HHS awards $23.6M for scientific consulting to University of Michigan over 5 years
Contract Overview
Contract Amount: $23,662,280 ($23.7M)
Contractor: Regents of the University of Michigan
Awarding Agency: Department of Health and Human Services
Start Date: 2013-09-26
End Date: 2018-09-25
Contract Duration: 1,825 days
Daily Burn Rate: $13.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: BASE AWARD IGF::CT::IGF
Place of Performance
Location: ANN ARBOR, WASHTENAW County, MICHIGAN, 48109
State: Michigan Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $23.7 million to REGENTS OF THE UNIVERSITY OF MICHIGAN for work described as: BASE AWARD IGF::CT::IGF Key points: 1. The award represents a significant investment in specialized consulting services. 2. Competition was full and open, suggesting a competitive bidding process. 3. The fixed-price contract type helps mitigate cost overrun risks. 4. This spending falls within the broader scientific and technical consulting sector.
Value Assessment
Rating: good
The contract value of $23.6M over 5 years averages $4.7M annually. Benchmarking against similar large-scale scientific consulting contracts is difficult without more specific service details, but the annual value appears reasonable for complex, long-term engagements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure services at optimal prices, ensuring funds are used efficiently for critical health research and policy support.
Public Impact
Supports critical research and policy development within the Centers for Medicare and Medicaid Services. The long-term nature of the contract suggests ongoing, essential services are being provided. University of Michigan's expertise is leveraged for complex scientific and technical challenges. Potential impact on healthcare policy and patient care through informed consulting.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific service details makes deep value assessment challenging.
- Potential for scope creep in long-term consulting contracts.
- Reliance on a single academic institution for critical services.
Positive Signals
- Awarded via full and open competition.
- Firm Fixed Price contract type.
- Long-term engagement indicates sustained need and potential for deep expertise development.
- Award to a reputable academic institution.
Sector Analysis
This contract falls under 'Other Scientific and Technical Consulting Services,' a broad category. Spending in this area is often driven by the need for specialized expertise not readily available within government agencies, particularly in complex fields like healthcare policy and regulation.
Small Business Impact
The contract was awarded to the Regents of the University of Michigan, a large academic institution, not a small business. There is no indication of subcontracting opportunities for small businesses within this award notice.
Oversight & Accountability
The award was made by the Department of Health and Human Services, specifically CMS. Standard government procurement oversight processes would apply to ensure contract performance and adherence to terms. The fixed-price nature provides some cost control.
Related Government Programs
- Other Scientific and Technical Consulting Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Contract awarded via full and open competition.
- Firm Fixed Price contract type limits cost uncertainty.
- Award to a reputable academic institution suggests high capability.
- Long-term contract (5 years) indicates sustained and critical need.
- Significant contract value ($23.6M) highlights importance of services.
Tags
other-scientific-and-technical-consultin, department-of-health-and-human-services, mi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $23.7 million to REGENTS OF THE UNIVERSITY OF MICHIGAN. BASE AWARD IGF::CT::IGF
Who is the contractor on this award?
The obligated recipient is REGENTS OF THE UNIVERSITY OF MICHIGAN.
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 $23.7 million.
What is the period of performance?
Start: 2013-09-26. End: 2018-09-25.
What specific scientific and technical consulting services are being provided under this contract, and how do they directly support CMS's mission?
The contract is for 'Other Scientific and Technical Consulting Services.' To fully assess value, detailed information on the specific tasks, deliverables, and the expertise required is needed. These services likely support CMS's complex operations, such as analyzing healthcare data, developing policy recommendations, evaluating program effectiveness, or providing technical guidance on health IT systems, all crucial for managing Medicare and Medicaid.
Given the 5-year duration and $23.6M value, what are the primary risks associated with this contract, and how are they being mitigated?
Key risks include potential scope creep, vendor lock-in, and the possibility that the contracted expertise may become outdated. Mitigation strategies likely involve robust contract management, clear performance metrics, regular reviews, and the firm fixed-price structure which caps costs. However, the long duration could still pose challenges if the agency's needs evolve significantly.
How effective is the full and open competition process in ensuring optimal value for these specialized consulting services, especially when awarded to a single large institution?
Full and open competition is generally effective in driving value by fostering a competitive environment. However, for highly specialized services, the pool of qualified bidders might be limited. While the University of Michigan is a leading institution, the effectiveness hinges on whether other equally capable entities were genuinely able to compete and if the bidding process truly pressured prices down to the lowest reasonable level for the required expertise.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: RFPCMSMIDS20130001
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 503 THOMPSON ST, ANN ARBOR, MI, 48109
Business Categories: Category Business, Educational Institution, Government, Higher Education, U.S. National Government, Not Designated a Small Business, Higher Education (Public), U.S. Regional/State Government, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $23,663,280
Exercised Options: $23,662,280
Current Obligation: $23,662,280
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $144,477
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HHSM500201313017I
IDV Type: IDC
Timeline
Start Date: 2013-09-26
Current End Date: 2018-09-25
Potential End Date: 2018-09-25 00:00:00
Last Modified: 2018-10-10
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