HHS awards $26.2M contract for healthcare data analytics to American Institutes for Research

Contract Overview

Contract Amount: $26,206,300 ($26.2M)

Contractor: American Institutes for Research in the Behavioral Sciences

Awarding Agency: Department of Health and Human Services

Start Date: 2019-05-31

End Date: 2024-11-30

Contract Duration: 2,010 days

Daily Burn Rate: $13.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: Healthcare

Official Description: HEALTHCARE DATA ANALYTICS AND STATISTICAL PRODUCTS

Place of Performance

Location: COLUMBIA, HOWARD County, MARYLAND, 21044

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $26.2 million to AMERICAN INSTITUTES FOR RESEARCH IN THE BEHAVIORAL SCIENCES for work described as: HEALTHCARE DATA ANALYTICS AND STATISTICAL PRODUCTS Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of the contract is substantial, spanning from May 2019 to November 2024. 4. The North American Industry Classification System (NAICS) code 541990 indicates a broad range of professional, scientific, and technical services. 5. The contract is managed by the Agency for Healthcare Research and Quality (AHRQ). 6. The contract has a base period and potential for extensions, indicating ongoing need for these services. 7. The contract value is $26.2 million over its life.

Value Assessment

Rating: good

The contract value of $26.2 million over approximately five years for healthcare data analytics and statistical products appears reasonable given the scope and duration. Benchmarking against similar contracts for comprehensive data analysis services would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility, necessitates close monitoring to ensure costs remain within acceptable parameters and that the fixed fee is justified by the services rendered. Without specific performance metrics or detailed cost breakdowns, a definitive assessment of cost efficiency is challenging, but the competitive award process suggests an effort to secure fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 7 bidders suggests a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and encourages contractors to offer their best value propositions. The number of bidders implies that the market has multiple capable providers for these specialized data analytics and statistical services.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by driving down prices through market forces. It provides assurance that the government is not overpaying for the services received.

Public Impact

The primary beneficiaries are likely researchers, policymakers, and healthcare providers who will utilize the data analytics and statistical products to improve healthcare quality, safety, and efficiency. The services delivered are expected to support evidence-based decision-making in healthcare, contributing to advancements in medical research and public health initiatives. The geographic impact is national, as the findings and data products are intended to inform healthcare practices and policies across the United States. The contract supports a workforce of data analysts, statisticians, and researchers, contributing to the professional services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize cost overruns if not rigorously managed.
The long duration of the contract requires ongoing performance monitoring to ensure continued value.
The broad NAICS code may indicate a wide range of potential services, requiring clear scope management.

Positive Signals

Awarded through full and open competition with multiple bidders, indicating competitive pricing.
Contract supports critical healthcare research and policy development for the Agency for Healthcare Research and Quality.
The contract has a defined period of performance with clear end dates for each option.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on healthcare data analytics and statistical products. The market for such services is substantial, driven by the increasing volume of healthcare data and the need for sophisticated analysis to inform policy, research, and clinical practice. Comparable spending in this sector often involves large government agencies and private healthcare organizations investing in data infrastructure and analytical capabilities. The contract's value is moderate within the context of large-scale government IT and data services procurements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Given the nature of comprehensive data analytics and statistical services, it is common for larger, specialized firms to compete for and win such contracts. There is no explicit information provided regarding subcontracting plans for small businesses. Without a small business set-aside, the direct impact on the small business ecosystem for this specific contract is likely minimal, though larger prime contractors may engage small businesses for specialized support.

Oversight & Accountability

Oversight for this contract is likely managed by the Agency for Healthcare Research and Quality (AHRQ), the contracting agency. Performance monitoring, financial oversight, and adherence to contract terms would be key responsibilities. As a federal contract, it is subject to standard government procurement regulations and oversight mechanisms, including potential review by the Government Accountability Office (GAO) and relevant Inspector General offices. Transparency is generally maintained through contract databases like FPDS, which provide public access to contract details.

Related Government Programs

Healthcare Data Analytics Services
Statistical Consulting Services
Health Services Research
Public Health Data Management
Government IT Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long contract duration necessitates continuous performance monitoring.
Broad NAICS code requires clear scope definition and management.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $26.2 million to AMERICAN INSTITUTES FOR RESEARCH IN THE BEHAVIORAL SCIENCES. HEALTHCARE DATA ANALYTICS AND STATISTICAL PRODUCTS

Who is the contractor on this award?

The obligated recipient is AMERICAN INSTITUTES FOR RESEARCH IN THE BEHAVIORAL SCIENCES.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Agency for Healthcare Research and Quality).

What is the total obligated amount?

The obligated amount is $26.2 million.

What is the period of performance?

Start: 2019-05-31. End: 2024-11-30.

What is the track record of American Institutes for Research in performing similar government contracts?

American Institutes for Research (AIR) has a significant history of performing government contracts, particularly within the Department of Health and Human Services (HHS) and other federal agencies. Their expertise spans education, health, and workforce development, often involving complex data analysis, research, and program evaluation. Reviewing AIR's past performance on similar contracts, especially those involving large-scale data analytics and statistical reporting for agencies like AHRQ or CDC, would provide insight into their capabilities, reliability, and ability to meet government requirements. Past performance evaluations and any documented issues or successes on prior contracts are crucial for assessing their suitability for this role. Information on contract closeouts, any disputes, or contractor performance assessments would further inform this analysis.

How does the awarded value compare to similar healthcare data analytics contracts?

The awarded value of $26.2 million over approximately five years for healthcare data analytics and statistical products is a moderate figure for a federal contract of this nature. To benchmark effectively, one would need to compare it against contracts with similar scopes of work, durations, and complexity, particularly those awarded by agencies like AHRQ, CDC, or NIH. Factors such as the specific types of data analyzed (e.g., clinical, claims, survey), the analytical methodologies employed, and the deliverables (e.g., reports, software, datasets) significantly influence pricing. Contracts for large-scale health data warehousing, predictive modeling, or national health surveys might command higher values. Conversely, contracts focused on specific, smaller datasets or less complex analyses would be lower. The competitive nature of this award suggests the price is likely aligned with market rates for the defined services.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for data analytics?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to American Institutes for Research, is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. If the contractor's costs exceed initial estimates, the government bears the burden of these increased expenses, while the contractor's profit remains fixed. This can disincentivize cost control by the contractor. For data analytics, risks include unforeseen complexities in data cleaning, integration, or analysis, leading to extended labor hours. Effective risk mitigation requires robust government oversight, clear definition of allowable costs, stringent performance metrics, and proactive management to ensure the fixed fee remains appropriate for the work performed and that costs are controlled.

How effective is the Agency for Healthcare Research and Quality (AHRQ) in managing data analytics contracts?

The Agency for Healthcare Research and Quality (AHRQ) is a primary federal entity focused on improving the quality, safety, efficiency, and effectiveness of healthcare for all Americans. Managing data analytics contracts is central to its mission. AHRQ's effectiveness in managing such contracts is generally considered good, given its specialized focus and experienced personnel in health services research and data science. Their success hinges on clearly defining project scopes, establishing rigorous performance standards, and maintaining active oversight to ensure data integrity, analytical accuracy, and timely delivery of insights. Past contract performance data and AHRQ's track record in achieving its research and policy objectives through contracted services would provide a more definitive assessment of their management capabilities in this domain.

What are the historical spending patterns for healthcare data analytics at HHS?

Historical spending patterns for healthcare data analytics at the Department of Health and Human Services (HHS) have shown a consistent and increasing trend over the past decade. Driven by legislative mandates (like the Affordable Care Act), technological advancements in data collection and storage, and a growing emphasis on evidence-based policy and value-based care, HHS agencies such as the Centers for Medicare & Medicaid Services (CMS), the National Institutes of Health (NIH), and the Agency for Healthcare Research and Quality (AHRQ) have significantly increased their investments in data analytics capabilities. This includes spending on data infrastructure, software, specialized personnel, and external contracts for analysis and research. The total annual spending across HHS for data analytics services likely runs into billions of dollars, reflecting the critical role data plays in achieving HHS's public health and healthcare system improvement goals.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: AHRQ1910005

Offers Received: 7

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1400 CRYSTAL DR 10TH FLR, ARLINGTON, VA, 22202

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: $27,006,300

Exercised Options: $26,206,300

Current Obligation: $26,206,300

Actual Outlays: $17,236,234

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $10,151,134

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline