NIH awards $13.4M contract for infection, immunity, and cancer study support to Westat, Inc
Contract Overview
Contract Amount: $13,369,022 ($13.4M)
Contractor: Westat, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2017-03-20
End Date: 2022-03-19
Contract Duration: 1,825 days
Daily Burn Rate: $7.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IGF::OT::IGF SUPPORT SERVICES FOR STUDIES OF INFECTION, IMMUNITY, AND CANCER
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $13.4 million to WESTAT, INC. for work described as: IGF::OT::IGF SUPPORT SERVICES FOR STUDIES OF INFECTION, IMMUNITY, AND CANCER Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries risk. 3. The duration of 1825 days (5 years) indicates a long-term need for these services. 4. The North American Industry Classification System (NAICS) code 541990 covers 'All Other Professional, Scientific, and Technical Services'. 5. The contract was awarded to a single contractor, Westat, Inc. 6. The contract value is approximately $13.4 million over its five-year term.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The Cost Plus Fixed Fee (CPFF) structure means the government pays actual costs plus a negotiated fixed fee. While this can be appropriate for research and development where costs are uncertain, it requires robust oversight to ensure costs remain reasonable. The fixed fee component provides some incentive for the contractor to manage costs, but the overall value depends heavily on the efficiency and effectiveness of Westat's performance and the NIH's oversight.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The presence of two bids suggests a moderate level of competition for this specific requirement. While two bidders is better than one, it may not represent the full competitive landscape for these specialized services. The level of competition can influence pricing, with more bidders generally leading to more competitive offers.
Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces. Even with two bidders, the process aims to secure the best value for the government.
Public Impact
The National Institutes of Health (NIH) benefits from specialized support services for critical research areas. Services provided are essential for studies related to infection, immunity, and cancer. The contract supports scientific research and development within the federal government. The primary beneficiaries are researchers and ultimately the public through advancements in medical understanding and treatment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts require diligent oversight to prevent cost overruns.
- Limited competition (two bidders) may not have yielded the lowest possible price.
- The long contract duration could lead to scope creep if not managed effectively.
Positive Signals
- Awarded through full and open competition, indicating a fair opportunity for multiple vendors.
- The contractor, Westat, Inc., is likely experienced in providing professional, scientific, and technical services.
- The contract supports critical public health research areas.
Sector Analysis
This contract falls within the Professional, Scientific, and Technical Services sector, specifically NAICS code 541990. This broad category includes a wide range of services such as research and development, consulting, and technical support. The federal government is a significant purchaser of these services, particularly within agencies like the NIH that rely on external expertise for specialized research. Comparable spending benchmarks would typically be found within government-wide contract vehicles or databases that track spending on professional services.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, Westat, Inc., may engage small businesses as subcontractors, but this information is not detailed in the provided data. The impact on the small business ecosystem would depend on Westat's subcontracting practices.
Oversight & Accountability
Oversight for this contract would primarily reside with the National Institutes of Health (NIH) contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. The Cost Plus Fixed Fee structure necessitates close scrutiny of incurred costs. While specific Inspector General (IG) jurisdiction is not detailed, the Department of Health and Human Services Office of Inspector General (HHS-OIG) typically oversees federal spending within HHS agencies to detect and prevent waste, fraud, and abuse.
Related Government Programs
- NIH Research and Development Contracts
- Professional, Scientific, and Technical Services
- Health Research Support Services
- Federal Research Grants and Contracts
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight.
- Limited number of bidders may impact price competitiveness.
- Potential for scope creep in long-term research support contracts.
Tags
professional-scientific-technical-services, health-and-human-services, national-institutes-of-health, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, maryland, research-and-development, scientific-support, cancer-research, immunity-research, infection-research
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $13.4 million to WESTAT, INC.. IGF::OT::IGF SUPPORT SERVICES FOR STUDIES OF INFECTION, IMMUNITY, AND CANCER
Who is the contractor on this award?
The obligated recipient is WESTAT, INC..
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 $13.4 million.
What is the period of performance?
Start: 2017-03-20. End: 2022-03-19.
What is the track record of Westat, Inc. in performing similar federal contracts?
Westat, Inc. has a significant history of performing federal contracts, particularly within the Department of Health and Human Services and other research-oriented agencies. Their expertise often lies in survey research, data collection, statistical analysis, and program evaluation. While specific performance details for this particular contract (541990) are not publicly detailed in this summary, their extensive experience suggests a capacity to handle complex scientific and technical support services. A deeper dive into contract performance databases and past performance reviews would provide more granular insights into their reliability and effectiveness on similar projects.
How does the awarded amount of $13.4 million compare to similar contracts for scientific support services?
The $13.4 million award over five years, averaging approximately $2.68 million per year, is a substantial but not extraordinary amount for specialized scientific support services at an agency like NIH. The value is highly dependent on the scope and complexity of the studies supported. To benchmark effectively, one would need to compare it against contracts with similar objectives, durations, and contractor capabilities within the federal research landscape. Without access to a comprehensive database of comparable contracts, it's difficult to definitively state if this represents high or low value. However, given the long-term nature and critical research focus, the investment appears aligned with agency needs.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for this type of service?
The primary risk with a CPFF contract is that the government may end up paying more than necessary if the contractor's costs are not well-managed or if the fixed fee does not adequately reflect the effort required. While the fixed fee provides an incentive for the contractor to control costs, it doesn't eliminate the risk of inflated direct costs. For scientific support services, where research objectives can evolve, there's also a risk of scope creep. Robust government oversight, detailed cost monitoring, and clear performance metrics are crucial to mitigate these risks and ensure the government receives good value for its investment.
How effective is the 'full and open competition' process in ensuring competitive pricing for specialized scientific services?
The 'full and open competition' process is designed to maximize the pool of potential bidders, thereby fostering competition and driving down prices. However, the effectiveness in practice can vary. For highly specialized scientific services, the number of qualified bidders might be limited, as indicated by the two bids received in this case. While this process ensures fairness and broad opportunity, it doesn't guarantee a large number of competitive offers if the market for specific expertise is narrow. The government relies on thorough market research and well-defined requirements to attract sufficient competition.
What are the potential implications of the 5-year duration on the contract's overall cost-effectiveness?
A 5-year contract duration (1825 days) offers stability and allows the contractor to develop deep expertise and efficiencies over time, potentially leading to better long-term cost-effectiveness. It reduces the administrative burden and transition costs associated with frequent re-competition. However, it also locks the government into a specific provider for an extended period. This necessitates strong initial contract negotiation and continuous performance monitoring to ensure that costs remain competitive and that the services continue to meet evolving research needs. Without flexibility or performance adjustments, long-term contracts can sometimes become less cost-effective if market conditions or requirements change significantly.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: MEDICAL SERVICES › LABORATORY TESTING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N02CP7100026
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1600 RESEARCH BLVD, ROCKVILLE, MD, 20850
Business Categories: Category Business, Corporate Entity Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $16,782,561
Exercised Options: $15,133,084
Current Obligation: $13,369,022
Actual Outlays: $2,779,996
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-03-20
Current End Date: 2022-03-19
Potential End Date: 2022-03-29 00:00:00
Last Modified: 2025-09-18
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