HHS awards $29.2M contract for SNOMED CT rights to International Health Terminology Standards Development Organisation
Contract Overview
Contract Amount: $29,221,569 ($29.2M)
Contractor: International Health Terminology Standards Development Organisation
Awarding Agency: Department of Health and Human Services
Start Date: 2016-12-08
End Date: 2022-06-30
Contract Duration: 2,030 days
Daily Burn Rate: $14.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: IT
Official Description: IGF::OT::IGF - TO OBTAIN THE RIGHTS TO USE AND DISTRIBUTE THE INTERNATIONAL RELEASE OF SNOMED CT CONFERRED BY MEMBERSHIP IN THE INTERNATIONAL HEALTH TERMINOLOGY STANDARDS DEVELOPMENT ORGANISATION.
Plain-Language Summary
Department of Health and Human Services obligated $29.2 million to INTERNATIONAL HEALTH TERMINOLOGY STANDARDS DEVELOPMENT ORGANISATION for work described as: IGF::OT::IGF - TO OBTAIN THE RIGHTS TO USE AND DISTRIBUTE THE INTERNATIONAL RELEASE OF SNOMED CT CONFERRED BY MEMBERSHIP IN THE INTERNATIONAL HEALTH TERMINOLOGY STANDARDS DEVELOPMENT ORGANISATION. Key points: 1. The contract grants rights to use and distribute SNOMED CT, a critical health terminology. 2. Procurement was not competed, raising questions about price discovery and value. 3. The sole source nature limits potential cost savings and innovation from competition. 4. This spending falls within the IT sector, specifically data processing and hosting services.
Value Assessment
Rating: questionable
The contract value of $29.2M over approximately 5.5 years averages to over $5.3M annually. Without competitive bids, it's difficult to benchmark this against similar data licensing or distribution agreements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits the government's ability to explore alternative vendors or negotiate better pricing through a competitive process.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential health terminology rights.
Public Impact
Ensures access to a standardized medical vocabulary for healthcare providers and researchers. Supports interoperability and data exchange within the healthcare ecosystem. Potential for increased costs due to non-competitive award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpayment
Positive Signals
- Essential health data resource
- Long-term contract duration
Sector Analysis
This contract falls under the IT sector, specifically data processing and hosting services. Spending in this area is substantial across federal agencies, with significant variation based on specific needs for data management and infrastructure.
Small Business Impact
The contract was awarded to an international organization and does not indicate any specific provisions or set-asides for small businesses.
Oversight & Accountability
The non-competitive nature of this award warrants scrutiny to ensure fair pricing and value for taxpayer dollars. Further review of the justification for the sole-source award is recommended.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for inflated pricing.
- Limited transparency in price discovery.
- Dependency on a single provider.
- No small business participation noted.
Tags
computing-infrastructure-providers-data-, department-of-health-and-human-services, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $29.2 million to INTERNATIONAL HEALTH TERMINOLOGY STANDARDS DEVELOPMENT ORGANISATION. IGF::OT::IGF - TO OBTAIN THE RIGHTS TO USE AND DISTRIBUTE THE INTERNATIONAL RELEASE OF SNOMED CT CONFERRED BY MEMBERSHIP IN THE INTERNATIONAL HEALTH TERMINOLOGY STANDARDS DEVELOPMENT ORGANISATION.
Who is the contractor on this award?
The obligated recipient is INTERNATIONAL HEALTH TERMINOLOGY STANDARDS DEVELOPMENT ORGANISATION.
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 $29.2 million.
What is the period of performance?
Start: 2016-12-08. End: 2022-06-30.
What was the justification for awarding this contract on a sole-source basis?
The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source is available or capable of meeting the government's needs. This could be due to unique intellectual property, specialized expertise, or critical infrastructure requirements.
How does the annual cost compare to similar international licensing agreements for health terminologies?
Benchmarking this contract's annual cost of over $5.3M is challenging without access to comparable data on international health terminology licensing. The unique nature of SNOMED CT and its governing body makes direct comparisons difficult, especially in the absence of competitive bids to establish a market price.
What mechanisms are in place to ensure the ongoing value and effectiveness of this SNOMED CT license?
The contract's effectiveness relies on the continued development and support of SNOMED CT by the International Health Terminology Standards Development Organisation. Oversight should focus on ensuring the terminology remains current, comprehensive, and meets the evolving needs of the U.S. healthcare system, despite the non-competitive award.
Industry Classification
NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: NIHLM2016843UHP
Offers Received: 1
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Address: ONE KINGDOM STREET, LONDON
Business Categories: Category Business, Foreign Owned, Limited Liability Corporation, Nonprofit Organization, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations
Financial Breakdown
Contract Ceiling: $32,220,043
Exercised Options: $29,221,569
Current Obligation: $29,221,569
Actual Outlays: $2,589,751
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2016-12-08
Current End Date: 2022-06-30
Potential End Date: 2022-06-30 00:00:00
Last Modified: 2021-11-22
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