HHS awards $21.8M for ESRD data analysis, with research focus and no competition
Contract Overview
Contract Amount: $21,803,255 ($21.8M)
Contractor: Regents of the University of Michigan
Awarding Agency: Department of Health and Human Services
Start Date: 2021-09-30
End Date: 2026-09-29
Contract Duration: 1,825 days
Daily Burn Rate: $11.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: THIS DATA INDICATORS PROJECT WILL PROVIDE DETAILED DATA REPORTS ABOUT END STAGE RENAL DISEASE (ESRD) DIALYSIS FACILITIES, TRANSPLANT PROGRAMS, AND ORGAN PROCUREMENT ORGANIZATIONS (OPOS).
Place of Performance
Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $21.8 million to REGENTS OF THE UNIVERSITY OF MICHIGAN for work described as: THIS DATA INDICATORS PROJECT WILL PROVIDE DETAILED DATA REPORTS ABOUT END STAGE RENAL DISEASE (ESRD) DIALYSIS FACILITIES, TRANSPLANT PROGRAMS, AND ORGAN PROCUREMENT ORGANIZATIONS (OPOS). Key points: 1. Contract focuses on critical End Stage Renal Disease data, aiming for improved insights. 2. Research and Development in Social Sciences and Humanities is the primary sector. 3. Sole-source award raises questions about potential cost efficiencies and market engagement. 4. Long-term contract duration suggests a sustained need for these analytical services. 5. Fixed-price contract type offers some cost certainty for the government. 6. Performance period spans nearly five years, indicating a significant project scope.
Value Assessment
Rating: questionable
The contract value of $21.8 million over five years for research and development in social sciences is substantial. Without a competitive bidding process, it is difficult to benchmark the value for money. The fixed-price nature provides some predictability, but the lack of competition prevents a direct comparison to market rates or alternative solutions that might offer better value. Further analysis would be needed to determine if this price is reasonable in the absence of competitive pressure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no open competition. This approach is typically used when a specific contractor possesses unique capabilities or when circumstances preclude a competitive solicitation. The lack of competition means that the government did not benefit from a range of proposals and potentially lower prices that could arise from a bidding war. This limits the government's ability to ensure it is receiving the best possible price and solution.
Taxpayer Impact: Taxpayers may not be receiving the most cost-effective solution due to the absence of competitive bidding. The government's negotiating position is weakened without alternative offers to consider.
Public Impact
Patients with End Stage Renal Disease (ESRD) are the primary beneficiaries through improved data analysis leading to better care insights. The contract supports the development of detailed data reports on dialysis facilities, transplant programs, and organ procurement organizations. Geographic impact is national, as ESRD affects individuals across the United States. Workforce implications include potential employment for researchers, data analysts, and subject matter experts within the contractor's organization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price discovery and potential cost savings.
- Lack of competition may reduce incentives for innovation and efficiency.
- Long-term contract duration without competition could lead to complacency.
- Specific details on performance metrics and deliverables are not publicly detailed.
Positive Signals
- Focus on critical health data for ESRD patients is a positive societal outcome.
- Fixed-price contract provides budget certainty for the government.
- The contractor, Regents of the University of Michigan, is a reputable institution.
- Long-term engagement suggests a recognized need and potential for sustained impact.
Sector Analysis
This contract falls within the Health Information Technology and Research sector, specifically focusing on data analytics for End Stage Renal Disease (ESRD). The market for health data analytics is growing, driven by the increasing volume of healthcare data and the need for evidence-based decision-making. Comparable spending benchmarks are difficult to establish for specialized R&D contracts awarded on a sole-source basis, but significant government investment in health data infrastructure and research is common.
Small Business Impact
There is no indication that this contract includes small business set-asides or subcontracting requirements. As a sole-source award to a large institution, the direct impact on the small business ecosystem is likely minimal. However, the contractor may engage small businesses for specialized services, though this is not explicitly stated.
Oversight & Accountability
Oversight for this contract would primarily fall under the Centers for Medicare and Medicaid Services (CMS) within HHS. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is limited due to the sole-source nature, with fewer public details available compared to competitively awarded contracts. Inspector General jurisdiction would apply to potential fraud, waste, or abuse.
Related Government Programs
- Medicare ESRD Program
- Organ Donation and Transplantation Data
- Health Services Research and Development
- Public Health Data Analytics
Risk Flags
- Sole-source award
- Lack of competition
- Long-term contract duration
Tags
healthcare, research-and-development, data-analysis, hhs, cms, definitive-contract, firm-fixed-price, sole-source, esrd, maryland, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $21.8 million to REGENTS OF THE UNIVERSITY OF MICHIGAN. THIS DATA INDICATORS PROJECT WILL PROVIDE DETAILED DATA REPORTS ABOUT END STAGE RENAL DISEASE (ESRD) DIALYSIS FACILITIES, TRANSPLANT PROGRAMS, AND ORGAN PROCUREMENT ORGANIZATIONS (OPOS).
Who is the contractor on this award?
The obligated recipient is REGENTS OF THE UNIVERSITY OF MICHIGAN.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).
What is the total obligated amount?
The obligated amount is $21.8 million.
What is the period of performance?
Start: 2021-09-30. End: 2026-09-29.
What is the specific expertise of the Regents of the University of Michigan that justified a sole-source award for this ESRD data analysis project?
The justification for a sole-source award to the Regents of the University of Michigan likely stems from their established reputation and extensive experience in health services research, particularly concerning End Stage Renal Disease (ESRD). Universities of Michigan are known for their robust research infrastructure, specialized faculty, and a history of successfully managing large-scale data-intensive projects. This may include prior work with CMS or other federal agencies on similar datasets, possession of unique data access agreements, or proprietary analytical methodologies developed over years of research. The government may have determined that no other entity could replicate the required expertise or deliver the project within the necessary timeframe without significant delay and cost, thus warranting the sole-source designation.
How does the $21.8 million contract value compare to historical federal spending on ESRD data analysis or similar research initiatives?
Comparing the $21.8 million contract value directly to historical federal spending on ESRD data analysis is challenging without specific historical data points for similar sole-source R&D contracts. However, federal investment in health research and data infrastructure is substantial. For context, the National Institutes of Health (NIH) budget alone is tens of billions annually, funding a wide array of biomedical research. CMS also invests significantly in data analytics to manage programs like Medicare and Medicaid. While $21.8 million over five years is a considerable sum for a single project, it may be within the expected range for a comprehensive, long-term research and development initiative focused on a critical public health area like ESRD, especially if it involves unique data sets or advanced analytical capabilities.
What are the primary risks associated with awarding a five-year contract on a sole-source basis for research and development?
The primary risks associated with a sole-source, five-year R&D contract include a lack of price competition, potentially leading to inflated costs or suboptimal value for taxpayer money. There's also a risk of contractor complacency, where the absence of competitive pressure might reduce the incentive for continuous innovation, efficiency improvements, or proactive problem-solving. Furthermore, if the contractor's capabilities or priorities shift over the five-year period, the government may be locked into a contract that no longer represents the best solution or value. Dependence on a single source also poses a risk if the contractor faces unforeseen challenges, such as financial instability or loss of key personnel, which could disrupt the project's continuity.
What performance metrics or deliverables are expected under this contract to ensure the 'Data Indicators Project' effectively addresses ESRD data analysis needs?
While the specific performance metrics and deliverables are not detailed in the provided summary, a contract of this nature typically requires the development and delivery of comprehensive data reports, analytical models, and potentially policy recommendations related to End Stage Renal Disease (ESRD) facilities, transplant programs, and organ procurement organizations (OPOs). Expected deliverables would likely include regular progress reports, interim analytical findings, final comprehensive reports, and potentially interactive data dashboards or tools for CMS. Performance would be measured against criteria such as the accuracy and completeness of data analysis, the timeliness of report submissions, the utility and actionability of the insights generated, and adherence to research protocols and data security standards. The contract statement of work would outline these specific requirements and evaluation criteria.
How does this contract align with broader federal strategies for improving healthcare outcomes and managing chronic diseases like ESRD?
This contract aligns with broader federal strategies by focusing on data-driven insights to improve the management and outcomes of End Stage Renal Disease (ESRD), a significant chronic condition. Federal initiatives increasingly emphasize the use of data analytics to enhance healthcare quality, reduce costs, and promote evidence-based practices. By providing detailed data reports on dialysis facilities, transplant programs, and OPOs, this project supports CMS's mission to oversee and improve kidney care. The insights gained can inform policy development, identify areas for quality improvement, guide resource allocation, and ultimately contribute to better health outcomes for ESRD patients nationwide, fitting within the government's broader goals of healthcare modernization and chronic disease management.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Social Sciences and Humanities
Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 503 THOMPSON ST, ANN ARBOR, MI, 48109
Business Categories: Category Business, Educational Institution, Government, Higher Education, U.S. National Government, Not Designated a Small Business, Higher Education (Public), U.S. Regional/State Government
Financial Breakdown
Contract Ceiling: $21,803,255
Exercised Options: $21,803,255
Current Obligation: $21,803,255
Actual Outlays: $18,768,302
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2021-09-30
Current End Date: 2026-09-29
Potential End Date: 2026-09-29 00:00:00
Last Modified: 2025-09-17
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