HHS awards $28.5M contract to IHTSDO for health terminology standards, competed under SAP

Contract Overview

Contract Amount: $28,471,648 ($28.5M)

Contractor: International Health Terminology Standards Development Organisation, Ihtsdo

Awarding Agency: Department of Health and Human Services

Start Date: 2011-12-09

End Date: 2016-12-31

Contract Duration: 1,849 days

Daily Burn Rate: $15.4K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: INTERNATIONAL HEALTH TERMINOLOGY STANDARDS DEVELOPMENT ORGANISATION, IHTSDO:112

Plain-Language Summary

Department of Health and Human Services obligated $28.5 million to INTERNATIONAL HEALTH TERMINOLOGY STANDARDS DEVELOPMENT ORGANISATION, IHTSDO for work described as: INTERNATIONAL HEALTH TERMINOLOGY STANDARDS DEVELOPMENT ORGANISATION, IHTSDO:112 Key points: 1. Contract awarded to IHTSDO for health terminology standards. 2. Total value of $28.5 million over 5 years. 3. Competition method was 'COMPETED UNDER SAP'. 4. Contract type is 'DEFINITIVE CONTRACT' with 'FIRM FIXED PRICE'. 5. Agency is Department of Health and Human Services, specific institute is National Institutes of Health.

Value Assessment

Rating: fair

The contract value of $28.5 million over 5 years averages to $5.7 million annually. Benchmarking this against similar contracts for health informatics and standards development is difficult without more specific data on the scope and deliverables. However, the firm fixed price suggests a defined scope which can aid in cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was 'COMPETED UNDER SAP' (Simplified Acquisition Procedures), indicating it was likely awarded to a small business or for a relatively small dollar amount, suggesting limited competition. This method may not always yield the lowest price compared to full and open competition.

Taxpayer Impact: The firm fixed price contract aims to control costs, but the limited competition might mean taxpayers are not getting the absolute best price possible for these essential health terminology standards.

Public Impact

Ensures standardized health terminology for better data exchange and analysis. Supports public health programs through improved information management. Impacts healthcare providers, researchers, and policymakers relying on accurate health data. Facilitates interoperability between different health information systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to SAP.
Potential for higher costs with fixed price and limited competition.

Positive Signals

Clear contract type (FFP) for cost predictability.
Long-term award (5 years) provides stability for standards development.
Supports critical public health infrastructure.

Sector Analysis

This contract falls within the Health sector, specifically focusing on health informatics and standards development. Spending in this area is crucial for modernizing healthcare systems and improving data interoperability. Benchmarks for similar contracts are highly variable based on the specific standards and scope.

Small Business Impact

The use of 'COMPETED UNDER SAP' suggests a potential focus on small businesses, or that the contract value fell within SAP thresholds. Further analysis would be needed to confirm if small businesses were the primary recipients or if this was simply a procedural choice for a contract of this size.

Oversight & Accountability

The contract is managed by the National Institutes of Health under the Department of Health and Human Services. Oversight would involve monitoring the development and implementation of health terminology standards to ensure they meet public health needs and are cost-effective.

Related Government Programs

Administration of Public Health Programs
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Limited competition.
Potential for cost inefficiencies due to fixed price on evolving standards.
Dependence on a single standards development organization.
Lack of detailed performance metrics in provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $28.5 million to INTERNATIONAL HEALTH TERMINOLOGY STANDARDS DEVELOPMENT ORGANISATION, IHTSDO. INTERNATIONAL HEALTH TERMINOLOGY STANDARDS DEVELOPMENT ORGANISATION, IHTSDO:112

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL HEALTH TERMINOLOGY STANDARDS DEVELOPMENT ORGANISATION, IHTSDO.

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 $28.5 million.

What is the period of performance?

Start: 2011-12-09. End: 2016-12-31.

What specific health terminology standards are being developed or maintained under this contract, and how do they align with current public health priorities?

The contract likely supports the development, maintenance, and dissemination of standardized health terminologies such as SNOMED CT. These standards are crucial for enabling consistent data collection, sharing, and analysis across diverse healthcare settings, directly supporting public health initiatives like disease surveillance, research, and quality improvement efforts by ensuring data comparability.

What are the risks associated with relying on a single organization (IHTSDO) for global health terminology standards, particularly concerning vendor lock-in or lack of alternative solutions?

Relying on a single entity like IHTSDO for global standards can pose risks of vendor lock-in, where adopting organizations become dependent on IHTSDO's specific implementation and governance. This could limit flexibility, stifle innovation from alternative sources, and potentially lead to higher long-term costs if IHTSDO's pricing or development roadmap changes unfavorably.

How effectively is the firm fixed price contract structure ensuring value for money, given the nature of standards development which can be iterative and evolving?

A firm fixed price contract for standards development can be effective if the scope is well-defined and stable. However, if the standards are highly iterative or require significant adaptation to new technological or clinical needs, this structure might either lead to scope creep and cost overruns if change orders are frequent, or stifle necessary evolution if changes are resisted to maintain the fixed price.

Industry Classification

NAICS: Public Administration › Administration of Human Resource Programs › Administration of Public Health Programs

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: RUED LANGGAARDS VEJ 7, 5. A56., K?BENHAVN S

Business Categories: Category Business, Foreign Owned, International Organization, Nonprofit Organization, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $28,471,648

Exercised Options: $28,471,648

Current Obligation: $28,471,648

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline