HHS awards $279M contract for NHANES data collection and analysis to Westat, Inc
Contract Overview
Contract Amount: $279,180,130 ($279.2M)
Contractor: Westat, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2013-09-21
End Date: 2024-09-07
Contract Duration: 4,004 days
Daily Burn Rate: $69.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Healthcare
Official Description: IGF::OT::IGF NHANES CONTRACT
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $279.2 million to WESTAT, INC. for work described as: IGF::OT::IGF NHANES CONTRACT Key points: 1. Contract value represents significant investment in national health statistics. 2. Full and open competition suggests a robust bidding process. 3. Long contract duration (4004 days) indicates a need for sustained support. 4. Cost-plus-fixed-fee structure may incentivize cost management by the contractor. 5. The contract supports a critical public health surveillance program. 6. Analysis of health trends is vital for policy and resource allocation.
Value Assessment
Rating: good
The contract value of $279 million over approximately 11 years suggests a substantial investment in the National Health and Nutrition Examination Survey (NHANES). Benchmarking this against similar large-scale data collection and analysis contracts is challenging without more specific service details. However, the duration and scope imply a significant undertaking. The cost-plus-fixed-fee (CPFF) pricing structure means that the government reimburses the contractor for allowable costs plus a fixed fee, which can be advantageous if costs are well-controlled, but also carries some risk of cost overruns if not managed diligently. The fixed fee component provides some predictability for the contractor's profit.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This typically leads to a wider range of proposals and potentially more competitive pricing. The number of bidders is not specified, but the open competition suggests that the Centers for Disease Control and Prevention (CDC) sought the best value from the market. This approach is generally favored for ensuring fair pricing and access to a broad spectrum of capabilities.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment, which can drive down costs and improve the quality of services received. It ensures that public funds are used efficiently by selecting the most cost-effective and capable provider.
Public Impact
The primary beneficiaries are the American public, who receive vital information about their health status. The contract supports the collection, analysis, and dissemination of data for the NHANES program. This data informs public health policy, research, and interventions nationwide. The program has significant workforce implications for data collectors, analysts, and researchers. Geographic impact is national, covering diverse populations across the United States.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in CPFF contracts if not closely monitored.
- Long contract duration may lead to contractor complacency or reduced innovation over time.
- Dependence on a single contractor for a critical national survey raises concerns about continuity if issues arise.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process and likely fair pricing.
- Westat, Inc. has a track record in large-scale survey research, implying relevant expertise.
- The contract supports a long-standing and crucial public health program (NHANES).
Sector Analysis
This contract falls within the Professional, Scientific, and Technical Services sector, specifically 'All Other Professional, Scientific, and Technical Services' (NAICS 541990). This sector encompasses a wide range of specialized services. The NHANES contract represents a significant portion of federal spending in this category related to health data collection and analysis. Comparable spending benchmarks would involve other large-scale federal surveys and research initiatives, often managed by agencies like HHS, NIH, or NSF.
Small Business Impact
The contract was awarded to Westat, Inc. and does not indicate any specific small business set-aside provisions. It is possible that Westat may engage small businesses as subcontractors to fulfill certain aspects of the contract, such as data collection in specific regions or specialized analytical tasks. However, without further details on subcontracting plans, the direct impact on the small business ecosystem is unclear.
Oversight & Accountability
Oversight for this contract is likely managed by the Centers for Disease Control and Prevention (CDC), a component of HHS. Mechanisms would include regular progress reports, performance reviews, and potentially site visits. The Inspector General of HHS would have jurisdiction to investigate any potential fraud, waste, or abuse. Transparency is generally maintained through contract award databases and public reporting of NHANES findings.
Related Government Programs
- National Health Interview Survey (NHIS)
- Behavioral Risk Factor Surveillance System (BRFSS)
- National Survey on Drug Use and Health (NSDUH)
- CDC Data Modernization Initiative
Risk Flags
- Cost Overrun Risk
- Contractor Performance Monitoring
- Data Security and Privacy
- Long-Term Contract Dependency
Tags
healthcare, hhs, cdc, definitive-contract, large-contract, full-and-open-competition, cost-plus-fixed-fee, national, data-collection, health-surveillance, professional-scientific-technical-services, westat-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $279.2 million to WESTAT, INC.. IGF::OT::IGF NHANES CONTRACT
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 $279.2 million.
What is the period of performance?
Start: 2013-09-21. End: 2024-09-07.
What is Westat, Inc.'s track record with large federal health survey contracts?
Westat, Inc. has a substantial history of conducting large-scale surveys and research for federal agencies, including significant work with the National Center for Health Statistics (NCHS), which manages NHANES. They have been involved in various national health surveys, data collection efforts, and statistical analysis projects. Their experience includes managing complex data collection logistics, ensuring data quality, and adhering to strict privacy and confidentiality requirements. This extensive background suggests they possess the necessary expertise and infrastructure to manage a contract of this magnitude and complexity, having likely navigated similar challenges in previous engagements with government clients.
How does the $279 million contract value compare to previous NHANES data collection efforts?
The $279 million contract value for the period from 2013 to 2024 represents a significant investment in the NHANES program. While direct year-over-year comparisons can be complex due to evolving methodologies, inflation, and scope changes, this figure indicates a substantial commitment to maintaining and advancing the survey's capabilities. Previous contracts for NHANES data collection and analysis have also been in the tens or hundreds of millions of dollars, reflecting the program's scale and importance. The sustained funding level suggests that the government views the data generated by NHANES as critical for public health monitoring and policy development, justifying the considerable financial resources allocated over the contract's duration.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this size?
The primary risks associated with a CPFF contract of this magnitude revolve around cost control and contractor performance. For the government, the risk is that the contractor's actual costs may exceed projections, even with a fixed fee, if inefficiencies or unforeseen issues arise, leading to a higher overall expenditure than initially anticipated. Effective oversight is crucial to ensure that all reimbursed costs are allowable and reasonable. For the contractor, the risk lies in accurately estimating costs to ensure the fixed fee provides adequate profit margin without incurring losses. Westat must diligently manage resources and operations to stay within projected cost parameters while meeting performance standards.
How effective is the NHANES program in identifying emerging public health trends?
The NHANES program is highly effective in identifying emerging public health trends due to its continuous, cross-sectional design and comprehensive data collection. By regularly surveying a representative sample of the U.S. population on a wide range of health and nutritional indicators, NHANES can detect shifts in disease prevalence, risk factor exposure, and health behaviors over time. For example, it has been instrumental in tracking trends in obesity, diabetes, cardiovascular disease, and exposure to environmental contaminants. Its ability to provide timely and reliable data allows public health officials and researchers to respond proactively to new challenges and inform evidence-based interventions and policies.
What is the historical spending pattern for NHANES data collection and analysis?
Historical spending on NHANES data collection and analysis has shown a consistent and significant commitment from the federal government, primarily through the CDC. Over the years, contract values have generally increased, reflecting inflation, expansion of survey components, and advancements in data collection and analysis technologies. While specific figures vary by contract period and scope, federal spending on NHANES has consistently been in the tens to hundreds of millions of dollars over multi-year periods. This sustained investment underscores the program's long-standing importance in providing essential national health statistics and monitoring the health of the U.S. population.
What are the implications of awarding this contract through 'full and open competition'?
Awarding the NHANES contract through 'full and open competition' signifies that the CDC actively sought proposals from all qualified sources, fostering a competitive environment. This process is designed to ensure that the government receives the best value by leveraging market competition to drive down prices and encourage innovation. It implies that multiple companies likely vied for the contract, and the selection was based on a comprehensive evaluation of technical capabilities, past performance, and cost. For taxpayers, this approach generally leads to more efficient use of public funds compared to sole-source or limited competition awards, as it maximizes the potential for cost savings and service quality improvements.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
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 Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $306,617,745
Exercised Options: $306,617,745
Current Obligation: $279,180,130
Actual Outlays: $70,747,582
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $7,707,087
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2013-09-21
Current End Date: 2024-09-07
Potential End Date: 2024-09-07 00:00:00
Last Modified: 2024-08-28
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