HHS awarded $21.1M for statistical and analytic support to the Organ Procurement and Transplantation Network

Contract Overview

Contract Amount: $21,105,992 ($21.1M)

Contractor: Hennepin Healthcare Research Institute

Awarding Agency: Department of Health and Human Services

Start Date: 2010-09-01

End Date: 2016-08-15

Contract Duration: 2,175 days

Daily Burn Rate: $9.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST NO FEE

Sector: Healthcare

Official Description: TAS::75 0350::TAS - PROVIDE STATISTICAL AND OTHER ANALYTIC SUPPORT TO THE ORGAN PROCUREMENT AND TRANSPLANTATION NETWORK

Place of Performance

Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55415

State: Minnesota Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $21.1 million to HENNEPIN HEALTHCARE RESEARCH INSTITUTE for work described as: TAS::75 0350::TAS - PROVIDE STATISTICAL AND OTHER ANALYTIC SUPPORT TO THE ORGAN PROCUREMENT AND TRANSPLANTATION NETWORK Key points: 1. Contract provides essential data analysis for a critical public health function. 2. Competition was full and open, suggesting a robust market for these services. 3. Contract duration of nearly 6 years indicates a stable, long-term need. 4. The specific NAICS code (541690) points to specialized consulting services. 5. The award was a definitive contract, implying a clear scope of work. 6. No small business set-aside was utilized, indicating a focus on best value. 7. The contract type 'COST NO FEE' suggests the contractor bears financial risk. 8. Geographic location of the contractor is Minnesota.

Value Assessment

Rating: good

The contract value of $21.1 million over approximately six years for specialized statistical and analytic support to the Organ Procurement and Transplantation Network appears reasonable given the critical nature of the services. Benchmarking against similar contracts for health data analysis and consulting services would provide a more precise value-for-money assessment. However, the 'COST NO FEE' contract type suggests the contractor assumed a significant portion of the financial risk, which can be a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bidders suggests a competitive market for these specialized services. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by leveraging market forces to obtain the best possible price and quality for essential public health services.

Public Impact

The primary beneficiaries are patients awaiting organ transplants and recipients, through improved network efficiency and data-driven decision-making. Services delivered include statistical analysis, data management, and reporting critical for the Organ Procurement and Transplantation Network (OPTN). The geographic impact is national, as the OPTN serves the entire United States. Workforce implications include the need for skilled data scientists, statisticians, and health services researchers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if data systems become highly integrated.
Reliance on a single contractor for critical data analysis could pose a risk if performance falters.

Positive Signals

Contractor's ability to secure a long-term, definitive contract suggests a track record of reliable performance.
The 'COST NO FEE' structure incentivizes efficient service delivery and cost control by the contractor.
Full and open competition indicates a healthy market and potential for high-quality service providers.

Sector Analysis

This contract falls within the Scientific and Technical Consulting Services sector, specifically related to health data analytics. The market for such services is driven by the increasing complexity of healthcare data and the need for evidence-based decision-making. Comparable spending benchmarks would involve analyzing other federal contracts for health data analysis, statistical support, and program evaluation within agencies like HHS.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the competition focused on larger, specialized firms capable of meeting the complex analytical needs of the Organ Procurement and Transplantation Network. The absence of small business participation in this specific award does not necessarily reflect the broader small business ecosystem within health IT or consulting.

Oversight & Accountability

Oversight is likely managed by the Health Resources and Services Administration (HRSA) program officials responsible for the Organ Procurement and Transplantation Network. Accountability measures would be tied to contract deliverables, performance metrics, and reporting requirements. Transparency is facilitated through contract awards databases, though specific performance details may be proprietary.

Related Government Programs

Organ Procurement and Transplantation Network (OPTN) Operations
Health Data Analytics Services
Public Health Program Support
Statistical Consulting Services

Risk Flags

Contract duration is long, requiring sustained performance monitoring.
Reliance on a single contractor for critical data analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $21.1 million to HENNEPIN HEALTHCARE RESEARCH INSTITUTE. TAS::75 0350::TAS - PROVIDE STATISTICAL AND OTHER ANALYTIC SUPPORT TO THE ORGAN PROCUREMENT AND TRANSPLANTATION NETWORK

Who is the contractor on this award?

The obligated recipient is HENNEPIN HEALTHCARE RESEARCH INSTITUTE.

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 $21.1 million.

What is the period of performance?

Start: 2010-09-01. End: 2016-08-15.

What is the specific expertise of Hennepin Healthcare Research Institute in statistical and analytic support for organ transplantation?

Hennepin Healthcare Research Institute (HHRI) is a research arm of Hennepin Healthcare, a large public healthcare system. While specific details of their past performance on this exact contract are not provided in the data, their affiliation with a major healthcare provider suggests a foundation in healthcare research and operations. Their expertise would likely encompass statistical modeling, data mining, epidemiological analysis, and health services research relevant to complex systems like the Organ Procurement and Transplantation Network (OPTN). The fact that they were awarded a definitive contract under full and open competition for a significant duration implies they met the government's requirements for technical capability and past performance in providing such specialized analytical services.

How does the $21.1 million contract value compare to similar federal contracts for health data analytics?

The $21.1 million contract value over approximately six years for specialized statistical and analytic support to the Organ Procurement and Transplantation Network (OPTN) translates to an average annual value of roughly $3.5 million. This figure is within the range for significant federal contracts focused on health data analytics and consulting. For context, other federal agencies procure similar services for disease surveillance, healthcare program evaluation, and health IT system analysis, with contract values varying widely based on scope, duration, and complexity. Contracts supporting large-scale national health initiatives or data repositories often reach multi-million dollar figures annually. Without specific details on the scope of work and deliverables for this contract, a precise comparison is difficult, but the value suggests a substantial and ongoing need for sophisticated analytical capabilities.

What are the primary risks associated with this contract, and how were they mitigated?

Primary risks associated with this contract could include performance failures by the contractor, leading to disruptions in critical data analysis for the OPTN; data security breaches; or the contractor's inability to adapt to evolving analytical needs or technological advancements. The 'COST NO FEE' contract type inherently shifts some financial risk to the contractor, incentivizing them to manage costs effectively and deliver within budget. The use of a definitive contract with a clear scope of work helps mitigate performance risks by setting explicit expectations. Furthermore, the full and open competition process likely ensured that the selected contractor possessed the necessary expertise and capacity. Ongoing government oversight by HRSA program officials would be crucial for monitoring performance and addressing any emerging issues.

What was the historical spending pattern for statistical and analytic support to the OPTN prior to this contract?

The provided data does not include historical spending patterns for statistical and analytic support to the OPTN prior to this specific contract (awarded in 2010). To understand historical spending, one would need to access federal procurement databases (like FPDS-NG or USASpending.gov) and search for contracts awarded to the OPTN or related entities for similar services in the years preceding 2010. Analyzing these past awards would reveal trends in contract values, durations, awardees, and competition levels, providing context for the $21.1 million award. It's possible this contract represented a continuation, expansion, or consolidation of previous efforts.

How does the 'COST NO FEE' contract type impact the government's financial exposure?

The 'COST NO FEE' contract type significantly limits the government's financial exposure compared to other cost-reimbursement contracts. In a 'COST NO FEE' contract, the contractor is reimbursed for allowable costs incurred but receives no fee or profit. This structure places a substantial portion of the financial risk on the contractor, as they must absorb any costs exceeding their projections or capabilities without additional compensation. This type of contract is typically used when the scope of work is not precisely defined, or when the government wants to incentivize the contractor to perform efficiently and cost-effectively, often in research and development or situations where the outcome is uncertain. For the government, it means paying only for the necessary costs incurred to achieve the objective, without an added profit margin.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: Hennepin County (UEI: 068158369)

Address: 914 S 8TH ST STE 600, MINNEAPOLIS, MN, 55404

Business Categories: Category Business, Foundation, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,105,992

Exercised Options: $21,105,992

Current Obligation: $21,105,992

Subaward Activity

Number of Subawards: 38

Total Subaward Amount: $2,441,992

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline