HHS awards $43.7M contract for computing infrastructure to Research Triangle Institute
Contract Overview
Contract Amount: $43,715,151 ($43.7M)
Contractor: Research Triangle Institute
Awarding Agency: Department of Health and Human Services
Start Date: 2013-07-23
End Date: 2018-06-30
Contract Duration: 1,803 days
Daily Burn Rate: $24.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::OT::IGF
Place of Performance
Location: DURHAM, DURHAM County, NORTH CAROLINA, 27709
Plain-Language Summary
Department of Health and Human Services obligated $43.7 million to RESEARCH TRIANGLE INSTITUTE for work described as: IGF::OT::IGF Key points: 1. The contract, valued at $43.7 million, was awarded to Research Triangle Institute. 2. The primary service category is Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services. 3. This contract was awarded under full and open competition. 4. The contract duration was 1803 days, ending in June 2018.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The awarded amount of $43.7 million for a nearly 5-year period needs to be benchmarked against similar cloud computing or data processing contracts to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically yields competitive pricing by allowing all eligible vendors to submit proposals.
Taxpayer Impact: Full and open competition generally benefits taxpayers by ensuring the government receives competitive pricing and the best value for services rendered.
Public Impact
Supports the Agency for Healthcare Research and Quality (AHRQ) with essential computing and data processing services. Ensures continuity of critical IT infrastructure for a key health research agency. The contract's duration and value indicate a significant investment in supporting healthcare research initiatives.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Lack of specific performance metrics or benchmarks makes value assessment difficult.
- No indication of small business participation.
Positive Signals
- Awarded under full and open competition.
- Long-term contract provides stability for essential services.
- Supports a critical healthcare research agency.
Sector Analysis
The IT sector, particularly cloud computing and data processing, is a significant area of government spending. Benchmarks for similar contracts often vary widely based on service level agreements, security requirements, and duration.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine if opportunities were missed for small business participation.
Oversight & Accountability
The contract was awarded under full and open competition, suggesting a standard procurement process. However, oversight of the Cost Plus Fixed Fee structure is crucial to ensure cost efficiency and prevent overspending.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of Health and Human Services Contracting
- Agency for Healthcare Research and Quality Programs
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Lack of specific performance metrics for value assessment.
- No clear indication of small business utilization.
- Limited transparency on specific service delivery and cost breakdowns.
Tags
computing-infrastructure-providers-data-, department-of-health-and-human-services, nc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $43.7 million to RESEARCH TRIANGLE INSTITUTE. IGF::OT::IGF
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 $43.7 million.
What is the period of performance?
Start: 2013-07-23. End: 2018-06-30.
What was the specific scope of services provided under this contract, and how did it align with industry standards for computing infrastructure?
The contract covered 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services.' A detailed scope of work would be necessary to compare its alignment with industry standards. Factors like uptime guarantees, data security protocols, and specific processing capabilities would be key comparison points against commercial offerings and other government contracts.
How effectively was the Cost Plus Fixed Fee structure managed to control costs and ensure value for the taxpayer?
The effectiveness of the CPFF structure hinges on rigorous oversight and clear performance metrics. Without access to detailed performance reports and cost audits, it's difficult to definitively assess cost control. The fixed fee component provides some incentive for efficiency, but the 'cost plus' element requires diligent monitoring by the agency to prevent unnecessary expenditures.
What was the impact of this contract on the Agency for Healthcare Research and Quality's ability to conduct its research and fulfill its mission?
This contract likely provided essential IT infrastructure, enabling AHRQ to store, process, and analyze vast amounts of health-related data. Reliable computing and web hosting services are fundamental to modern research operations, suggesting this contract was critical for AHRQ's mission continuity and operational effectiveness.
Industry Classification
NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related 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: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 3040 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: $46,260,903
Exercised Options: $43,715,151
Current Obligation: $43,715,151
Subaward Activity
Number of Subawards: 22
Total Subaward Amount: $24,419,185
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2013-07-23
Current End Date: 2018-06-30
Potential End Date: 2018-06-30 00:00:00
Last Modified: 2020-09-08
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