS FOR DATA QUALITY AND DATA SOURCES THAT INCREASE THE QUALITY, INTEROPERABILITY, AND USABILITY OF REAL-WORLD DATA.

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20993

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $47.1 million to DELOITTE CONSULTING LLP for work described as: DPMWP 217/CDRH-2022-112765 - DEVELOP STANDARDS FOR DATA QUALITY AND DATA SOURCES THAT INCREASE THE QUALITY, INTEROPERABILITY, AND USABILITY OF REAL-WORLD DATA. Key points: 1. Deloitte Consulting LLP secured a significant $47M contract for R&D in biotechnology. 2. The contract focuses on developing standards for data quality, interoperability, and usability of real-world data. 3. Competition was full and open, suggesting a competitive bidding process. 4. The sector is Research and Development in Biotechnology (except Nanobiotechnology).

Value Assessment

Rating: good

The contract value of $47.1M over approximately 3.6 years appears reasonable for a large-scale R&D initiative focused on data standards. Benchmarking against similar complex data science and R&D contracts would provide further context.

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. This method generally promotes competitive pricing and allows the government to select the best value offering.

Taxpayer Impact: The competitive nature of the award is expected to yield fair pricing, ensuring taxpayer funds are used efficiently for critical data standardization efforts.

Public Impact

Enhances the quality, interoperability, and usability of real-world data for health research. Supports the FDA's mission to ensure the safety and effectiveness of medical products. Potential for broader application in public health initiatives and medical research beyond the FDA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of over 3 years may require ongoing monitoring for scope creep.
Reliance on a single vendor for critical data standards development.

Positive Signals

Focus on improving data quality and usability is a key government priority.
Full and open competition suggests a robust market for these services.
Firm Fixed Price contract provides cost certainty.

Sector Analysis

The contract falls within the Research and Development in Biotechnology sector, specifically focusing on data quality and interoperability. Spending in this area is crucial for advancing medical research and regulatory science, with benchmarks varying widely based on project scope and complexity.

Small Business Impact

The contract was awarded to Deloitte Consulting LLP, a large business. There is no explicit mention of small business participation in the provided data, suggesting this contract may not directly involve significant subcontracting opportunities for small businesses.

Oversight & Accountability

The contract is managed by the Food and Drug Administration (FDA), a component of HHS. Oversight will likely involve regular performance reviews, milestone tracking, and adherence to the firm-fixed-price agreement to ensure deliverables meet quality standards.

Related Government Programs

Research and Development in Biotechnology (except Nanobiotechnology)
Department of Health and Human Services Contracting
Food and Drug Administration Programs

Risk Flags

Potential for vendor lock-in.
Ensuring broad adoption of standards.
Adaptability to future technological changes.
Measuring the tangible impact of improved data quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $47.1 million to DELOITTE CONSULTING LLP. DPMWP 217/CDRH-2022-112765 - DEVELOP STANDARDS FOR DATA QUALITY AND DATA SOURCES THAT INCREASE THE QUALITY, INTEROPERABILITY, AND USABILITY OF REAL-WORLD DATA.

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

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 $47.1 million.

What is the period of performance?

Start: 2022-09-26. End: 2026-04-26.

What specific metrics will be used to measure the success of the developed data quality and interoperability standards?

Success metrics will likely include the adoption rate of the developed standards by relevant stakeholders, the demonstrable improvement in data quality and interoperability as measured by pilot projects, and feedback from data users on usability. The FDA will establish clear performance standards and evaluation criteria within the contract's statement of work to assess the effectiveness of the delivered standards.

What are the potential risks associated with relying on a single contractor for developing foundational data standards?

Risks include vendor lock-in, limited perspectives leading to suboptimal standards, and potential delays if the contractor faces internal issues. Mitigating these risks involves robust government oversight, clear performance expectations, and potentially incorporating mechanisms for independent review or validation of the developed standards by other experts or entities.

How will the developed standards ensure long-term adaptability to evolving data technologies and research needs?

The contract should specify requirements for developing flexible and modular standards that can be updated or extended. This might involve building in processes for future revisions, incorporating feedback loops, and ensuring the standards are based on open, non-proprietary principles to facilitate future integration and adaptation as technology and research methodologies advance.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in Biotechnology (except Nanobiotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FDABAA-21-00123

Offers Received: 165

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte Financial Advisory Services LLP

Address: 1919 N LYNN ST, ARLINGTON, VA, 22209

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

Financial Breakdown

Contract Ceiling: $47,092,964

Exercised Options: $47,092,964

Current Obligation: $47,092,964

Actual Outlays: $44,991,819

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $4,881,824

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline