HHS awarded $15.5M for administrative support services to Research Triangle Institute, a sole-source contract

Contract Overview

Contract Amount: $15,470,499 ($15.5M)

Contractor: Research Triangle Institute

Awarding Agency: Department of Health and Human Services

Start Date: 2008-01-28

End Date: 2011-01-31

Contract Duration: 1,099 days

Daily Burn Rate: $14.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: OTHER ADMINISTRATIVE SUPPORT SVCS

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60606

State: Illinois Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $15.5 million to RESEARCH TRIANGLE INSTITUTE for work described as: OTHER ADMINISTRATIVE SUPPORT SVCS Key points: 1. The contract's value of $15.5 million over three years suggests a significant investment in administrative support. 2. As a sole-source award, the lack of competition may have limited opportunities for price negotiation and innovation. 3. The 'cost plus fixed fee' contract type indicates that costs were reimbursed plus a fixed fee, which can incentivize cost control but also carries inherent risk. 4. The duration of 1099 days (nearly 3 years) points to a long-term need for these services. 5. The contract falls under 'All Other Professional, Scientific, and Technical Services,' a broad category that requires further scrutiny for specific service delivery. 6. The absence of small business set-aside flags suggests this contract was not specifically targeted to support small businesses.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without specific service details. However, $15.5 million for administrative support over three years averages over $5 million annually. This figure needs to be compared against the scope and complexity of the services provided. Given the sole-source nature, it's difficult to assess if the pricing reflects competitive market rates. The 'cost plus fixed fee' structure, while common, can sometimes lead to higher overall costs compared to fixed-price contracts if not managed diligently.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when only one responsible source is available or in cases of urgent need. The lack of competition means that potential cost savings and service improvements that might arise from a competitive bidding process were not realized. It also limits the government's ability to explore a wider range of service providers and innovative solutions.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without multiple bids, there's less assurance that the price reflects the best value achievable in the market.

Public Impact

The primary beneficiaries are likely the Department of Health and Human Services (HHS) administrative functions, which receive support services. The services delivered are broadly categorized as 'All Other Professional, Scientific, and Technical Services,' implying a range of support activities. The geographic impact is primarily within the agency receiving the services, likely concentrated where HHS administrative offices are located. Workforce implications could include the direct employment of individuals by Research Triangle Institute to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential savings.
Cost-plus-fixed-fee contract type can lead to cost overruns if not closely monitored.
Broad service category ('All Other Professional, Scientific, and Technical Services') lacks specificity, making performance assessment difficult.
Contract duration of nearly three years requires sustained oversight to ensure continued value.

Positive Signals

Research Triangle Institute is a known entity, potentially offering established expertise.
The fixed fee component provides some level of cost predictability for the government.
The contract was awarded to a single, presumably capable, contractor for a defined period.

Sector Analysis

The 'All Other Professional, Scientific, and Technical Services' category (NAICS 541990) is a broad segment of the professional services market. This contract represents a portion of federal spending within this diverse sector, which includes a wide array of specialized support functions. Comparable spending benchmarks are difficult to establish without knowing the precise nature of the administrative support provided. However, federal spending on professional and technical services is substantial, reflecting the government's reliance on external expertise.

Small Business Impact

This contract does not appear to have been set aside for small businesses, as indicated by the 'sb' flag being false. Consequently, there are no direct subcontracting implications mandated by a small business set-aside. The absence of such a provision means that opportunities for small businesses to participate in this specific contract as prime contractors or through mandated subcontracting goals were not pursued.

Oversight & Accountability

Oversight for this contract would fall under the Department of Health and Human Services, specifically the Office of the Assistant Secretary for Administration. As a definitive contract, it is subject to standard federal procurement regulations and oversight mechanisms. Transparency is dependent on the agency's reporting practices and the public availability of contract details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

HHS Administrative Support Contracts
Professional, Scientific, and Technical Services
Cost-Plus-Fixed-Fee Contracts
Sole-Source Federal Awards

Risk Flags

Sole-source award lacks competitive pricing.
Cost-plus-fixed-fee contract type can lead to cost uncertainty.
Broad service category lacks specificity for performance evaluation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $15.5 million to RESEARCH TRIANGLE INSTITUTE. OTHER ADMINISTRATIVE SUPPORT SVCS

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 $15.5 million.

What is the period of performance?

Start: 2008-01-28. End: 2011-01-31.

What specific administrative support services were provided under this contract?

The contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This is a very broad category and does not specify the exact nature of the administrative support. It could encompass a wide range of activities such as program management support, data analysis, research assistance, technical writing, or general administrative operations. Without more detailed contract documentation or service descriptions, it is impossible to pinpoint the exact services rendered. Further inquiry with the contracting agency (HHS) would be necessary to obtain a precise breakdown of the deliverables.

How does the $15.5 million contract value compare to similar administrative support contracts awarded by HHS?

Comparing this $15.5 million contract value to similar administrative support contracts requires access to a comprehensive database of federal procurements with detailed service descriptions. Given that this was a sole-source award for 'All Other Professional, Scientific, and Technical Services,' direct comparisons are difficult. However, annual spending for administrative support services across federal agencies can range from hundreds of thousands to tens of millions of dollars, depending on the scope, duration, and criticality of the services. To assess value-for-money, one would need to benchmark against contracts with similar service requirements, contract types (cost-plus-fixed-fee), and durations, ideally from competitive procurements to establish a market baseline.

What are the risks associated with a sole-source 'cost plus fixed fee' contract for administrative support?

A sole-source 'cost plus fixed fee' (CPFF) contract for administrative support carries several risks. The primary risk of a sole-source award is the lack of competition, which can lead to inflated prices and reduced incentive for the contractor to innovate or operate efficiently, as there's no market pressure. The CPFF structure reimburses the contractor for allowable costs plus a fixed fee representing profit. While the fixed fee provides some cost certainty for the government regarding profit, the overall cost is variable and dependent on actual expenditures. This can incentivize cost-reimbursement rather than cost-control if oversight is lax. For administrative support, where performance metrics can sometimes be subjective, ensuring the contractor is delivering value and managing costs effectively requires robust government oversight and clear performance standards.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically falls under specific exceptions to full and open competition outlined in federal acquisition regulations. Common reasons include that only one responsible source is capable of providing the required services, there is a compelling urgency, or the services are specialized and unique to a particular contractor. Without the specific justification document (e.g., a Justification and Approval - J&A), it's impossible to know the precise reason HHS awarded this contract to Research Triangle Institute without competition. Understanding this justification is crucial for assessing whether the sole-source decision was appropriate and in the government's best interest.

How has Research Triangle Institute performed on previous federal contracts, particularly those with HHS?

Assessing Research Triangle Institute's past performance requires accessing contract performance databases and historical award data. Information on contractor performance is often maintained by federal agencies and can be found in systems like the Contractor Performance Assessment Reporting System (CPARS). A review of their track record would involve examining past contract awards, their adherence to schedules and budgets, the quality of their deliverables, and any past performance issues or disputes. For this specific contract, understanding their history with HHS and similar administrative support services would provide insight into their capability and reliability.

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) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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: $15,470,499

Exercised Options: $15,470,499

Current Obligation: $15,470,499

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline