HHS Awards $175.9M Task Order to Westat for Core Survey Work and Optional Add-ons
Contract Overview
Contract Amount: $175,939,344 ($175.9M)
Contractor: Westat, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2020-07-13
End Date: 2026-05-31
Contract Duration: 2,148 days
Daily Burn Rate: $81.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS INCENTIVE FEE
Sector: IT
Official Description: TASK ORDER 1 FOR CORE SURVEY WORK (CLIN0001) AND OPTIONAL SURVEY ADD-ONS (CLIN0002)
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $175.9 million to WESTAT, INC. for work described as: TASK ORDER 1 FOR CORE SURVEY WORK (CLIN0001) AND OPTIONAL SURVEY ADD-ONS (CLIN0002) Key points: 1. The task order, valued at $175.9 million, is for survey work and optional add-ons. 2. Awarded to Westat, Inc. under a full and open competition. 3. The contract spans from July 2020 to May 2026, indicating a long-term need. 4. The sector is IT, specifically Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services.
Value Assessment
Rating: good
The contract type is Cost Plus Incentive Fee, which allows for shared savings and cost control. The base award amount is $175.9M, with potential for adjustments based on performance and cost efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically yields competitive pricing by allowing all eligible vendors to bid.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential survey services.
Public Impact
Supports critical health research and data collection for the Department of Health and Human Services. Ensures continuity of essential survey operations through a long-term contract. Leverages IT infrastructure and data processing services for public health initiatives.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns with Cost Plus Incentive Fee contract type if not managed closely.
- Long contract duration may not fully account for evolving technological needs or market shifts.
Positive Signals
- Full and open competition ensures market-based pricing.
- Long-term award provides stability for critical survey operations.
- Incentive fee structure encourages cost efficiency.
Sector Analysis
This contract falls within the IT sector, specifically focusing on data processing and web hosting services. The benchmark for similar contracts in this area can vary widely based on scope and duration, but the scale of this award suggests a significant and complex undertaking.
Small Business Impact
The data indicates that Westat, Inc. received this award, and there is no specific mention of small business participation. Further analysis would be needed to determine if small businesses were subcontracted or if opportunities were missed.
Oversight & Accountability
The award is managed by the Office of the Assistant Secretary for Financial Resources within HHS. Oversight would focus on contract performance, cost management, and adherence to the incentive fee structure.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of Health and Human Services Contracting
- Office of the Assistant Secretary for Financial Resources Programs
Risk Flags
- Cost Plus Incentive Fee contract type requires diligent oversight to prevent cost overruns.
- Long contract duration (2020-2026) may not be agile enough for rapidly changing data needs.
- No explicit mention of small business subcontracting opportunities.
- Dependence on a single vendor for a significant period could pose a risk if performance degrades.
Tags
computing-infrastructure-providers-data-, department-of-health-and-human-services, md, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $175.9 million to WESTAT, INC.. TASK ORDER 1 FOR CORE SURVEY WORK (CLIN0001) AND OPTIONAL SURVEY ADD-ONS (CLIN0002)
Who is the contractor on this award?
The obligated recipient is WESTAT, INC..
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Financial Resources).
What is the total obligated amount?
The obligated amount is $175.9 million.
What is the period of performance?
Start: 2020-07-13. End: 2026-05-31.
What specific survey methodologies and data collection tools will be employed under this task order?
The task order likely specifies the methodologies and tools in detailed appendices or statements of work. These would cover aspects like survey design, sampling, data collection instruments (e.g., questionnaires, interview protocols), and data processing pipelines. The choice of methods is crucial for ensuring the validity and reliability of the collected data, which in turn impacts the accuracy of public health insights derived from the surveys.
How will the incentive fee structure be applied to manage costs and ensure value for taxpayers?
The incentive fee structure is designed to align the contractor's performance with the government's objectives, particularly regarding cost control and efficiency. Specific metrics and targets for cost savings or performance improvements would be defined in the contract. If Westat meets or exceeds these targets, they earn a higher fee; conversely, failing to meet them could result in a lower fee, creating a financial incentive for efficient service delivery and cost management.
What are the key performance indicators (KPIs) for this contract, and how will they be measured?
Key performance indicators would likely include metrics related to data accuracy, survey response rates, project completion timelines, and cost performance against targets. The government will monitor these KPIs through regular reporting from Westat and potentially independent evaluations. Meeting or exceeding these KPIs is essential for Westat to achieve the incentive fee portion of their contract and demonstrate successful execution of the survey work.
Industry Classification
NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Address: 1600 RESEARCH BLVD, ROCKVILLE, MD, 20850
Business Categories: Category Business, Corporate Entity Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $264,797,765
Exercised Options: $175,939,344
Current Obligation: $175,939,344
Actual Outlays: $154,829,880
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $41,615
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: 75Q80120D00024
IDV Type: IDC
Timeline
Start Date: 2020-07-13
Current End Date: 2026-05-31
Potential End Date: 2027-01-12 00:00:00
Last Modified: 2026-04-07
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