HHS awards $150M contract to Westat for statistical support services, facing no competition
Contract Overview
Contract Amount: $149,791,217 ($149.8M)
Contractor: Westat, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2000-11-08
End Date: 2006-09-15
Contract Duration: 2,137 days
Daily Burn Rate: $70.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: 200-1996-07015, WESTAT
Place of Performance
Location: HYATTSVILLE, PRINCE GEORGE'S County, MARYLAND, 20782, UNITED STATES OF AMERICA
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $149.8 million to WESTAT, INC. for work described as: 200-1996-07015, WESTAT Key points: 1. Significant contract value of $149.8M awarded to a single vendor. 2. Lack of competition raises concerns about potential overpricing and limited innovation. 3. The contract spans over 6 years, indicating a long-term reliance on Westat. 4. Statistical support services are crucial for agency operations, but the procurement method warrants scrutiny.
Value Assessment
Rating: questionable
The contract's 'COST PLUS FIXED FEE' structure, combined with a lack of competition, makes a direct pricing assessment difficult. Without benchmarks from competing bids, it's hard to determine if the $149.8M represents fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was procured using a sole-source method ('NOT COMPETED'), indicating no opportunity for other vendors to bid. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition for a $149.8M contract suggests taxpayers may be paying a premium for services that could potentially be obtained at a lower cost through a competitive process.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. Limited vendor pool restricts opportunities for small businesses and new entrants. Long-term reliance on a single vendor could stifle innovation in statistical support services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement
- High contract value
- Long contract duration
- Lack of transparency in pricing
Positive Signals
- Vendor has prior experience with the agency
- Services are critical for agency operations
Sector Analysis
This contract falls within the professional services sector, specifically focusing on statistical and research support. Benchmarks for similar large-scale, long-term sole-source contracts in this sector are difficult to establish without competitive data.
Small Business Impact
The sole-source nature of this large contract limits opportunities for small businesses to participate or compete for these services. There is no indication that small business participation was a consideration in the procurement.
Oversight & Accountability
The 'NOT COMPETED' designation raises questions about the justification for foregoing competition. Further oversight is needed to ensure the agency adequately documented the necessity of a sole-source award and explored all viable alternatives.
Related Government Programs
- Department of Health and Human Services Contracting
- Centers for Disease Control and Prevention Programs
Risk Flags
- Lack of competition
- Potential for overpricing
- Limited innovation
- Long-term vendor lock-in
- Insufficient transparency on justification
Tags
department-of-health-and-human-services, md, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $149.8 million to WESTAT, INC.. 200-1996-07015, WESTAT
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 (Centers for Disease Control and Prevention).
What is the total obligated amount?
The obligated amount is $149.8 million.
What is the period of performance?
Start: 2000-11-08. End: 2006-09-15.
What specific justification was provided for awarding this $149.8M contract on a sole-source basis, and was it adequately documented?
The provided data indicates the contract was 'NOT COMPETED,' suggesting a sole-source award. A thorough review of the contract file would be necessary to ascertain the specific justification (e.g., unique capabilities, urgent need) and verify if it meets federal procurement regulations for sole-source acquisitions. Without this documentation, it's difficult to assess the validity of bypassing competition.
How can the agency ensure fair pricing and value for money when awarding such a substantial contract without competition?
To ensure fair pricing without competition, the agency should conduct robust market research to establish independent cost estimates and price benchmarks. Utilizing cost-plus-fixed-fee contracts requires careful negotiation of the fixed fee and rigorous monitoring of costs. Independent government cost estimates and comparison to similar, albeit potentially smaller or differently procured, services are crucial.
What is the potential impact on the quality and innovation of statistical support services by relying solely on Westat for over six years?
Sole-source contracts can limit innovation by removing the incentive for vendors to differentiate through novel approaches or cost efficiencies. While Westat may have a proven track record, prolonged reliance without competitive pressure could lead to service stagnation. The agency should actively solicit feedback and explore opportunities for continuous improvement and innovation within the existing contract.
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1650 RESEARCH BLVD, ROCKVILLE, MD, 20850
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $4,323,887,540
Exercised Options: $4,069,077,128
Current Obligation: $149,791,217
Contract Characteristics
Multi-Year Contract: Yes
Timeline
Start Date: 2000-11-08
Current End Date: 2006-09-15
Potential End Date: 2006-09-15 00:00:00
Last Modified: 2015-08-07
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