HHS awards $23.6M for AERS data entry support to PSI INTERNATIONAL, INC. over 5 years

Contract Overview

Contract Amount: $23,653,229 ($23.7M)

Contractor: PSI International, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2005-09-26

End Date: 2010-06-30

Contract Duration: 1,738 days

Daily Burn Rate: $13.6K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: AERS DATA ENTRY SUPPORT

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $23.7 million to PSI INTERNATIONAL, INC. for work described as: AERS DATA ENTRY SUPPORT Key points: 1. Contract awarded on a competitive basis, suggesting potential for good value. 2. Performance period of nearly 5 years indicates a long-term need for these services. 3. The contract type (Time and Materials) can pose cost control risks if not managed closely. 4. Awarded by the Food and Drug Administration, highlighting its role in regulatory support. 5. The total value suggests a significant investment in data management capabilities.

Value Assessment

Rating: fair

The total award amount of $23.6 million over approximately five years averages to about $4.7 million annually. Without specific performance metrics or detailed cost breakdowns, it is difficult to definitively benchmark the value for money. However, the Time and Materials contract type, while flexible, can lead to higher costs if not carefully managed and monitored for efficiency. Comparing this to similar data entry support contracts within the federal government would require access to more granular pricing data and service level agreements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a Competitive Delivery Order, indicating that it was competed under a broader contract vehicle that allowed for full and open competition. The fact that it was a competitive award suggests that multiple offerors likely had the opportunity to bid, which generally fosters price discovery and can lead to more favorable pricing for the government. The specific number of bidders is not provided, but the competitive nature is a positive sign.

Taxpayer Impact: A competitive award process generally benefits taxpayers by promoting a more efficient allocation of resources and potentially lower prices due to market forces.

Public Impact

The Food and Drug Administration (FDA) benefits from this contract through enhanced data entry support for its AERS system. This contract supports the critical function of managing adverse event reporting, contributing to public health and safety. The services are primarily delivered within Maryland, impacting the local workforce and economy. The contract likely supports administrative and data processing roles within the FDA's operational framework.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials contract type if not closely monitored.
Lack of specific performance metrics makes it difficult to assess efficiency and effectiveness.
Dependence on a single contractor for a critical data entry function could pose a risk if performance degrades.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Long performance period suggests a stable and ongoing need for the services.
Contract supports a critical public health function (adverse event reporting).

Sector Analysis

This contract falls within the broader IT services and administrative support sector, specifically focusing on data management and entry. The federal government spends billions annually on IT and related support services. Contracts like this, supporting regulatory functions such as the FDA's adverse event reporting system (AERS), are crucial for maintaining public health infrastructure. Benchmarking this specific contract's value is challenging without more detailed cost and performance data, but it represents a component of the government's significant investment in data processing and analysis.

Small Business Impact

The provided data does not indicate if this contract involved small business set-asides or subcontracting opportunities. The award was made to PSI INTERNATIONAL, INC., and further analysis would be needed to determine the extent of small business participation, if any, either as prime contractors or subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Food and Drug Administration. The Time and Materials contract type necessitates diligent monitoring of labor hours and material costs to ensure compliance and prevent overspending. Transparency would be enhanced through regular reporting requirements and potential audits by the HHS Office of Inspector General, depending on the contract's value and risk profile.

Related Government Programs

FDA AERS System
Health Data Management
Administrative Support Services
Information Technology Services

Risk Flags

Time and Materials contract type may lead to cost overruns if not managed effectively.
Lack of specific performance metrics in the provided data hinders value assessment.
Potential for vendor lock-in due to long contract duration for a critical function.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $23.7 million to PSI INTERNATIONAL, INC.. AERS DATA ENTRY SUPPORT

Who is the contractor on this award?

The obligated recipient is PSI INTERNATIONAL, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Food and Drug Administration).

What is the total obligated amount?

The obligated amount is $23.7 million.

What is the period of performance?

Start: 2005-09-26. End: 2010-06-30.

What is the historical spending trend for AERS data entry support at the FDA?

Analyzing historical spending for AERS data entry support requires access to historical contract data beyond this single award. This specific contract, awarded in 2005 and ending in 2010, represents a five-year period of spending totaling $23.6 million. To understand trends, one would need to examine prior contracts for similar services, identify any increases or decreases in spending over time, and correlate these with changes in FDA's data processing needs or regulatory requirements. Without this broader dataset, it's impossible to establish a definitive spending trend for this specific function.

How does the per-unit cost of data entry compare to industry benchmarks?

Determining a precise per-unit cost for data entry from this contract is challenging because it was awarded as a Time and Materials (T&M) contract. T&M contracts bill for direct labor hours at specified hourly rates, plus the actual cost of materials. This structure does not lend itself to a simple 'per-unit' cost calculation without knowing the exact volume of data processed and the labor/material costs associated with it. To benchmark, one would need to compare the contractor's hourly rates for different labor categories against market data for similar IT support roles in the Maryland region and assess the efficiency (units processed per hour) achieved.

What are the key performance indicators (KPIs) associated with this contract?

The provided data does not specify the key performance indicators (KPIs) for this AERS data entry support contract. Typically, for data entry services, KPIs might include accuracy rates (e.g., percentage of entries without errors), timeliness of entry (e.g., average time from data receipt to entry), volume processed per hour/day, and data integrity checks. Effective oversight would involve the FDA's program office regularly monitoring these KPIs to ensure the contractor is meeting performance expectations and delivering the required level of service.

What is PSI INTERNATIONAL, INC.'s track record with federal contracts, particularly with the FDA?

PSI INTERNATIONAL, INC. has a history of receiving federal contracts, including those with the Department of Health and Human Services (HHS) and its agencies like the Food and Drug Administration (FDA). This specific contract for AERS data entry support, valued at $23.6 million over five years, indicates a significant engagement. A comprehensive assessment of their track record would involve reviewing other contracts awarded to PSI INTERNATIONAL, INC., examining past performance evaluations (if publicly available), and looking for any history of contract disputes, overruns, or performance issues across their federal portfolio.

What are the potential risks associated with a Time and Materials contract for data entry?

Time and Materials (T&M) contracts, like the one awarded for AERS data entry support, carry inherent risks, primarily related to cost control. Since the contractor is reimbursed for direct labor hours and materials, there is less incentive for efficiency compared to fixed-price contracts. If not managed rigorously, T&M contracts can lead to cost overruns if labor hours are excessive or if material costs are inflated. For data entry, this means the government pays for the time spent, regardless of the volume processed, making it crucial for the FDA to closely monitor labor inputs and ensure efficient work practices are maintained by PSI INTERNATIONAL, INC.

How does this contract contribute to the FDA's overall mission regarding drug and medical device safety?

This contract is directly linked to the FDA's mission of protecting public health by ensuring the safety of drugs and medical devices. The AERS (Adverse Event Reporting System) is a critical component for collecting, analyzing, and disseminating information on adverse events associated with these products. Accurate and timely data entry into AERS is fundamental for the FDA to identify potential safety signals, conduct risk assessments, and take appropriate regulatory actions. Therefore, the support provided by PSI INTERNATIONAL, INC. under this contract directly enables the FDA's post-market surveillance and safety monitoring functions.

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 10306 EATON PL STE 400, FAIRFAX, VA, 11

Business Categories: Category Business, Small Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $32,230,120

Exercised Options: $23,653,229

Current Obligation: $23,653,229

Parent Contract

Parent Award PIID: GS35F5491H

IDV Type: FSS

Timeline