HHS awarded $25.8M for critical function research, with Mathematica Inc. as the primary contractor

Contract Overview

Contract Amount: $25,809,951 ($25.8M)

Contractor: Mathematica Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2015-08-31

End Date: 2021-02-28

Contract Duration: 2,008 days

Daily Burn Rate: $12.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

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

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $25.8 million to MATHEMATICA INC. for work described as: IGF::CT::IGF FOR CRITICAL FUNCTIONS Key points: 1. Analysis indicates a fair value for money, considering the specialized nature of the research and development services. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Risk indicators appear moderate, with the primary risk being the potential for cost overruns in R&D projects. 4. Performance context shows a multi-year engagement for critical function research, implying a long-term need. 5. This contract positions within the Research and Development sector, specifically focusing on social sciences and humanities. 6. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful oversight to manage costs.

Value Assessment

Rating: fair

The contract's value of $25.8 million for a period spanning from 2015 to 2021 appears reasonable for specialized R&D services in social sciences. Benchmarking against similar contracts for complex research projects is challenging due to the niche nature of 'critical functions.' However, the Cost Plus Fixed Fee structure suggests that costs were estimated and a fixed fee was added, which can be a fair approach for R&D where exact costs are uncertain, provided the fee is appropriately set.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The presence of two bids suggests a degree of competition, though the exact number of potential bidders for such specialized R&D is difficult to ascertain. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A full and open competition process helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that can drive down costs and improve the quality of services received.

Public Impact

The primary beneficiaries are likely the Centers for Medicare and Medicaid Services (CMS) and potentially other government agencies requiring research into critical functions. The services delivered involve research and development in the social sciences and humanities, aimed at understanding and improving critical government functions. The geographic impact is primarily national, as the research findings could inform federal policy and operations across the United States. Workforce implications may include the employment of researchers, analysts, and support staff by the contractor, Mathematica Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in R&D projects, leading to increased costs beyond initial estimates.
The Cost Plus Fixed Fee structure requires diligent monitoring to ensure the fixed fee remains appropriate and costs are controlled.
Ensuring the research directly addresses 'critical functions' as defined by the agency is crucial for program effectiveness.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair selection process.
The contractor, Mathematica Inc., is a well-established research firm with a track record in government contracting.
The multi-year duration indicates a sustained need for the services, suggesting the research is of ongoing importance to the agency.

Sector Analysis

The Research and Development in the Social Sciences and Humanities sector (NAICS code 541720) encompasses a wide range of analytical and research activities. This contract fits within the broader federal spending on R&D, which supports evidence-based policymaking and program improvement. Comparable spending benchmarks are difficult to establish precisely due to the specialized nature of 'critical functions,' but federal R&D spending in social sciences is substantial, supporting various agencies' analytical needs.

Small Business Impact

There is no indication that this contract included a small business set-aside, nor is there information suggesting significant subcontracting opportunities for small businesses. The nature of specialized R&D often favors larger, established research institutions. Further analysis would be needed to determine if small businesses could have participated effectively in this competition or if subcontracting plans were mandated.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. Accountability measures would be tied to the delivery of research milestones and final reports as stipulated in the contract. Transparency is generally maintained through contract award databases, though the specifics of the research findings may be subject to confidentiality or public release policies.

Related Government Programs

Federal Research and Development Spending
Social Science Research Grants
Health Policy Research
Government Operations Analysis

Risk Flags

Cost Overrun Risk
Scope Creep Potential
Contract Type Specific Risks (CPFF)

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $25.8 million to MATHEMATICA INC.. IGF::CT::IGF FOR CRITICAL FUNCTIONS

Who is the contractor on this award?

The obligated recipient is MATHEMATICA INC..

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 $25.8 million.

What is the period of performance?

Start: 2015-08-31. End: 2021-02-28.

What is Mathematica Inc.'s track record with federal contracts, particularly within HHS?

Mathematica Inc. has a significant history of contracting with federal agencies, including the Department of Health and Human Services (HHS). They are a well-regarded research organization specializing in health and social policy. Their portfolio includes numerous contracts related to Medicare, Medicaid, and other HHS programs, often involving complex data analysis, program evaluation, and policy research. This specific contract for 'critical functions' research aligns with their core competencies. Their performance history generally indicates a capacity to deliver on complex research requirements, though like any large contractor, specific contract performance can vary.

How does the $25.8 million award compare to similar R&D contracts in social sciences?

Comparing this $25.8 million award directly to similar R&D contracts in social sciences is challenging due to the unique definition and scope of 'critical functions' as specified by the agency. However, R&D contracts for complex policy analysis, program evaluation, and social science research awarded by agencies like HHS, NSF, or NIH can range from a few million to tens of millions of dollars over several years. The duration of this contract (approximately 5.5 years from award to completion) and its Cost Plus Fixed Fee structure are common for R&D. The value appears within a reasonable range for a multi-year, specialized research endeavor, assuming the scope was well-defined and managed.

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

The primary risks associated with a CPFF contract for R&D involve cost control and ensuring the fixed fee remains appropriate. For the government, the risk is that the actual costs incurred by the contractor could significantly exceed initial estimates, even though the contractor's profit (the fixed fee) is capped. This necessitates robust oversight to ensure costs are reasonable and allocable. For the contractor, the risk is that actual costs might exceed the estimated costs plus the fixed fee, resulting in a loss. Effective risk mitigation requires clear contract terms, detailed cost accounting, and diligent monitoring by the government's contracting officer and technical representatives.

How effective is 'full and open competition' in ensuring value for specialized R&D services?

Full and open competition is generally the most effective method for ensuring value, even for specialized R&D services. It allows a broad range of qualified contractors to compete, fostering innovation and driving down prices through market forces. For specialized R&D, the challenge lies in defining the requirements clearly enough to attract relevant bidders while not being so restrictive as to limit competition unnecessarily. The fact that this contract received two bids suggests that the requirements were sufficiently clear to attract interest, but a higher number of bidders would typically indicate stronger price discovery and potentially better value for taxpayers.

What historical spending patterns exist for research into 'critical functions' within HHS?

Historical spending patterns for research specifically labeled as 'critical functions' within HHS are not readily available as a distinct category in public databases. However, HHS, particularly through CMS and other operating divisions, consistently invests in research and development related to program integrity, operational efficiency, policy analysis, and public health preparedness. These investments often fall under broader R&D, professional services, or program management categories. The $25.8 million awarded to Mathematica Inc. represents a significant, albeit specific, investment in this area, suggesting a recognized need for dedicated research into functions deemed critical by the agency.

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: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1100 1ST ST NE FL 12, WASHINGTON, DC, 20024

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,809,951

Exercised Options: $25,809,951

Current Obligation: $25,809,951

Actual Outlays: $184,928

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $5,807,294

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSM500201400034I

IDV Type: IDC

Timeline