HHS awards $11.8M contract for research support services to Oak Ridge Associated Universities

Contract Overview

Contract Amount: $11,794,438 ($11.8M)

Contractor: OAK Ridge Associated Universities, Incorporated

Awarding Agency: Department of Health and Human Services

Start Date: 2023-01-02

End Date: 2026-03-31

Contract Duration: 1,184 days

Daily Burn Rate: $10.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: TECHNICAL ASSISTANCE SERVICES IN SUPPORT TO THE INITIATIVE TO SUPPORT PROMISING RESEARCH (INSPIRE) PROGRAM

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $11.8 million to OAK RIDGE ASSOCIATED UNIVERSITIES, INCORPORATED for work described as: TECHNICAL ASSISTANCE SERVICES IN SUPPORT TO THE INITIATIVE TO SUPPORT PROMISING RESEARCH (INSPIRE) PROGRAM Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of approximately 3 years provides a stable period for service delivery. 3. Services fall under Administrative Management and General Management Consulting, a broad category. 4. The contract type is Time and Materials, which can pose cost control challenges if not managed closely. 5. The awardee, Oak Ridge Associated Universities, Inc., has a track record with federal contracts. 6. The contract is a delivery order, indicating it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or contract.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more detailed cost breakdowns and comparison to similar research support services. The Time and Materials (T&M) pricing structure necessitates careful monitoring to ensure cost-effectiveness, as it can lead to higher costs if not managed diligently. The award amount of $11.8 million over roughly three years suggests a moderate investment in research support.

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. This typically suggests a robust bidding process with multiple interested parties. The specific number of bidders is not provided, but the 'full and open' designation implies a competitive environment that should theoretically drive better pricing and service offerings.

Taxpayer Impact: A competitive award process generally benefits taxpayers by fostering price discovery and potentially leading to more cost-effective solutions compared to sole-source or limited competition scenarios.

Public Impact

The primary beneficiaries are likely researchers and institutions involved in the INSPIRE program, receiving essential administrative and management support. Services delivered include technical assistance, crucial for the smooth operation and advancement of promising research initiatives. The geographic impact is not specified but likely centers around the awardee's operational base and the research institutions supported. Workforce implications may include employment opportunities for consultants and administrative staff at Oak Ridge Associated Universities, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored.
Lack of specific performance metrics makes it difficult to assess the effectiveness of the technical assistance.
The broad nature of 'Administrative Management and General Management Consulting Services' could lead to scope creep if not well-defined.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
The awardee, Oak Ridge Associated Universities, Inc., has experience in federal contracting.
The contract duration provides stability for the supported research initiatives.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative and management consulting. This sector is vital for supporting government programs by providing specialized expertise. Comparable spending benchmarks would involve looking at other contracts for technical assistance and program management within HHS and other agencies supporting research and development initiatives.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the direct impact on small businesses through set-asides is minimal. However, the prime contractor, Oak Ridge Associated Universities, Inc., may engage small businesses as subcontractors, which would be a secondary impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is facilitated by the contract award being publicly available, though detailed performance reports may not be public.

Related Government Programs

National Institutes of Health (NIH) research grants and contracts
National Science Foundation (NSF) research support programs
Department of Energy (DOE) research and development funding

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Scope creep risk given the broad nature of consulting services.
Effectiveness assessment challenges without defined performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $11.8 million to OAK RIDGE ASSOCIATED UNIVERSITIES, INCORPORATED. TECHNICAL ASSISTANCE SERVICES IN SUPPORT TO THE INITIATIVE TO SUPPORT PROMISING RESEARCH (INSPIRE) PROGRAM

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 Medicare and Medicaid Services).

What is the total obligated amount?

The obligated amount is $11.8 million.

What is the period of performance?

Start: 2023-01-02. End: 2026-03-31.

What is the specific nature of the 'Initiative to Support Promising Research (INSPIRE)' program?

The 'Initiative to Support Promising Research (INSPIRE)' program, as supported by this contract, is designed to foster innovation and advance scientific discovery. While the provided data does not detail the program's specific objectives or research areas, such initiatives typically aim to identify and fund high-potential, early-stage research projects that may not fit traditional funding streams. The technical assistance services procured would likely focus on administrative support, project management, compliance, and facilitating the progress of these promising research endeavors, ensuring they receive the necessary operational backing to achieve their scientific goals.

How does the Time and Materials (T&M) contract type compare to other pricing structures for similar services?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to evolve, such as in research support. Unlike fixed-price contracts, T&M reimburses the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This offers flexibility but carries a higher risk of cost overruns for the government if not managed stringently. Compared to Firm-Fixed-Price (FFP) contracts, T&M can be less predictable in terms of final cost. Cost-Plus-Fixed-Fee (CPFF) contracts are another alternative where the contractor is reimbursed for costs plus a fixed fee, providing a balance between flexibility and cost certainty. For technical assistance, FFP might be suitable if the scope is very well-defined, but T&M or CPFF are common when adaptability is key.

What is Oak Ridge Associated Universities, Inc.'s track record with federal contracts, particularly within HHS?

Oak Ridge Associated Universities, Inc. (ORAU) has a significant history of performing work for U.S. federal agencies, including the Department of Health and Human Services (HHS). ORAU specializes in managing research programs, scientific workforce development, and providing technical and administrative support for scientific initiatives. Their experience often involves managing large-scale projects, coordinating research networks, and ensuring compliance with federal regulations. While specific details of past performance on similar HHS contracts are not provided in this data snippet, ORAU's established presence and focus on scientific and research support suggest a relevant background for this INSPIRE program contract.

What are the potential risks associated with a 'Delivery Order' under a larger contract vehicle?

A 'Delivery Order' (DO) is typically issued under an existing Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract or a similar master agreement. The primary risk associated with a DO is that it represents a specific task or project within a potentially broader contract. If the underlying IDIQ contract was not competitively awarded or has inherent risks (e.g., poorly defined scope, unfavorable terms), those risks can cascade to the DO. However, if the IDIQ was competitively awarded and well-managed, DOs can offer flexibility and efficiency. For this specific contract, the fact that it's a DO under 'FULL AND OPEN COMPETITION' suggests the underlying vehicle likely underwent a competitive process, mitigating some risks, but the specific terms of the DO itself still require careful oversight.

How does the 'Administrative Management and General Management Consulting Services' NAICS code (541611) typically relate to research support?

The North American Industry Classification System (NAICS) code 541611, 'Administrative Management and General Management Consulting Services,' broadly covers establishments primarily engaged in providing operating advice and assistance on matters of administrative management, such as: financial management, human resources management, marketing, production planning and control, materials management, office planning, business policies, planning and control, etc. In the context of research support like the INSPIRE program, this NAICS code signifies that the contractor is providing essential operational and strategic guidance to manage the research initiative effectively. This can include project planning, resource allocation, compliance oversight, stakeholder communication, and overall program administration, ensuring the research activities are conducted efficiently and meet their objectives.

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

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

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: $15,543,659

Exercised Options: $11,794,438

Current Obligation: $11,794,438

Actual Outlays: $7,061,930

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F195CA

IDV Type: FSS

Timeline