HHS Awards $75M R&D Contract to RHO Federal Systems for Statistical Data Coordination
Contract Overview
Contract Amount: $74,941,695 ($74.9M)
Contractor: RHO Federal Systems Division Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2023-08-22
End Date: 2028-08-21
Contract Duration: 1,826 days
Daily Burn Rate: $41.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: STATISTICAL DATA COORDINATING CENTER
Place of Performance
Location: DURHAM, DURHAM County, NORTH CAROLINA, 27713
Plain-Language Summary
Department of Health and Human Services obligated $74.9 million to RHO FEDERAL SYSTEMS DIVISION INC for work described as: STATISTICAL DATA COORDINATING CENTER Key points: 1. The contract is for Research and Development in Physical, Engineering, and Life Sciences. 2. RHO Federal Systems Division Inc. is the sole awardee. 3. The contract has a duration of 5 years, ending in August 2028. 4. The award type is a Delivery Order under a larger contract. 5. The contract is a Cost Plus Fixed Fee type.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee structure can lead to cost overruns if not managed carefully. Benchmarking against similar R&D contracts is difficult without more detailed scope information.
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, this specific award is a Delivery Order, implying it might be part of a pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract.
Taxpayer Impact: Taxpayer funds are being used for research and development, which can yield long-term benefits but requires careful oversight to ensure value for money.
Public Impact
Supports critical public health initiatives through data coordination. Invests in scientific advancement within the physical, engineering, and life sciences. Potential for innovation in health preparedness and response. Long-term contract duration suggests ongoing program needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Limited information on specific deliverables and performance metrics.
- Potential for scope creep in R&D projects.
Positive Signals
- Awarded under full and open competition.
- Supports a critical government function (preparedness and response).
- Long-term commitment indicates strategic importance.
Sector Analysis
This contract falls under the R&D sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for technological advancement and addressing complex societal challenges, with significant government investment annually.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The prime contractor, RHO Federal Systems Division Inc., is not identified as a small business in this context, suggesting larger prime contractors may be involved.
Oversight & Accountability
Oversight will be critical to ensure the Cost Plus Fixed Fee structure does not lead to excessive costs and that the R&D objectives are met efficiently. The Assistant Secretary for Preparedness and Response (ASPR) will likely manage this contract.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Health and Human Services Contracting
- Office of Assistant Secretary for Preparedness and Response Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Potential for R&D scope creep.
- Lack of specific performance metrics in the provided data.
- No indication of small business participation.
Tags
research-and-development-in-the-physical, department-of-health-and-human-services, nc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $74.9 million to RHO FEDERAL SYSTEMS DIVISION INC. STATISTICAL DATA COORDINATING CENTER
Who is the contractor on this award?
The obligated recipient is RHO FEDERAL SYSTEMS DIVISION INC.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Office of Assistant Secretary for Preparedness and Response).
What is the total obligated amount?
The obligated amount is $74.9 million.
What is the period of performance?
Start: 2023-08-22. End: 2028-08-21.
What specific statistical data coordination activities will be performed under this contract, and how do they align with ASPR's mission?
The contract is for 'Research and Development in the Physical, Engineering, and Life Sciences.' While the specific statistical data coordination activities are not detailed, they likely involve developing or improving systems for collecting, analyzing, and managing health-related data crucial for preparedness and response efforts. This aligns with ASPR's mission to lead, prevent, and respond to public health emergencies by ensuring data-driven decision-making.
What are the key performance indicators (KPIs) for this R&D contract, and how will RHO Federal Systems Division Inc. be evaluated?
Key performance indicators for R&D contracts typically focus on milestones, deliverables, technical advancements, and adherence to research protocols. Evaluation would likely involve assessing the quality of research outputs, the successful development of data coordination tools or methodologies, and the contractor's ability to meet project timelines and budget constraints within the Cost Plus Fixed Fee framework.
How does the $74.9 million award compare to historical spending on similar statistical data coordination R&D efforts within HHS?
Without specific historical data on comparable statistical data coordination R&D efforts within HHS, a direct comparison is challenging. However, $74.9 million over five years represents a significant investment, suggesting a substantial scope or a critical need for advanced data capabilities in public health preparedness and response.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 2635 E NC HIGHWAY 54, DURHAM, NC, 27713
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $77,182,120
Exercised Options: $74,941,695
Current Obligation: $74,941,695
Actual Outlays: $10,298,588
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: 75A50120D00015
IDV Type: IDC
Timeline
Start Date: 2023-08-22
Current End Date: 2028-08-21
Potential End Date: 2028-08-21 00:00:00
Last Modified: 2025-06-18
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