HHS awards $161M non-competitive contract to ACUMEN LLC for SAFE RX PROJECT
Contract Overview
Contract Amount: $16,147,179 ($16.1M)
Contractor: Acumen LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2008-05-28
End Date: 2013-03-30
Contract Duration: 1,767 days
Daily Burn Rate: $9.1K/day
Competition Type: NON-COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: SAFE RX PROJECT
Place of Performance
Location: BURLINGAME, SAN MATEO County, CALIFORNIA, 94010
Plain-Language Summary
Department of Health and Human Services obligated $16.1 million to ACUMEN LLC for work described as: SAFE RX PROJECT Key points: 1. Significant contract value of $161.47 million. 2. Sole-source award indicates limited competition. 3. Contract duration of nearly 5 years. 4. Focus on Research and Development in Social Sciences and Humanities.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Without competitive bids, it's difficult to assess if the pricing is optimal compared to similar R&D contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This was a non-competitive delivery order, meaning only one vendor was considered. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition raises concerns about whether taxpayers received the best possible value for the $161.47 million spent.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. The long duration of the contract could lock in potentially inefficient practices. Lack of transparency in the sole-source award process. Potential for funds to be diverted from more competitive or cost-effective solutions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Long contract duration
- High contract value
Positive Signals
- Contract awarded to a single vendor, potentially indicating specialized expertise.
Sector Analysis
The contract falls under Research and Development in Social Sciences and Humanities. Spending in this sector can vary widely, but large sole-source R&D contracts warrant scrutiny to ensure scientific and societal benefit justifies the cost.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false).
Oversight & Accountability
The non-competitive nature of this award suggests a need for robust oversight to ensure funds are used effectively and for their intended purpose, especially given the significant value.
Related Government Programs
- Research and Development in the Social Sciences and Humanities
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- Cost Plus Fixed Fee contracts can be prone to cost overruns.
- Long contract duration increases risk exposure.
- High contract value warrants close scrutiny.
- No indication of small business participation.
Tags
research-and-development-in-the-social-s, department-of-health-and-human-services, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $16.1 million to ACUMEN LLC. SAFE RX PROJECT
Who is the contractor on this award?
The obligated recipient is ACUMEN LLC.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).
What is the total obligated amount?
The obligated amount is $16.1 million.
What is the period of performance?
Start: 2008-05-28. End: 2013-03-30.
What specific research outcomes were achieved by ACUMEN LLC under the SAFE RX PROJECT, and did they justify the $161.47 million cost?
The provided data does not detail the specific research outcomes or deliverables of the SAFE RX PROJECT. A thorough review would require access to project reports, milestones achieved, and a cost-benefit analysis comparing the actual outcomes against the initial objectives and the significant investment of $161.47 million.
Were there any attempts to justify the sole-source award, and what risks were identified in proceeding without competition?
The data indicates a 'NON-COMPETITIVE DELIVERY ORDER' (ct: NON-COMPETITIVE DELIVERY ORDER), suggesting no formal competition. Justification for sole-source awards typically involves unique capabilities or urgent needs. Without this justification, the primary risk is paying a premium due to the lack of market price discovery and potentially receiving suboptimal solutions.
How effective was the Centers for Medicare and Medicaid Services in managing this Cost Plus Fixed Fee contract to ensure value for taxpayer money?
The effectiveness of CMS's management of this Cost Plus Fixed Fee contract is difficult to assess solely from the provided data. This contract type requires diligent oversight to control costs and ensure performance. The lack of competition and the contract's substantial value necessitate a detailed review of performance metrics, cost audits, and adherence to contract terms to gauge true effectiveness.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Social Sciences and Humanities
Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services
Competition & Pricing
Extent Competed: NON-COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 500 AIRPORT BLVD STE 365, BURLINGAME, CA, 94010
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $16,147,179
Exercised Options: $16,147,179
Current Obligation: $16,147,179
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSM500200600006I
IDV Type: IDC
Timeline
Start Date: 2008-05-28
Current End Date: 2013-03-30
Potential End Date: 2013-03-30 00:00:00
Last Modified: 2021-02-17
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