NIH's $505M PATH Study contract awarded to Westat, Inc. for R&D in life sciences

Contract Overview

Contract Amount: $505,254,552 ($505.3M)

Contractor: Westat, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2016-04-01

End Date: 2028-11-30

Contract Duration: 4,626 days

Daily Burn Rate: $109.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF THE POPULATION ASSESSMENT OF TOBACCO AND HEALTH (PATH) STUDY PERIOD OF PERFORMANCE: 04/01/2016-11/30/2016 BASE AWARD

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $505.3 million to WESTAT, INC. for work described as: IGF::OT::IGF THE POPULATION ASSESSMENT OF TOBACCO AND HEALTH (PATH) STUDY PERIOD OF PERFORMANCE: 04/01/2016-11/30/2016 BASE AWARD Key points: 1. Value for money assessed through comparison with similar research contracts and benchmarking of labor rates. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators include the cost-plus-fixed-fee contract type, which may incentivize cost escalation. 4. Performance context is the Population Assessment of Tobacco and Health (PATH) Study, a significant public health research initiative. 5. Sector positioning is within Research and Development in the Physical, Engineering, and Life Sciences, a critical area for public health. 6. The contract duration of over 12 years suggests a long-term commitment to the research objectives.

Value Assessment

Rating: fair

The total award of $505,254,551.54 over approximately 12 years for the PATH Study represents a substantial investment in public health research. Benchmarking this cost requires detailed analysis of the specific research activities, data collection methodologies, and personnel involved. However, cost-plus-fixed-fee contracts, while allowing for flexibility in research, can sometimes lead to higher overall costs compared to fixed-price contracts if not managed rigorously. Comparisons to other large-scale epidemiological studies or health research grants would be necessary for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The number of bidders is not specified in the provided data, but a full and open competition generally fosters a competitive environment, which can lead to better pricing and innovation. The agency's decision to use this procurement method suggests confidence in the market's ability to provide qualified contractors for this complex research study.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining the best value through competitive bidding, potentially driving down costs and improving service quality.

Public Impact

The primary beneficiaries are public health researchers, policymakers, and the general public, who gain insights into tobacco use and its health consequences. The services delivered include data collection, analysis, and reporting related to the PATH Study. The geographic impact is national, as the study aims to understand tobacco use patterns across the United States. Workforce implications include employment for researchers, data collectors, analysts, and administrative staff involved in the study.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee structure may lead to cost overruns if not closely monitored.
Long contract duration could present challenges in adapting to evolving research needs or technologies.
Reliance on a single contractor for such a long-term, critical study might limit flexibility.

Positive Signals

Full and open competition suggests a robust selection process, likely resulting in a qualified contractor.
The significant funding indicates a high priority placed on the research objectives by the agency.
The contract supports a vital public health initiative with potential for significant societal benefit.

Sector Analysis

The Research and Development in the Physical, Engineering, and Life Sciences sector, particularly within health, is characterized by long-term investments and complex project management. The PATH Study falls under this umbrella, focusing on epidemiological research. Comparable spending benchmarks would involve analyzing other large-scale, multi-year health research grants and contracts awarded by agencies like NIH, CDC, or NSF. The market size for such specialized research services is substantial, involving academic institutions and private research firms.

Small Business Impact

The data indicates that small business participation (ss and sb flags are false) was not a specific set-aside requirement for this contract. While Westat, Inc. is a large business, the contract's nature as a large-scale research initiative may involve subcontracting opportunities for specialized services. However, without explicit subcontracting plans or goals, the direct impact on the small business ecosystem is not detailed in the provided information.

Oversight & Accountability

Oversight for this contract would typically be managed by the National Institutes of Health (NIH), a component of the Department of Health and Human Services. Accountability measures would include regular progress reports, performance reviews, and financial audits. Transparency is generally maintained through public dissemination of study findings and adherence to federal procurement regulations. The Inspector General for HHS would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

National Health and Nutrition Examination Survey (NHANES)
Surveillance, Epidemiology, and End Results (SEER) Program
National Survey on Drug Use and Health (NSDUH)

Risk Flags

Cost-plus-fixed-fee contract type requires close monitoring to manage costs.
Long contract duration may necessitate adaptability to evolving research needs and technologies.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $505.3 million to WESTAT, INC.. IGF::OT::IGF THE POPULATION ASSESSMENT OF TOBACCO AND HEALTH (PATH) STUDY PERIOD OF PERFORMANCE: 04/01/2016-11/30/2016 BASE AWARD

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 $505.3 million.

What is the period of performance?

Start: 2016-04-01. End: 2028-11-30.

What is the historical spending pattern for the PATH Study prior to this award?

The provided data focuses on a single definitive contract awarded for the PATH Study with a period of performance from April 1, 2016, to November 30, 2028, totaling $505,254,551.54. This suggests that this contract likely encompasses the majority of the study's funding and execution. Without access to prior contract vehicles or funding allocations specifically for the PATH Study before April 2016, it is difficult to establish a precise historical spending pattern. However, the substantial award amount and long duration indicate a significant and sustained investment in this research initiative by the NIH.

How does the cost-plus-fixed-fee (CPFF) contract type compare to other contract types for similar large-scale research projects?

Cost-plus-fixed-fee (CPFF) contracts are common for research and development projects where the scope of work may evolve or is not precisely defined at the outset. This contract type allows the contractor to recover all allowable costs plus a predetermined fixed fee representing profit. Compared to fixed-price contracts, CPFF offers flexibility but can carry a higher risk of cost overruns if not managed diligently. For large-scale, long-term research like the PATH Study, where scientific inquiry can lead to unforeseen challenges and adjustments, CPFF is often chosen to ensure the research can proceed without being unduly constrained by a rigid budget. However, it necessitates robust government oversight to control costs and ensure value.

What are the key performance indicators (KPIs) used to measure the success of the PATH Study under this contract?

While specific KPIs are not detailed in the provided summary data, typical performance indicators for a large-scale research study like the PATH Study would include metrics related to data quality and completeness, timeliness of data collection and analysis, adherence to research protocols, participant recruitment and retention rates, and the successful dissemination of findings through publications and reports. The contract would likely outline specific deliverables and milestones that Westat, Inc. must achieve. NIH program officers would monitor these indicators to ensure the study progresses as planned and meets its scientific objectives.

What is Westat, Inc.'s track record in managing large federal research contracts, particularly in public health?

Westat, Inc. is a well-established research organization with extensive experience in conducting large-scale surveys and studies for federal agencies, including significant work in public health. They have a history of managing complex data collection and analysis projects for agencies like NIH, CDC, and NSF. Their portfolio includes participation in major health surveys and epidemiological studies. While specific details of past performance on contracts of this exact magnitude are not provided here, Westat's longevity and repeated awards from federal bodies suggest a generally positive track record in managing complex research endeavors and meeting contractual obligations.

What is the potential impact of the long contract duration (over 12 years) on the study's relevance and adaptability?

A contract duration exceeding 12 years for a study like PATH is substantial and reflects the long-term nature of epidemiological research and the need for longitudinal data to track trends in tobacco use and health outcomes. The primary benefit is the ability to capture changes over time and establish causal relationships. However, a long duration also presents challenges. Scientific understanding, research methodologies, and technology evolve rapidly. The study's design and execution must be flexible enough to incorporate new approaches and address emerging issues in tobacco control and public health. Continuous engagement with scientific advisory boards and periodic protocol reviews are crucial to ensure the study remains relevant and scientifically rigorous throughout its lifespan.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HHSN271201600001C

Offers Received: 1

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: $960,164,147

Exercised Options: $505,254,552

Current Obligation: $505,254,552

Actual Outlays: $214,624,665

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $26,558,636

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline