HHS's $191M contract for scientific services awarded to Oak Ridge Associated Universities shows fair value with a 98% performance rating

Contract Overview

Contract Amount: $191,186,123 ($191.2M)

Contractor: OAK Ridge Associated Universities, Incorporated

Awarding Agency: Department of Health and Human Services

Start Date: 2014-04-01

End Date: 2019-07-31

Contract Duration: 1,947 days

Daily Burn Rate: $98.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: EEOICPA IGF::OT::IGF

Place of Performance

Location: OAK RIDGE, ANDERSON County, TENNESSEE, 37830

State: Tennessee Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $191.2 million to OAK RIDGE ASSOCIATED UNIVERSITIES, INCORPORATED for work described as: EEOICPA IGF::OT::IGF Key points: 1. The contract achieved a high performance rating, indicating effective service delivery. 2. Competition was robust, suggesting a competitive pricing environment. 3. The cost-plus award fee structure incentivizes performance and cost control. 4. The duration of the contract suggests a long-term need for these specialized services. 5. The geographic focus on Tennessee may indicate regional operational needs. 6. The absence of small business set-asides warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: good

The contract's performance rating of 98% suggests that Oak Ridge Associated Universities delivered services effectively. While specific benchmarks for 'All Other Professional, Scientific, and Technical Services' are difficult to ascertain without more granular data, the high performance rating in conjunction with a competitive award process implies reasonable value for the services rendered. The cost-plus award fee structure, while potentially leading to higher final costs than fixed-price contracts, allows for flexibility and incentivizes contractor performance, which appears to have been successful in this case.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing. The fact that a single award was made suggests that Oak Ridge Associated Universities offered the best value proposition among the competing entities.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by fostering a market-driven pricing environment.

Public Impact

The contract supports scientific and technical services crucial for public health initiatives. Beneficiaries include researchers, scientists, and potentially the public through the outcomes of the services. The primary geographic impact is in Tennessee, where the contractor is located and services are likely performed. The contract supports a workforce of professionals in scientific and technical fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific small business subcontracting goals could limit opportunities for smaller firms.
The cost-plus award fee structure, while performance-incentivized, can lead to less predictable final costs compared to fixed-price contracts.

Positive Signals

High performance rating (98%) indicates successful service delivery.
Awarded under full and open competition, suggesting a competitive process.
The contractor has a significant contract value, implying established capabilities.

Sector Analysis

This contract falls under the broad category of professional, scientific, and technical services, specifically NAICS code 541990. This sector is diverse, encompassing a wide range of specialized expertise. Federal spending in this area supports various agencies' missions, from research and development to operational support. Benchmarking is challenging due to the heterogeneity of services, but the contract value is substantial within its specific service domain.

Small Business Impact

The contract was not awarded as a small business set-aside, and there is no explicit indication of mandatory subcontracting goals for small businesses. This suggests that opportunities for small businesses may be limited to those that can compete directly or are subcontracted by the prime contractor without specific set-aside requirements. Further review of subcontracting plans would be necessary to fully assess the impact on the small business ecosystem.

Oversight & Accountability

The contract utilized a Cost Plus Award Fee (CPAF) structure, which includes performance incentives. The high performance rating suggests effective oversight and management by the Centers for Disease Control and Prevention. Further details on specific oversight mechanisms, reporting requirements, and the role of any Inspector General would be needed for a comprehensive assessment of accountability and transparency.

Related Government Programs

EEOICPA IGF
Department of Health and Human Services Contracts
Centers for Disease Control and Prevention Contracts
Professional, Scientific, and Technical Services Contracts

Risk Flags

Potential for scope creep due to the nature of scientific and technical services.
Performance measurement complexity for specialized services.
Contractor dependency risk over the long contract duration.
Cost predictability concerns with Cost Plus Award Fee structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $191.2 million to OAK RIDGE ASSOCIATED UNIVERSITIES, INCORPORATED. EEOICPA IGF::OT::IGF

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 $191.2 million.

What is the period of performance?

Start: 2014-04-01. End: 2019-07-31.

What is the historical spending trend for similar services provided by Oak Ridge Associated Universities to the government?

Analyzing historical spending for Oak Ridge Associated Universities (ORAU) in similar service categories requires access to comprehensive federal procurement databases. ORAU has a long history of supporting government scientific and technical programs, particularly in areas related to energy, environment, and health. Their involvement often includes managing complex research facilities, providing specialized technical expertise, and administering large-scale research initiatives. Without specific data on past contracts for 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) awarded to ORAU, it's difficult to establish a precise spending trend. However, their consistent presence in large federal contracts suggests a sustained demand for their capabilities. To provide a trend, one would need to aggregate data on contract values, durations, and agencies served over several fiscal years, looking for patterns of growth, decline, or stability in their federal contract portfolio within this specific service domain.

How does the awarded amount compare to the estimated value or budget for this service requirement?

The provided data indicates an awarded amount of $191,186,123 for this definitive contract. However, the schema does not include information on the initial estimated value or the appropriated budget for this specific requirement. To compare the awarded amount to the estimated value, one would need access to pre-solicitation documents, such as a Broad Agency Announcement (BAA), Request for Proposal (RFP) details, or internal agency budget allocations related to this procurement. If the awarded amount is significantly lower than the estimate, it could indicate successful cost negotiation or a more competitive bidding process than anticipated. Conversely, if it's higher, it might suggest unforeseen complexities or a less competitive outcome. Without the estimated value, a direct comparison to assess cost efficiency at the outset of the award is not possible.

What are the key performance indicators (KPIs) used to assess the contractor's performance rating of 98%?

The data indicates a performance rating of 98%, which is exceptionally high. However, the specific Key Performance Indicators (KPIs) used to derive this rating are not detailed in the provided information. For a Cost Plus Award Fee (CPAF) contract, performance is typically evaluated against a set of criteria outlined in the contract's Performance Work Statement (PWS) or Statement of Objectives (SOO). These KPIs could include metrics related to timeliness of deliverables, quality of scientific analysis, adherence to safety protocols, effectiveness of project management, responsiveness to agency requests, and overall contribution to the program's objectives. The high rating suggests that Oak Ridge Associated Universities consistently met or exceeded expectations across these critical areas, leading to a significant award fee.

What is the risk profile associated with this type of 'All Other Professional, Scientific, and Technical Services' contract?

Contracts under the 'All Other Professional, Scientific, and Technical Services' category (NAICS 541990) can carry a varied risk profile depending on the specific nature of the services. Key risks often include scope creep, where the project's objectives expand beyond the original agreement, leading to cost overruns and schedule delays. Another risk is the quality and reliability of the technical expertise provided; if the contractor's personnel lack the necessary skills or experience, the project outcomes could be compromised. Performance measurement can also be challenging for highly specialized or research-oriented services, making it difficult to define objective success criteria. Furthermore, reliance on a single contractor for critical technical functions can pose a risk if the contractor faces financial instability or operational disruptions. The use of a Cost Plus Award Fee structure, while incentivizing, also introduces a risk of less predictable final costs compared to fixed-price contracts.

How does the contract duration (1947 days) impact the overall value and risk assessment?

A contract duration of 1947 days (approximately 5.3 years) is substantial and suggests a long-term, stable requirement for the services provided. From a value perspective, a longer duration can allow for economies of scale and greater efficiency as the contractor becomes more familiar with the agency's needs and processes. It can also provide continuity for critical projects. However, a long duration also increases the risk associated with potential changes in agency needs, technological advancements, or economic conditions that might render the original scope less relevant or cost-effective over time. For the contractor, a long-term award offers stability and predictable revenue. For the government, it necessitates careful monitoring to ensure the contract remains aligned with evolving objectives and that pricing remains competitive throughout its life cycle. The high performance rating suggests that risks associated with this duration were effectively managed.

What is the significance of the 'DEFINITIVE CONTRACT' award type in this context?

A 'Definitive Contract' is a standard, legally binding agreement that specifies all the terms and conditions, including price, quantity, and delivery schedule. Unlike indefinite-delivery/indefinite-quantity (IDIQ) contracts, definitive contracts typically involve a single order with a fixed scope and price (or a formula for determining price, as in this CPAF case). The use of a definitive contract here suggests that the scope of work, duration, and expected outcomes were well-defined at the time of award. This implies a lower level of uncertainty regarding the requirements compared to contracts that might be used for more exploratory or evolving needs. It also means that the pricing and performance expectations were established upfront, providing a clear basis for evaluation and oversight throughout the contract's life.

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

Solicitation ID: 2013Q15239

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 100 ORAU WAY, OAK RIDGE, TN, 37830

Business Categories: Category Business, Corporate Entity Tax Exempt, Foundation, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $191,186,123

Exercised Options: $191,186,123

Current Obligation: $191,186,123

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline