HHS Awards $49M Contract to Research Triangle Institute for MEPS Support

Contract Overview

Contract Amount: $48,999,436 ($49.0M)

Contractor: Research Triangle Institute

Awarding Agency: Department of Health and Human Services

Start Date: 2021-08-11

End Date: 2026-06-30

Contract Duration: 1,784 days

Daily Burn Rate: $27.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: AWARD OF 5 YEAR SERVICE CONTRACT TO SUPPORT MEPS

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27709

State: North Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $49.0 million to RESEARCH TRIANGLE INSTITUTE for work described as: AWARD OF 5 YEAR SERVICE CONTRACT TO SUPPORT MEPS Key points: 1. The contract is for IT infrastructure and data processing services. 2. Full and open competition was used, suggesting a competitive bidding process. 3. The contract value is significant, indicating a substantial need for these services. 4. The Agency for Healthcare Research and Quality (AHRQ) is the contracting agency.

Value Assessment

Rating: good

The contract value of $48,999,436 over approximately 5 years suggests a moderate annual spend. Benchmarking against similar IT infrastructure and data processing contracts would be necessary for a precise assessment, but the full and open competition indicates an effort to secure competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically allows for the widest possible range of bidders and promotes price discovery. This method is generally expected to yield fair and reasonable pricing.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment for service providers.

Public Impact

Supports critical data collection and analysis for healthcare policy. Ensures continued operation of essential IT infrastructure for AHRQ. Potential impact on the efficiency and accuracy of healthcare research findings.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in Cost Plus Fixed Fee contracts.
Dependence on a single contractor for critical IT services.

Positive Signals

Awarded through full and open competition.
Supports a vital government function in healthcare research.

Sector Analysis

This contract falls within the IT and Data Processing sector, specifically supporting healthcare research. Spending in this area is substantial across government agencies, with benchmarks varying based on the complexity and scale of services required.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded to Research Triangle Institute, a large research organization. There is no indication of small business participation in this specific award.

Oversight & Accountability

Standard government oversight processes for contract management and performance monitoring will apply. The Agency for Healthcare Research and Quality is responsible for ensuring the contractor meets performance requirements and manages costs effectively.

Related Government Programs

Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Department of Health and Human Services Contracting
Agency for Healthcare Research and Quality Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Long contract duration (5 years).
Potential for vendor lock-in.
Reliance on contractor for critical IT infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $49.0 million to RESEARCH TRIANGLE INSTITUTE. AWARD OF 5 YEAR SERVICE CONTRACT TO SUPPORT MEPS

Who is the contractor on this award?

The obligated recipient is RESEARCH TRIANGLE INSTITUTE.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Agency for Healthcare Research and Quality).

What is the total obligated amount?

The obligated amount is $49.0 million.

What is the period of performance?

Start: 2021-08-11. End: 2026-06-30.

What is the specific scope of services included in this contract, and how does it align with AHRQ's mission?

The contract supports MEPS (Medical Expenditure Panel Survey), a key source of data on healthcare utilization and costs in the U.S. Services likely include data collection, processing, hosting, and IT infrastructure management necessary for the survey's operation. This directly aligns with AHRQ's mission to provide reliable data for healthcare policy and research.

What are the potential risks associated with a Cost Plus Fixed Fee contract for these services?

Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to achieve a higher fixed fee, although profit is capped. For IT services, risks include scope creep, potential for cost overruns if initial estimates are inaccurate, and ensuring the fixed fee remains appropriate throughout the contract term.

How will the effectiveness of the contractor's performance be measured to ensure value for taxpayer money?

Effectiveness will likely be measured through performance metrics defined in the contract, such as uptime of hosted services, data accuracy and timeliness, and adherence to security protocols. Regular performance reviews by AHRQ will assess the contractor's ability to meet these metrics and deliver the required support for MEPS.

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

Solicitation ID: AHRQ-21-10002

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3040 E CORNWALLIS RD, RESEARCH TRIANGLE PARK, NC, 27709

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: $50,770,354

Exercised Options: $48,999,436

Current Obligation: $48,999,436

Actual Outlays: $45,208,096

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $21,439,612

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline