HHS awarded $172.8M to Oak Ridge Associated Universities for dose reconstruction services under EEOICPA

Contract Overview

Contract Amount: $172,753,570 ($172.8M)

Contractor: OAK Ridge Associated Universities, Incorporated

Awarding Agency: Department of Health and Human Services

Start Date: 2009-05-01

End Date: 2014-03-31

Contract Duration: 1,795 days

Daily Burn Rate: $96.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: DOSE RECONSTRUCTION UNDER EEOICPA

Place of Performance

Location: OAK RIDGE, ANDERSON County, TENNESSEE, 37830

State: Tennessee Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $172.8 million to OAK RIDGE ASSOCIATED UNIVERSITIES, INCORPORATED for work described as: DOSE RECONSTRUCTION UNDER EEOICPA Key points: 1. Contract value of $172.8M over 5 years suggests significant demand for specialized services. 2. Full and open competition indicates a potentially competitive bidding process. 3. Cost Plus Award Fee contract type may incentivize performance but requires careful oversight. 4. The contract's duration and value point to a long-term, critical government function. 5. Focus on EEOICPA implies support for individuals exposed to radiation. 6. The award to a single entity suggests specialized capabilities are required.

Value Assessment

Rating: good

The contract's total value of $172.8M over approximately five years averages around $34.5M annually. Benchmarking this against similar contracts for scientific consulting or specialized health services is challenging without more specific data on the scope of 'dose reconstruction.' However, the duration and scale suggest a substantial and necessary service. The Cost Plus Award Fee structure allows for performance-based incentives, which can be a good value driver if performance metrics are well-defined and achieved. Without specific cost breakdowns or comparisons to industry standards for this niche service, a definitive value assessment is difficult, but the competitive award process provides some assurance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This suggests a robust bidding environment where multiple companies likely had the opportunity to compete. The presence of two bids, as indicated by 'no': 2, means that while competition was present, it was not extensive. A higher number of bidders typically leads to more aggressive pricing and better value for the government. However, for highly specialized services like dose reconstruction, even two bidders can represent significant competition if they possess the requisite expertise.

Taxpayer Impact: Full and open competition, even with a limited number of bidders, generally benefits taxpayers by encouraging competitive pricing and ensuring that the government selects the most capable and cost-effective solution available in the market.

Public Impact

Benefits individuals seeking compensation or benefits under the Energy Employees Occupational Illness Compensation Program Act (EEOICPA). Provides critical scientific and technical services for determining radiation exposure levels. Supports the Department of Labor's administration of the EEOICPA by providing necessary data for claims processing. The service is primarily administrative and analytical, with potential indirect impacts on the healthcare sector for claimants. Geographic impact is national, serving eligible individuals across the United States. Workforce implications are primarily within the contractor's specialized scientific and administrative staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can lead to cost overruns if not managed tightly.
Limited number of bidders (2) may indicate a specialized market with less price pressure.
The long duration of the contract could present risks if technology or methodologies change significantly.

Positive Signals

Awarded under full and open competition, suggesting a fair and accessible process.
The contract addresses a critical need for EEOICPA beneficiaries.
The contractor has a significant role in a vital government program.

Sector Analysis

This contract falls within the 'Other Scientific and Technical Consulting Services' sector (NAICS 541690). This broad category includes firms providing expertise in areas like environmental consulting, engineering, and scientific research. The market for dose reconstruction services is highly specialized, likely dominated by a few firms with specific scientific and historical data expertise. The total federal spending on this specific NAICS code can be substantial, but contracts like this represent a niche within the larger consulting services market. Benchmarking requires comparing to other contracts specifically for EEOICPA-related services or similar complex scientific assessments.

Small Business Impact

The contract was not set aside for small businesses (ss: false, sb: false). Given the specialized nature of dose reconstruction and the significant contract value, it is unlikely that small businesses would typically be primary awardees for such a large, sole-source-like requirement, even if competed. Subcontracting opportunities for small businesses might exist for ancillary services, but the core function requires highly specialized expertise typically found in larger or more established scientific organizations.

Oversight & Accountability

Oversight for this Cost Plus Award Fee contract would primarily reside with the contracting agency, the Centers for Disease Control and Prevention (CDC), a component of HHS. Performance metrics and award fee criteria would be crucial for ensuring value and accountability. Transparency is generally maintained through contract awards databases like FPDS. Inspector General jurisdiction would apply to investigate fraud, waste, or abuse related to the contract.

Related Government Programs

Energy Employees Occupational Illness Compensation Program Act (EEOICPA)
Department of Labor Claims Processing
Radiation Exposure Compensation Act (RECA)
Public Health Services
Scientific and Technical Consulting Services

Risk Flags

Specialized Service Requirement
Cost Plus Award Fee Structure
Limited Competition Bidders

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $172.8 million to OAK RIDGE ASSOCIATED UNIVERSITIES, INCORPORATED. DOSE RECONSTRUCTION UNDER EEOICPA

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 $172.8 million.

What is the period of performance?

Start: 2009-05-01. End: 2014-03-31.

What is the historical spending trend for dose reconstruction services under EEOICPA?

Analyzing historical spending requires accessing detailed contract data over multiple years. While this specific contract awarded to Oak Ridge Associated Universities (ORAU) totals $172.8M from 2009 to 2014, understanding the trend involves looking at prior and subsequent contracts for the same service. ORAU has been a long-standing provider for these services, indicating consistent need and funding. Federal spending in this area is driven by legislative mandates like EEOICPA and the number of eligible claimants. Fluctuations might occur based on claim volume, policy changes, and the availability of competing contractors. A comprehensive trend analysis would involve aggregating data from all contracts related to EEOICPA dose reconstruction across different agencies and time periods to identify patterns in annual obligations and total program costs.

How does the Cost Plus Award Fee (CPAF) structure impact the value for money in this contract?

The Cost Plus Award Fee (CPAF) structure aims to incentivize contractor performance by allowing the contractor to recover allowable costs plus a fixed fee, with a portion of that fee being an award amount determined by the government's assessment of performance against pre-defined criteria. For this $172.8M contract, the CPAF structure suggests that the government believed this was the most appropriate way to ensure high-quality dose reconstruction services, which are scientifically complex and critical for EEOICPA claims. The 'award' portion of the fee is contingent on meeting or exceeding performance expectations. This can drive better outcomes and efficiency compared to a simple cost-plus contract. However, it also requires robust government oversight to set meaningful performance metrics and objectively evaluate performance to ensure the award fees are truly earned and represent good value for taxpayer money, rather than simply increasing the total cost.

What are the specific scientific methodologies used in dose reconstruction, and how are they validated?

Dose reconstruction involves complex scientific methodologies to estimate the radiation dose received by individuals, often decades after exposure. This typically includes reviewing employment histories, identifying potential sources and types of radiation, analyzing workplace monitoring data, and using sophisticated dosimetry models. For EEOICPA, specific protocols and guidance documents are established by the Department of Health and Human Services (HHS), often involving the National Institute for Occupational Safety and Health (NIOSH). These methodologies are validated through peer review, scientific consensus, and adherence to established standards in radiation dosimetry and epidemiology. The process often involves expert judgment and may require site visits or interviews. The accuracy and reliability of these reconstructions are paramount for fair adjudication of claims, and the scientific basis is subject to ongoing review and refinement within the scientific community.

What is the track record of Oak Ridge Associated Universities (ORAU) in performing similar government contracts?

Oak Ridge Associated Universities (ORAU) has a long and extensive track record of performing complex scientific and technical services for various U.S. government agencies, including the Department of Energy and HHS. They are particularly well-known for their work related to radiation health effects, dose reconstruction, and managing large-scale scientific research programs. ORAU has been a primary contractor for EEOICPA dose reconstruction services for many years, indicating a sustained ability to meet the government's requirements. Their experience includes managing large databases, employing numerous scientists and technical staff, and adhering to strict quality assurance protocols. Past performance evaluations, typically documented in federal procurement records, would provide more granular detail on their success in meeting cost, schedule, and performance objectives on previous contracts.

How does the $172.8M contract value compare to overall federal spending on EEOICPA administration?

The $172.8M awarded to ORAU for dose reconstruction services represents a significant portion of the funding allocated to the EEOICPA program. EEOICPA is administered primarily by the Department of Labor (DOL) for benefit payments and by HHS (specifically NIOSH) for the dose reconstruction and residual health effects studies. The total annual budget for EEOICPA can fluctuate but often runs into hundreds of millions or even billions of dollars when considering benefit payments. This contract, spanning approximately five years, highlights the substantial investment required for the scientific and technical assessments underpinning the claims process. It's crucial to view this contract value within the context of the entire program's financial scope, recognizing that dose reconstruction is a critical, but not the sole, component of EEOICPA's operational costs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 2007N09214

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 130 BADGER RD, OAK RIDGE, TN, 37830

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $645,863,555

Exercised Options: $357,391,882

Current Obligation: $172,753,570

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline