HHS awards $18.9M for State Outcomes Measurement System (SOMMS) to Research Triangle Institute

Contract Overview

Contract Amount: $18,903,191 ($18.9M)

Contractor: Research Triangle Institute

Awarding Agency: Department of Health and Human Services

Start Date: 2005-09-15

End Date: 2010-09-14

Contract Duration: 1,825 days

Daily Burn Rate: $10.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: STATE OUTCOMES MEASUREMENT AND MANAGEMENT SYSTEM (SOMMS)

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 $18.9 million to RESEARCH TRIANGLE INSTITUTE for work described as: STATE OUTCOMES MEASUREMENT AND MANAGEMENT SYSTEM (SOMMS) Key points: 1. Contract awarded to Research Triangle Institute for SOMMS. 2. The contract falls under 'Other Computer Related Services' (NAICS 541519). 3. Full and open competition was utilized. 4. The contract duration was 5 years. 5. The award was made by the Substance Abuse and Mental Health Services Administration (SAMHSA).

Value Assessment

Rating: fair

The contract type is Cost Plus Award Fee (CPAF), which can lead to higher costs if not managed carefully. The award amount of $18.9M over 5 years suggests a moderate annual spend.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was used, which generally promotes competitive pricing. However, the CPAF structure requires careful monitoring to ensure cost efficiency and prevent overruns.

Taxpayer Impact: The use of full and open competition is positive for taxpayer value. The CPAF structure necessitates robust oversight to ensure funds are used effectively.

Public Impact

Supports substance abuse and mental health program evaluation. Aims to improve outcomes measurement and management for state programs. Contract awarded to a single entity, Research Triangle Institute. Located in North Carolina.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contract type can incentivize contractor performance but may lead to higher costs.
The specific performance metrics and award fee structure are not detailed, impacting value assessment.
Potential for scope creep in a 5-year contract without clear performance benchmarks.

Positive Signals

Full and open competition utilized, promoting market-based pricing.
Awarded to a known entity, Research Triangle Institute.
Contract duration of 5 years allows for program continuity.

Sector Analysis

The IT services sector, particularly custom computer programming and systems integration, is competitive. Benchmarks for similar contracts vary widely based on scope and complexity.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors. The primary awardee is Research Triangle Institute, a large research organization.

Oversight & Accountability

The use of a Cost Plus Award Fee contract requires strong oversight from SAMHSA to ensure the contractor meets performance objectives and manages costs effectively. Award fee criteria are critical for accountability.

Related Government Programs

Other Computer Related Services
Department of Health and Human Services Contracting
Substance Abuse and Mental Health Services Administration Programs

Risk Flags

Cost Plus Award Fee structure requires diligent oversight.
Potential for undefined scope creep over a 5-year period.
Lack of detail on specific performance metrics and award criteria.
Small business participation not specified.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $18.9 million to RESEARCH TRIANGLE INSTITUTE. STATE OUTCOMES MEASUREMENT AND MANAGEMENT SYSTEM (SOMMS)

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 (Substance Abuse and Mental Health Services Administration).

What is the total obligated amount?

The obligated amount is $18.9 million.

What is the period of performance?

Start: 2005-09-15. End: 2010-09-14.

What were the key performance indicators (KPIs) and award fee criteria established for this contract to ensure value for money?

The specific KPIs and award fee criteria are not detailed in the provided data. However, for a Cost Plus Award Fee (CPAF) contract, these would typically focus on measurable outcomes related to the system's functionality, data accuracy, user satisfaction, and timely delivery of reports or system enhancements. Effective criteria are crucial for ensuring the contractor is incentivized to achieve program goals efficiently and that taxpayer funds are well-spent.

How did the full and open competition process ensure competitive pricing for a complex IT system development and management contract?

Full and open competition allows multiple qualified vendors to bid, fostering a competitive environment that typically drives down prices. The process likely involved detailed requirements, a thorough evaluation of technical capabilities and past performance, and a pricing structure that allowed for comparison. The success of this competition in achieving optimal pricing depends on the clarity of the solicitation and the rigor of the evaluation.

What is the potential risk associated with the Cost Plus Award Fee (CPAF) structure in terms of cost overruns and contractor efficiency?

CPAF contracts offer flexibility but carry a risk of cost overruns if the base cost is underestimated or if the award fee criteria are not tightly defined and monitored. Contractors may be incentivized to incur costs to achieve higher award fees, potentially exceeding the value delivered. Robust government oversight and clearly defined, objective performance metrics are essential to mitigate these risks and ensure cost efficiency.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 3040 CORNWALLIS ROAD, RESEARCH TRIANGLE PARK, NC, 04

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

Financial Breakdown

Contract Ceiling: $18,903,191

Exercised Options: $18,903,191

Current Obligation: $18,903,191

Timeline