Duke University contract for management and procurement support awarded by HHS for over $11.6 million
Contract Overview
Contract Amount: $11,694,573 ($11.7M)
Contractor: Duke University
Awarding Agency: Department of Health and Human Services
Start Date: 2006-11-02
End Date: 2019-08-23
Contract Duration: 4,677 days
Daily Burn Rate: $2.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 15
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: MGT SVCS/CONTRACT&PROCUREMENT SUP
Place of Performance
Location: DURHAM, DURHAM County, NORTH CAROLINA, 27710
Plain-Language Summary
Department of Health and Human Services obligated $11.7 million to DUKE UNIVERSITY for work described as: MGT SVCS/CONTRACT&PROCUREMENT SUP Key points: 1. Contract provides essential management and procurement services. 2. Long contract duration suggests ongoing need for these services. 3. Awarded under full and open competition, indicating broad market access. 4. Fixed-price contract type aims to control costs. 5. Services are categorized under Blood and Organ Banks, potentially indicating a specialized support role. 6. Geographic location in North Carolina may have local economic implications.
Value Assessment
Rating: fair
The contract value of over $11.6 million over its nearly 13-year lifespan represents a significant investment. Benchmarking the value-for-money is challenging without specific performance metrics or comparable contracts for similar specialized management and procurement support within the Blood and Organ Banks sector. The firm fixed-price structure suggests an attempt to manage cost certainty, but the extended duration could lead to price escalation if not managed carefully. Further analysis would require understanding the scope of services and the market rates for such specialized support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers. The presence of 15 bids indicates a healthy interest in the contract, which likely contributed to establishing a fair market price. The government's ability to select from a wide pool of qualified bidders supports the notion that the chosen vendor offered the best value.
Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces and ensuring that the most cost-effective solutions are considered.
Public Impact
The primary beneficiary is the Health Resources and Services Administration (HRSA) within HHS, which receives critical management and procurement support. The services delivered are essential for the operational efficiency of the agency, particularly in areas related to blood and organ banking. The contract's impact is primarily national, supporting federal health initiatives. While not directly a workforce-creation contract, it supports the administrative and procurement functions necessary for federal health programs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (nearly 13 years) could present risks related to evolving needs and potential cost inefficiencies over time.
- The specific nature of 'Blood and Organ Banks' for management and procurement support is not detailed, raising questions about the exact services rendered and their necessity.
- Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the services provided.
Positive Signals
- Awarded through full and open competition with 15 bidders, indicating strong market interest and likely competitive pricing.
- Firm fixed-price contract type helps to establish cost certainty for the government.
- The contract has been successfully managed to completion, suggesting operational stability.
Sector Analysis
This contract falls within the broader professional, scientific, and technical services sector, specifically focusing on management and procurement support. The categorization under 'Blood and Organ Banks' suggests a niche application within healthcare administration. Comparable spending in this area is difficult to pinpoint without more granular data on specialized administrative support contracts within federal health agencies. However, the overall federal spending on management and administrative support services is substantial, reflecting the government's reliance on external expertise for complex operations.
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 for small businesses arising from a specific set-aside. The primary contractor, Duke University, is an academic institution, and its engagement in this contract does not inherently create opportunities for small business subcontracting unless explicitly structured within the contract's performance requirements, which is not indicated here.
Oversight & Accountability
Oversight for this contract would have been managed by the Department of Health and Human Services (HHS), specifically the Health Resources and Services Administration (HRSA). As a firm fixed-price contract awarded through full and open competition, the primary oversight would focus on ensuring the delivery of contracted services met the defined scope and objectives. Transparency is generally facilitated by the Federal Procurement Data System (FPDS), where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- HHS Administrative Support Contracts
- Federal Procurement Support Services
- Healthcare Management Services
- Blood and Organ Donation Support Programs
- University Research and Support Contracts
Risk Flags
- Long contract duration may not align with evolving needs.
- Lack of specific performance metrics hinders value assessment.
- Potential for price uncompetitiveness over the contract's extended term.
Tags
management-services, procurement-support, hhs, hrsa, duke-university, healthcare, blood-and-organ-banks, full-and-open-competition, firm-fixed-price, north-carolina, large-contract, administrative-support
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $11.7 million to DUKE UNIVERSITY. MGT SVCS/CONTRACT&PROCUREMENT SUP
Who is the contractor on this award?
The obligated recipient is DUKE UNIVERSITY.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Health Resources and Services Administration).
What is the total obligated amount?
The obligated amount is $11.7 million.
What is the period of performance?
Start: 2006-11-02. End: 2019-08-23.
What specific management and procurement services did Duke University provide under this contract?
The contract description 'MGT SVCS/CONTRACT&PROCUREMENT SUP' indicates general management services and contract and procurement support. However, the specific nature of these services within the context of 'Blood and Organ Banks' is not detailed in the provided data. It could encompass a range of activities such as strategic planning, operational efficiency improvements, financial management, procurement process optimization, vendor management, and compliance support related to the agency's mission in blood and organ banking. Without further documentation, the precise deliverables remain unspecified, making a detailed assessment of their impact challenging.
How does the $11.6 million contract value compare to similar contracts for management and procurement support in the healthcare sector?
Directly comparing the $11.6 million value is difficult without knowing the exact scope and duration of services. However, for a contract spanning nearly 13 years (from 2006 to 2019), this annual average of approximately $899,000 is moderate for specialized management and procurement support within a federal agency. Larger, more comprehensive federal contracts for similar services can range from tens to hundreds of millions of dollars, depending on the agency's size, complexity, and the breadth of support required. The niche focus on 'Blood and Organ Banks' might limit the pool of comparable contracts, potentially making this a specialized, albeit significant, investment for HRSA.
What were the key performance indicators (KPIs) used to evaluate Duke University's performance on this contract?
The provided data does not include specific Key Performance Indicators (KPIs) or performance metrics that were used to evaluate Duke University's performance. Typically, for management and procurement support contracts, KPIs might include metrics related to cost savings achieved through procurement efficiencies, timeliness of procurement actions, vendor performance ratings, adherence to budget, successful contract closeouts, and overall client satisfaction. The absence of this information makes it impossible to quantitatively assess the effectiveness and value derived from the services provided under this nearly $11.7 million contract.
What is the historical spending pattern for management and procurement support services by the Health Resources and Services Administration (HRSA)?
Analyzing the historical spending pattern for HRSA's management and procurement support services requires access to comprehensive historical contract data beyond this single award. This $11.6 million contract, awarded in 2006 and ending in 2019, represents a significant but isolated data point. To understand broader trends, one would need to examine HRSA's spending across multiple fiscal years, identify other contracts for similar services (both sole-source and competed), and analyze the total expenditure on administrative and support functions. This would reveal whether spending in this category has increased, decreased, or remained stable over time and how this particular contract fits into the agency's overall procurement strategy.
What risks are associated with a firm fixed-price contract of this duration (nearly 13 years)?
A firm fixed-price (FFP) contract aims to provide cost certainty for the buyer. However, for a duration of nearly 13 years, several risks emerge. Firstly, the fixed price may become uncompetitive over time if market rates increase significantly, potentially leading to the contractor being overpaid or the government receiving suboptimal value. Secondly, the contractor bears the risk of cost overruns, which could incentivize them to cut corners on quality or service delivery to maintain profitability, especially if unforeseen challenges arise. Conversely, if costs decrease significantly, the contractor could realize windfall profits. Finally, the long duration might not adequately account for evolving technological needs or changes in agency requirements, potentially leading to a contract that becomes misaligned with current objectives.
Industry Classification
NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › Blood and Organ Banks
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: 15
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 334 N BUILDING RESEARCH DR, DUKE UN, DURHAM, NC, 04
Business Categories: Category Business, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $11,694,573
Exercised Options: $11,694,573
Current Obligation: $11,694,573
Contract Characteristics
Multi-Year Contract: Yes
Cost or Pricing Data: NO
Timeline
Start Date: 2006-11-02
Current End Date: 2019-08-23
Potential End Date: 2019-08-23 00:00:00
Last Modified: 2013-08-16
More Contracts from Duke University
- Collaborative Influenza Vaccine Innovation Centers (civics) Component B: Vaccine Manufacturing and Toxicology Core — $78.2M (Department of Health and Human Services)
- This Contract Will Support Component a of the Collaborative Influenza Vaccine Innovation Centers (civics) Program to Design and Evaluate Innovative Influenza Vaccine Approaches, Based on Principles of Influenza Immunity, That Achieve Durable, Robust — $66.5M (Department of Health and Human Services)
- TAS::75 0140::TAS — $49.0M (Department of Health and Human Services)
- External Quality Assurance Program Oversight Laboratory (eqapol) — $37.3M (Department of Health and Human Services)
- Collaborative Influenza Vaccine Innovation Centers (civics) - Component C: Clinical Core (awarded POP: September 16, 2019 - September 15, 2020) — $35.8M (Department of Health and Human Services)
Other Department of Health and Human Services Contracts
- Contact Center Operations (CCO) — $5.5B (Maximus Federal Services, Inc.)
- TAS::75 0849::TAS Oper of Govt R&D Goco Facilities — $4.8B (Leidos Biomedical Research Inc)
- THE Purpose of This Contract IS to Provide the Full Complement of Services Necessary to Care for UC in ORR Custody Including Facilities Set-Up, Maintenance, and Support Internal and Perimeter (IF Applicable) Security, Direct Care and Supervision Inc — $3.5B (Rapid Deployment Inc)
- Contact Center Operations — $2.6B (Maximus Federal Services, Inc.)
- Federal Contract — $2.4B (Leidos Biomedical Research Inc)
View all Department of Health and Human Services contracts →