HHS awards $9.5M task order to Kaiser for scientific services, with 4 bidders competing

Contract Overview

Contract Amount: $9,493,030 ($9.5M)

Contractor: Kaiser Foundation Hospitals

Awarding Agency: Department of Health and Human Services

Start Date: 2024-09-20

End Date: 2026-09-19

Contract Duration: 729 days

Daily Burn Rate: $13.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST NO FEE

Sector: Healthcare

Official Description: CONNECT TASK ORDER 8

Place of Performance

Location: AURORA, ARAPAHOE County, COLORADO, 80014

State: Colorado Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $9.5 million to KAISER FOUNDATION HOSPITALS for work described as: CONNECT TASK ORDER 8 Key points: 1. Value for money appears reasonable given the competitive nature of the award. 2. Strong competition dynamics suggest fair pricing was achieved. 3. No immediate risk indicators are apparent from the contract details. 4. Performance context is within scientific and technical services, a broad category. 5. This contract fits within the Health and Human Services sector's research and development activities.

Value Assessment

Rating: good

The $9.5 million award for scientific services is a moderate-sized contract. Benchmarking against similar task orders for professional, scientific, and technical services (NAICS 541990) would provide a clearer picture of value. However, the presence of four bidders in a full and open competition suggests that the pricing is likely competitive and reflects market rates for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, with four distinct bidders submitting proposals. This level of competition is generally positive, indicating that multiple capable vendors were aware of and interested in the opportunity. The presence of four bidders suggests a healthy market for these services and likely contributed to achieving a fair market price.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers, as it drives down costs through market forces and ensures that the government receives the best possible value for its investment.

Public Impact

The primary beneficiaries are likely researchers and scientific initiatives funded by the National Institutes of Health. Services delivered will support various scientific and technical projects within NIH. The geographic impact is primarily within Colorado, where the contractor is based, but the research supported may have national implications. Workforce implications include employment for scientific and technical professionals at Kaiser Foundation Hospitals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, indicating broad market access.
Multiple bidders (4) participated, suggesting a competitive environment.
Contract type is Cost No Fee, which aligns costs with performance.
Task order duration is reasonable for the scope of services.

Sector Analysis

The Professional, Scientific, and Technical Services sector (NAICS 541990) is a broad category encompassing a wide range of specialized expertise. This contract falls within the research and development sub-sector, particularly supporting health-related scientific endeavors. Spending in this area is crucial for advancing medical knowledge and public health initiatives. Comparable spending benchmarks would typically be found within NIH's overall budget for scientific support services.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature of the services and the prime contractor, it is possible that subcontracting opportunities for small businesses may exist, but this is not explicitly detailed in the provided data. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this task order would primarily fall under the National Institutes of Health (NIH), a component of the Department of Health and Human Services (HHS). Standard contract management and performance monitoring processes are expected to be in place. Transparency is facilitated by public contract databases, and the Inspector General for HHS would have jurisdiction in cases of fraud or mismanagement.

Related Government Programs

NIH Research Grants
HHS Scientific Support Services
Federal Health Research Contracts
Professional and Technical Services

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $9.5 million to KAISER FOUNDATION HOSPITALS. CONNECT TASK ORDER 8

Who is the contractor on this award?

The obligated recipient is KAISER FOUNDATION HOSPITALS.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $9.5 million.

What is the period of performance?

Start: 2024-09-20. End: 2026-09-19.

What is Kaiser Foundation Hospitals' track record with federal contracts, particularly with NIH?

Kaiser Foundation Hospitals, while a prominent healthcare provider, may have a more specialized track record with federal contracts compared to traditional government contractors. Their federal contract history, especially with the National Institutes of Health (NIH), would need to be reviewed to assess their experience in delivering scientific and technical services. A review of contract databases like SAM.gov or FPDS would reveal past awards, performance history, and any reported issues. Their primary strength lies in healthcare delivery, so their success in this specific scientific services task order would depend on the relevant expertise within their organization or any specialized divisions they may have.

How does the $9.5 million value compare to similar scientific services contracts awarded by NIH?

The $9.5 million value for this task order is a moderate award within the context of NIH's extensive research and development budget. To benchmark effectively, one would compare this against other task orders issued under NAICS code 541990 (All Other Professional, Scientific, and Technical Services) or related scientific support codes, specifically those awarded by NIH over the past 1-3 years. Factors such as contract duration, scope of work, and the number of bidders influence pricing. If similar contracts with comparable scopes and durations were awarded at significantly lower or higher price points, it would indicate whether this award represents particularly good or fair value. The presence of four bidders suggests competitive pressure, which typically helps align pricing with market norms.

What are the primary risks associated with this 'All Other Professional, Scientific, and Technical Services' contract?

The primary risks for a contract categorized under 'All Other Professional, Scientific, and Technical Services' often revolve around the definition and scope of work. Ambiguity in requirements can lead to cost overruns, schedule delays, and performance issues. For this specific task order, risks could include the contractor's ability to recruit and retain highly specialized scientific personnel, potential challenges in meeting specific research objectives, or unforeseen technical hurdles. Given it's a Cost No Fee (CNF) contract, the government bears the cost risk, but performance failures can still impact program goals. Effective project management, clear communication, and robust oversight are crucial to mitigate these risks.

How effective is full and open competition in ensuring value for money for scientific services like these?

Full and open competition is generally considered the most effective method for ensuring value for money, especially for services where a broad market of capable providers exists. In this case, with four bidders vying for the task order, the competitive process likely drove down prices and encouraged innovation. It allows the government to evaluate a wider range of technical approaches and pricing structures, selecting the best overall value. For scientific services, where expertise and methodology can vary significantly, competition ensures that NIH is exposed to diverse solutions and can choose the most efficient and effective path forward, thereby maximizing the return on taxpayer investment.

What is the historical spending pattern for 'All Other Professional, Scientific, and Technical Services' at NIH?

Historical spending patterns for NAICS 541990 at NIH reveal a consistent and significant investment in external expertise to support its vast research mission. NIH frequently utilizes contracts within this category to procure specialized scientific support, data analysis, laboratory services, and technical consulting that may not be available in-house or requires specific, time-limited expertise. Annual spending in this category can range from hundreds of millions to over a billion dollars, reflecting the breadth of NIH's scientific endeavors. This $9.5 million task order represents a small fraction of that overall historical expenditure, fitting within the typical procurement landscape for such services.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 2024-01

Offers Received: 4

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 1800 HARRISON ST FL 16, OAKLAND, CA, 94612

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

Financial Breakdown

Contract Ceiling: $20,067,721

Exercised Options: $14,436,014

Current Obligation: $9,493,030

Actual Outlays: $2,741,886

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75N91018D00021

IDV Type: IDC

Timeline