HHS awards $17.2M for professional services to Henry Ford Health System, with 4 task orders issued

Contract Overview

Contract Amount: $17,219,493 ($17.2M)

Contractor: Henry Ford Health System

Awarding Agency: Department of Health and Human Services

Start Date: 2020-08-01

End Date: 2024-12-14

Contract Duration: 1,596 days

Daily Burn Rate: $10.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST NO FEE

Sector: Healthcare

Official Description: TASK ORDER TITLE: PREPARATION AND STUDY LAUNCH

Place of Performance

Location: DETROIT, WAYNE County, MICHIGAN, 48202

State: Michigan Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $17.2 million to HENRY FORD HEALTH SYSTEM for work described as: TASK ORDER TITLE: PREPARATION AND STUDY LAUNCH Key points: 1. The contract value appears reasonable given the duration and scope of professional services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract has a long duration, potentially indicating a need for sustained support. 4. Performance is being monitored through multiple task orders. 5. This contract falls within the 'All Other Professional, Scientific, and Technical Services' NAICS code. 6. The contract type is Cost No Fee, which shifts some risk to the government. 7. The contractor has a track record with this agency, as indicated by multiple task orders.

Value Assessment

Rating: good

The contract value of $17.2 million over approximately 4 years for professional services is within a reasonable range for government contracts of this nature. Benchmarking against similar contracts for 'All Other Professional, Scientific, and Technical Services' would provide a more precise value-for-money assessment. The Cost No Fee (Cost) contract type means the government reimburses allowable costs, which can be less efficient than fixed-price contracts if not managed carefully. However, for research and development or study launches where costs are uncertain, it can be appropriate.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This generally leads to a more competitive environment, potentially resulting in better pricing and value for the government. The presence of 4 task orders suggests that the initial award was broad enough to accommodate multiple phases or distinct work packages.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it maximizes the potential for cost savings through a robust bidding process.

Public Impact

The primary beneficiary is the Department of Health and Human Services, specifically the National Institutes of Health, for professional and technical support. The services delivered likely involve research, study preparation, and launch activities, contributing to public health initiatives. The geographic impact is centered in Michigan, where Henry Ford Health System is located, but the ultimate impact of the research may be national. The contract supports a healthcare and research organization, potentially impacting the scientific and medical workforce through its activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost No Fee contract type can lead to cost overruns if not closely monitored.
Long contract duration requires sustained oversight to ensure continued value.
The specific nature of 'preparation and study launch' is broad and requires clear performance metrics.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Multiple task orders suggest a structured approach to project execution.
Contractor is a health system, implying relevant expertise for HHS initiatives.

Sector Analysis

This contract falls under the 'All Other Professional, Scientific, and Technical Services' category (NAICS 541990). This sector encompasses a wide range of services not elsewhere classified, often including specialized research support, consulting, and technical assistance. Government spending in this area is substantial, supporting various agencies' research and operational needs. Comparable spending benchmarks would depend on the specific nature of the 'preparation and study launch' activities, but contracts for scientific and technical support can range from thousands to millions of dollars.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. There is no explicit information on subcontracting plans for small businesses. Without this data, it's difficult to assess the direct impact on the small business ecosystem, though large prime contractors are often encouraged to utilize small business subcontractors.

Oversight & Accountability

Oversight is likely managed by the contracting officer's representative (COR) within the National Institutes of Health. The issuance of multiple task orders suggests a phased approach to oversight. Transparency is facilitated by contract databases, but detailed performance reports and Inspector General involvement would depend on specific audit triggers or performance issues.

Related Government Programs

NIH Research Grants
HHS Scientific Support Services
Federal Health Research Contracts
Professional and Technical Services

Risk Flags

Cost Overrun Risk (Cost contract type)
Scope Creep Potential (Broad service description)
Long-term Performance Monitoring Requirement

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $17.2 million to HENRY FORD HEALTH SYSTEM. TASK ORDER TITLE: PREPARATION AND STUDY LAUNCH

Who is the contractor on this award?

The obligated recipient is HENRY FORD HEALTH SYSTEM.

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 $17.2 million.

What is the period of performance?

Start: 2020-08-01. End: 2024-12-14.

What is the specific nature of the 'preparation and study launch' services being procured?

The provided data does not detail the specific 'preparation and study launch' services. However, given the awarding agency (National Institutes of Health) and the NAICS code (All Other Professional, Scientific, and Technical Services), these services likely pertain to the foundational stages of research projects. This could include activities such as protocol development, data management planning, participant recruitment strategy, regulatory compliance preparation, and the initial logistical setup required before a study officially commences. The Cost No Fee contract type suggests that the exact costs are not predetermined, which is common for exploratory or early-stage research where the scope can evolve.

How does the $17.2 million contract value compare to similar professional services contracts awarded by NIH?

Benchmarking the $17.2 million contract value requires comparing it to similar 'All Other Professional, Scientific, and Technical Services' contracts awarded by the NIH, particularly those with a duration of approximately 4 years. Without access to a comprehensive database of comparable contracts, a precise comparison is difficult. However, for specialized scientific and technical support services, a value in this range is not uncommon for multi-year efforts. Factors influencing the value include the level of expertise required, the number of personnel involved, and the complexity of the studies being supported. The Cost No Fee structure also means the government is paying for actual costs incurred plus a fee, rather than a fixed price.

What are the key performance indicators (KPIs) for this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, for 'preparation and study launch' services, KPIs would focus on adherence to timelines for key milestones (e.g., protocol finalization, recruitment plan approval), quality of deliverables (e.g., completeness of study documentation), and compliance with regulatory requirements. For a Cost No Fee contract, KPIs might also indirectly relate to cost control and efficient resource utilization, although the primary focus is on achieving the defined research objectives. The contracting officer's representative (COR) would be responsible for monitoring these KPIs.

What is Henry Ford Health System's track record with the Department of Health and Human Services?

Henry Ford Health System has a history of receiving federal contracts, including from the Department of Health and Human Services (HHS). The issuance of 4 task orders under this specific contract indicates an ongoing relationship and successful past performance with the agency, likely the National Institutes of Health (NIH). While specific details of past performance are not provided, the continued awarding of task orders suggests satisfaction with their services. A deeper analysis would involve reviewing past performance evaluations and other contracts awarded to Henry Ford Health System by HHS.

What is the potential risk associated with the Cost No Fee (Cost) contract type for this procurement?

The primary risk associated with a Cost No Fee (Cost) contract type is that the government bears the financial risk of cost overruns. Unlike fixed-price contracts, the government reimburses the contractor for all allowable costs incurred in performing the contract, plus a predetermined fee. If the project's costs exceed initial estimates, the government is obligated to pay the actual costs. This necessitates robust oversight from the government to ensure that costs are reasonable, allocable, and allowable. For research and development or study launches where uncertainties are high, this contract type can be appropriate, but it requires diligent cost monitoring by the agency.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 1 FORD PLACE, DETROIT, MI, 48202

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

Financial Breakdown

Contract Ceiling: $20,047,529

Exercised Options: $17,219,493

Current Obligation: $17,219,493

Actual Outlays: $11,340,032

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75N91018D00020

IDV Type: IDC

Timeline