HHS awards $2.27M task order for scientific services to Sanford Research, extending contract through 2026

Contract Overview

Contract Amount: $2,272,716 ($2.3M)

Contractor: Sanford Research

Awarding Agency: Department of Health and Human Services

Start Date: 2024-09-27

End Date: 2026-09-19

Contract Duration: 722 days

Daily Burn Rate: $3.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST NO FEE

Sector: R&D

Official Description: CONNECT TASK ORDER 8

Place of Performance

Location: SIOUX FALLS, MINNEHAHA County, SOUTH DAKOTA, 57104

State: South Dakota Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.3 million to SANFORD RESEARCH for work described as: CONNECT TASK ORDER 8 Key points: 1. Value for money appears fair given the specialized nature of scientific services. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with performance tied to task order execution. 4. Performance context relies on successful completion of scientific tasks by Sanford Research. 5. Sector positioning is within professional scientific services, a critical area for NIH. 6. The contract duration of 722 days provides a stable period for service delivery.

Value Assessment

Rating: fair

Benchmarking the value for money on this specific task order is challenging without detailed service breakdowns. However, the cost-no-fee contract type suggests the contractor bears the financial risk for cost overruns, which can be a positive indicator for the government. Comparing to similar task orders for specialized scientific support at NIH would provide a clearer picture of pricing efficiency. The total award of $2.27 million over approximately two years suggests a moderate investment in scientific expertise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 4 bids (no: 4) suggests a reasonable level of competition for this specialized service. A competitive bidding process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces. It also allows the government to access the best available talent and solutions.

Public Impact

The primary beneficiaries are the National Institutes of Health (NIH) and its research initiatives, which will receive specialized scientific support. Services delivered will likely involve technical assistance, data analysis, or research support crucial for advancing public health. The geographic impact is centered around the contractor's location in South Dakota, but the research supported by NIH has national and global implications. Workforce implications include employment opportunities for scientific professionals at Sanford Research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if task order requirements are not clearly defined and managed.
Dependence on contractor's ability to maintain scientific expertise throughout the contract period.
Risk of delays if key personnel are not available or if research milestones are missed.

Positive Signals

Award to a known entity (Sanford Research) may indicate a track record of successful performance.
Cost-no-fee contract structure shifts some financial risk to the contractor.
Full and open competition suggests a robust selection process.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically under NAICS code 541990 (All Other Professional, Scientific, and Technical Services). This sector is vital for government research and development, encompassing a wide range of specialized expertise. Spending in this area supports agencies like NIH in their mission to advance scientific understanding and improve health outcomes. Comparable spending benchmarks would involve analyzing other task orders for similar scientific support services awarded by federal research agencies.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information about subcontracting plans. Given the specialized nature of scientific services, it's possible that larger, established research institutions like Sanford Research are best positioned to compete. Further analysis would be needed to determine if small businesses have opportunities to participate as subcontractors.

Oversight & Accountability

Oversight for this task order will likely be managed by the contracting officer and program officials within the National Institutes of Health. Accountability measures will be tied to the successful completion of deliverables and milestones outlined in the task order. Transparency is generally maintained through contract award databases, though specific performance details may be proprietary.

Related Government Programs

NIH Research Grants
Biomedical Research Support
Scientific and Technical Consulting Services
Federal R&D Contracts

Risk Flags

Performance Risk
Cost Control Risk (indirectly, due to cost-no-fee)
Personnel Continuity Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.3 million to SANFORD RESEARCH. CONNECT TASK ORDER 8

Who is the contractor on this award?

The obligated recipient is SANFORD RESEARCH.

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 $2.3 million.

What is the period of performance?

Start: 2024-09-27. End: 2026-09-19.

What is Sanford Research's track record with federal contracts, particularly with NIH?

Sanford Research has a history of receiving federal funding and contracts, including those from agencies like the National Institutes of Health. While specific details on past performance for this exact type of task order require deeper investigation into contract databases and performance reports, their continued engagement with federal agencies suggests a capacity to meet contractual obligations. Analyzing past awards, completion success rates, and any reported issues or commendations would provide a more comprehensive understanding of their track record. The current award itself, as a delivery order under a larger contract vehicle, implies a prior vetting process.

How does the $2.27 million award compare to similar scientific services contracts at NIH?

Comparing the $2.27 million award for this task order requires access to a broader dataset of NIH contracts for 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) over a similar timeframe and duration. Without that comparative data, it's difficult to definitively state if this represents a high, low, or average value. However, considering the contract is for approximately two years (722 days), the annual value is roughly $1.135 million. This figure can be benchmarked against other task orders providing specialized scientific support, research assistance, or technical services to NIH to assess its relative cost-effectiveness and market alignment.

What are the primary risks associated with this specific task order for NIH?

The primary risks associated with this task order include potential performance issues if Sanford Research fails to deliver the expected scientific outcomes or meet critical milestones. There's also a risk related to the cost-no-fee structure; while it shifts financial risk to the contractor, it could incentivize cost-cutting that impacts quality if not properly monitored. Furthermore, the specialized nature of the services means that a loss of key personnel at Sanford Research could significantly disrupt progress. Ensuring clear communication channels and robust oversight from NIH program managers will be crucial to mitigating these risks.

How effective is the 'full and open competition' approach for securing specialized scientific services like these?

The 'full and open competition' approach is generally considered highly effective for securing specialized scientific services as it maximizes the pool of potential offerors, thereby increasing the likelihood of finding the best technical solution at a competitive price. For services requiring unique expertise, this method allows agencies to solicit proposals from a wide range of qualified organizations, including both established leaders and innovative newcomers. The presence of 4 bids suggests that the market for these services is sufficiently robust to support competition. This process fosters price discovery and ensures that the government is not unduly limited in its options, ultimately serving taxpayer interests.

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

NIH consistently allocates significant funding towards 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) due to its mission-critical research and development activities. Historical spending in this category typically reflects the agency's priorities in areas such as biomedical research, data analysis, laboratory support, and specialized technical consulting. Analyzing past fiscal years would reveal trends in contract values, types of services procured, and the primary contractors. This specific $2.27 million task order represents a portion of that broader historical spending, contributing to NIH's ongoing scientific endeavors.

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: 2301 E 60TH ST N, SIOUX FALLS, SD, 57104

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: $4,023,281

Exercised Options: $2,458,966

Current Obligation: $2,272,716

Actual Outlays: $1,130,124

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75N91018D00022

IDV Type: IDC

Timeline