NIH awarded $13.9M for radiation support services, with Radiation Management Associates, LLC securing the contract

Contract Overview

Contract Amount: $13,911,868 ($13.9M)

Contractor: Radiation Management Associates, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2008-01-01

End Date: 2016-07-14

Contract Duration: 3,117 days

Daily Burn Rate: $4.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Healthcare

Official Description: RADIATION SUPPORT AND RELATED SERVICES

Place of Performance

Location: GREENBELT, PRINCE GEORGES County, MARYLAND, 20770

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $13.9 million to RADIATION MANAGEMENT ASSOCIATES, LLC for work described as: RADIATION SUPPORT AND RELATED SERVICES Key points: 1. The contract value of $13.9 million over its period of performance suggests a significant investment in specialized radiation support. 2. The contract was awarded under 'full and open competition after exclusion of sources,' indicating a competitive process with specific justifications. 3. The use of a Cost Plus Fixed Fee (CPFF) contract type warrants scrutiny for potential cost overruns and contractor incentives. 4. The contract's duration of 3117 days (over 8 years) points to a long-term need for these services. 5. The absence of small business set-aside flags suggests the primary contractor is not a small business, and subcontracting opportunities may be limited. 6. The contract's focus on diagnostic imaging centers aligns with a critical healthcare support function within the NIH.

Value Assessment

Rating: fair

Benchmarking the value of this $13.9 million contract is challenging without specific service details and comparable contract data. The Cost Plus Fixed Fee (CPFF) structure can sometimes lead to higher costs compared to fixed-price contracts if not managed tightly. However, for complex services where cost estimation is difficult, CPFF can be appropriate. Further analysis would require understanding the specific deliverables and the market rates for similar radiation support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This designation implies that while the competition was intended to be open, specific sources may have been excluded for documented reasons, or the competition was limited to a specific set of pre-qualified vendors. The exact number of bidders and the rationale for excluding other sources are crucial for a complete understanding of the competitive landscape and its impact on pricing.

Taxpayer Impact: The limited competition, even if justified, may have resulted in less aggressive pricing than a truly open and unrestricted competition. Taxpayers benefit when competition drives down costs, and the specific nature of this 'exclusion of sources' warrants a closer look to ensure optimal value.

Public Impact

Patients requiring diagnostic imaging services at NIH facilities benefit from the continuity of specialized radiation support. Researchers and medical professionals at the National Institutes of Health are supported in their diagnostic and research endeavors. The contract ensures the availability of critical infrastructure and expertise for radiation-related medical procedures. The workforce involved includes specialized technicians and support staff in the field of radiation management and medical imaging.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type can incentivize cost increases if not rigorously monitored.
The 'exclusion of sources' in the competition raises questions about the breadth of market engagement.
Lack of specific performance metrics makes it difficult to assess the efficiency and effectiveness of the services provided.

Positive Signals

The long contract duration (over 8 years) indicates a stable and sustained need for these essential services.
The contract supports critical healthcare functions within a leading research institution (NIH).
The award to a single entity suggests a potentially specialized capability in radiation support.

Sector Analysis

This contract falls within the Healthcare and Scientific Support Services sector, specifically focusing on diagnostic imaging and radiation management. The market for such specialized services is often characterized by a limited number of highly qualified providers due to the technical expertise and regulatory compliance required. Spending in this area is critical for research institutions and healthcare providers to maintain advanced diagnostic capabilities and ensure patient safety.

Small Business Impact

The contract was not awarded as a small business set-aside, and the primary contractor, Radiation Management Associates, LLC, is not listed as a small business. This suggests that opportunities for small businesses may primarily exist through subcontracting, the extent of which is not detailed in the provided data. Further investigation into subcontracting plans would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the National Institutes of Health (NIH) contracting officers and program managers. The effectiveness of oversight depends on the clarity of contract terms, regular performance reviews, and adherence to the Cost Plus Fixed Fee (CPFF) guidelines. Transparency would be enhanced by public reporting of performance metrics and any modifications or challenges encountered during the contract's lifecycle.

Related Government Programs

Medical Imaging Services
Radiation Therapy Equipment Maintenance
Healthcare Facility Support Services
Diagnostic Services Contracts
Federal Health IT Contracts

Risk Flags

Contract type (CPFF) may lead to cost overruns.
Competition level ('exclusion of sources') warrants further investigation.
Lack of detailed performance metrics hinders effectiveness assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $13.9 million to RADIATION MANAGEMENT ASSOCIATES, LLC. RADIATION SUPPORT AND RELATED SERVICES

Who is the contractor on this award?

The obligated recipient is RADIATION MANAGEMENT ASSOCIATES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $13.9 million.

What is the period of performance?

Start: 2008-01-01. End: 2016-07-14.

What specific radiation support services were provided under this contract?

The contract, valued at approximately $13.9 million, was for 'RADIATION SUPPORT AND RELATED SERVICES' awarded to Radiation Management Associates, LLC by the National Institutes of Health (NIH). While the specific details of the services are not fully elaborated in the provided data, the North American Industry Classification System (NAICS) code 621512 ('Diagnostic Imaging Centers') suggests the services likely encompassed support for diagnostic imaging procedures involving radiation. This could include the operation, maintenance, and technical support for radiation-emitting equipment, quality assurance, radiation safety compliance, and potentially related data management or administrative functions necessary for the smooth operation of diagnostic imaging facilities within NIH.

How does the $13.9 million contract value compare to similar radiation support contracts?

Comparing the $13.9 million contract value requires access to a broader dataset of similar contracts, including their scope, duration, and specific services. However, given the contract's duration of over 8 years (3117 days), the annual average spending would be approximately $1.7 million. This figure provides a baseline for comparison. Contracts for specialized medical support services, particularly those involving radiation and diagnostic imaging within federal research institutions like NIH, can command significant values due to the high level of expertise, regulatory compliance, and specialized equipment involved. Without specific benchmarks for comparable NIH or other federal agency contracts for similar services, it's difficult to definitively state if this represents high or low spending, but it indicates a substantial, long-term commitment.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for radiation support?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for radiation support services revolve around cost control and contractor incentives. In a CPFF arrangement, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. The main risk is that the contractor may have less incentive to control costs compared to fixed-price contracts, as increased costs directly translate to higher reimbursements, albeit without increasing the fixed fee itself. This can lead to potential cost overruns if not managed diligently by the government. Additionally, defining 'allowable costs' can be complex and may lead to disputes. For radiation support, risks also include ensuring strict adherence to safety protocols and regulatory compliance, which must be clearly defined and monitored regardless of the contract type.

What does the 'full and open competition after exclusion of sources' designation imply for this contract?

The designation 'full and open competition after exclusion of sources' implies that the contract was initially intended to be competed openly, but specific sources were subsequently excluded from the bidding process. This exclusion must be justified based on specific criteria outlined in federal acquisition regulations, such as the availability of only one responsible source, or other specific circumstances. It suggests that while the competition was not entirely unrestricted, it aimed to solicit offers from multiple qualified sources before the exclusion. The rationale behind the exclusion is critical; if it was based on unique capabilities or specialized expertise necessary for the radiation support services, it might be justifiable. However, if the exclusion was arbitrary, it could limit price competition and potentially lead to suboptimal value for the government.

What is the historical spending pattern for radiation support services at NIH?

The provided data only details a single contract for radiation support services awarded to Radiation Management Associates, LLC, spanning from January 1, 2008, to July 14, 2016, with a total value of $13.9 million. This represents an average annual expenditure of approximately $1.7 million over the contract's duration. To understand historical spending patterns, one would need to analyze NIH's procurement history for similar services over a more extended period, looking at multiple contracts, different awardees, and variations in contract types and values. Without this broader historical context, it's impossible to discern trends, identify significant shifts in spending, or benchmark this specific contract against NIH's overall investment in radiation support services over time.

What is the track record of Radiation Management Associates, LLC with federal contracts?

The provided data indicates that Radiation Management Associates, LLC was awarded a significant contract by the National Institutes of Health (NIH) for radiation support services, valued at $13.9 million and lasting over 8 years. This suggests a history of engagement with the federal government, specifically within the healthcare and research sector. To fully assess their track record, one would need to examine other federal contracts awarded to this entity, including their performance history, any past performance evaluations, contract modifications, and any instances of disputes or terminations. The duration and value of this NIH contract imply a level of capability and reliability recognized by the agency at the time of award.

Industry Classification

NAICS: Health Care and Social Assistance › Medical and Diagnostic Laboratories › Diagnostic Imaging Centers

Product/Service Code: MEDICAL SERVICES › MEDICAL, DENTAL, AND SURGICAL SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N02RC71010

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 7505 GREENWAY CENTER DR STE 3, GREENBELT, MD, 20770

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $14,362,935

Exercised Options: $13,911,868

Current Obligation: $13,911,868

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline