HHS Awards $253.8M for R&D Health Services to Oak Ridge Associated Universities
Contract Overview
Contract Amount: $253,754,851 ($253.8M)
Contractor: OAK Ridge Associated Universities, Incorporated
Awarding Agency: Department of Health and Human Services
Start Date: 2002-09-12
End Date: 2009-04-30
Contract Duration: 2,422 days
Daily Burn Rate: $104.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Healthcare
Official Description: R&D-HEALTH SVCS-A RES/EXPL DEV
Place of Performance
Location: CINCINNATI, HAMILTON County, OHIO, 45213, UNITED STATES OF AMERICA
State: Ohio Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $253.8 million to OAK RIDGE ASSOCIATED UNIVERSITIES, INCORPORATED for work described as: R&D-HEALTH SVCS-A RES/EXPL DEV Key points: 1. Significant investment in R&D for health services. 2. Competition was full and open, suggesting market engagement. 3. Contract type (Cost Plus Award Fee) can incentivize performance but requires careful oversight. 4. The sector focuses on critical research and development for public health.
Value Assessment
Rating: good
The award amount of $253.8 million over approximately 6.7 years suggests a substantial but potentially reasonable investment for specialized R&D services. Benchmarking against similar large-scale, long-term R&D contracts within the health services sector would be necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value offering.
Taxpayer Impact: Taxpayer funds were used through a competitive process, aiming for efficient allocation towards critical health research and development.
Public Impact
Advancement of health services research and exploration. Potential for breakthroughs in public health understanding and solutions. Long-term commitment to a specific research area.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Cost Plus Award Fee contract type requires robust performance monitoring to ensure value.
- Long contract duration (over 6 years) may present risks if research objectives shift significantly.
Positive Signals
- Full and open competition fosters a competitive environment.
- Focus on critical R&D in health services aligns with public good.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically focusing on research and development in health services. Spending in this area is crucial for public health advancements and often involves long-term, complex projects.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.
Oversight & Accountability
The Cost Plus Award Fee structure necessitates strong oversight from the Centers for Disease Control and Prevention to ensure that performance objectives are met and that costs are managed effectively.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Health and Human Services Contracting
- Centers for Disease Control and Prevention Programs
Risk Flags
- Potential for cost overruns with Cost Plus Award Fee contracts.
- Risk of research becoming outdated over the long contract duration.
- Dependence on a single entity for critical R&D services.
- Lack of small business participation noted.
Tags
all-other-professional-scientific-and-te, department-of-health-and-human-services, oh, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $253.8 million to OAK RIDGE ASSOCIATED UNIVERSITIES, INCORPORATED. R&D-HEALTH SVCS-A RES/EXPL DEV
Who is the contractor on this award?
The obligated recipient is OAK RIDGE ASSOCIATED UNIVERSITIES, INCORPORATED.
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 $253.8 million.
What is the period of performance?
Start: 2002-09-12. End: 2009-04-30.
What specific R&D objectives were prioritized under this contract, and how did they align with CDC's strategic goals?
The contract focused on 'All Other Professional, Scientific, and Technical Services' related to health services R&D. While specific objectives are not detailed here, they likely encompassed a broad range of research activities aimed at improving public health outcomes, disease prevention, and health service delivery, aligning with the CDC's mission to protect public health.
What were the key performance metrics and award criteria used in the Cost Plus Award Fee structure?
The Cost Plus Award Fee (CPAF) structure implies that the contractor receives cost reimbursement plus a performance-based fee. Key performance metrics would have been defined in the contract, likely related to research milestones, scientific rigor, timely delivery of findings, and overall impact on public health goals. The award fee would be determined by how well Oak Ridge Associated Universities met these criteria.
How effectively did the full and open competition process ensure the best value for taxpayer investment in this R&D initiative?
Full and open competition generally enhances the likelihood of securing the best value by allowing multiple qualified entities to compete. The success in achieving best value would depend on the clarity of the solicitation, the evaluation criteria, and the competitiveness of the bids received. The significant award amount suggests a thorough evaluation process was likely undertaken.
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
Solicitation ID: 2002N00201
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 130 BADGER RD, OAK RIDGE, TN, 37830
Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $7,522,671,451
Exercised Options: $7,522,671,451
Current Obligation: $253,754,851
Timeline
Start Date: 2002-09-12
Current End Date: 2009-04-30
Potential End Date: 2009-04-30 00:00:00
Last Modified: 2015-08-05
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