HHS awards $197M contract to Research Triangle Institute for National Survey on Drug Use and Health through 2029

Contract Overview

Contract Amount: $196,989,089 ($197.0M)

Contractor: Research Triangle Institute

Awarding Agency: Department of Health and Human Services

Start Date: 2022-05-01

End Date: 2029-09-30

Contract Duration: 2,709 days

Daily Burn Rate: $72.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: REF. NO. 283-22-00568, "2023-2027 NATIONAL SURVEY ON DRUG USE AND HEALTH (NSDUH)"

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27709

State: North Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $197.0 million to RESEARCH TRIANGLE INSTITUTE for work described as: REF. NO. 283-22-00568, "2023-2027 NATIONAL SURVEY ON DRUG USE AND HEALTH (NSDUH)" Key points: 1. Contract value of $196,989,089 over approximately 7 years represents a significant investment in understanding national substance use trends. 2. The contract was awarded using full and open competition, suggesting a robust selection process. 3. The cost-plus-award-fee (CPA) structure incentivizes performance but requires careful monitoring of costs and award criteria. 4. Research Triangle Institute, a long-standing research organization, is positioned to leverage its expertise in large-scale surveys. 5. The definitive contract type allows for flexibility in task orders over the contract period. 6. The National Survey on Drug Use and Health (NSDUH) is a critical data source for public health policy and resource allocation.

Value Assessment

Rating: good

The total contract value of approximately $197 million over nearly 7.5 years averages to roughly $26 million annually. This figure needs to be benchmarked against the cost of similar large-scale, longitudinal national surveys. Given the complexity and scope of the NSDUH, the pricing appears reasonable, though a detailed cost breakdown and comparison to prior NSDUH contract iterations would provide a more precise value assessment. The cost-plus-award-fee structure allows for performance-based incentives, which can drive efficiency and effectiveness, but also necessitates rigorous oversight to ensure costs remain justified.

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 proposals. This approach typically fosters a competitive environment, encouraging multiple bidders to offer their best technical solutions and pricing. The presence of two bids suggests a degree of competition, though the specific number of proposals received and the evaluation criteria would offer a clearer picture of the competitive intensity and its impact on price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a wider range of offers and potentially driving down costs through market forces. This ensures that the government is likely receiving competitive pricing and the best value for taxpayer dollars.

Public Impact

The primary beneficiaries are federal agencies, researchers, policymakers, and public health organizations who rely on the NSDUH data to inform strategies and interventions related to drug use and mental health. The contract will deliver critical data through the continuation of the National Survey on Drug Use and Health, a cornerstone of substance abuse research in the U.S. The geographic impact is national, covering all states and the District of Columbia, providing a comprehensive understanding of trends across diverse populations. Workforce implications include employment for survey researchers, data collectors, analysts, and support staff at Research Triangle Institute and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The cost-plus-award-fee (CPA) contract type requires diligent oversight to ensure that costs are reasonable and that award fees are earned based on objective performance metrics, preventing potential cost overruns.
The long duration of the contract (over 7 years) necessitates ongoing performance monitoring to ensure sustained quality and relevance of the survey data.
The complexity of conducting a national survey means that managing data quality, respondent engagement, and methodological rigor are continuous challenges.

Positive Signals

The award to Research Triangle Institute, an established research organization with a proven track record in large-scale surveys, suggests a high likelihood of successful execution.
The use of full and open competition indicates a commitment to obtaining the best value and technical solution through a competitive process.
The definitive contract structure provides flexibility to adapt to evolving research needs and survey methodologies over the contract's lifespan.

Sector Analysis

The 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 characterized by a wide range of specialized services, including research and development, consulting, and data analysis. The market for large-scale national surveys is relatively concentrated, with a few established research organizations possessing the infrastructure and expertise to undertake such complex projects. The annual spending on this contract, averaging around $26 million, is substantial within this sub-sector, reflecting the critical nature and scope of the NSDUH.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific small business subcontracting requirements in the provided data. This suggests that the primary focus was on securing the most capable large-scale research organization for this complex national survey. The absence of set-asides means that opportunities for small businesses would likely be through subcontracting if Research Triangle Institute chooses to engage them for specific services, rather than direct prime contracting.

Oversight & Accountability

Oversight for this contract will likely be managed by the Substance Abuse and Mental Health Services Administration (SAMHSA) within HHS. Mechanisms would include regular progress reports, performance reviews against award fee criteria, and potentially site visits. The Inspector General's office for HHS would have jurisdiction for audits and investigations into fraud, waste, or abuse. Transparency is typically achieved through the publication of survey results and methodologies, though the internal contract management details may be less public.

Related Government Programs

National Health and Nutrition Examination Survey (NHANES)
Behavioral Risk Factor Surveillance System (BRFSS)
Monitoring the Future Survey
National Epidemiologic Study on Alcohol and Related Conditions (NESARC)

Risk Flags

Cost-plus-award-fee requires diligent oversight
Long contract duration may pose risks to sustained quality and relevance
Potential for scope creep over the extended period

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $197.0 million to RESEARCH TRIANGLE INSTITUTE. REF. NO. 283-22-00568, "2023-2027 NATIONAL SURVEY ON DRUG USE AND HEALTH (NSDUH)"

Who is the contractor on this award?

The obligated recipient is RESEARCH TRIANGLE INSTITUTE.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Substance Abuse and Mental Health Services Administration).

What is the total obligated amount?

The obligated amount is $197.0 million.

What is the period of performance?

Start: 2022-05-01. End: 2029-09-30.

What is the historical spending trend for the National Survey on Drug Use and Health (NSDUH)?

Historical spending on the NSDUH has shown a consistent upward trend, reflecting the increasing costs associated with conducting large-scale, complex national surveys and the evolving methodologies required. While the current award of approximately $197 million over nearly 7.5 years (2022-2029) represents a significant investment, it is crucial to analyze year-over-year spending in previous contract periods. For instance, prior contracts for NSDUH have typically ranged from $20 million to $30 million annually. Understanding these historical patterns helps in assessing whether the current contract value is aligned with inflation, scope expansion, or increased data collection complexity. Analyzing the total obligated amounts and the number of contract modifications over time can also reveal trends in program execution and potential cost adjustments.

How does the cost-plus-award-fee (CPA) structure impact the value for money in this contract?

The Cost-Plus-Award-Fee (CPA) structure is designed to incentivize contractor performance by allowing the contractor to recover allowable costs plus an award fee that is based on achieving specific performance objectives. For the NSDUH contract, this means Research Triangle Institute (RTI) is reimbursed for its expenses, and then potentially earns an additional fee if it meets or exceeds predefined performance standards related to data quality, timeliness, survey methodology, and reporting. This structure can enhance value for money by encouraging RTI to go beyond minimum requirements, leading to higher quality data and more impactful research findings. However, it also necessitates robust government oversight to ensure that the performance metrics are clearly defined, objectively measurable, and that the award fees are justified by actual performance, preventing potential overpayment or inflated costs.

What is Research Triangle Institute's track record with large-scale federal surveys?

Research Triangle Institute (RTI) has a long and well-established track record of successfully conducting large-scale, complex federal surveys. They have been a primary contractor for the National Survey on Drug Use and Health (NSDUH) for many years, demonstrating their capability to manage such a critical and extensive project. Beyond NSDUH, RTI has extensive experience with other major federal health and social science surveys, including the National Health and Nutrition Examination Survey (NHANES), the National Longitudinal Study of Adolescent to Adult Health (Add Health), and various surveys for agencies like the Centers for Disease Control and Prevention (CDC) and the National Institutes of Health (NIH). Their history indicates a strong capacity for survey design, sampling, data collection, analysis, and reporting, making them a highly qualified incumbent for this type of contract.

What are the potential risks associated with the long duration of this contract?

The long duration of this contract, spanning from May 2022 to September 2029 (over 7 years), presents several potential risks. Firstly, there's a risk of scope creep or the need for significant methodological adjustments over time due to evolving research needs or changes in the landscape of drug use and mental health. Managing these changes effectively within the contract framework is crucial. Secondly, maintaining consistent data quality and survey relevance over such an extended period can be challenging; respondent fatigue, changes in population demographics, and the emergence of new substances or behaviors require continuous adaptation. Thirdly, the long-term nature of the contract might reduce competitive pressure if the contractor becomes entrenched, potentially impacting future value for money unless strong performance incentives and oversight are maintained. Finally, economic fluctuations or shifts in federal priorities could impact funding stability or necessitate contract modifications.

How does the 'All Other Professional, Scientific, and Technical Services' category compare to other federal spending?

The 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) category is a broad classification encompassing a diverse array of specialized services that don't fit into more specific categories like engineering, research and development, or computer systems design. Federal spending within this category is substantial, reflecting the government's reliance on external expertise for a wide range of functions, from scientific research and data analysis to management consulting and environmental services. While specific dollar amounts for this broad category fluctuate annually based on agency needs and budget allocations, it consistently represents a significant portion of the federal services procurement budget. Compared to major spending areas like Defense or Healthcare services, this category might appear smaller in aggregate, but it is critical for supporting specialized governmental functions and research initiatives like the NSDUH.

Industry Classification

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

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 283-22-0568

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 3040 E CORNWALLIS RD, RESEARCH TRIANGLE PARK, NC, 27709

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: $272,044,088

Exercised Options: $266,651,663

Current Obligation: $196,989,089

Actual Outlays: $143,436,616

Subaward Activity

Number of Subawards: 34

Total Subaward Amount: $11,641,359

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline