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

Positive Signals

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

Risk Flags

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 ServicesManagement, Scientific, and Technical Consulting ServicesOther 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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