HHS awards $7.99M contract for scientific resource center to Portland VA Research Foundation

Contract Overview

Contract Amount: $7,987,799 ($8.0M)

Contractor: Portland VA Research Foundation, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2022-09-16

End Date: 2026-09-15

Contract Duration: 1,460 days

Daily Burn Rate: $5.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST NO FEE

Sector: Healthcare

Official Description: EPC PROGRAM SCIENTIFIC RESOURCE CENTER IV

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97239

State: Oregon Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $8.0 million to PORTLAND VA RESEARCH FOUNDATION, INC. for work described as: EPC PROGRAM SCIENTIFIC RESOURCE CENTER IV Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is a Definitive Contract, indicating a firm commitment for a set period. 3. The duration of 1460 days (4 years) suggests a long-term need for these scientific resources. 4. The contractor, Portland VA Research Foundation, Inc., has a connection to the VA system, potentially offering specialized expertise. 5. The award amount of $7.99M over four years averages to approximately $2M annually. 6. The NAICS code 541990 points to 'All Other Professional, Scientific, and Technical Services', a broad category. 7. The contract is not set aside for small businesses, implying larger firms or established organizations were likely participants.

Value Assessment

Rating: good

The contract value of $7.99M over four years for a scientific resource center appears reasonable given the scope of 'All Other Professional, Scientific, and Technical Services'. Benchmarking against similar contracts for scientific support services would provide a more precise value-for-money assessment. The Cost No Fee (CNF) contract type suggests the contractor bears the financial risk, which can be a positive indicator for the government if managed effectively. However, without specific performance metrics or deliverables, a definitive assessment of value is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of two bids suggests a moderate level of competition for this requirement. A higher number of bidders typically leads to more competitive pricing and a wider range of innovative solutions. The fact that it was competed openly is a positive sign for price discovery and ensuring the government receives fair market value.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received. It ensures that the government is not limited to a single provider, increasing the likelihood of obtaining the best possible outcome for public funds.

Public Impact

The primary beneficiaries are likely researchers and healthcare professionals within the Department of Health and Human Services (HHS) who will utilize the scientific resources provided. The contract supports the Agency for Healthcare Research and Quality (AHRQ) in its mission to improve the quality of healthcare. The services delivered are expected to be professional, scientific, and technical in nature, contributing to research and development efforts. The geographic impact is primarily within Oregon, where the contractor is based, but the scientific output could have national implications for healthcare research. Workforce implications may include employment opportunities for scientists, researchers, and technical staff at the Portland VA Research Foundation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in 'All Other Professional, Scientific, and Technical Services' if not clearly defined.
Reliance on a single contractor for a significant period could lead to complacency or reduced innovation over time.
The 'Cost No Fee' structure requires careful monitoring to ensure the contractor is managing costs effectively without compromising quality.

Positive Signals

Awarded through full and open competition, indicating a robust and fair bidding process.
The contractor's affiliation with the VA system may bring specialized knowledge and experience in research support.
A four-year contract duration suggests stability and a clear commitment from the agency, allowing for long-term project planning.

Sector Analysis

The contract falls under the broad 'Professional, Scientific, and Technical Services' sector, specifically NAICS code 541990. This sector is characterized by a wide range of specialized services, including research and development, consulting, and technical support. The market size for such services is substantial, with government agencies being significant consumers. This contract likely supports AHRQ's efforts in advancing healthcare research and evidence-based practices, fitting within the broader landscape of health-related scientific endeavors.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'sb': false. This suggests that the requirement was likely too large or specialized for small business participation, or that the competition was open to all responsible sources regardless of size. There is no explicit mention of subcontracting requirements for small businesses, which could limit opportunities for smaller entities to participate in this specific contract's execution.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the Agency for Healthcare Research and Quality (AHRQ). Performance monitoring, deliverable reviews, and financial oversight are standard mechanisms. Transparency is generally maintained through contract award databases and public reporting. Specific Inspector General (IG) jurisdiction would depend on the nature of any potential fraud, waste, or abuse identified within HHS.

Related Government Programs

National Institutes of Health (NIH) research grants
Centers for Disease Control and Prevention (CDC) research initiatives
Department of Veterans Affairs (VA) research programs
National Science Foundation (NSF) research funding

Risk Flags

Potential for cost overruns if contractor cost management is weak.
Risk of undefined scope leading to contract disputes or unmet needs.
Dependency on a single contractor for critical scientific resources.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $8.0 million to PORTLAND VA RESEARCH FOUNDATION, INC.. EPC PROGRAM SCIENTIFIC RESOURCE CENTER IV

Who is the contractor on this award?

The obligated recipient is PORTLAND VA RESEARCH FOUNDATION, INC..

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 $8.0 million.

What is the period of performance?

Start: 2022-09-16. End: 2026-09-15.

What is the specific nature of the 'scientific resources' to be provided under this contract?

The contract description 'EPC PROGRAM SCIENTIFIC RESOURCE CENTER IV' and the NAICS code 541990 ('All Other Professional, Scientific, and Technical Services') indicate a broad scope. While specific details are not provided in the summary data, such contracts typically involve providing expertise, data analysis, literature reviews, research support, technical assistance, and potentially access to specialized equipment or databases. The 'EPC PROGRAM' likely refers to a specific initiative within AHRQ or HHS focused on evidence-based practice or a similar area, requiring ongoing scientific consultation and resource provision to support its objectives and research activities.

How does the $7.99M award compare to similar scientific resource center contracts?

Benchmarking the $7.99M award requires comparing it to contracts with similar scopes of work, durations, and agencies. Contracts for scientific support, research services, or technical resource centers can vary significantly in cost based on specialization, geographic location, and the level of expertise required. Without access to a database of comparable contracts, it's difficult to definitively state if this is high or low. However, an average annual cost of approximately $2M for a four-year scientific resource center contract appears within a reasonable range for specialized government support services, assuming a significant scope of work and qualified personnel are involved.

What are the key performance indicators (KPIs) or deliverables expected under this contract?

The provided data does not specify the key performance indicators (KPIs) or deliverables for this contract. Typically, for a 'Scientific Resource Center' contract, KPIs would focus on the timeliness and quality of research support, accuracy of data analysis, completeness of literature reviews, responsiveness to requests, and the overall impact of the resources provided on the agency's mission. Deliverables might include reports, analyses, curated datasets, technical guidance documents, or presentations. Effective oversight would involve clearly defined KPIs and regular reviews of deliverables against established standards.

What is the track record of Portland VA Research Foundation, Inc. in managing government contracts of this size and scope?

Portland VA Research Foundation, Inc. (PVARF) has a history of managing research grants and contracts, particularly those related to healthcare and veterans' health, given its affiliation with the VA. While specific details on their track record with contracts of this exact size ($7.99M definitive contract) and scope ('Scientific Resource Center') are not in the summary data, their established presence suggests experience in research administration and compliance. A deeper dive into their contract history, including past performance reviews and any reported issues, would be necessary for a comprehensive assessment of their capabilities for this specific award.

What are the potential risks associated with a 'Cost No Fee' contract type for this service?

The 'Cost No Fee' (CNF) contract type places the financial risk on the contractor, meaning they are reimbursed for allowable costs but do not receive a profit. For the government, the primary risk with CNF contracts is ensuring that the contractor manages costs efficiently and does not cut corners on quality to stay within budget. Robust oversight is crucial to monitor expenditures and verify that the work performed meets the required standards. If the contractor underestimates costs or faces unforeseen expenses, they may struggle to complete the work, potentially leading to delays or performance issues, although the government is obligated to cover approved costs.

How does this contract align with the strategic goals of the Agency for Healthcare Research and Quality (AHRQ)?

This contract directly supports AHRQ's mission to produce evidence to make healthcare safer, higher quality, more accessible, equitable, and affordable. A 'Scientific Resource Center' likely provides critical research support, data analysis, and evidence synthesis that underpins AHRQ's development of guidelines, tools, and research findings. By contracting for these specialized services, AHRQ can leverage external expertise to enhance its capacity for research and dissemination, thereby advancing its strategic objectives in improving healthcare outcomes and informing healthcare policy and practice.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: AHRQ-22-10004

Offers Received: 2

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 3710 SW US VETERANS HOSPITAL RD G218, PORTLAND, OR, 97239

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: $10,173,529

Exercised Options: $7,987,799

Current Obligation: $7,987,799

Actual Outlays: $5,372,417

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline