HHS awards $32.7M for World Trade Center Clinical Center services over 6 years

Contract Overview

Contract Amount: $32,738,368 ($32.7M)

Contractor: THE Research Foundation for the State University of NEW York

Awarding Agency: Department of Health and Human Services

Start Date: 2011-07-01

End Date: 2017-03-31

Contract Duration: 2,100 days

Daily Burn Rate: $15.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST NO FEE

Sector: Healthcare

Official Description: WORLD TRADE CENTER CLINICAL CENTER

Place of Performance

Location: STONY BROOK, SUFFOLK County, NEW YORK, 11794

State: New York Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $32.7 million to THE RESEARCH FOUNDATION FOR THE STATE UNIVERSITY OF NEW YORK for work described as: WORLD TRADE CENTER CLINICAL CENTER Key points: 1. The contract value of $32.7M over 6 years suggests a significant investment in specialized healthcare services. 2. Full and open competition was utilized, indicating a potentially competitive bidding process. 3. The contract type 'Cost No Fee' implies that the government reimburses allowable costs without a fixed profit margin, which can be suitable for research-oriented or uncertain projects. 4. The awardee, The Research Foundation for the State University of New York, suggests a focus on academic or research-driven healthcare provision.

Value Assessment

Rating: fair

The contract's 'Cost No Fee' structure makes direct pricing comparisons difficult without knowing the actual costs incurred. Benchmarking would require detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was employed, which typically fosters price discovery and competitive pricing. However, the 'Cost No Fee' contract type means the final price is based on actual costs, not a pre-negotiated fixed price.

Taxpayer Impact: Taxpayer funds are utilized to cover the allowable costs of providing clinical services, with the government bearing the risk of cost overruns rather than the contractor.

Public Impact

Provides essential clinical services for individuals affected by the World Trade Center disaster. Supports ongoing research and treatment related to WTC-related health conditions. Ensures access to specialized medical care for a specific patient population. Contributes to public health initiatives and long-term health monitoring.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost No Fee contract type can lead to less predictable final costs.
Lack of fixed profit margin may reduce contractor incentive for cost efficiency.
Long contract duration (6 years) may not adapt well to evolving healthcare needs or technologies.

Positive Signals

Full and open competition promotes a fair marketplace.
Awardee's affiliation with SUNY suggests potential for research integration.
Focus on specialized WTC health needs addresses a critical public health issue.

Sector Analysis

The healthcare sector, particularly outpatient care centers, often involves complex service delivery and research components. Spending benchmarks vary widely based on specialization and patient volume.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors. The primary awardee is a large research foundation, suggesting limited direct opportunities for small businesses in this specific contract.

Oversight & Accountability

The Centers for Disease Control and Prevention (CDC) is the awarding agency, implying oversight through their established program management and financial review processes. The 'Cost No Fee' structure necessitates robust cost accounting and auditing.

Related Government Programs

All Other Outpatient Care Centers
Department of Health and Human Services Contracting
Centers for Disease Control and Prevention Programs

Risk Flags

Potential for cost overruns due to 'Cost No Fee' structure.
Limited contractor incentive for cost efficiency without a profit margin.
Long contract duration may not align with evolving healthcare needs.
Lack of specific performance metrics or value-based outcomes in provided data.
Unclear small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $32.7 million to THE RESEARCH FOUNDATION FOR THE STATE UNIVERSITY OF NEW YORK. WORLD TRADE CENTER CLINICAL CENTER

Who is the contractor on this award?

The obligated recipient is THE RESEARCH FOUNDATION FOR THE STATE UNIVERSITY OF NEW YORK.

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 $32.7 million.

What is the period of performance?

Start: 2011-07-01. End: 2017-03-31.

What was the total cost incurred by the government under this 'Cost No Fee' contract, and how does it compare to budgeted amounts or similar services?

The total awarded amount was $32,738,367.89. However, under a 'Cost No Fee' contract, this represents the ceiling for reimbursable costs. The actual government expenditure would be the sum of allowable costs incurred by the contractor, which could be less than the ceiling. A precise comparison to budgeted amounts or similar services requires access to the contractor's detailed cost reports and potentially data from other WTC health programs.

Given the 'Cost No Fee' structure and the long duration, what mechanisms were in place to ensure cost control and prevent potential overruns?

While 'Cost No Fee' contracts inherently shift cost overrun risk to the government, oversight mechanisms are crucial. These typically include rigorous auditing of contractor expenses, regular performance reviews, clear definitions of allowable costs, and potentially cost-sharing agreements or incentives if negotiated. The CDC's oversight would focus on ensuring all claimed costs are reasonable, allocable, and directly related to the contract's objectives.

How effectively did the full and open competition process identify and select the most capable provider for these specialized clinical services, considering the unique needs of WTC survivors?

Full and open competition is designed to maximize the pool of potential offerors, theoretically leading to the selection of the best value provider. For specialized services like WTC clinical care, the evaluation criteria would likely emphasize clinical expertise, research capabilities, experience with similar patient populations, and proposed operational plans. The success of the competition hinges on how well these specific needs were articulated in the solicitation and how rigorously proposals were evaluated against them.

Industry Classification

NAICS: Health Care and Social Assistance › Outpatient Care Centers › All Other Outpatient Care Centers

Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 7

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: WEST 5510 FRK MEL LIB, STONY BROOK, NY, 11794

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: $39,330,679

Exercised Options: $39,330,679

Current Obligation: $32,738,368

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline