HHS Spends $179.5M on MEPS HC Support for IT Infrastructure and Data Processing
Contract Overview
Contract Amount: $179,493,569 ($179.5M)
Contractor: Westat, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2016-07-01
End Date: 2022-12-31
Contract Duration: 2,374 days
Daily Burn Rate: $75.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::OT::IGF MEDICAL EXPENDITURE PANEL SURVEY (MEPS) - HOUSEHOLD COMPONENT (HC) SUPPORT
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $179.5 million to WESTAT, INC. for work described as: IGF::OT::IGF MEDICAL EXPENDITURE PANEL SURVEY (MEPS) - HOUSEHOLD COMPONENT (HC) SUPPORT Key points: 1. Contract awarded to WESTAT, INC. for IT infrastructure and data processing services. 2. Significant expenditure of $179.5 million over six years highlights reliance on external IT support. 3. Full and open competition was used, suggesting a competitive bidding process. 4. The contract supports the Medical Expenditure Panel Survey (MEPS) Household Component (HC).
Value Assessment
Rating: good
The contract's value of $179.5 million over six years is substantial. Benchmarking against similar large-scale IT support contracts would be necessary for a precise value assessment, but the full and open competition suggests a reasonable price discovery mechanism.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The $179.5 million expenditure represents a significant investment of taxpayer funds for essential data collection and IT infrastructure supporting healthcare research.
Public Impact
Supports critical healthcare data collection through the MEPS. Ensures the availability of vital health expenditure information for policymakers. Provides the technological backbone for a large-scale federal survey. The long duration (6 years) indicates a stable, ongoing need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in Cost Plus Fixed Fee contracts.
- Long contract duration may not fully account for rapidly evolving IT needs.
- Reliance on a single vendor for critical IT infrastructure.
Positive Signals
- Full and open competition utilized.
- Supports a vital national survey.
- Long-term commitment to data collection.
Sector Analysis
This contract falls within the IT and Data Processing sector, specifically supporting government data collection and analysis. Spending benchmarks for similar large-scale IT support contracts for federal surveys would be relevant for comparison.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. The primary awardee, WESTAT, INC., is a large research firm, suggesting limited direct opportunities for small businesses on this specific prime contract.
Oversight & Accountability
The contract is managed by the Agency for Healthcare Research and Quality (AHRQ) within HHS. Oversight would involve monitoring performance, costs, and adherence to contract terms to ensure effective use of funds.
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 (6 years).
- Reliance on a single primary IT service provider.
- Potential for scope creep impacting costs.
- Cybersecurity risks associated with sensitive health data.
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 $179.5 million to WESTAT, INC.. IGF::OT::IGF MEDICAL EXPENDITURE PANEL SURVEY (MEPS) - HOUSEHOLD COMPONENT (HC) SUPPORT
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 (Agency for Healthcare Research and Quality).
What is the total obligated amount?
The obligated amount is $179.5 million.
What is the period of performance?
Start: 2016-07-01. End: 2022-12-31.
What is the specific breakdown of costs within the Cost Plus Fixed Fee structure, and how does it compare to industry standards for similar services?
The Cost Plus Fixed Fee (CPFF) structure means the contractor is reimbursed for allowable costs plus a fixed fee representing profit. Without detailed cost breakdowns, it's difficult to benchmark against industry standards. However, CPFF contracts are often used when cost estimation is difficult, but they require robust oversight to prevent cost creep and ensure the fixed fee remains reasonable relative to the work performed.
What are the key performance indicators (KPIs) for this contract, and how has WESTAT, INC. performed against them over the contract's duration?
Key performance indicators would likely include data accuracy, survey response rates, system uptime, data security compliance, and timely delivery of survey results. Performance against these KPIs is crucial for assessing the effectiveness of the IT support and the overall success of the MEPS program. Regular performance reviews and reports would detail WESTAT's adherence to these metrics.
Given the six-year duration, what mechanisms are in place to ensure the IT infrastructure remains modern and secure against evolving cyber threats?
Mechanisms for ensuring modern and secure IT infrastructure typically involve contract clauses requiring adherence to federal cybersecurity standards (e.g., NIST), regular system updates and patching, vulnerability assessments, and incident response plans. The CPFF structure might allow for incorporating costs associated with necessary upgrades, but proactive planning and oversight are essential to prevent technological obsolescence and security breaches.
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: AHRQ1610002
Pricing Type: COST PLUS FIXED FEE (U)
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: $286,401,937
Exercised Options: $179,493,569
Current Obligation: $179,493,569
Actual Outlays: $21,730,614
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $3,809,389
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: HHSA290201600004I
IDV Type: IDC
Timeline
Start Date: 2016-07-01
Current End Date: 2022-12-31
Potential End Date: 2022-12-31 00:00:00
Last Modified: 2025-03-10
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