Over $88.5M awarded to National Academy of Sciences for services, with a significant duration of over 17 years

Contract Overview

Contract Amount: $88,504,602 ($88.5M)

Contractor: National Academy of Sciences

Awarding Agency: Department of Health and Human Services

Start Date: 1994-09-15

End Date: 2012-02-29

Contract Duration: 6,376 days

Daily Burn Rate: $13.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Other

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $88.5 million to NATIONAL ACADEMY OF SCIENCES for work described as: Key points: 1. The contract's extensive duration suggests a long-term need for the services provided. 2. The absence of competition raises questions about potential cost efficiencies and market responsiveness. 3. The 'Cost No Fee' contract type indicates that the government reimburses allowable costs without a fixed profit margin, which can incentivize cost control but also requires robust oversight. 4. The contract was awarded to a single entity, the National Academy of Sciences, implying specialized expertise or a unique relationship. 5. The significant award amount over a long period warrants scrutiny of performance and value delivered. 6. The contract's end date in 2012 suggests it is no longer active, but its historical impact and lessons learned remain relevant.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its unique nature and the 'Cost No Fee' structure. Without a competitive process, it's difficult to ascertain if the government secured the best possible price. The extensive duration and high total award amount suggest a substantial investment. However, the lack of a fee might indicate a focus on cost recovery rather than profit, potentially aligning costs with services rendered. Further analysis would require understanding the specific services provided and comparing them to similar, if available, non-profit or governmental research support contracts.

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 a specific entity possesses unique qualifications, capabilities, or when circumstances preclude full and open competition. The National Academy of Sciences is a congressionally chartered, independent organization that provides objective advice to the nation on science, engineering, and medicine. Its unique role may have justified a sole-source award for certain advisory or research-related functions.

Taxpayer Impact: Sole-source awards can limit opportunities for other qualified organizations to compete for government work, potentially leading to higher costs for taxpayers if competition would have driven prices down. It also reduces transparency in the procurement process.

Public Impact

The National Academy of Sciences, a non-profit organization, likely benefited from this funding to support its mission of providing independent scientific advice. The services delivered likely involved scientific research, analysis, and advisory functions critical to informing federal policy and decision-making. The geographic impact is likely national, given the nature of the National Academy of Sciences' advisory role. The contract supported a workforce of researchers, analysts, and administrative staff within the National Academy of Sciences.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have led to suboptimal pricing.
The 'Cost No Fee' structure requires diligent oversight to prevent cost overruns.
The long duration of the contract could indicate a lack of flexibility or adaptability to changing needs.

Positive Signals

Award to a reputable institution (National Academy of Sciences) suggests a focus on quality and expertise.
The 'Cost No Fee' structure may align contractor incentives with government cost control objectives.
The extensive duration indicates a sustained and potentially critical need for the services provided.

Sector Analysis

This contract falls within the broader 'Professional, Scientific, and Technical Services' sector, which is a significant component of federal spending. The National Academy of Sciences operates in a niche area of providing objective scientific advice and research. Comparable spending benchmarks would involve looking at other large, long-term contracts awarded to research institutions or think tanks for similar advisory or analytical services, though direct comparisons are difficult due to the unique nature of the NAS.

Small Business Impact

This contract does not appear to have involved small business set-asides, as it was awarded on a sole-source basis to a large, established institution. There is no indication of subcontracting requirements for small businesses within the provided data. The focus was likely on the direct capabilities of the National Academy of Sciences.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of Health and Human Services, specifically the National Institutes of Health. The 'Cost No Fee' structure necessitates rigorous financial oversight to ensure that all reimbursed costs are allowable, allocable, and reasonable. Transparency would be dependent on the reporting requirements stipulated in the contract and the agency's commitment to public disclosure of contract information.

Related Government Programs

Federal Advisory Committees
Scientific Research Grants
Government Consulting Services
National Academies of Sciences, Engineering, and Medicine

Risk Flags

Sole-source award
Long contract duration
Cost-reimbursement contract type

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $88.5 million to NATIONAL ACADEMY OF SCIENCES. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is NATIONAL ACADEMY OF SCIENCES.

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 $88.5 million.

What is the period of performance?

Start: 1994-09-15. End: 2012-02-29.

What specific services did the National Academy of Sciences provide under this contract?

The provided data does not specify the exact services rendered. However, given the contractor is the National Academy of Sciences (NAS), the services likely involved providing independent, objective advice and analysis on matters of science, engineering, and medicine to the federal government. This could include conducting studies, convening expert panels, producing reports, and offering recommendations on complex scientific and technological issues relevant to the Department of Health and Human Services and its agencies like the National Institutes of Health.

How does the 'Cost No Fee' contract type typically function, and what are its implications for value?

A 'Cost No Fee' (Cost) contract is a type of cost-reimbursement contract where the contractor is reimbursed for all allowable costs incurred in performing the contract, but receives no fee or profit. This structure is often used when the level of risk is low or when the contractor is a non-profit organization or a government entity. For value, it implies that the government pays only for the actual costs incurred. While this can prevent excessive profits, it places a strong emphasis on the government's ability to effectively monitor and control costs, as the contractor has less financial incentive to be efficient compared to a fixed-price contract with profit.

What is the significance of the contract's long duration (over 17 years)?

The contract's duration, spanning from September 1994 to February 2012 (approximately 17.5 years), indicates a sustained and potentially critical need for the services provided by the National Academy of Sciences. Long-term contracts can offer stability and predictability for both the government and the contractor. However, they also raise questions about the initial scope definition, potential for scope creep, and whether a more agile or periodically re-competed approach might have yielded better value or incorporated evolving requirements more effectively over such an extended period.

What does the sole-source award imply about the National Academy of Sciences' role?

A sole-source award signifies that the contracting agency identified the National Academy of Sciences (NAS) as the only responsible source capable of fulfilling the contract requirements. This is often due to the NAS's unique charter, its established reputation for providing objective scientific advice, and its perceived independence. Agencies may sole-source to the NAS when seeking authoritative, unbiased expertise that cannot be readily replicated by other organizations, suggesting a high level of trust and a specific mandate for the NAS's involvement.

How does the total award amount of over $88.5 million compare to typical federal spending on scientific advisory services?

The total award amount of over $88.5 million over nearly 18 years is substantial, even within the context of federal spending on scientific and technical services. While precise comparisons are difficult without knowing the specific scope of work, this figure suggests a significant and ongoing engagement. Federal spending on research, development, and advisory services is vast, but this particular contract represents a considerable investment in a single entity for specialized expertise, likely reflecting the importance and complexity of the issues addressed.

What are the potential risks associated with a long-term, sole-source, cost-reimbursement contract?

This contract structure presents several potential risks. Firstly, the lack of competition inherent in a sole-source award can reduce pressure on the contractor to minimize costs, potentially leading to less value for money. Secondly, cost-reimbursement contracts, especially those without a fee, require robust government oversight to ensure costs are reasonable and necessary, as the contractor is reimbursed regardless of efficiency. Thirdly, the long duration might mean the contract's objectives or the methods used become outdated, yet the contract continues without reassessment or re-competition, potentially leading to inefficiencies or a failure to adapt to new scientific advancements or policy needs.

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: COST NO FEE (S)

Contractor Details

Address: 2101 CONSTITUTION AVE NW, WASHINGTON

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

Financial Breakdown

Contract Ceiling: $388,430,122

Exercised Options: $371,003,152

Current Obligation: $88,504,602

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline