HHS awards $4.6M contract for statistical and data coordinating center services to Rho Federal Systems Division Inc

Contract Overview

Contract Amount: $4,637,466 ($4.6M)

Contractor: RHO Federal Systems Division Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2023-09-27

End Date: 2026-07-31

Contract Duration: 1,038 days

Daily Burn Rate: $4.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: STATISTICAL AND DATA COORDINATING CENTER (SDCC)

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27713

State: North Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $4.6 million to RHO FEDERAL SYSTEMS DIVISION INC for work described as: STATISTICAL AND DATA COORDINATING CENTER (SDCC) Key points: 1. Contract awarded to Rho Federal Systems Division Inc. for statistical and data coordinating center services. 2. The contract has a duration of 1038 days, ending July 31, 2026. 3. The primary purpose is Research and Development in the Physical, Engineering, and Life Sciences. 4. This contract was awarded under full and open competition. 5. The contract type is Cost Plus Fixed Fee. 6. The award was made by the Office of Assistant Secretary for Preparedness and Response within HHS.

Value Assessment

Rating: good

The contract value of $4.6 million over approximately 2.8 years appears reasonable for specialized R&D support. Benchmarking against similar contracts for statistical and data coordination centers is difficult without more specific service details. However, the Cost Plus Fixed Fee structure suggests that costs will be monitored, and the fixed fee provides a level of predictability for the contractor's profit. Further analysis would require comparing the specific deliverables and labor categories to industry standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open competition suggests that the government sought the best value from a wide range of potential contractors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings and ensures that the government receives competitive pricing through a robust bidding process.

Public Impact

The Department of Health and Human Services (HHS) will benefit from enhanced statistical and data coordination capabilities. Services delivered will support research and development in physical, engineering, and life sciences. The geographic impact is primarily focused on the contractor's location in North Carolina, but the services support national health initiatives. Workforce implications include specialized roles in data analysis, statistical modeling, and research support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely managed.
Dependence on a single contractor for critical data coordination services could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded fair pricing.
Contract duration of over two years provides stability for essential data coordination services.
The contractor, Rho Federal Systems Division Inc., is likely experienced in this specialized field.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for statistical and data coordinating centers is specialized, supporting government agencies and private research institutions. Spending in this area is crucial for advancing scientific understanding and developing new technologies. Comparable spending benchmarks would typically involve analyzing other government contracts for similar data management and analytical support services.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The primary contractor is Rho Federal Systems Division Inc., which may or may not be a small business itself, but the award was not made under a small business program. This means opportunities for small businesses would likely stem from prime contractor subcontracting plans, if any are in place.

Oversight & Accountability

Oversight for this contract will likely be managed by the Office of Assistant Secretary for Preparedness and Response (ASPR) within HHS. Accountability measures will be tied to the Cost Plus Fixed Fee structure, requiring detailed reporting of costs and progress towards deliverables. Transparency will be facilitated through contract reporting mechanisms and potentially through public disclosures of research outcomes. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

HHS Research and Development Contracts
Statistical Support Services
Data Coordinating Centers
Life Sciences Research Support

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Dependence on a single contractor for critical data coordination services.
Need for robust oversight to ensure efficient use of funds.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $4.6 million to RHO FEDERAL SYSTEMS DIVISION INC. STATISTICAL AND DATA COORDINATING CENTER (SDCC)

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 $4.6 million.

What is the period of performance?

Start: 2023-09-27. End: 2026-07-31.

What is the track record of Rho Federal Systems Division Inc. with government contracts, particularly within HHS?

Assessing the track record of Rho Federal Systems Division Inc. requires a review of their past performance on federal contracts. This would involve examining contract databases like the Federal Procurement Data System (FPDS) or the Contract Data Requirements List (CDRL) to identify previous awards, their values, agencies involved, and performance ratings. Specifically for HHS, understanding their history with similar statistical and data coordination projects would be crucial. A positive track record would include successful completion of prior contracts, adherence to schedules and budgets, and favorable past performance evaluations. Conversely, any history of contract disputes, performance issues, or terminations would raise concerns. Without specific past performance data readily available in the provided snippet, a deeper dive into federal procurement records is necessary to fully evaluate their reliability for this critical function.

How does the awarded amount of $4.6 million compare to similar statistical and data coordinating center contracts?

The $4.6 million award for statistical and data coordinating center services over approximately 2.8 years (1038 days) needs to be benchmarked against comparable contracts to assess value for money. This comparison would involve identifying other federal contracts with similar scopes of work, such as data management, statistical analysis, and research support, awarded to other entities. Key metrics for comparison would include the total contract value, duration, labor mix, and specific deliverables. For instance, if similar contracts for comparable services are consistently awarded at higher price points or for shorter durations with fewer deliverables, this award might represent good value. Conversely, if other contracts offer more extensive services for a similar or lower cost, it could indicate potential overpricing or a less competitive award. The Cost Plus Fixed Fee (CPFF) nature of this contract also means that the final cost could fluctuate, making direct comparisons challenging without analyzing the cost components.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract structure?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract structure is the potential for cost overruns. In a CPFF arrangement, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. While the fixed fee provides some cost certainty for the contractor's profit margin, the government bears the risk of cost increases. If the contractor's costs escalate beyond initial estimates due to inefficiencies, scope creep, or unforeseen circumstances, the total expenditure for the government could exceed projections. Effective risk mitigation requires robust government oversight, including detailed cost monitoring, regular audits, and strict adherence to the contract's scope of work. Clear performance metrics and well-defined deliverables are also essential to ensure the contractor remains focused on efficient service delivery.

How effective is the Office of Assistant Secretary for Preparedness and Response (ASPR) in managing R&D contracts of this nature?

Evaluating the effectiveness of the Office of Assistant Secretary for Preparedness and Response (ASPR) in managing R&D contracts requires an analysis of their historical contract performance, oversight capabilities, and procurement processes. ASPR's mission is critical in public health emergencies, suggesting a need for agile and effective contracting. Their success in managing similar R&D contracts would be indicated by timely project completion, adherence to budget, achievement of research objectives, and positive contractor feedback. Factors to consider include the expertise of their contracting officers and program managers, the clarity of their solicitations and statements of work, and the rigor of their performance monitoring. Without specific data on ASPR's past performance in managing R&D contracts, it's difficult to definitively assess their effectiveness. However, their role in preparedness suggests a vested interest in ensuring these contracts yield valuable outcomes.

What are the historical spending patterns for statistical and data coordinating centers within HHS?

Analyzing historical spending patterns for statistical and data coordinating centers within HHS is crucial for contextualizing the current $4.6 million award. This would involve examining HHS's budget allocations and contract awards over several fiscal years for services related to data management, statistical analysis, and research coordination. Key trends to identify would include the total amount spent annually, the number and value of contracts awarded, the primary contractors receiving funding, and the specific research areas or programs supported. Understanding these patterns can reveal whether spending has been consistent, increasing, or decreasing, and whether there's a trend towards consolidating services or diversifying contractors. Such analysis helps determine if the current award aligns with historical investment levels or represents a significant shift in resource allocation for these critical functions.

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: $4,637,466

Exercised Options: $4,637,466

Current Obligation: $4,637,466

Actual Outlays: $3,931,554

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