HHS Spends $49.3M on Other Computer Services via Full and Open Competition
Contract Overview
Contract Amount: $49,288,005 ($49.3M)
Contractor: Truven Health Analytics LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2006-09-27
End Date: 2012-12-26
Contract Duration: 2,282 days
Daily Burn Rate: $21.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: HCUP
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20008, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Health and Human Services obligated $49.3 million to TRUVEN HEALTH ANALYTICS LLC for work described as: HCUP Key points: 1. Significant contract value of $49.3 million over 6 years. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. Sector is IT services, specifically 'Other Computer Related Services'.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type carries inherent risk for cost control. Without specific benchmarks for 'Other Computer Related Services' in this context, it's difficult to definitively assess pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, which is generally positive for price discovery. However, the Cost Plus Fixed Fee structure may limit the ultimate cost savings realized compared to fixed-price contracts.
Taxpayer Impact: Taxpayer funds were used in a competitive process, but the CPFF structure warrants scrutiny for potential cost inefficiencies.
Public Impact
Contract supports the Agency for Healthcare Research and Quality (AHRQ) within HHS. Services provided fall under 'Other Computer Related Services', a broad IT category. The contract duration of over 6 years indicates a long-term need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Broad service category ('Other Computer Related Services')
Positive Signals
- Full and open competition utilized
- Long contract duration suggests sustained program support
Sector Analysis
This contract falls within the Information Technology sector, specifically under 'Other Computer Related Services'. Benchmarking for this broad category is challenging without more specific service details, but IT services represent a significant portion of federal spending.
Small Business Impact
The data does not indicate whether small businesses participated in or benefited from this contract. Further analysis would be needed to determine small business involvement.
Oversight & Accountability
The contract was awarded by the Department of Health and Human Services (HHS), a large federal agency with established oversight mechanisms. The duration and value suggest it would be subject to standard reporting and review processes.
Related Government Programs
- Other Computer Related Services
- Department of Health and Human Services Contracting
- Agency for Healthcare Research and Quality Programs
Risk Flags
- Cost Plus Fixed Fee contract type can lead to higher costs than fixed-price.
- Broad service description lacks specificity for detailed value assessment.
- Potential for cost overruns inherent in CPFF structure.
- No clear indication of small business participation.
Tags
other-computer-related-services, department-of-health-and-human-services, dc, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $49.3 million to TRUVEN HEALTH ANALYTICS LLC. HCUP
Who is the contractor on this award?
The obligated recipient is TRUVEN HEALTH ANALYTICS LLC.
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 $49.3 million.
What is the period of performance?
Start: 2006-09-27. End: 2012-12-26.
What specific services were included under 'Other Computer Related Services' to better assess value?
The 'Other Computer Related Services' category is very broad and could encompass a wide range of IT support, development, or consulting. Understanding the precise nature of the services rendered, such as software development, data analysis support, or IT infrastructure management, is crucial for evaluating whether the $49.3 million expenditure represented good value for the government and taxpayers.
What were the key performance indicators and how were they measured to mitigate risk in this CPFF contract?
For a Cost Plus Fixed Fee contract, robust performance metrics and clear deliverables are essential to manage risk and ensure value. Understanding the specific KPIs established by AHRQ, the methods used for tracking progress against these metrics, and the process for approving costs would provide insight into how effectively the government managed potential cost overruns and ensured the contractor met its obligations.
How did the competitive bidding process for this 'full and open' contract ensure the most effective solution was chosen?
While 'full and open competition' suggests a broad solicitation, the effectiveness of the chosen solution depends on the evaluation criteria used. Assessing whether the award was based solely on price, or if technical capabilities, past performance, and innovative approaches were weighted, would reveal how well the competition process ensured the selection of the most effective IT services provider for AHRQ's needs.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Simpler North America LP (UEI: 010608542)
Address: 777 E EISENHOWER PKWY, ANN ARBOR, MI, 48108
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $60,389,876
Exercised Options: $49,288,005
Current Obligation: $49,288,005
Timeline
Start Date: 2006-09-27
Current End Date: 2012-12-26
Potential End Date: 2013-02-26 00:00:00
Last Modified: 2015-09-29
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