HHS's $16.17M contract with WESTAT, INC. for professional services shows fair value with 5 bidders
Contract Overview
Contract Amount: $16,172,019 ($16.2M)
Contractor: Westat, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2006-09-27
End Date: 2011-09-26
Contract Duration: 1,825 days
Daily Burn Rate: $8.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: INNOVATIONS CLEARINGHOUSE
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850, UNITED STATES OF AMERICA
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $16.2 million to WESTAT, INC. for work described as: INNOVATIONS CLEARINGHOUSE Key points: 1. The contract's value appears reasonable given the scope of professional, scientific, and technical services provided. 2. Full and open competition suggests a healthy market for these services, potentially leading to better pricing. 3. The Cost Plus Award Fee (CPAF) structure incentivizes performance but requires careful monitoring to manage costs. 4. The contract duration of 5 years (1825 days) indicates a significant, long-term need for these services. 5. The contractor, WESTAT, INC., is based in Maryland, a hub for federal contracting activity. 6. The North American Industry Classification System (NAICS) code 541990 covers a broad range of services, making direct cost comparisons challenging.
Value Assessment
Rating: fair
The contract's total value of $16.17 million over five years averages to approximately $3.23 million per year. While specific benchmarks for 'All Other Professional, Scientific, and Technical Services' are difficult to pinpoint due to the broad NAICS code, the presence of five bidders in a full and open competition suggests that the pricing was likely competitive. The Cost Plus Award Fee (CPAF) structure means the final cost could vary based on performance, making a definitive value assessment complex without performance data. However, the initial award value appears within a reasonable range for a multi-year federal contract of this nature.
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 bids. The fact that five bids were received suggests a reasonable level of competition for these professional services. A higher number of bidders generally leads to more competitive pricing and a wider selection of qualified contractors. The agency's decision to use full and open competition implies confidence in the market's ability to provide suitable solutions.
Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down costs through market forces. The presence of multiple bidders increases the likelihood that the government secured the best possible price and quality for the services rendered.
Public Impact
The primary beneficiaries are likely the Agency for Healthcare Research and Quality (AHRQ) and potentially other components within the Department of Health and Human Services (HHS), who receive professional, scientific, and technical support. The services delivered are broad, encompassing 'All Other Professional, Scientific, and Technical Services,' which could include research support, data analysis, program evaluation, and advisory services. The geographic impact is primarily centered in Maryland, where the contractor WESTAT, INC. is located, but the services likely support national healthcare research and policy initiatives. Workforce implications include employment opportunities for professionals in scientific, technical, and research fields at WESTAT, INC. and potentially for subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The broad NAICS code (541990) makes it difficult to precisely benchmark costs and assess if the contract represents optimal value for money without more specific service details.
- The Cost Plus Award Fee (CPAF) contract type, while incentivizing performance, can lead to cost overruns if not managed diligently, requiring robust oversight.
- The contract's duration of five years necessitates ongoing monitoring to ensure continued relevance and effectiveness of services.
Positive Signals
- Awarded under full and open competition, indicating a robust bidding process and potential for competitive pricing.
- The receipt of five bids suggests a healthy market and sufficient contractor interest in this service area.
- The contract is managed by the Agency for Healthcare Research and Quality (AHRQ), a reputable agency focused on improving healthcare quality and safety.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, a significant segment of federal spending. This sector encompasses a wide array of services, including research and development, consulting, and specialized technical support. Federal spending in this area often supports agency operations, policy development, and program implementation. Comparable spending benchmarks are challenging to establish due to the heterogeneity of services under NAICS code 541990, but contracts of this size are common across various civilian agencies.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. However, the prime contractor, WESTAT, INC., may engage small businesses as subcontractors, which would contribute to the small business economy, though this information is not explicitly provided.
Oversight & Accountability
Oversight for this contract would primarily reside with the Agency for Healthcare Research and Quality (AHRQ), a component of HHS. As a Cost Plus Award Fee (CPAF) contract, performance metrics and cost controls are critical oversight areas. The contract likely includes reporting requirements and regular reviews to ensure contractor performance aligns with objectives and costs remain within acceptable parameters. Transparency would be facilitated through contract award databases and potentially through public reports on the services rendered, though specific oversight mechanisms are not detailed in the provided data.
Related Government Programs
- HHS Research and Development Contracts
- Healthcare Policy and Analysis Services
- Federal Professional and Technical Services
- Agency for Healthcare Research and Quality (AHRQ) Contracts
- Cost Plus Award Fee Contracts
Risk Flags
- Broad NAICS code limits specific cost benchmarking.
- CPAF contract type requires diligent cost management and oversight.
Tags
professional-scientific-technical-services, department-of-health-and-human-services, agency-for-healthcare-research-and-quality, westat-inc, cost-plus-award-fee, full-and-open-competition, maryland, healthcare-research, multi-year-contract, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $16.2 million to WESTAT, INC.. INNOVATIONS CLEARINGHOUSE
Who is the contractor on this award?
The obligated recipient is WESTAT, 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 $16.2 million.
What is the period of performance?
Start: 2006-09-27. End: 2011-09-26.
What specific types of 'All Other Professional, Scientific, and Technical Services' were performed under this contract?
The provided data uses the broad NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This classification encompasses a wide range of activities that do not fit into more specific categories. For this specific contract with WESTAT, INC. for the Agency for Healthcare Research and Quality (AHRQ), these services likely involved supporting AHRQ's mission to produce evidence to make healthcare safer, higher quality, and more affordable. This could include tasks such as conducting literature reviews, designing and managing research studies, collecting and analyzing healthcare data, evaluating healthcare programs, providing technical assistance to healthcare providers, and developing reports or publications related to healthcare research and policy. Without more granular details from the contract's statement of work, the precise nature of the services remains generalized under this broad category.
How does the average annual cost of this contract compare to similar contracts for professional services within HHS?
The average annual cost for this contract is approximately $3.23 million ($16.17 million / 5 years). Benchmarking this against similar contracts within HHS is challenging without access to a detailed database of comparable contracts, including their specific services, duration, and performance metrics. However, for a multi-year contract supporting a significant federal agency like AHRQ, this annual expenditure is not unusual for comprehensive professional, scientific, and technical support. The value proposition is further influenced by the Cost Plus Award Fee (CPAF) structure, which allows for flexibility based on performance. A thorough comparison would require analyzing contracts with similar NAICS codes, agency missions, and contract types, which is beyond the scope of the provided summary data.
What are the key performance indicators (KPIs) used to determine award fees for WESTAT, INC. under this contract?
The provided data does not specify the key performance indicators (KPIs) used to determine award fees for WESTAT, INC. under this Cost Plus Award Fee (CPAF) contract. Typically, for CPAF contracts, the government establishes specific performance objectives and metrics related to the scope of work. These KPIs might include factors such as the quality of deliverables (e.g., reports, analyses), timeliness of project completion, effectiveness of communication, adherence to budget, and overall customer satisfaction. The contracting officer would evaluate WESTAT's performance against these pre-defined criteria to determine the amount of award fee earned. A detailed review of the contract's Performance Work Statement (PWS) and the contract clauses would be necessary to identify the exact KPIs.
What is WESTAT, INC.'s track record with federal contracts, particularly with HHS and AHRQ?
WESTAT, INC. has a history of performing federal contracts, including work with the Department of Health and Human Services (HHS) and its agencies like the Agency for Healthcare Research and Quality (AHRQ). While the provided data confirms this specific contract award, a comprehensive assessment of their track record would involve reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), the number and types of contracts they have held, their performance history on those contracts, and any instances of contract disputes or terminations. Generally, being awarded a $16.17 million, five-year contract by AHRQ suggests a level of trust and demonstrated capability. However, a deeper dive into their historical performance data would be needed for a complete evaluation.
How has federal spending on 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) trended over the past decade?
Federal spending on 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) has generally shown a consistent or increasing trend over the past decade, reflecting the government's reliance on external expertise for a wide array of specialized tasks. This category is broad and captures services that don't fit neatly into other classifications, such as market research, survey design, specialized scientific consulting, and technical support. Factors influencing this trend include evolving technological needs, the complexity of policy challenges, and the government's strategy of leveraging private sector capabilities. While specific year-over-year fluctuations can occur due to budget cycles and shifting priorities, the overall demand for these diverse professional services remains robust across federal agencies.
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
Offers Received: 5
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 1650 RESEARCH BLVD, ROCKVILLE, MD, 20850
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $16,172,019
Exercised Options: $16,172,019
Current Obligation: $16,172,019
Timeline
Start Date: 2006-09-27
Current End Date: 2011-09-26
Potential End Date: 2011-09-26 00:00:00
Last Modified: 2015-08-01
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