HHS awards $18.4M contract for health system cancer study, with 6 bidders competing

Contract Overview

Contract Amount: $18,357,605 ($18.4M)

Contractor: National Opinion Research Center

Awarding Agency: Department of Health and Human Services

Start Date: 2018-06-04

End Date: 2026-06-03

Contract Duration: 2,921 days

Daily Burn Rate: $6.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Healthcare

Official Description: IGF::OT::IGF SUPPORT SERVICE FOR A PROSPECTIVE U.S. COHORT SET WITHIN HEALTH CARE SYSTEMS TO STUDY CANCER

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60637

State: Illinois Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $18.4 million to NATIONAL OPINION RESEARCH CENTER for work described as: IGF::OT::IGF SUPPORT SERVICE FOR A PROSPECTIVE U.S. COHORT SET WITHIN HEALTH CARE SYSTEMS TO STUDY CANCER Key points: 1. Contract value appears reasonable given the scope of a prospective U.S. cohort study. 2. Full and open competition suggests a healthy market for these specialized research services. 3. Contract duration of nearly 8 years indicates a long-term research commitment. 4. The award is for professional, scientific, and technical services, aligning with NIH's research mission. 5. The contract is a Cost Plus Fixed Fee type, which can incentivize efficiency. 6. Illinois is the primary state for performance, suggesting a localized research focus.

Value Assessment

Rating: good

The contract value of $18.4 million over approximately 8 years for a prospective U.S. cohort study in healthcare systems is within a reasonable range for such complex research. Benchmarking against similar large-scale epidemiological or health services research contracts would provide more precise value assessment. The Cost Plus Fixed Fee (CPFF) structure allows for cost reimbursement plus a fixed fee, which can be effective for research where costs are not fully predictable, but requires careful oversight to ensure value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 6 bidders suggests a competitive market for these specialized research services. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently by fostering a competitive environment that drives down prices and encourages innovation among contractors.

Public Impact

The primary beneficiaries are patients and healthcare providers who will gain insights into cancer within U.S. healthcare systems. The services delivered include the establishment and study of a prospective U.S. cohort, crucial for understanding cancer trends and outcomes. The geographic impact is focused on Illinois, where the primary performance is located, but the study's findings will have national implications for cancer research and policy. The contract supports scientific and technical expertise, potentially leading to advancements in cancer treatment and prevention strategies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely monitored.
The long contract duration could lead to scope creep if not managed effectively.
Reliance on a single primary performance location (Illinois) might limit broader geographic data collection if not supplemented.

Positive Signals

Awarded through full and open competition, indicating a robust and accessible market.
The contract supports critical health research with potential long-term public health benefits.
The fixed fee component of the CPFF contract provides some cost certainty for the government.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically related to health and medical research. The North American Industry Classification System (NAICS) code 541990, 'All Other Professional, Scientific, and Technical Services,' encompasses a broad range of specialized services. The market for health research services is substantial, driven by government funding agencies like NIH and private sector investment in medical advancements. This contract aligns with the government's ongoing efforts to understand and combat diseases like cancer through data-driven research.

Small Business Impact

The contract details do not indicate any specific small business set-asides or subcontracting requirements. Given the specialized nature of health research and the competitive bidding process, it is possible that larger, established research institutions or firms were the primary bidders. Further analysis would be needed to determine if small businesses had opportunities to participate as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the National Institutes of Health (NIH), a component of the Department of Health and Human Services (HHS). As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring are expected to ensure that costs are reasonable and that the research objectives are being met. The contract's duration and scope suggest regular reporting requirements and potential site visits by government contracting officers and technical monitors. The HHS Office of Inspector General (OIG) would have jurisdiction for audits and investigations if any irregularities were detected.

Related Government Programs

National Cancer Institute Research Grants
Health Services Research and Development
Prospective Cohort Studies
Epidemiological Research Contracts
Biomedical Research Support

Risk Flags

Long contract duration requires sustained oversight.
Cost Plus Fixed Fee structure necessitates careful cost monitoring.
Potential for scope creep in long-term research projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $18.4 million to NATIONAL OPINION RESEARCH CENTER. IGF::OT::IGF SUPPORT SERVICE FOR A PROSPECTIVE U.S. COHORT SET WITHIN HEALTH CARE SYSTEMS TO STUDY CANCER

Who is the contractor on this award?

The obligated recipient is NATIONAL OPINION RESEARCH CENTER.

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 $18.4 million.

What is the period of performance?

Start: 2018-06-04. End: 2026-06-03.

What is the track record of the National Opinion Research Center (NORC) in managing large-scale health research contracts for the federal government?

The National Opinion Research Center (NORC) at the University of Chicago is a well-established independent research institution with extensive experience in conducting large-scale surveys, studies, and program evaluations for various federal agencies, including HHS. NORC has a history of managing complex data collection and analysis projects, often involving sensitive health information and diverse populations. Their expertise spans areas such as public health, social policy, and economic research. While specific details on past performance for similar cancer cohort studies would require deeper investigation into their contract history, NORC's general reputation and long-standing presence in the federal research landscape suggest a capable contractor for this type of work. Their ability to manage multi-year, multi-million dollar projects is well-documented through their numerous government contracts.

How does the awarded amount of $18.4 million compare to similar prospective U.S. cohort studies in healthcare systems?

Comparing the $18.4 million award for this 8-year prospective U.S. cohort study requires context regarding the study's specific objectives, sample size, duration, and complexity. Large-scale epidemiological and health services research projects, especially those involving prospective cohort designs, can range significantly in cost. Factors such as the number of participants, the frequency and type of data collection (e.g., surveys, clinical data, biospecimens), the geographic distribution of the cohort, and the intensity of follow-up all influence the total cost. While $18.4 million over nearly 8 years averages to approximately $2.3 million per year, this figure needs to be benchmarked against studies with comparable methodologies and scope. Without specific comparable contract data, it's difficult to definitively state if this represents a high or low value, but it appears within a plausible range for a significant, long-term health research initiative.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for a long-term research project?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for a long-term research project like this one revolve around cost control and potential inefficiencies. While the fixed fee provides some predictability for the contractor's profit, the 'cost plus' element means the government reimburses allowable costs. If cost estimation is inaccurate or if project scope expands without adequate adjustments, costs can escalate beyond initial expectations. For the government, the risk is paying for costs that may not be strictly necessary or efficiently incurred. For the contractor, the risk is that the fixed fee may not adequately compensate them if unforeseen costs arise, potentially leading to pressure to cut corners. Effective oversight, clear definition of allowable costs, and robust performance metrics are crucial to mitigate these risks and ensure value for money.

What is the expected effectiveness of this contract in advancing the understanding of cancer within U.S. healthcare systems?

The effectiveness of this contract hinges on the successful execution of the prospective U.S. cohort study. A prospective cohort design is considered a strong epidemiological tool for identifying risk factors, understanding disease progression, and evaluating health outcomes over time. By establishing and following a cohort within healthcare systems, researchers can gather real-world data on how cancer is managed, treated, and how patients fare within these specific environments. The insights gained could inform clinical practice guidelines, public health interventions, healthcare policy, and future research directions. The ultimate effectiveness will be measured by the quality of the data collected, the rigor of the analysis, and the impact of the findings on improving cancer care and outcomes for patients within the U.S. healthcare landscape.

How does historical spending on similar 'All Other Professional, Scientific, and Technical Services' contracts by NIH compare to this award?

NIH consistently awards a significant portion of its budget to contracts falling under the 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) category, reflecting its broad research and development mission. This category can encompass a wide array of services, from data analysis and research support to specialized scientific consulting. The $18.4 million award for this specific cancer cohort study represents a substantial, but not unprecedented, investment within this category for NIH. Historical spending patterns show that NIH funds numerous large-scale research projects, many of which extend over multiple years and involve complex methodologies. To provide a precise comparison, one would need to analyze NIH's contract spending database for similar multi-year, cohort-based health research contracts awarded under NAICS 541990, looking at both the total value and the annual expenditure rates.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N 02CP7100758

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1155 E 60TH ST, CHICAGO, IL, 60637

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,760,269

Exercised Options: $22,487,632

Current Obligation: $18,357,605

Actual Outlays: $11,515,168

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline