HHS awards $18.3M for critical function research, with ARBOR RESEARCH COLLABORATIVE FOR HEALTH leading

Contract Overview

Contract Amount: $18,260,844 ($18.3M)

Contractor: Arbor Research Collaborative for Health

Awarding Agency: Department of Health and Human Services

Start Date: 2016-09-20

End Date: 2023-09-26

Contract Duration: 2,562 days

Daily Burn Rate: $7.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::CT::IGF FOR CRITICAL FUNCTIONS

Place of Performance

Location: ANN ARBOR, WASHTENAW County, MICHIGAN, 48105

State: Michigan Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $18.3 million to ARBOR RESEARCH COLLABORATIVE FOR HEALTH for work described as: IGF::CT::IGF FOR CRITICAL FUNCTIONS Key points: 1. Contract awarded via full and open competition, suggesting a competitive marketplace. 2. The contract duration of 2562 days indicates a long-term need for these services. 3. The contract type is Cost Plus Fixed Fee, which can incentivize cost overruns. 4. The award was a delivery order, implying it's part of a larger contract vehicle. 5. The North American Industry Classification System (NAICS) code 541720 points to R&D in social sciences. 6. The contractor, ARBOR RESEARCH COLLABORATIVE FOR HEALTH, has secured this significant award. 7. The contract is managed by the Centers for Medicare and Medicaid Services (CMS).

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the deliverables and comparable projects. The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, carries inherent risks of cost escalation if not managed tightly. The fixed fee component provides some cost certainty for the contractor's effort, but the overall cost is subject to actual expenses incurred. Further analysis would require comparing the per-unit cost of research outcomes or milestones against industry standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of 6 bidders (no) suggests a reasonably competitive environment for this specific requirement. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government, although the specific pricing outcomes depend on the evaluation criteria and the nature of the R&D services sought.

Taxpayer Impact: Taxpayers benefit from the government seeking the best value through a competitive process, which should drive down costs and improve the quality of research outcomes.

Public Impact

The primary beneficiaries are likely the Centers for Medicare and Medicaid Services (CMS) and the Department of Health and Human Services (HHS), who will receive critical research insights. The services delivered are focused on Research and Development in the Social Sciences and Humanities, potentially impacting healthcare policy and program effectiveness. The geographic impact is primarily national, given the scope of CMS's operations, though specific research may have localized implications. Workforce implications could include support for researchers and analysts within CMS and potentially the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to cost overruns if not closely monitored.
Long contract duration (2562 days) requires sustained oversight to ensure continued relevance and performance.
Specific deliverables and performance metrics are not detailed, making it hard to assess value for money.
The nature of R&D can involve uncertainty, making it difficult to predict final outcomes and costs upfront.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Multiple bidders (6) participated, suggesting market interest and potential for competitive pricing.
The contract addresses critical functions, implying importance to the agency's mission.
The contractor is specialized in research, suggesting relevant expertise for the task.

Sector Analysis

The contract falls under the Research and Development in the Social Sciences and Humanities sector (NAICS 541720). This sector is crucial for informing policy decisions, understanding societal trends, and evaluating program effectiveness, particularly within government agencies like HHS. Spending in this area can vary significantly based on national priorities and the need for evidence-based policymaking. Comparable spending benchmarks would typically be found within HHS's own R&D portfolio or similar agencies focused on social and health policy.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As such, there are no direct subcontracting implications for small businesses mandated by this specific award. The primary contractor, ARBOR RESEARCH COLLABORATIVE FOR HEALTH, is likely a larger entity or a research institution. The absence of small business set-asides means opportunities for small business participation would depend on the prime contractor's own subcontracting strategy, which is not detailed here.

Oversight & Accountability

Oversight for this contract would primarily reside with the Centers for Medicare and Medicaid Services (CMS), the awarding agency. As a Cost Plus Fixed Fee contract, CMS would need robust mechanisms to monitor the contractor's incurred costs, ensure compliance with the contract terms, and verify the progress and quality of research deliverables. Transparency would be enhanced through regular reporting requirements and potentially through public dissemination of research findings, depending on the sensitivity and nature of the work. The Inspector General for HHS would have jurisdiction for audits and investigations if any concerns regarding fraud, waste, or abuse arise.

Related Government Programs

HHS Research and Development Contracts
CMS Program Evaluation Services
Social Science Research Grants
Health Policy Analysis Contracts
Federal Research and Development Spending

Risk Flags

Cost Plus Fixed Fee contract type requires close monitoring of expenditures.
Long contract duration necessitates sustained oversight and performance management.
R&D inherently involves uncertainty in outcomes and final costs.
Lack of specific deliverable details makes immediate value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $18.3 million to ARBOR RESEARCH COLLABORATIVE FOR HEALTH. IGF::CT::IGF FOR CRITICAL FUNCTIONS

Who is the contractor on this award?

The obligated recipient is ARBOR RESEARCH COLLABORATIVE FOR HEALTH.

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 $18.3 million.

What is the period of performance?

Start: 2016-09-20. End: 2023-09-26.

What is the specific nature of the 'critical functions' being researched under this contract?

The provided data does not specify the exact nature of the 'critical functions' being researched. However, given the awarding agency (Centers for Medicare and Medicaid Services - CMS) and the NAICS code (541720 - Research and Development in the Social Sciences and Humanities), it is highly probable that the research pertains to the operational efficiency, policy impact, or future development of CMS programs. This could include areas like healthcare access, quality of care, program integrity, beneficiary services, or the economic and social impacts of healthcare policies. Further details would typically be found in the contract's statement of work.

How does the $18.3 million cost compare to similar R&D contracts in social sciences at HHS?

Comparing the $18.3 million cost requires a benchmark of similar R&D contracts within the social sciences and humanities sector at HHS. Without access to a comprehensive database of historical HHS contracts with detailed scope and duration, a precise comparison is difficult. However, $18.3 million over approximately 7 years (2562 days) represents a significant investment. The Cost Plus Fixed Fee structure means the final cost is tied to actual expenses plus a negotiated fixed fee. To assess value, one would need to compare the cost per research outcome, per researcher-hour, or per milestone achieved against industry averages or other government-funded projects of comparable scope and complexity.

What are the key performance indicators (KPIs) or deliverables expected from ARBOR RESEARCH COLLABORATIVE FOR HEALTH?

The provided summary data does not include the specific Key Performance Indicators (KPIs) or detailed deliverables for this contract. Typically, for a Cost Plus Fixed Fee R&D contract, these would be outlined in the Statement of Work (SOW). Expected deliverables might include research reports, data analyses, policy recommendations, presentations, or prototypes. Performance would likely be assessed based on the quality, timeliness, and impact of these deliverables, as well as adherence to research methodologies and ethical standards. CMS would monitor progress against these defined objectives throughout the contract's duration.

What is the track record of ARBOR RESEARCH COLLABORATIVE FOR HEALTH with federal contracts, particularly with HHS?

The provided data indicates that ARBOR RESEARCH COLLABORATIVE FOR HEALTH is the contractor for this specific $18.3 million award. To assess their track record, one would need to examine their history of federal contract awards, including past performance ratings, any past disputes or terminations, and their experience with similar types of R&D work, especially within the health and human services sector. A deeper dive into federal procurement databases (like FPDS or SAM.gov) would reveal the extent of their federal contracting history, their size, and their performance across various agencies and contract types.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract, especially for Research and Development (R&D), is the potential for cost overruns. While the 'fixed fee' provides a predictable profit margin for the contractor, the 'cost plus' component means the government reimburses the contractor's actual allowable costs. If the R&D is complex or encounters unforeseen challenges, costs can escalate significantly beyond initial estimates. This necessitates rigorous government oversight to scrutinize incurred costs, ensure efficiency, and prevent unnecessary spending. The contractor may have less incentive to control costs compared to fixed-price contracts, as their fee is guaranteed regardless of cost efficiency beyond the fixed fee itself.

How does the duration of this contract (2562 days) align with typical R&D project timelines in social sciences?

A contract duration of 2562 days, which is approximately 7 years, is quite substantial for a single R&D contract, even in the social sciences. While R&D projects can be long-term, such extended durations often indicate a phased approach, a broad scope, or a need for longitudinal data collection and analysis. It suggests that the 'critical functions' being researched are complex and require sustained effort over a significant period. Government agencies often use multi-year contracts or task orders under indefinite-delivery/indefinite-quantity (IDIQ) vehicles to manage long-term R&D needs, allowing for flexibility while ensuring continuity of research.

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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 340 E HURON ST STE 300, ANN ARBOR, MI, 48104

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,260,844

Exercised Options: $18,260,844

Current Obligation: $18,260,844

Actual Outlays: $5,526,067

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSM500201400029I

IDV Type: IDC

Timeline