HHS awards Mathematica Inc. $52.8M for SAMHSA's SPARS system over 5 years
Contract Overview
Contract Amount: $52,845,507 ($52.8M)
Contractor: Mathematica Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2021-08-10
End Date: 2026-08-09
Contract Duration: 1,825 days
Daily Burn Rate: $29.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS AWARD FEE
Sector: Healthcare
Official Description: SAMHSA'S PERFORMANCE ACCOUNTABILITY AND REPORTING SYSTEM (SPARS) REF # 283-17-2401
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $52.8 million to MATHEMATICA INC. for work described as: SAMHSA'S PERFORMANCE ACCOUNTABILITY AND REPORTING SYSTEM (SPARS) REF # 283-17-2401 Key points: 1. This contract focuses on data reporting and performance accountability for substance abuse and mental health services. 2. The award is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, suggesting potential for future task orders. 3. The primary risk lies in the effective utilization and interpretation of the data collected by the SPARS system. 4. The sector is professional, scientific, and technical services, specifically supporting government health administration.
Value Assessment
Rating: fair
The contract type is Cost Plus Award Fee (CPAF), which allows for contractor reimbursement of costs plus a fee based on performance. This can incentivize good performance but requires robust oversight to ensure costs remain reasonable.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: The taxpayer impact is tied to the effectiveness of the SPARS system in improving substance abuse and mental health services, and the efficiency of the contractor's performance.
Public Impact
Improved data collection and analysis for national mental health and substance abuse programs. Potential for better resource allocation and program effectiveness based on reported data. Ensures accountability for federal funds spent on these critical health services. Supports evidence-based decision-making in public health policy.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns with CPAF contract type.
- Ensuring data integrity and security of sensitive health information.
- Measuring the true impact of the SPARS system on service delivery.
Positive Signals
- Awarded under full and open competition.
- Long-term contract duration allows for sustained support.
- Focus on performance accountability can drive better outcomes.
Sector Analysis
This contract falls within the 'All Other Professional, Scientific, and Technical Services' NAICS code. Spending in this sector is broad, encompassing a wide range of expert services supporting government operations, with significant federal investment in health-related IT and data management.
Small Business Impact
The provided data does not indicate any specific set-asides for small businesses. The contract was awarded to Mathematica Inc., a large business, suggesting that small business participation may be through subcontracting opportunities, if any.
Oversight & Accountability
The Cost Plus Award Fee structure necessitates strong government oversight to monitor costs, evaluate performance against award criteria, and ensure the contractor is meeting objectives for the SPARS system.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Health and Human Services Contracting
- Substance Abuse and Mental Health Services Administration Programs
Risk Flags
- Potential for cost creep with CPAF.
- Reliance on contractor for critical data infrastructure.
- Ensuring data privacy and security.
- Measuring the true impact and ROI of the SPARS system.
- Contract duration extends beyond typical election cycles, potentially impacting program continuity.
Tags
all-other-professional-scientific-and-te, department-of-health-and-human-services, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $52.8 million to MATHEMATICA INC.. SAMHSA'S PERFORMANCE ACCOUNTABILITY AND REPORTING SYSTEM (SPARS) REF # 283-17-2401
Who is the contractor on this award?
The obligated recipient is MATHEMATICA INC..
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Substance Abuse and Mental Health Services Administration).
What is the total obligated amount?
The obligated amount is $52.8 million.
What is the period of performance?
Start: 2021-08-10. End: 2026-08-09.
How will the effectiveness of the SPARS system be measured to ensure it truly improves substance abuse and mental health service delivery?
Effectiveness will likely be measured through key performance indicators (KPIs) defined in the contract, such as data accuracy rates, timeliness of reporting, and the ability of SAMHSA to use the data for program evaluation and decision-making. Independent audits and user feedback from program administrators and service providers will also be crucial.
What are the primary risks associated with the Cost Plus Award Fee (CPAF) contract type in this context?
The main risks with CPAF include potential for contractor cost overruns if not managed diligently, and the subjective nature of performance evaluation for the award fee. Ensuring clear, objective performance metrics is vital to prevent disputes and ensure fair compensation while controlling costs.
What is the anticipated taxpayer impact if the SPARS system successfully enhances program accountability and efficiency?
A successful SPARS system could lead to more efficient allocation of taxpayer funds towards effective substance abuse and mental health programs. This could result in better public health outcomes, reduced long-term societal costs associated with untreated conditions, and increased confidence in government spending.
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: 283-20-0557
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 600 ALEXANDER PARK, PRINCETON, NJ, 08540
Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $52,908,021
Exercised Options: $52,845,507
Current Obligation: $52,845,507
Actual Outlays: $47,512,328
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: HHSS283201700021I
IDV Type: IDC
Timeline
Start Date: 2021-08-10
Current End Date: 2026-08-09
Potential End Date: 2026-08-09 00:00:00
Last Modified: 2026-02-24
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