HHS awards $42M for SAMHSA's SPARS system to Research Triangle Institute over 5 years

Contract Overview

Contract Amount: $41,995,262 ($42.0M)

Contractor: Research Triangle Institute

Awarding Agency: Department of Health and Human Services

Start Date: 2016-07-18

End Date: 2021-10-29

Contract Duration: 1,929 days

Daily Burn Rate: $21.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: IGF::OT::IGF SAMHSA'S PERFORMANCE ACCOUNTABILITY AND REPORTING SYSTEM (SPARS)

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 $42.0 million to RESEARCH TRIANGLE INSTITUTE for work described as: IGF::OT::IGF SAMHSA'S PERFORMANCE ACCOUNTABILITY AND REPORTING SYSTEM (SPARS) Key points: 1. Contract awarded to a single vendor, Research Triangle Institute, for a significant duration. 2. The contract type is Cost Plus Award Fee, which can incentivize performance but requires careful oversight. 3. The NAICS code 541690 suggests consulting services, potentially involving data analysis and system management. 4. The award value of $41.9M over nearly 2000 days indicates a substantial investment in performance reporting.

Value Assessment

Rating: fair

The Cost Plus Award Fee structure allows for performance incentives, but the final cost is variable. Benchmarking against similar IT/data system contracts is difficult without more specific service details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the duration and specific nature of the services may limit future competition.

Taxpayer Impact: Taxpayer funds are being used for a critical system supporting substance abuse and mental health services, with the cost dependent on performance incentives.

Public Impact

Ensures continued operation and improvement of SAMHSA's SPARS, vital for tracking program effectiveness. Supports data-driven decision-making in substance abuse and mental health treatment. Potential for improved public health outcomes through better program evaluation. The long-term nature of the contract could lead to vendor lock-in if not managed carefully.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (nearly 5 years) may limit flexibility.
Cost Plus Award Fee structure requires robust performance monitoring.
Lack of specific details on deliverables makes independent cost assessment challenging.

Positive Signals

Awarded under full and open competition.
Focus on performance accountability and reporting is a positive signal.
Supports a critical public health mission.

Sector Analysis

This contract falls under 'Other Scientific and Technical Consulting Services' (NAICS 541690), often involving data analysis, system development, and program management. Spending in this sector is generally high for government agencies needing specialized expertise.

Small Business Impact

No specific information is provided regarding small business participation in this contract. Further investigation would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The Cost Plus Award Fee structure necessitates strong oversight from SAMHSA to ensure performance targets are met and costs are justified. Regular reviews and audits are crucial for accountability.

Related Government Programs

Other Scientific and Technical Consulting Services
Department of Health and Human Services Contracting
Substance Abuse and Mental Health Services Administration Programs

Risk Flags

Cost Plus Award Fee structure requires robust oversight.
Long contract duration may limit future flexibility.
Potential for vendor lock-in.
Limited transparency on specific performance metrics and outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $42.0 million to RESEARCH TRIANGLE INSTITUTE. IGF::OT::IGF SAMHSA'S PERFORMANCE ACCOUNTABILITY AND REPORTING SYSTEM (SPARS)

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 $42.0 million.

What is the period of performance?

Start: 2016-07-18. End: 2021-10-29.

How does the performance achieved by Research Triangle Institute compare to the award fee criteria, and what is the actual cost impact?

The award fee structure is designed to incentivize high performance. Without access to the specific performance metrics and the resulting award fee payments, it's impossible to determine the exact cost impact beyond the base contract value. SAMHSA's internal oversight would track this, ensuring the agency receives value for the incentive payments made.

What are the key risks associated with a long-term (nearly 5-year) Cost Plus Award Fee contract for a performance reporting system?

Key risks include potential cost overruns if performance incentives are too easily achieved or if the base cost structure is not well-defined. There's also a risk of vendor complacency over the long term, potentially leading to stagnation in system improvements. Ensuring continuous alignment with evolving agency needs requires diligent contract management and clear communication.

How effectively does the SPARS system, managed under this contract, contribute to SAMHSA's mission of improving substance abuse and mental health services?

The SPARS system is critical for SAMHSA's mission, enabling the agency to collect, analyze, and report on the performance of its programs. This data is essential for demonstrating accountability, identifying areas for improvement, and allocating resources effectively. The contract's focus on performance accountability suggests a direct link to enhancing service delivery and outcomes.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 283121000

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $41,995,262

Exercised Options: $41,995,262

Current Obligation: $41,995,262

Actual Outlays: $658,745

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $3,588,090

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSS283201200006I

IDV Type: IDC

Timeline