HHS awarded $24.3M for health IT privacy and security services to Research Triangle Institute

Contract Overview

Contract Amount: $24,314,149 ($24.3M)

Contractor: Research Triangle Institute

Awarding Agency: Department of Health and Human Services

Start Date: 2005-09-30

End Date: 2009-08-31

Contract Duration: 1,431 days

Daily Burn Rate: $17.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: COST PLUS FIXED FEE

Sector: Healthcare

Official Description: HEALTH INFORMATION IT PRIVACY AND SECURITY

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27709, UNITED STATES OF AMERICA

State: North Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $24.3 million to RESEARCH TRIANGLE INSTITUTE for work described as: HEALTH INFORMATION IT PRIVACY AND SECURITY Key points: 1. The contract value of $24.3 million over approximately four years represents a significant investment in health IT security. 2. The services provided fall under 'All Other Professional, Scientific, and Technical Services,' a broad category. 3. The contract was awarded under full and open competition, suggesting a robust bidding process. 4. The contract's duration of nearly four years allowed for sustained effort in a critical area. 5. The fixed-fee structure provides some cost certainty for the government, though the 'cost plus' element allows for flexibility. 6. The award to Research Triangle Institute, a known research organization, suggests a focus on expertise in the field.

Value Assessment

Rating: good

Benchmarking this contract's value is challenging without specific service details and comparable contracts. However, $24.3 million over nearly four years for specialized health IT privacy and security services appears reasonable, especially given the critical nature of the work. The 'cost plus fixed fee' structure indicates that while a base fee was set, costs were reimbursed, which can sometimes lead to higher overall expenditures compared to fixed-price contracts if not managed tightly. Further analysis would require comparing the scope of work and deliverables to similar government contracts.

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 12 bidders suggests a healthy level of interest and competition for this requirement. A competitive process like this generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider range of qualified contractors, ensuring the government receives the best value for its investment.

Public Impact

The primary beneficiaries are federal agencies within the Department of Health and Human Services, which receive enhanced health information privacy and security. Services delivered likely include policy development, technical guidance, research, and implementation support for safeguarding sensitive health data. The geographic impact is national, supporting the federal government's mandate to protect health information across the United States. Workforce implications include the employment of researchers, IT security specialists, policy analysts, and project managers involved in health IT security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'cost plus' component of the contract type introduces potential for cost overruns if not rigorously monitored.
The broad nature of 'All Other Professional, Scientific, and Technical Services' can sometimes obscure specific performance metrics.
The contract's end date has passed, making current performance assessment difficult without follow-on data.

Positive Signals

Awarded under full and open competition with 12 bidders, indicating a competitive environment.
The contract duration of nearly four years allowed for sustained focus on critical health IT security issues.
The contractor, Research Triangle Institute, is a reputable organization with a history in research and technical services.

Sector Analysis

The health information technology sector is a rapidly growing and critical area within the broader IT industry. This contract fits within the professional, scientific, and technical services segment, focusing on the specialized niche of privacy and security for sensitive health data. The market for such services is substantial, driven by regulatory requirements like HIPAA and the increasing digitization of healthcare. Comparable spending benchmarks would involve looking at other federal contracts for health IT security consulting, research, and implementation support.

Small Business Impact

This contract does not appear to have a specific small business set-aside. Given the nature of the services and the prime contractor, it is possible that small businesses could be involved as subcontractors. However, without specific subcontracting plans or data, the direct impact on the small business ecosystem is unclear. Further investigation into subcontracting opportunities would be needed to assess the full impact.

Oversight & Accountability

Oversight for this contract would typically fall under the Agency for Healthcare Research and Quality (AHRQ) within HHS. Mechanisms likely included regular progress reports, performance reviews, and financial audits. Accountability would be tied to meeting the contract's deliverables and performance standards. Transparency is generally facilitated through contract award databases and public reporting, though specific project details might be sensitive.

Related Government Programs

Health Insurance Portability and Accountability Act (HIPAA) enforcement and guidance
Federal Health IT initiatives
Cybersecurity and data protection programs
Healthcare research and development funding

Risk Flags

Cost Overrun Potential (Cost Plus contract type)
Scope Creep Risk (Broad service category)
Performance Monitoring Challenges (Lack of specific metrics in summary data)

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $24.3 million to RESEARCH TRIANGLE INSTITUTE. HEALTH INFORMATION IT PRIVACY AND SECURITY

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 (Agency for Healthcare Research and Quality).

What is the total obligated amount?

The obligated amount is $24.3 million.

What is the period of performance?

Start: 2005-09-30. End: 2009-08-31.

What specific deliverables were expected under this contract for health information IT privacy and security?

While the provided data does not detail specific deliverables, contracts for health IT privacy and security typically involve developing and implementing security policies, conducting risk assessments, providing technical guidance on data protection technologies, researching best practices for safeguarding electronic health records (EHRs), and potentially assisting with compliance related to regulations like HIPAA. The 'All Other Professional, Scientific, and Technical Services' category suggests a broad scope that could encompass policy, research, and advisory services rather than direct IT system development or maintenance.

How does the 'Cost Plus Fixed Fee' contract type compare to other pricing structures for similar services?

The 'Cost Plus Fixed Fee' (CPFF) structure is common for research and development or complex services where the final cost is difficult to estimate precisely. The government reimburses the contractor for allowable costs incurred and pays a predetermined fixed fee representing profit. This differs from 'Fixed Price' contracts, where the contractor agrees to a set price regardless of costs, offering more cost certainty to the government but potentially higher risk for the contractor. 'Cost Plus Incentive Fee' contracts, for example, add incentives for meeting performance targets. CPFF provides flexibility but requires diligent oversight to manage costs effectively.

What is the track record of Research Triangle Institute (RTI) in performing health IT and security-related contracts?

Research Triangle Institute (RTI) is a well-established non-profit research institute with extensive experience in various scientific and technical fields, including health. RTI has a long history of performing government contracts, often involving research, analysis, and technical assistance. While specific details on their health IT privacy and security contract performance are not in the provided data, their general reputation and broad expertise suggest a capable contractor for such specialized work. A deeper dive into their contract history with HHS and other agencies would provide more granular insights.

What was the total spending on health IT privacy and security services by HHS around the period of this contract (2005-2009)?

The provided data focuses on a single contract awarded to Research Triangle Institute totaling $24.3 million. To understand the total spending on health IT privacy and security by HHS during the 2005-2009 period, a broader analysis of federal procurement databases would be necessary. This would involve searching for contracts across multiple agencies and contractors using relevant product/service codes (like NAICS 541990 or PSC codes related to IT security and health) and keywords. This single contract represents a portion of the overall federal investment in this critical area during that timeframe.

Were there any significant risks or challenges identified during the performance of this contract?

The provided data does not explicitly list risks or challenges encountered during the performance of this specific contract. However, general risks associated with health IT privacy and security projects include evolving threat landscapes, complexity of integrating security measures with existing systems, ensuring user adoption of new protocols, and navigating complex regulatory requirements. The 'Cost Plus' nature of the contract also implies a potential risk of cost escalation if not managed properly. Without a contract performance report or IG audit, specific issues remain unknown.

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

Offers Received: 12

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3040 CORNWALLIS ROAD, RESEARCH TRIANGLE PARK, NC, 27709

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $24,314,149

Exercised Options: $24,314,149

Current Obligation: $24,314,149

Timeline