Emmes Company's $1.4B contract for R&D-specific medical services management support awarded by NIH

Contract Overview

Contract Amount: $14,073,923 ($14.1M)

Contractor: THE Emmes Company, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2005-05-01

End Date: 2016-03-14

Contract Duration: 3,970 days

Daily Burn Rate: $3.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: R&D-SPEC MED SVCS-MGMT SUP

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $14.1 million to THE EMMES COMPANY, LLC for work described as: R&D-SPEC MED SVCS-MGMT SUP Key points: 1. Contract value of $1.4 billion over its life indicates significant investment in specialized research support. 2. The contract was awarded under full and open competition, suggesting a robust market for these services. 3. A long duration of nearly 11 years (3970 days) points to a sustained need for these critical services. 4. The contract type (Cost Plus Fixed Fee) is common for R&D but can carry higher cost-reimbursement risks. 5. Performance was primarily in Maryland, concentrating the economic impact within a specific geographic region. 6. The contractor, The Emmes Company, LLC, has a substantial history with this contract, suggesting established expertise.

Value Assessment

Rating: good

The contract's total value of $1.4 billion over nearly 11 years suggests a significant but potentially reasonable investment for specialized medical research support services. Benchmarking against similar large-scale R&D support contracts is difficult without more specific service details. However, the Cost Plus Fixed Fee (CPFF) structure, while allowing flexibility for research, can lead to higher overall costs compared to fixed-price contracts if not managed tightly. The sustained award over a long period implies the government found value and performance satisfactory.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of 7 bidders suggests a competitive marketplace for these specialized R&D support services. A competitive process generally leads to better price discovery and potentially more favorable terms for the government, as vendors vie for the contract.

Taxpayer Impact: Taxpayers benefit from a competitive award process that aims to secure the best value for specialized medical research support, potentially leading to cost savings and higher quality services.

Public Impact

The primary beneficiaries are the researchers and institutions supported by the National Institutes of Health (NIH), enabling critical medical research. Services delivered likely include data management, statistical analysis, clinical trial support, and other essential functions for R&D projects. The geographic impact is concentrated in Maryland, where the contractor is located, suggesting local job creation and economic activity. The contract supports a specialized workforce in scientific, technical, and administrative roles related to medical research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize higher spending if cost controls are not rigorously enforced.
The long contract duration may reduce flexibility to adopt newer technologies or approaches if not actively managed.
Concentration of services in one state could limit broader geographic access to support for NIH-funded research nationwide.

Positive Signals

Full and open competition indicates a healthy market and potential for competitive pricing.
The contractor's long tenure suggests a proven track record and established expertise in delivering these services.
The sustained award over many years implies consistent performance and satisfaction with the services provided.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically focusing on R&D support for medical services. This is a critical area for government health agencies like NIH, which rely on specialized contractors to manage complex research projects. The market for such services is substantial, driven by ongoing investments in medical innovation and public health research. Comparable spending benchmarks would involve analyzing other large-scale R&D support contracts within federal health agencies.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem may be limited unless The Emmes Company actively engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officers and program managers within the National Institutes of Health (NIH). The Cost Plus Fixed Fee structure necessitates close monitoring of costs and performance to ensure value for money. Transparency is generally maintained through contract databases and reporting requirements, though specific oversight mechanisms and Inspector General jurisdiction would depend on NIH's internal policies and the contract's specific clauses.

Related Government Programs

NIH Research and Development Contracts
Medical Research Support Services
Clinical Trial Management
Biostatistical Support Services
Federal Health IT Services

Risk Flags

Long contract duration may indicate potential for vendor lock-in or resistance to adopting newer technologies.
Cost Plus Fixed Fee structure requires diligent oversight to manage costs effectively.
Concentration of services in one geographic location.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $14.1 million to THE EMMES COMPANY, LLC. R&D-SPEC MED SVCS-MGMT SUP

Who is the contractor on this award?

The obligated recipient is THE EMMES COMPANY, 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 $14.1 million.

What is the period of performance?

Start: 2005-05-01. End: 2016-03-14.

What is the historical spending trend for this specific contract over its lifecycle?

The provided data summarizes the total award value ($1.4 billion) and duration (May 1, 2005, to March 14, 2016), spanning nearly 11 years. While specific annual spending figures are not detailed here, the substantial total award suggests consistent and significant funding allocation throughout the contract period. The Cost Plus Fixed Fee (CPFF) nature implies that actual spending would fluctuate based on the costs incurred by The Emmes Company in performing the services, plus a predetermined fixed fee. Annual reports and contract close-out documents would contain detailed spending breakdowns, but the overall trend indicates a sustained, high-level investment by NIH in these R&D support services.

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

Determining a precise per-unit cost benchmark for this contract is challenging without granular data on the specific services rendered (e.g., per patient enrolled, per data point analyzed, per report generated) and their associated costs. The contract is for 'All Other Professional, Scientific, and Technical Services' (NAICS 541990), a broad category. The Cost Plus Fixed Fee (CPFF) structure means costs are reimbursed plus a fee, making direct per-unit comparisons difficult. However, the overall value of $1.4 billion over nearly 11 years for comprehensive R&D support suggests a significant operational scale. Benchmarking would require comparing specific service modules (like data management or statistical analysis) against market rates for similar specialized R&D support providers, considering factors like complexity, required expertise, and regulatory compliance.

What is The Emmes Company's track record with federal contracts, particularly with NIH?

The Emmes Company, LLC, has a significant track record, as evidenced by holding this substantial $1.4 billion contract with the National Institutes of Health (NIH) for nearly 11 years. This long tenure suggests a history of successful performance and a strong working relationship with NIH. Companies that consistently win and perform on large, long-term federal contracts, especially with major agencies like NIH, typically demonstrate robust project management capabilities, adherence to regulatory requirements, and the ability to meet evolving research needs. Their success in winning this contract under full and open competition further indicates their competitiveness and capability within the federal contracting landscape for medical R&D support services.

What are the key performance indicators (KPIs) used to evaluate contractor performance on this contract?

While specific KPIs are not detailed in the provided summary data, contracts of this nature and scale typically involve rigorous performance evaluation. For R&D support services, KPIs often include metrics related to data accuracy and integrity, timeliness of deliverables (e.g., report submission deadlines, milestone achievement), adherence to protocols (e.g., clinical trial protocols, data security standards), statistical validity of analyses, and overall project management efficiency. The Cost Plus Fixed Fee structure also implies close monitoring of financial performance and budget adherence. NIH likely utilized a combination of technical, managerial, and cost-related KPIs, potentially formalized in a Performance Work Statement (PWS), to assess The Emmes Company's effectiveness throughout the contract's duration.

How has the scope of services evolved or changed since the contract's inception?

Given the contract's long duration (2005-2016), it is highly probable that the scope of services evolved to adapt to advancements in medical research, technology, and NIH's strategic priorities. Federal contracts, especially those supporting R&D, often include mechanisms for contract modifications or task orders to accommodate changes. For instance, new data analysis techniques, evolving regulatory requirements (like HIPAA or FDA guidelines), or shifts in research focus areas within NIH could necessitate adjustments to the services provided by The Emmes Company. Without specific modification details, it's assumed that the contract was managed to remain relevant and effective in supporting NIH's mission over its lifecycle.

What is the potential impact of contract consolidation or decentralization on service delivery?

This contract represents a significant consolidation of R&D support services under a single large award to The Emmes Company. Such consolidation can lead to efficiencies through economies of scale, standardized processes, and a single point of contact for NIH. However, it could also potentially lead to less flexibility or responsiveness compared to a more decentralized approach using multiple smaller contracts. The long duration and substantial value suggest NIH opted for a strategic partnership model, likely deeming the benefits of consolidation (e.g., deep expertise, continuity) to outweigh the potential drawbacks. Future contract strategies might consider a mix, balancing large consolidated awards with smaller, more specialized contracts.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 7

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 401 N WASHINGTON ST STE 700, ROCKVILLE, MD, 20850

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $14,073,923

Exercised Options: $14,073,923

Current Obligation: $14,073,923

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline