HHS awards $8.4M contract for USRDS support, highlighting need for specialized data services

Contract Overview

Contract Amount: $8,398,104 ($8.4M)

Contractor: Hennepin Healthcare Research Institute

Awarding Agency: Department of Health and Human Services

Start Date: 2024-03-08

End Date: 2027-03-07

Contract Duration: 1,094 days

Daily Burn Rate: $7.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST NO FEE

Sector: Healthcare

Official Description: NEW COST-REIMBURSEMENT CONTRACT AWARD FOR THE PROCUREMENT OF SUPPORT SERVICES FOR THE MAINTENANCE AND UPDATE THE USRDS.

Place of Performance

Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55415

State: Minnesota Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $8.4 million to HENNEPIN HEALTHCARE RESEARCH INSTITUTE for work described as: NEW COST-REIMBURSEMENT CONTRACT AWARD FOR THE PROCUREMENT OF SUPPORT SERVICES FOR THE MAINTENANCE AND UPDATE THE USRDS. Key points: 1. Contract addresses critical data maintenance and update needs for the U.S. Renal Data System. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. The contract duration of nearly three years indicates a significant, ongoing requirement. 4. Hennepin Healthcare Research Institute, the awardee, likely possesses specialized expertise in health data management. 5. The 'Cost No Fee' contract type suggests a focus on service delivery rather than profit margin. 6. This award falls within the 'All Other Professional, Scientific, and Technical Services' NAICS code, indicating a broad scope of potential activities.

Value Assessment

Rating: good

Benchmarking the value of this contract is challenging without specific performance metrics or detailed cost breakdowns. However, the award amount of $8.4 million over approximately three years for specialized data support services appears reasonable given the critical nature of the U.S. Renal Data System. The 'Cost No Fee' structure implies that the contractor's reimbursement is tied to actual costs incurred, which can be an efficient model if managed properly. Further analysis would require comparing the scope of services and expected outcomes to similar data management contracts within the federal government.

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 suggests a robust competitive environment, which typically leads to better price discovery and potentially more favorable terms for the government. The presence of 5 bids, as indicated by the 'no' field, further supports the notion of active competition for this requirement. The government likely benefited from a range of proposals and pricing structures.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by fostering a market-driven approach to service procurement, leading to potentially lower costs and higher quality services.

Public Impact

Patients with kidney disease and their healthcare providers benefit from accurate and up-to-date data on kidney disease trends and outcomes. Researchers and policymakers gain access to reliable data for studies, policy development, and resource allocation related to kidney disease. The U.S. Renal Data System (USRDS) maintenance ensures the continued availability of a vital national resource for understanding and combating kidney disease. The contract supports specialized technical and scientific expertise within the healthcare research sector. The geographic impact is national, as the USRDS serves as a central repository for kidney disease data across the United States.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in 'All Other Professional, Scientific, and Technical Services' if not clearly defined.
Reliance on a single contractor for critical data system maintenance could pose a risk if performance falters.
Ensuring data integrity and security throughout the contract lifecycle is paramount.

Positive Signals

Awarded through full and open competition, indicating a competitive process that should yield value.
The contractor, Hennepin Healthcare Research Institute, likely has demonstrated expertise in health data management.
The contract duration suggests a stable requirement and a commitment to maintaining this critical data system.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically under the NAICS code 541990 (All Other Professional, Scientific, and Technical Services). This broad category encompasses a wide range of services, including data management, research support, and technical consulting. The U.S. Renal Data System (USRDS) is a significant national resource, and its maintenance requires specialized expertise in health informatics and data analysis. Comparable spending in this sector often involves significant investments in IT infrastructure, data security, and skilled personnel to manage complex datasets.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information about subcontracting plans. Given the specialized nature of maintaining a national data system like the USRDS, it is possible that larger, more experienced organizations with proven track records in health data management were better positioned to compete. Further investigation into the awardee's subcontracting practices would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the National Institutes of Health (NIH), a division of the Department of Health and Human Services (HHS). The contract type ('Cost No Fee') suggests that the government will monitor the contractor's incurred costs to ensure they are reasonable and allowable. Performance metrics and regular reporting requirements, typical for such service contracts, would be key accountability measures. Transparency would be facilitated through contract award databases and potentially through public reporting on the USRDS itself.

Related Government Programs

National Institutes of Health (NIH) Research Grants
Centers for Medicare & Medicaid Services (CMS) Data Initiatives
Agency for Healthcare Research and Quality (AHRQ) Programs
National Center for Health Statistics (NCHS) Data Collection
Federal Health IT Initiatives

Risk Flags

Data Security and Privacy Risk
Data Integrity and Accuracy Risk
Contractor Performance Risk
System Modernization and Obsolescence Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $8.4 million to HENNEPIN HEALTHCARE RESEARCH INSTITUTE. NEW COST-REIMBURSEMENT CONTRACT AWARD FOR THE PROCUREMENT OF SUPPORT SERVICES FOR THE MAINTENANCE AND UPDATE THE USRDS.

Who is the contractor on this award?

The obligated recipient is HENNEPIN HEALTHCARE RESEARCH INSTITUTE.

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 $8.4 million.

What is the period of performance?

Start: 2024-03-08. End: 2027-03-07.

What is the historical spending trend for the U.S. Renal Data System (USRDS) maintenance and updates?

Analyzing historical spending for USRDS maintenance is crucial for contextualizing the current $8.4 million award. Without specific prior contract data, it's difficult to establish a precise trend. However, the duration of this new contract (nearly three years) and its value suggest a consistent, significant investment is required to maintain such a critical national data system. Federal spending on data management and health informatics has generally been increasing due to the growing volume of health data and the need for robust analytical capabilities. Future analysis should aim to identify previous contracts for USRDS support to compare award amounts, contract types, and durations, thereby assessing whether current spending represents an increase, decrease, or stable investment relative to historical patterns.

Does Hennepin Healthcare Research Institute have a strong track record with federal health data contracts?

Hennepin Healthcare Research Institute's track record with federal health data contracts is a key indicator of their capability to successfully execute this award. A review of federal procurement databases (like FPDS or SAM.gov) would reveal their past performance, including the types of contracts awarded, their value, and their duration. Specifically, looking for prior awards related to health data management, research support, or similar technical services would provide insight. A history of successful contract completions, positive performance reviews, and minimal disputes would suggest a lower risk profile for this new contract. Conversely, any past performance issues, such as cost overruns, missed deadlines, or quality deficiencies, would warrant closer scrutiny of their current capabilities and the government's oversight plan.

How does the 'Cost No Fee' contract type impact value for money compared to other contract types?

The 'Cost No Fee' (CNF) contract type is a variation of cost-reimbursement contracts where the contractor is reimbursed for allowable costs but receives no fee or profit. This structure is typically used when the government has a high degree of confidence in the contractor's integrity and efficiency, and the scope of work is not precisely defined, making fixed-price contracts unsuitable. For value for money, CNF can be advantageous as it removes the profit motive, potentially leading to lower overall costs if the contractor focuses solely on efficient cost management. However, it places a greater burden on government oversight to ensure costs are reasonable and necessary. Compared to fixed-price contracts, CNF offers more flexibility but less cost certainty for the government upfront. It differs from 'Cost Plus Fixed Fee' (CPFF) by eliminating the fee, which can result in savings if the contractor operates efficiently.

What are the primary risks associated with maintaining a national health data system like USRDS?

Maintaining a national health data system like the U.S. Renal Data System (USRDS) involves several significant risks. Data security and privacy are paramount; breaches could compromise sensitive patient information and violate regulations like HIPAA, leading to severe penalties and loss of public trust. Data integrity is another major risk; errors or inconsistencies in the data can lead to flawed research, inaccurate policy decisions, and misinformed clinical practices. System obsolescence is also a concern, as technology evolves rapidly, requiring continuous updates and modernization to ensure efficiency and compatibility. Furthermore, reliance on specialized expertise means that the loss of key personnel or contractor performance issues could disrupt operations. Finally, ensuring the system remains relevant and useful to its diverse user base (researchers, clinicians, policymakers) requires ongoing adaptation to evolving healthcare landscapes and research needs.

What is the potential impact of this contract on the broader field of kidney disease research?

This contract has a direct and significant positive impact on the broader field of kidney disease research. By ensuring the continued maintenance, accuracy, and accessibility of the U.S. Renal Data System (USRDS), it provides researchers with a foundational, high-quality dataset. The USRDS is a critical resource for understanding disease trends, patient demographics, treatment outcomes, and healthcare utilization patterns. Reliable data enables researchers to conduct epidemiological studies, evaluate the effectiveness of interventions, identify disparities in care, and develop evidence-based recommendations for policy and clinical practice. Without consistent support for the USRDS, the ability to conduct robust research in nephrology would be severely hampered, potentially slowing progress in understanding, preventing, and treating kidney disease.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 75N94023R00015

Offers Received: 5

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 701 PARK AVE, MINNEAPOLIS, MN, 55415

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

Financial Breakdown

Contract Ceiling: $14,466,974

Exercised Options: $8,398,104

Current Obligation: $8,398,104

Actual Outlays: $5,080,372

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline