HHS Awards $19.7M Contract to Research Triangle Institute for Legacy System Support

Contract Overview

Contract Amount: $19,778,208 ($19.8M)

Contractor: Research Triangle Institute

Awarding Agency: Department of Health and Human Services

Start Date: 1994-09-30

End Date: 2009-09-30

Contract Duration: 5,479 days

Daily Burn Rate: $3.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: 200-1994-00828 RTI/LEGACY

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30345, UNITED STATES OF AMERICA

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $19.8 million to RESEARCH TRIANGLE INSTITUTE for work described as: 200-1994-00828 RTI/LEGACY Key points: 1. Contract value of $19.7M over 15 years indicates long-term support needs. 2. Full and open competition suggests a competitive bidding process was utilized. 3. The contract type (Cost Plus Fixed Fee) may lead to cost overruns if not managed carefully. 4. Support for legacy systems often carries inherent risks due to outdated technology.

Value Assessment

Rating: fair

The contract value of $19.7M over 15 years averages approximately $1.3M annually. Benchmarking this against similar legacy system support contracts is difficult without more specific service details, but the duration suggests a potentially reasonable annual investment if the scope is broad.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing, though the specific outcome depends on the number and quality of bids received.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, suggesting the government sought the best value. However, the long duration and cost-plus nature warrant ongoing scrutiny to ensure continued cost-effectiveness.

Public Impact

Ensures continued operation of critical legacy systems within the CDC. Supports public health initiatives by maintaining essential data and infrastructure. Potential for knowledge transfer and modernization efforts related to the legacy systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (15 years) increases risk of technological obsolescence.
Cost Plus Fixed Fee contract type can incentivize cost overruns.
Reliance on legacy systems may pose security vulnerabilities.

Positive Signals

Awarded via full and open competition, suggesting competitive pricing.
Long-term commitment provides stability for essential system support.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on maintaining legacy systems for a federal health agency. Spending benchmarks for legacy system support can vary widely, but long-term contracts like this often reflect the high cost and complexity of keeping older systems operational.

Small Business Impact

The data indicates the awardee is Research Triangle Institute, a large research organization. There is no explicit indication of small business participation in this award, suggesting it was likely awarded to a prime contractor capable of handling the full scope of work.

Oversight & Accountability

The long duration of this contract necessitates robust oversight from the Centers for Disease Control and Prevention to ensure performance standards are met and costs remain controlled. Regular reviews and performance metrics are crucial for accountability.

Related Government Programs

Department of Health and Human Services Contracting
Centers for Disease Control and Prevention Programs

Risk Flags

Technological obsolescence risk due to long duration.
Potential for cost overruns with CPFF contract type.
Security vulnerabilities associated with legacy systems.
Dependency on a single contractor for critical infrastructure.
Lack of transparency on specific systems supported.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $19.8 million to RESEARCH TRIANGLE INSTITUTE. 200-1994-00828 RTI/LEGACY

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 (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $19.8 million.

What is the period of performance?

Start: 1994-09-30. End: 2009-09-30.

What specific legacy systems are being supported, and what is their criticality to CDC operations?

The specific legacy systems are not detailed in the provided data. Understanding their criticality is essential for assessing the true value of this contract. If these systems support vital public health functions, such as disease surveillance or data analysis, then the contract's value is high. Conversely, if they support less critical functions, the value proposition diminishes.

What measures are in place to mitigate the risks associated with a 15-year contract for legacy IT systems?

Mitigation strategies for such a long-term legacy IT contract would typically include phased technology refreshes, regular performance reviews, defined exit strategies, and potentially incorporating incentives for modernization or transition to newer platforms. The government should also ensure clear contract clauses address obsolescence and security updates.

How does the Cost Plus Fixed Fee structure impact the government's ability to control costs over the contract's lifespan?

The Cost Plus Fixed Fee (CPFF) structure allows the contractor to recover all allowable costs plus a predetermined fixed fee. While the fixed fee provides some cost certainty, the contractor has less incentive to control costs compared to fixed-price contracts. Effective government oversight is critical to scrutinize costs and prevent potential overruns.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 200940828(P)

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: $849,403,954

Exercised Options: $849,403,954

Current Obligation: $19,778,208

Timeline