NIH awards $139M for AIDS research, with Social & Scientific Systems Inc. securing a significant portion over a decade

Contract Overview

Contract Amount: $138,982,753 ($139.0M)

Contractor: Social & Scientific Systems, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2002-04-01

End Date: 2012-10-30

Contract Duration: 3,865 days

Daily Burn Rate: $36.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Healthcare

Official Description: AIDS RESEARCH (APPLIED/EXPLORATORY)

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $139.0 million to SOCIAL & SCIENTIFIC SYSTEMS, INC. for work described as: AIDS RESEARCH (APPLIED/EXPLORATORY) Key points: 1. The contract value suggests a substantial, long-term investment in AIDS research by the NIH. 2. The duration of the contract (over 10 years) indicates a need for sustained support and expertise in this critical research area. 3. The award was made under full and open competition, implying a robust selection process. 4. The contract type (Cost Plus Fixed Fee) suggests that the government is willing to cover costs plus a predetermined profit, common in research where exact costs can be unpredictable. 5. The specific NAICS code (561110) points to administrative services, which may support the broader research efforts rather than direct scientific discovery. 6. The absence of small business set-aside flags suggests this was a large-scale procurement likely dominated by established contractors.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the services provided. A $139 million award over 10 years averages to $13.9 million annually, which could be reasonable for large-scale research support. However, the 'Office Administrative Services' NAICS code raises questions about whether this represents direct research funding or support services. Comparing it to similar contracts for administrative support in scientific research would be necessary for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The presence of two bidders suggests a competitive landscape, though the exact number of proposals received is not specified. This level of competition is generally positive for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by driving down costs through a competitive bidding process.

Public Impact

The primary beneficiaries are likely the researchers and institutions conducting AIDS research, who receive essential administrative and operational support. The services delivered, categorized under administrative services, are crucial for the smooth functioning of research programs, including data management, logistics, and potentially grant administration. The geographic impact is primarily within Maryland, where the contractor is located and likely where the administrative functions are performed, supporting the broader NIH mission. Workforce implications include employment opportunities for administrative and support staff within the contractor organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The classification as 'Office Administrative Services' for a significant research award may indicate a potential misallocation of funds if the services are not directly contributing to scientific advancement.
The long contract duration without clear performance metrics could pose a risk if the contractor's efficiency or effectiveness declines over time.
The Cost Plus Fixed Fee contract type, while common in research, can sometimes lead to less cost control compared to fixed-price contracts if not managed diligently.

Positive Signals

The award under full and open competition suggests a rigorous vetting process, likely resulting in a qualified and capable contractor.
The substantial funding indicates a strong commitment by the NIH to addressing AIDS research, a critical public health priority.
The long-term nature of the contract provides stability for the research programs it supports, ensuring continuity of essential administrative functions.

Sector Analysis

This contract falls within the broader healthcare and scientific research sector, specifically focusing on administrative support for AIDS research. The market for such services is competitive, with numerous firms offering specialized administrative and operational support to government agencies and research institutions. Comparable spending benchmarks would typically involve analyzing other large administrative support contracts awarded by agencies like NIH or CDC for similar research endeavors.

Small Business Impact

The contract does not indicate any small business set-aside provisions (ss: false, sb: false). This suggests that the procurement was not specifically targeted towards small businesses, and the prime contractor is likely a larger entity. There is no explicit information on subcontracting plans, but for a contract of this nature and size, it is possible that some portion of the work could be subcontracted to smaller firms, though this is not guaranteed.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officers and program managers within the National Institutes of Health (NIH). Performance reviews, financial audits, and adherence to contract terms would be key oversight mechanisms. Transparency is generally maintained through contract award databases like FPDS, although detailed performance reports are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

National Institutes of Health (NIH) Research Grants
Centers for Disease Control and Prevention (CDC) Public Health Programs
Department of Defense (DoD) Medical Research
Agency for Healthcare Research and Quality (AHRQ) Initiatives

Risk Flags

Contract duration exceeds typical administrative support contract lengths, requiring close monitoring.
NAICS code suggests administrative services, raising questions about direct contribution to scientific research outcomes.
Cost Plus Fixed Fee contract type necessitates robust oversight to ensure cost efficiency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $139.0 million to SOCIAL & SCIENTIFIC SYSTEMS, INC.. AIDS RESEARCH (APPLIED/EXPLORATORY)

Who is the contractor on this award?

The obligated recipient is SOCIAL & SCIENTIFIC SYSTEMS, INC..

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 $139.0 million.

What is the period of performance?

Start: 2002-04-01. End: 2012-10-30.

What specific administrative services are being provided under this contract to support AIDS research?

The contract's NAICS code (561110) indicates 'Office Administrative Services.' While the specific deliverables are not detailed in the provided data, these services typically encompass a range of support functions essential for research operations. This could include tasks such as managing research data, coordinating logistics for studies, handling procurement and financial administration for research projects, maintaining records, scheduling meetings and travel, and providing general office support. The 'AIDS RESEARCH (APPLIED/EXPLORATORY)' description suggests these administrative functions are directly tied to facilitating the scientific endeavors within the NIH's AIDS research portfolio, ensuring that researchers can focus on their scientific work without being burdened by extensive administrative overhead.

How does the Cost Plus Fixed Fee (CPFF) contract type influence cost control and contractor incentives?

The Cost Plus Fixed Fee (CPFF) contract type is characterized by the government reimbursing the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used in research and development or service contracts where the scope of work or final costs are difficult to estimate precisely at the outset. For the government, it offers flexibility to adapt to evolving research needs but can present challenges in cost control, as the contractor has less incentive to minimize costs compared to a fixed-price contract. The fixed fee, however, provides a predictable profit margin for the contractor. Effective oversight and clear definition of allowable costs are crucial to manage this contract type effectively and ensure value for taxpayer money.

What is the significance of the contract's long duration (over 10 years) for AIDS research continuity?

The extended duration of this contract, spanning from April 2002 to October 2012 (over 10 years), signifies a long-term strategic commitment by the NIH to sustained support for AIDS research. Such longevity in administrative support contracts is crucial for maintaining the continuity and stability of complex, multi-year research programs. It allows research teams to rely on consistent operational assistance, facilitating long-term data collection, project management, and the development of ongoing research initiatives without the disruption of frequent contract re-competitions. This stability is particularly important in fields like AIDS research, where progress often requires sustained effort and incremental advancements over extended periods.

What does the 'full and open competition' designation imply about the contractor selection process?

The 'full and open competition' designation means that the NIH actively solicited proposals from all responsible sources capable of meeting the contract requirements. This process is designed to maximize competition, encourage a wide range of innovative solutions, and ensure that the government obtains the best value at a fair price. The fact that the contract was awarded under this method suggests that the selection process was transparent and equitable, allowing multiple companies to bid. While only two bidders are noted, the initial solicitation was open to all, implying that the chosen contractor, Social & Scientific Systems, Inc., was selected based on merit and competitive offering against potentially other qualified entities.

How does the NAICS code 561110 (Office Administrative Services) align with the stated purpose of AIDS research?

The alignment of NAICS code 561110 (Office Administrative Services) with AIDS research funding requires careful consideration. While direct scientific research is typically associated with different NAICS codes (e.g., scientific research services), administrative support is indispensable for the effective execution of large-scale research programs. This contract likely funds essential functions such as data management, record-keeping, logistical support, financial administration, and coordination of research activities. Therefore, while not directly performing scientific experiments, the services provided are critical enablers for the researchers and institutions conducting the AIDS studies funded by the NIH, ensuring the smooth and efficient operation of the research enterprise.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative Services

Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 8757 GEORGIA AVE FL 12, SILVER SPRING, MD, 20910

Business Categories: Category Business, Not Designated a Small Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $411,622,633

Exercised Options: $225,217,287

Current Obligation: $138,982,753

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline