HHS awards $117M R&D contract to Acumen LLC for social science research, with a 5-year term

Contract Overview

Contract Amount: $116,976,424 ($117.0M)

Contractor: Acumen LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2016-09-28

End Date: 2021-09-29

Contract Duration: 1,827 days

Daily Burn Rate: $64.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF TASK ORDER AWARD - DATALINK 2

Place of Performance

Location: BURLINGAME, SAN MATEO County, CALIFORNIA, 94010

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $117.0 million to ACUMEN LLC for work described as: IGF::OT::IGF TASK ORDER AWARD - DATALINK 2 Key points: 1. Contract value of $117 million over five years suggests significant investment in social science research. 2. Full and open competition indicates a broad market search, potentially leading to competitive pricing. 3. Research and Development in Social Sciences and Humanities is a specialized area, requiring specific expertise. 4. The contract's duration of over 1800 days points to a long-term project with sustained effort. 5. Acumen LLC, as the sole awardee, will be the primary entity responsible for delivering on the contract's objectives. 6. The contract type (Cost Plus Fixed Fee) allows for cost reimbursement plus a fixed fee, balancing flexibility with contractor incentive. 7. California is the state associated with this contract, potentially indicating a geographic focus or contractor location.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or comparable R&D projects in social sciences. The $117 million over five years averages to approximately $23.4 million annually, which could be reasonable for a large-scale research initiative. However, the absence of detailed performance metrics or specific outcomes makes a definitive value assessment difficult. The Cost Plus Fixed Fee structure can sometimes lead to higher costs than fixed-price contracts if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors were likely solicited and had the opportunity to bid. This method is generally preferred for ensuring a wide range of potential contractors can participate, fostering a competitive environment. The number of bidders is not specified, but the process implies a structured solicitation and evaluation to select the most qualified offeror.

Taxpayer Impact: Full and open competition typically benefits taxpayers by encouraging lower prices and higher quality services through market forces, although the specific cost savings are not quantifiable without knowing the number of bids received and the final negotiated price.

Public Impact

The primary beneficiaries are likely government agencies and policymakers who will utilize the research findings to inform decisions and programs. The services delivered involve research and development in social sciences and humanities, potentially covering areas like public policy, behavioral economics, or sociological studies. The geographic impact is not explicitly defined but may relate to national policy or specific regional studies. Workforce implications could include employment for researchers, analysts, and support staff within Acumen LLC and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize cost overruns if not rigorously monitored.
Lack of specific performance metrics makes it difficult to assess the true value and impact of the R&D.
The specialized nature of social science R&D may limit the pool of truly competitive bidders in the future.
Long contract duration requires sustained oversight to ensure continued relevance and effectiveness.

Positive Signals

Full and open competition suggests a robust procurement process that sought the best value.
The significant investment indicates a commitment to advancing knowledge in social sciences and humanities.
Acumen LLC's award implies they possess the necessary qualifications and expertise for this specialized research.
The fixed fee component provides some level of cost certainty for the government.

Sector Analysis

The contract falls within the Research and Development sector, specifically focusing on social sciences and humanities (NAICS code 541720). This sector is crucial for understanding societal trends, informing policy, and driving innovation in non-technical fields. Spending in this area can vary widely depending on government priorities, but significant investments are often made in areas with direct policy implications. Comparable spending benchmarks would require analysis of other government R&D contracts in similar social science domains.

Small Business Impact

This contract does not appear to have a small business set-aside (ss=false, sb=false). Therefore, the primary focus is on large business competition. There is no explicit information regarding subcontracting plans for small businesses. The absence of set-asides means that small businesses would have had to compete directly with larger firms or potentially be subcontracted by the prime contractor, Acumen LLC.

Oversight & Accountability

Oversight for this contract would typically be managed by the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. The Cost Plus Fixed Fee structure necessitates close monitoring of expenditures and progress towards research objectives. Transparency would be enhanced through regular reporting requirements from Acumen LLC. Inspector General jurisdiction would apply to any potential fraud, waste, or abuse related to the contract.

Related Government Programs

National Science Foundation Research Grants
Department of Education Research Initiatives
National Institutes of Health Behavioral and Social Sciences Research
Social and Economic Sciences Research Administration

Risk Flags

Potential for cost overruns in CPFF contract
Difficulty in defining and measuring R&D success
Limited public information on contractor's specific R&D experience
Specialized nature of social science R&D may limit future competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $117.0 million to ACUMEN LLC. IGF::OT::IGF TASK ORDER AWARD - DATALINK 2

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 $117.0 million.

What is the period of performance?

Start: 2016-09-28. End: 2021-09-29.

What specific research areas within social sciences and humanities are covered by this contract?

The provided data indicates the contract is for 'Research and Development in the Social Sciences and Humanities' under NAICS code 541720. However, it does not specify the precise research topics or sub-disciplines. Typically, such contracts could encompass a wide range of areas including public policy analysis, economic research, sociological studies, behavioral science, education research, and humanities-focused scholarship. The specific focus would be detailed in the contract's statement of work, which is not included in the provided data. Acumen LLC would be expected to deliver research outputs relevant to the objectives set by the Centers for Medicare and Medicaid Services (CMS) or other relevant HHS agencies.

How does the $117 million contract value compare to typical R&D spending in social sciences by the federal government?

Federal R&D spending in social sciences can fluctuate significantly based on agency priorities and the scope of research initiatives. While $117 million over five years ($23.4 million annually) is a substantial sum, it needs to be contextualized within the broader federal R&D budget. For instance, agencies like the National Science Foundation (NSF), Department of Education, and various institutes within HHS and other departments fund numerous social science research projects. Without access to specific historical spending data for similar large-scale, multi-year social science R&D contracts, a direct comparison is difficult. However, this award suggests a significant, focused investment by HHS in this domain, potentially indicating a strategic priority.

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

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D revolve around cost control and contractor efficiency. While the fixed fee provides the contractor with an incentive to control costs to maximize profit, the government bears the risk of cost overruns as it reimburses allowable costs. If the scope of work is not well-defined or if unforeseen technical challenges arise, costs can escalate beyond initial estimates. For R&D, where outcomes can be uncertain, CPFF offers flexibility but requires robust government oversight to ensure costs remain reasonable and that the contractor is diligently pursuing the research objectives without unnecessary expenditure. There's also a risk that the contractor might prioritize activities that increase costs (and thus fee) over the most efficient path to achieving the research goals.

What is Acumen LLC's track record in performing large federal R&D contracts, particularly in social sciences?

Information regarding Acumen LLC's specific track record in performing large federal R&D contracts, especially within the social sciences and humanities, is not detailed in the provided data. To assess their capability, one would need to examine their past performance on similar government contracts, including contract values, durations, client agencies, and performance reviews. Federal procurement databases and contractor performance systems (like the Contractor Performance Assessment Reporting System - CPARS) would typically contain such information. Without this data, it's assumed that Acumen LLC was deemed sufficiently qualified and capable to be awarded this significant contract through the full and open competition process.

How will the success or effectiveness of the research conducted under this contract be measured?

The measurement of success for an R&D contract, particularly in social sciences, is often complex and relies on a combination of factors outlined in the contract's Statement of Work (SOW) and performance metrics. Success is typically evaluated based on the timely delivery of research milestones, the quality and rigor of the research methodologies employed, the validity and impact of the findings, and the adherence to budget. For social science research, effectiveness might also be gauged by the extent to which the research informs policy decisions, improves understanding of social phenomena, or leads to practical applications. The government contracting officer and technical monitors would be responsible for assessing these deliverables against the contract requirements throughout its duration.

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: 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, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $133,618,070

Exercised Options: $116,976,424

Current Obligation: $116,976,424

Actual Outlays: $11,540,000

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSM500201400027I

IDV Type: IDC

Timeline