CDC awards $81.5M contract for adverse drug event surveillance and statistical analysis to Lantana Consulting Group

Contract Overview

Contract Amount: $81,460,585 ($81.5M)

Contractor: Lantana Consulting Group, Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2022-09-26

End Date: 2027-09-30

Contract Duration: 1,830 days

Daily Burn Rate: $44.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: ANALYTIC SUPPORT FOR ADVERSE DRUG EVENT SURVEILLANCE AND STATISTICAL ANALYSIS

Place of Performance

Location: EAST THETFORD, ORANGE County, VERMONT, 05043

State: Vermont Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $81.5 million to LANTANA CONSULTING GROUP, INC for work described as: ANALYTIC SUPPORT FOR ADVERSE DRUG EVENT SURVEILLANCE AND STATISTICAL ANALYSIS Key points: 1. Contract focuses on critical public health function of monitoring drug safety. 2. Lantana Consulting Group, Inc. is the sole awardee for this delivery order. 3. The contract duration is 5 years, indicating a long-term need for these services. 4. Fixed-price contract type suggests cost certainty for the government. 5. The award was made under full and open competition. 6. The North American Industry Classification System (NAICS) code 541519 covers 'Other Computer Related Services'.

Value Assessment

Rating: good

The contract's total value of $81.5 million over five years averages to approximately $16.3 million annually. Benchmarking this against similar contracts for public health surveillance and data analysis is challenging without more specific service details. However, the firm-fixed-price structure provides cost predictability. The value appears reasonable for a long-term, specialized analytical support contract for a critical public health function like adverse drug event surveillance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but the competition type suggests a robust process aimed at achieving competitive pricing and selecting the best value. This approach generally leads to better price discovery and a wider pool of potential solutions.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment, driving down prices and encouraging innovation, ultimately leading to more efficient use of public funds for essential services like drug safety monitoring.

Public Impact

The Centers for Disease Control and Prevention (CDC) benefits through enhanced capabilities in monitoring and analyzing adverse drug events. The public benefits from improved drug safety surveillance, leading to quicker identification and mitigation of potential health risks associated with medications. The services delivered are crucial for maintaining the safety and efficacy of pharmaceutical products in the United States. Geographic impact is national, as adverse drug event data is collected and analyzed across the country. Workforce implications include specialized roles in data analysis, statistics, and public health informatics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge is not adequately transferred.
Reliance on a single contractor for critical data analysis could pose a risk if performance issues arise.

Positive Signals

Long-term contract (5 years) suggests stability and a proven track record of the contractor.
Firm-fixed-price contract type indicates well-defined scope and cost controls.
Awarded under full and open competition, implying a competitive selection process.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on computer systems design and related services. The market for health data analytics and surveillance is significant and growing, driven by increasing data volumes and the need for advanced analytical capabilities in public health. Comparable spending benchmarks would typically be found within government contracts for health IT, data management, and epidemiological support services.

Small Business Impact

The contract was awarded to Lantana Consulting Group, Inc. and there is no indication of a small business set-aside. As a large contract, it may offer subcontracting opportunities for small businesses, particularly those with specialized expertise in data analysis, statistical modeling, or specific aspects of adverse event reporting. However, the primary awardee is not a small business, and the contract details do not specify any subcontracting goals.

Oversight & Accountability

Oversight for this contract would primarily reside with the Centers for Disease Control and Prevention (CDC) contracting officers and program managers. The contract's firm-fixed-price nature and defined scope provide a basis for performance monitoring. Transparency is generally maintained through federal contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

FDA Adverse Event Reporting System (FAERS)
Drug Safety and Risk Management
Public Health Surveillance Systems
Health Data Analytics
Epidemiological Research Support

Risk Flags

Potential for performance issues impacting critical public health function.
Data security and privacy risks associated with handling sensitive health information.
Long-term reliance on a single vendor could limit future flexibility or cost savings.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $81.5 million to LANTANA CONSULTING GROUP, INC. ANALYTIC SUPPORT FOR ADVERSE DRUG EVENT SURVEILLANCE AND STATISTICAL ANALYSIS

Who is the contractor on this award?

The obligated recipient is LANTANA CONSULTING GROUP, INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $81.5 million.

What is the period of performance?

Start: 2022-09-26. End: 2027-09-30.

What is Lantana Consulting Group's track record with federal contracts, particularly within the Department of Health and Human Services?

Lantana Consulting Group, Inc. has a history of performing federal contracts, primarily within the Department of Health and Human Services (HHS). While specific details on past performance for this exact type of surveillance and analysis are not provided in the summary data, their presence as an awardee suggests they have met the qualifications and demonstrated capability required by the agency. A deeper dive into their contract history, including past performance evaluations and any prior awards for similar services, would provide a more comprehensive understanding of their reliability and expertise in supporting federal health initiatives. Their ability to secure this significant contract indicates a level of trust and proven performance with the agency.

How does the $81.5 million contract value compare to similar federal contracts for adverse drug event surveillance?

Direct comparison of the $81.5 million contract value for adverse drug event surveillance is difficult without access to a comprehensive database of similar, ongoing contracts with identical scopes of work. However, the value appears substantial, reflecting the complexity and critical nature of the services provided to the CDC. Annual spending for such specialized analytical support can range significantly based on the scope, duration, and specific analytical requirements. Given the 5-year duration, the average annual value of approximately $16.3 million suggests a significant undertaking. This figure should be benchmarked against other large-scale public health data analysis and surveillance contracts awarded by agencies like the FDA or CDC to ascertain if it represents a competitive market rate.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks include potential performance deficiencies by the contractor, leading to gaps in critical drug safety data analysis. There's also a risk of data breaches or security vulnerabilities given the sensitive nature of health information. Furthermore, over-reliance on a single vendor could create challenges if the contractor's capabilities diminish or if their pricing becomes uncompetitive in the future. Mitigation strategies likely involve robust contract oversight by the CDC, including performance monitoring, regular reviews, and clear deliverables. The firm-fixed-price structure incentivizes performance, and the contract's duration allows for potential re-competition or adjustments if needed. Security protocols and data handling requirements would be stipulated in the contract to address data security risks.

How effective is the CDC's current system for adverse drug event surveillance, and how will this contract enhance it?

This contract is designed to enhance the CDC's capabilities in adverse drug event (ADE) surveillance and statistical analysis. The effectiveness of the current system is implicitly addressed by the need for this contract, suggesting a requirement for advanced analytical support. The contract aims to provide specialized expertise that may be beyond the CDC's in-house capacity or to augment existing resources. By leveraging Lantana Consulting Group's services, the CDC can expect improved data processing, more sophisticated statistical modeling, and potentially faster identification of drug safety signals. This enhanced analytical capacity is crucial for timely public health interventions and regulatory decision-making regarding pharmaceutical safety.

What has been the historical spending pattern for adverse drug event surveillance and analysis by the CDC or similar agencies?

Historical spending patterns for ADE surveillance and analysis by the CDC and similar agencies like the FDA have generally shown a consistent and often increasing trend, reflecting the growing volume of pharmaceutical data and the critical importance of pharmacovigilance. Specific figures vary year by year and depend on the scope of activities, such as data collection methods, analytical tools employed, and the number of drugs or events being monitored. Contracts for such services can range from millions to tens of millions of dollars annually, often awarded through competitive processes to specialized firms. The $81.5 million awarded over five years to Lantana Consulting Group aligns with the substantial investment required for robust national-level drug safety monitoring.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 75D301-22-Q-75275

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3611 ROUTE 5, EAST THETFORD, VT, 05043

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $81,460,585

Exercised Options: $81,460,585

Current Obligation: $81,460,585

Actual Outlays: $51,070,730

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA21D001V

IDV Type: FSS

Timeline