HHS awarded $13M for research and analysis services over 10 years, with RTI as the primary contractor

Contract Overview

Contract Amount: $12,962,099 ($13.0M)

Contractor: Research Triangle Institute

Awarding Agency: Department of Health and Human Services

Start Date: 2006-09-26

End Date: 2016-09-26

Contract Duration: 3,653 days

Daily Burn Rate: $3.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: OTHER SPECIAL STUDIES AND ANALYSES

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27709

State: North Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $13.0 million to RESEARCH TRIANGLE INSTITUTE for work described as: OTHER SPECIAL STUDIES AND ANALYSES Key points: 1. The contract's long duration (10 years) suggests a need for sustained support in specialized research and analysis. 2. The cost-plus award fee structure incentivizes contractor performance while allowing for flexibility in project scope. 3. The contract was awarded under full and open competition, indicating a broad search for qualified vendors. 4. The significant duration and value may present opportunities for small business subcontracting, though specific set-asides were not indicated. 5. The nature of 'All Other Professional, Scientific, and Technical Services' is broad, requiring careful monitoring of task orders to ensure alignment with HHS objectives.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging due to its long duration and broad scope. The cost-plus award fee structure means actual spending could vary significantly based on performance and awarded fees. Without specific task order details or comparable long-term research service contracts, a precise value-for-money assessment is difficult. However, the 10-year period suggests a strategic investment in ongoing analytical capabilities for the Department of Health and Human Services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting that multiple vendors had the opportunity to bid. This approach typically fosters price discovery and encourages competitive pricing. The presence of four bidders (implied by 'no': 4) indicates a reasonable level of competition for this service requirement.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a more competitive bidding process, which can lead to better pricing and a wider range of innovative solutions.

Public Impact

The primary beneficiary is the Department of Health and Human Services, which receives support for various research and analytical needs. Services delivered likely encompass a wide range of studies, data analysis, program evaluations, and technical assistance across HHS programs. The geographic impact is national, as HHS serves the entire United States, though specific research projects may have regional focuses. The contract supports a professional workforce in scientific and technical services, contributing to employment in these fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The broad 'All Other Professional, Scientific, and Technical Services' category could lead to scope creep if not managed diligently.
The 10-year duration presents a long-term commitment that requires continuous evaluation of the contractor's performance and evolving needs.
Cost-plus award fee contracts can sometimes lead to higher overall costs if not tightly controlled and performance metrics are not clearly defined.

Positive Signals

The use of full and open competition suggests a robust process for selecting the most capable and cost-effective vendor.
The long-term nature of the contract indicates a stable and predictable need for these services, allowing for strategic planning.
The contractor, Research Triangle Institute (RTI), is a well-established research organization, suggesting a track record of relevant expertise.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically under NAICS code 541990 (All Other Professional, Scientific, and Technical Services). This sector is characterized by a wide array of specialized services, including research and development, consulting, and data analysis. The market size for such services is substantial, driven by government and private sector demand for expertise. Comparable spending benchmarks would involve analyzing other large, long-term contracts for research and analytical support awarded by federal agencies.

Small Business Impact

While the contract was awarded under full and open competition and does not explicitly state a small business set-aside, the significant duration and value could present subcontracting opportunities for small businesses. The prime contractor, Research Triangle Institute, may engage small businesses for specialized tasks or support services. The extent of small business participation would depend on the specific task orders issued and the prime contractor's subcontracting plan.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Department of Health and Human Services' Office of the Assistant Secretary for Administration. Performance monitoring, review of deliverables, and financial oversight are standard mechanisms. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

HHS Research and Development Contracts
Federal Scientific and Technical Services
Government-wide Research Support Contracts
Public Health Research and Analysis

Risk Flags

Long-term contract duration may increase risk of evolving needs.
Broad service category requires careful scope management.
Cost-plus contract type necessitates strong performance oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $13.0 million to RESEARCH TRIANGLE INSTITUTE. OTHER SPECIAL STUDIES AND ANALYSES

Who is the contractor on this award?

The obligated recipient is RESEARCH TRIANGLE INSTITUTE.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $13.0 million.

What is the period of performance?

Start: 2006-09-26. End: 2016-09-26.

What is the track record of Research Triangle Institute (RTI) in performing similar federal contracts?

Research Triangle Institute (RTI) has a long and extensive history of performing federal contracts, particularly with agencies like the Department of Health and Human Services (HHS), the National Institutes of Health (NIH), and the Centers for Disease Control and Prevention (CDC). Their work typically spans a wide range of research and evaluation services, including health policy, program evaluation, survey research, data analysis, and technical assistance. RTI is known for its expertise in scientific research and its ability to manage large, complex, and long-term projects. Their track record generally indicates a strong capacity to deliver on government requirements, often involving sensitive data and rigorous methodologies. Specific performance metrics and past performance reviews from previous contracts would provide a more detailed assessment, but their overall reputation suggests a capable contractor for this type of service.

How does the awarded amount of $13 million compare to similar long-term research and analysis contracts?

The awarded amount of approximately $13 million over a 10-year period equates to an average annual value of $1.3 million. This figure is moderate for a long-term federal contract supporting specialized research and analysis. Many large-scale federal research initiatives, particularly those involving extensive data collection, multi-site studies, or complex modeling, can range from tens to hundreds of millions of dollars over similar or shorter durations. For instance, major epidemiological studies, large-scale program evaluations, or significant health IT research projects often command higher budgets. However, the $1.3 million annual average is consistent with contracts focused on specific analytical tasks, policy research, or targeted studies rather than broad, agency-wide research programs. The final cost will also depend on the specific task orders issued and the contractor's performance under the cost-plus award fee structure.

What are the primary risks associated with a 10-year contract for 'All Other Professional, Scientific, and Technical Services'?

The primary risks associated with a 10-year contract for 'All Other Professional, Scientific, and Technical Services' include scope creep, technological obsolescence, contractor performance degradation, and evolving government needs. The broad nature of the NAICS code 541990 means the specific services required could change significantly over a decade, potentially leading to unmanaged expansion of work (scope creep) or misalignment with current agency priorities. Technological advancements could render certain analytical methods or tools obsolete, requiring continuous adaptation. There's also a risk that the contractor's performance may decline over such a long period, or that the government's requirements will shift in ways not anticipated during the initial procurement. Effective contract management, clear performance metrics, and regular reviews are crucial to mitigate these risks.

How does the 'Cost Plus Award Fee' (CPAF) contract type influence value for money and contractor performance?

The Cost Plus Award Fee (CPAF) contract type aims to balance flexibility with performance incentives. In a CPAF contract, the contractor is reimbursed for allowable costs plus a fee that is composed of a base fee (typically a small percentage of estimated costs) and an award fee. The award fee is determined by the government based on the contractor's performance against pre-defined criteria, often related to quality, timeliness, and technical objectives. This structure incentivizes the contractor to exceed minimum performance standards to earn a higher fee, potentially leading to better outcomes and value. However, it also requires robust government oversight to ensure fair and objective performance evaluations. If the award criteria are not well-defined or if the evaluation process is subjective, it can lead to disputes or perceptions of unfairness. For taxpayers, CPAF can be beneficial if it drives superior performance, but it carries a risk of higher total costs compared to fixed-price contracts if not managed effectively.

What is the significance of the contract being awarded under 'Full and Open Competition'?

Awarding a contract under 'Full and Open Competition' signifies that the government solicited proposals from all responsible sources and intended to award the contract to the responsible offeror whose proposal, conforming to the solicitation, was most advantageous to the government, price and other factors considered. This is the preferred method of government contracting, designed to maximize competition, ensure fair and equitable treatment of all potential offerors, and achieve the best possible value for the government (and thus taxpayers). It implies that there were no restrictions placed on the types of businesses that could bid, allowing for a wide pool of candidates. The presence of four bidders (as indicated by 'no': 4) suggests that this competition was indeed realized to some extent, providing a basis for price discovery and selection of a qualified contractor.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 3040 CORNWALLIS ROAD, RESEARCH TRIANGLE PARK, NC, 27709

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $12,994,442

Exercised Options: $12,994,442

Current Obligation: $12,962,099

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline