HHS awards $154.7M for research and development in social sciences and humanities to Research Triangle Institute

Contract Overview

Contract Amount: $154,711,996 ($154.7M)

Contractor: Research Triangle Institute

Awarding Agency: Department of Health and Human Services

Start Date: 2019-09-25

End Date: 2026-09-24

Contract Duration: 2,556 days

Daily Burn Rate: $60.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: DC,KCF,CKCC MODELS PROGRAM ANALYSIS AND OPERATIONAL SUPPORT

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $154.7 million to RESEARCH TRIANGLE INSTITUTE for work described as: DC,KCF,CKCC MODELS PROGRAM ANALYSIS AND OPERATIONAL SUPPORT Key points: 1. Contract awarded via full and open competition, suggesting a robust market for these services. 2. The contract duration of 2556 days indicates a long-term need for sustained R&D support. 3. The use of a Cost Plus Fixed Fee (CPFF) pricing structure warrants scrutiny for potential cost overruns. 4. The North American Industry Classification System (NAICS) code 541720 points to specialized R&D services. 5. The contract is managed by the Centers for Medicare and Medicaid Services (CMS), highlighting its focus on health-related social science research. 6. The contract's value is substantial, reflecting significant investment in social science research.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables and comparable projects. The CPFF structure can lead to costs exceeding initial estimates if not managed tightly. However, the fixed fee component provides some cost certainty for the contractor's effort. Further analysis would require understanding the scope of work and the specific research objectives to assess true value for money.

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 were likely considered. The presence of 3 bidders suggests a competitive environment, which generally benefits price discovery and can lead to more favorable terms for the government. The specific details of the bidding process and the evaluation criteria would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by encouraging multiple vendors to offer their best terms. This process helps ensure that the government is not overpaying for the services rendered.

Public Impact

The primary beneficiaries are likely researchers and institutions involved in social sciences and humanities, particularly those focused on health policy and outcomes. The services delivered are critical for advancing knowledge and informing policy in areas relevant to Medicare and Medicaid. The contract's geographic impact is primarily centered in Maryland, where the contractor is located, but the research findings can have national implications. The contract supports a specialized workforce of researchers and analysts in the social sciences.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) pricing structure may incentivize cost overruns if not rigorously monitored.
Long contract duration (2556 days) requires sustained oversight to ensure continued relevance and performance.
The specialized nature of R&D in social sciences can make performance metrics and value assessment complex.

Positive Signals

Awarded through full and open competition, indicating a healthy market and potential for competitive pricing.
The contractor, Research Triangle Institute, is a reputable organization with a history in research and development.
The contract supports critical research areas for the Centers for Medicare and Medicaid Services.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on social sciences and humanities. This is a niche but vital area that supports evidence-based policymaking, particularly in health. Comparable spending benchmarks would depend on the specific research topics, but significant government investment in health-related social science R&D is common.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the specialized nature of R&D and the large contract value, it is unlikely that significant subcontracting opportunities for small businesses would be mandated, though not impossible depending on the specific research tasks. The primary focus appears to be on established research institutions.

Oversight & Accountability

Oversight for this contract would primarily fall under the Centers for Medicare and Medicaid Services (CMS). The CPFF structure necessitates robust financial oversight to manage costs and ensure the fixed fee is earned appropriately. Transparency would be enhanced by public reporting of research findings and regular performance reviews. The Inspector General for HHS would have jurisdiction over potential fraud, waste, or abuse.

Related Government Programs

National Institutes of Health (NIH) Research Grants
National Science Foundation (NSF) Social, Behavioral and Economic Sciences Directorate
Agency for Healthcare Research and Quality (AHRQ) Programs

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing structure requires diligent oversight to control costs.
Long contract duration may lead to scope relevance issues if not actively managed.
Measuring the tangible outcomes and value of social science R&D can be complex.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $154.7 million to RESEARCH TRIANGLE INSTITUTE. DC,KCF,CKCC MODELS PROGRAM ANALYSIS AND OPERATIONAL SUPPORT

Who is the contractor on this award?

The obligated recipient is RESEARCH TRIANGLE INSTITUTE.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).

What is the total obligated amount?

The obligated amount is $154.7 million.

What is the period of performance?

Start: 2019-09-25. End: 2026-09-24.

What is the track record of Research Triangle Institute (RTI) in performing similar government contracts, particularly with HHS or CMS?

Research Triangle Institute (RTI) has a substantial track record of performing research and development contracts for various government agencies, including HHS and CMS. RTI is a well-established non-profit research institute known for its work across numerous domains, including health, education, and social sciences. Their experience often involves large-scale data analysis, program evaluation, and policy research. While specific contract performance details are not provided here, RTI's longevity and breadth of work suggest a capacity to handle complex R&D projects. A deeper dive into their past performance ratings on similar federal contracts would offer more definitive insights into their reliability and effectiveness in delivering on government objectives.

How does the $154.7 million contract value compare to typical spending on social science R&D by CMS or HHS?

The $154.7 million contract value represents a significant investment in social science and humanities R&D, particularly for a single contract. While CMS and HHS collectively spend billions on research and development annually, the allocation specifically to social sciences and humanities can vary. This contract's size suggests a major, multi-year initiative or a consolidation of several research efforts under one umbrella. To provide a precise comparison, one would need to analyze historical HHS/CMS budgets and contract databases for similar R&D efforts in social sciences. However, given its scale, this contract likely represents a substantial portion of CMS's dedicated funding for this specific research domain over its duration.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D services?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, especially for R&D, is the potential for cost overruns. In a CPFF structure, the government reimburses the contractor for allowable costs incurred, plus a predetermined fixed fee representing profit. If the R&D project encounters unforeseen challenges or scope creep, the "cost" portion can escalate significantly beyond initial projections. While the fixed fee provides some predictability for the contractor's profit, it doesn't cap the total project cost. This necessitates rigorous government oversight of expenditures, clear definition of allowable costs, and strong change management processes to mitigate the risk of the government paying substantially more than initially anticipated.

What specific types of research or analysis are likely being conducted under this contract for CMS?

Given the contract is with CMS and falls under 'Research and Development in the Social Sciences and Humanities,' the research likely focuses on areas critical to Medicare and Medicaid program operations, policy, and beneficiary outcomes. This could include studies on healthcare utilization patterns, patient satisfaction, program effectiveness, health disparities, the impact of policy changes (e.g., new legislation or regulations), cost-effectiveness analyses of treatments or interventions, and the social determinants of health affecting Medicare and Medicaid populations. The 'humanities' aspect might involve qualitative research, ethical considerations in healthcare, or historical analyses relevant to healthcare policy.

How does the 'full and open competition' award mechanism impact the value and efficiency of this contract?

Awarding this contract through 'full and open competition' generally enhances value and efficiency for the government. This mechanism allows any interested and qualified vendor to submit a proposal, fostering a competitive environment. Competition typically drives down prices, encourages innovation, and ensures that the government selects the offer that provides the best overall value, considering factors like technical merit, past performance, and price. For a substantial R&D contract like this, open competition increases the likelihood that CMS will find a contractor capable of delivering high-quality research at a reasonable cost, compared to sole-source or limited competition scenarios.

What are the potential implications of the contract's long duration (2556 days) on its relevance and cost-effectiveness?

A contract duration of 2556 days (approximately 7 years) for R&D services presents both opportunities and challenges. On the positive side, it allows for long-term research projects, sustained data collection, and the development of deep expertise within the contractor organization, potentially leading to more comprehensive and impactful findings. However, it also carries risks. Research landscapes and policy priorities can shift significantly over 7 years, potentially making the initial research objectives outdated or less relevant. This necessitates built-in flexibility, regular reviews, and potential modifications to the scope of work to ensure the research remains aligned with current needs. Cost-effectiveness over such a long period depends heavily on effective program management, milestone achievement, and the continued value derived from the research outcomes.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Social Sciences and Humanities

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

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3040 CORNWALLIS RD, RESEARCH TRIANGLE PARK, NC, 27709

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

Financial Breakdown

Contract Ceiling: $154,711,996

Exercised Options: $154,711,996

Current Obligation: $154,711,996

Actual Outlays: $101,580,202

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $23,232,675

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSM500201400037I

IDV Type: IDC

Timeline