HHS awarded $37.9M for other medical services to Regents of the University of Michigan over 11 years
Contract Overview
Contract Amount: $37,877,946 ($37.9M)
Contractor: Regents of the University of Michigan
Awarding Agency: Department of Health and Human Services
Start Date: 1999-11-01
End Date: 2011-06-20
Contract Duration: 4,249 days
Daily Burn Rate: $8.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: Healthcare
Official Description: OTHER MEDICAL SERVICES
Place of Performance
Location: ATLANTA, DEKALB County, GEORGIA, 30341, UNITED STATES OF AMERICA
State: Georgia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $37.9 million to REGENTS OF THE UNIVERSITY OF MICHIGAN for work described as: OTHER MEDICAL SERVICES Key points: 1. Contract duration of over 11 years suggests a long-term need for these medical services. 2. The 'Cost No Fee' contract type indicates the government's risk in managing costs. 3. Awarded by the Centers for Disease Control and Prevention, highlighting a focus on public health initiatives. 4. The contract was awarded under full and open competition, suggesting a robust bidding process. 5. The significant duration and value may indicate a critical or specialized service requirement. 6. The absence of specific product or service codes (PSC) makes detailed performance analysis challenging.
Value Assessment
Rating: fair
Benchmarking the value of this contract is difficult without specific service details or comparable contracts. The 'Cost No Fee' structure places cost risk on the government, which can sometimes lead to higher overall expenditures compared to fixed-price contracts. However, for complex or R&D-intensive services, this structure might be appropriate to ensure quality and flexibility. Without more granular data on the services provided and their outcomes, a definitive value assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This process is generally expected to foster price discovery and competition, potentially leading to more favorable pricing for the government. The fact that it was competed suggests that the services were not unique to a single provider.
Taxpayer Impact: Full and open competition typically benefits taxpayers by encouraging a wider range of bids, which can drive down costs and improve the quality of services received.
Public Impact
The primary beneficiaries are likely public health programs managed by the CDC, which rely on these medical services. Services delivered are broadly categorized as 'OTHER MEDICAL SERVICES,' implying a range of support functions for health initiatives. The contract was awarded to an entity in Georgia (SN: GEORGIA), suggesting a potential geographic focus for service delivery or administration. The contract's duration and nature could imply a stable, long-term need for specialized medical expertise within the federal health sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The 'Cost No Fee' contract type can lead to cost overruns if not managed meticulously by the government.
- The long duration (over 11 years) might indicate a lack of flexibility to adapt to changing needs or technologies.
- Lack of specific service details makes it hard to assess performance and value for money.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process that should yield fair pricing.
- The contract is with a reputable institution (Regents of the University of Michigan), potentially indicating a high level of expertise.
- Long-term award suggests stability and reliability of the services provided.
Sector Analysis
This contract falls within the broader healthcare and public health sector. Spending in this area by agencies like the CDC is crucial for disease surveillance, research, and public health interventions. The value of $37.9 million over 11 years represents a significant, albeit specific, investment in medical services. Comparable spending benchmarks would depend heavily on the precise nature of the 'other medical services' provided, which are not detailed here.
Small Business Impact
The data indicates this contract was not set aside for small businesses (SS: false, SB: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, Regents of the University of Michigan, is a large institution, and any subcontracting would likely be at their discretion for specialized needs.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Health and Human Services (HHS) and specifically the Centers for Disease Control and Prevention (CDC). As a 'Cost No Fee' contract, rigorous financial oversight and performance monitoring would be critical to ensure that costs are reasonable and services are delivered effectively. Transparency would depend on the public reporting practices of the CDC and the university regarding the specific services rendered and their outcomes.
Related Government Programs
- Public Health Services
- Medical Research Support
- Disease Control Programs
- Federal Health Contracts
- University Research Grants
Risk Flags
- Cost Control Risk (Cost No Fee)
- Lack of Service Specificity
- Potential for Contract Inflexibility (Long Duration)
Tags
healthcare, hhs, cdc, other-medical-services, cost-no-fee, full-and-open-competition, university-contractor, long-term-contract, public-health, georgia
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $37.9 million to REGENTS OF THE UNIVERSITY OF MICHIGAN. OTHER MEDICAL SERVICES
Who is the contractor on this award?
The obligated recipient is REGENTS OF THE UNIVERSITY OF MICHIGAN.
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 $37.9 million.
What is the period of performance?
Start: 1999-11-01. End: 2011-06-20.
What specific 'other medical services' were provided under this contract?
The provided data categorizes the contract under 'OTHER MEDICAL SERVICES' (d: 'OTHER MEDICAL SERVICES') but does not specify the exact nature of these services. This could range from diagnostic testing, clinical support, research assistance, health screenings, or specialized medical consultations. Without further details from the contract award or associated documentation, it is impossible to determine the precise services rendered. This lack of specificity hinders a thorough analysis of the contract's purpose, effectiveness, and value.
How does the 'Cost No Fee' contract type impact government spending and risk?
A 'Cost No Fee' (pt: 'COST NO FEE') contract means the contractor is reimbursed for all allowable costs incurred in performing the contract, but receives no fee or profit. This structure shifts the primary cost risk to the government. While it can be beneficial for complex, uncertain, or research-oriented projects where defining a fixed price is difficult, it necessitates robust government oversight to control costs and prevent overspending. The government must diligently audit expenses to ensure they are reasonable, allocable, and necessary for contract performance. This contrasts with fixed-price contracts where the contractor bears more cost risk.
What is the significance of the contract's long duration (over 11 years)?
The contract's duration, spanning from November 1, 1999, to June 20, 2011 (dur: 4249 days, approximately 11.6 years), suggests a long-term, stable requirement for the medical services provided. Such extended periods often indicate services that are fundamental to ongoing operations, require specialized expertise that takes time to develop or maintain, or involve long-term research and development. It implies a strategic commitment by the CDC to these particular services and potentially to the contractor's capabilities. However, very long contract durations can also raise concerns about potential inflexibility and missed opportunities to incorporate newer technologies or approaches.
What does the 'full and open competition' award basis imply for value?
The contract was awarded under 'FULL AND OPEN COMPETITION' (ct: 'FULL AND OPEN COMPETITION'). This signifies that the solicitation was made available to all responsible prospective contractors, and any responsible source could submit a bid. This method is generally considered the most effective way to achieve fair and reasonable pricing through market forces. It implies that the CDC sought the best value by allowing a wide range of potential providers to compete, theoretically leading to competitive pricing and high-quality service offerings. The absence of restrictions suggests the market had multiple capable vendors.
How does this contract compare to other federal spending on similar medical services?
Direct comparison is challenging due to the vague description 'OTHER MEDICAL SERVICES.' Federal spending on medical services is vast and diverse, encompassing everything from direct patient care in VA hospitals to research grants and public health initiatives. The $37.9 million awarded over more than 11 years to a single entity for specific services represents a substantial investment. However, without knowing the exact services, it's difficult to benchmark against other contracts. For instance, if these were specialized diagnostic services for a national health program, the cost might be reasonable. If they were more routine, it could be high. The 'Cost No Fee' structure also complicates direct cost comparisons.
What is the track record of the contractor (Regents of the University of Michigan) in federal contracting?
The Regents of the University of Michigan is a major public university system with extensive research and healthcare operations. As such, they are a frequent recipient of federal grants and contracts, particularly from agencies like HHS and its sub-agencies (e.g., NIH, CDC). Their track record in federal contracting is generally extensive, often involving complex research, development, and service provision. While this specific contract's details are limited, the university's scale and experience suggest a capacity to handle significant federal awards. Performance on this specific contract would require reviewing individual performance reports and CPARS (Contractor Performance Assessment Reporting System) data, if available.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 200199907017
Offers Received: 1
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: 503 THOMPSON ST, ANN ARBOR, MI, 48109
Business Categories: Category Business, Educational Institution, Higher Education, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $959,861,838
Exercised Options: $739,742,694
Current Obligation: $37,877,946
Timeline
Start Date: 1999-11-01
Current End Date: 2011-06-20
Potential End Date: 2011-06-20 00:00:00
Last Modified: 2015-08-06
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