HHS's $45.2M MEPS MPC Contract Awarded to RTI for Computing Infrastructure
Contract Overview
Contract Amount: $45,231,958 ($45.2M)
Contractor: Research Triangle Institute
Awarding Agency: Department of Health and Human Services
Start Date: 2017-07-17
End Date: 2022-06-30
Contract Duration: 1,809 days
Daily Burn Rate: $25.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::OT::IGF MEDICAL EXPENDITURE PANEL SURVEY (MEPS) MEDICAL PROVIDER COMPONENT (MPC)
Place of Performance
Location: DURHAM, DURHAM County, NORTH CAROLINA, 27709
Plain-Language Summary
Department of Health and Human Services obligated $45.2 million to RESEARCH TRIANGLE INSTITUTE for work described as: IGF::OT::IGF MEDICAL EXPENDITURE PANEL SURVEY (MEPS) MEDICAL PROVIDER COMPONENT (MPC) Key points: 1. The contract supports the Medical Expenditure Panel Survey (MEPS) Medical Provider Component (MPC). 2. RTI was awarded the contract under full and open competition. 3. The contract spans nearly five years, indicating a significant, long-term need. 4. The sector is IT, specifically data processing and web hosting services.
Value Assessment
Rating: good
The contract value of $45.2M over 1809 days suggests a substantial investment in data processing and hosting. Benchmarking against similar large-scale IT infrastructure contracts is difficult without more granular cost breakdowns, but the duration and scope appear reasonable for the services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, which generally promotes competitive pricing and allows for a wide range of potential contractors to bid. This method is expected to yield fair market value.
Taxpayer Impact: Taxpayer funds are being used for essential data infrastructure supporting critical health expenditure research, aiming for efficient resource allocation through competitive bidding.
Public Impact
Supports vital national health expenditure data collection and analysis. Ensures continued operation and improvement of the MEPS MPC. Provides a foundation for research impacting healthcare policy. The IT services are crucial for managing and disseminating sensitive health data.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is long (1809 days).
- Cost Plus Fixed Fee contract type can incentivize cost overruns if not closely monitored.
- Specific performance metrics and deliverables are not detailed in the provided data.
Positive Signals
- Awarded via full and open competition.
- Supports a critical government research program (MEPS).
- Long-term contract suggests stable and reliable service provision.
Sector Analysis
This contract falls within the IT sector, specifically focusing on computing infrastructure, data processing, and web hosting. Spending in this area is substantial across government agencies for supporting various programs and operations. Benchmarks for similar large-scale data processing contracts are highly variable based on specific requirements.
Small Business Impact
The provided data does not indicate any specific set-asides or participation goals for small businesses in this contract. Given the nature of the services and the prime contractor, it's possible that subcontracting opportunities for small businesses exist but are not explicitly detailed here.
Oversight & Accountability
The contract is managed by the Agency for Healthcare Research and Quality (AHRQ), a component of HHS. Oversight would typically involve monitoring performance, costs, and adherence to contract terms to ensure accountability and effective service delivery.
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
- Long contract duration may reduce flexibility.
- CPFF contract type can lead to cost overruns if not managed tightly.
- Lack of specific performance metrics in summary data.
- Potential for vendor lock-in with long-term IT infrastructure contracts.
Tags
computing-infrastructure-providers-data-, department-of-health-and-human-services, nc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $45.2 million to RESEARCH TRIANGLE INSTITUTE. IGF::OT::IGF MEDICAL EXPENDITURE PANEL SURVEY (MEPS) MEDICAL PROVIDER COMPONENT (MPC)
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 $45.2 million.
What is the period of performance?
Start: 2017-07-17. End: 2022-06-30.
What is the specific breakdown of costs within the Cost Plus Fixed Fee structure, and how are these costs justified against the fixed fee?
The provided data lacks the detailed breakdown of costs (e.g., labor, overhead, direct costs) that comprise the 'cost' portion of the Cost Plus Fixed Fee (CPFF) award. Understanding how these costs are tracked, reported, and audited is crucial for assessing value. The fixed fee is negotiated separately and represents the contractor's profit. Without insight into the cost accounting and auditing processes, it's difficult to definitively assess if the fee is appropriate relative to the effort and risk involved.
What are the key performance indicators (KPIs) and service level agreements (SLAs) for this contract, and how is performance measured?
The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract. Effective oversight requires clearly defined metrics for uptime, data accuracy, response times, and security. Without these, it is challenging to objectively measure the contractor's performance and ensure the government is receiving the expected level of service for its investment.
How does the chosen IT infrastructure and hosting solution align with current and future government cybersecurity standards and data privacy requirements?
The data does not detail the specific technologies or hosting solutions employed under this contract. Ensuring compliance with evolving government cybersecurity mandates (e.g., CMMC, NIST standards) and stringent data privacy regulations for sensitive health information is paramount. A thorough review of the contractor's security architecture, incident response plans, and audit trails would be necessary to confirm alignment.
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: AHRQ1710001
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: $47,045,999
Exercised Options: $45,231,958
Current Obligation: $45,231,958
Actual Outlays: $4,711,476
Subaward Activity
Number of Subawards: 21
Total Subaward Amount: $23,332,989
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2017-07-17
Current End Date: 2022-06-30
Potential End Date: 2022-06-30 00:00:00
Last Modified: 2022-08-09
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