NIH awards $151.6M for cancer trials support, with Westat Inc. as prime contractor

Contract Overview

Contract Amount: $151,576,045 ($151.6M)

Contractor: Westat, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2013-08-31

End Date: 2020-08-30

Contract Duration: 2,556 days

Daily Burn Rate: $59.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Healthcare

Official Description: IGF::OT::IGF CANCER TRIALS SUPPORT UNIT

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $151.6 million to WESTAT, INC. for work described as: IGF::OT::IGF CANCER TRIALS SUPPORT UNIT Key points: 1. Contract value represents significant investment in critical research infrastructure. 2. Competition dynamics suggest a robust market for scientific consulting services. 3. Contract duration indicates a long-term need for sustained support. 4. Performance context is crucial for evaluating the effectiveness of cancer research initiatives. 5. Sector positioning highlights the importance of specialized consulting in healthcare and R&D. 6. The award type (Delivery Order) implies flexibility within a larger framework.

Value Assessment

Rating: good

The total award of $151.6 million over approximately seven years suggests a substantial investment. Benchmarking this against similar large-scale scientific support contracts is challenging without more specific service details. However, the fixed-fee component within a cost-plus structure aims to control overall costs while allowing for flexibility in research execution. The per-year average of roughly $21.6 million indicates a significant operational budget for this support unit.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of two bidders suggests a competitive environment, though the specific number of proposals received is not detailed. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Full and open competition typically leads to better value for taxpayers by driving down prices and encouraging innovation among contractors.

Public Impact

Patients and researchers benefit from the efficient support of cancer clinical trials. Services delivered include crucial administrative, data management, and logistical support for trials. Geographic impact is national, supporting trials across various research institutions. Workforce implications include employment for scientific, technical, and administrative staff at Westat, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if not managed effectively within the cost-plus structure.
Reliance on a single contractor for a critical function could pose a risk if performance falters.
Ensuring continued innovation and adaptation to evolving research needs over the contract term.

Positive Signals

Awarded through full and open competition, suggesting a competitive selection process.
Long contract duration implies a stable and reliable partnership for NIH.
Fixed-fee component provides some cost certainty for the government.

Sector Analysis

This contract falls within the Scientific and Technical Consulting Services sector, specifically supporting healthcare and biomedical research. The market for such services is substantial, driven by government funding for research and development. Comparable spending benchmarks would involve analyzing other large contracts for research support, data management, and clinical trial coordination within agencies like NIH and other health-focused federal bodies.

Small Business Impact

There is no explicit indication of small business set-asides for this contract, and the prime contractor, Westat, Inc., is a large business. Subcontracting opportunities for small businesses may exist, but this information is not detailed in the provided data. The focus appears to be on securing specialized expertise from a large, established firm for a complex research support function.

Oversight & Accountability

Oversight is likely managed by the National Institutes of Health program officials responsible for the cancer trials support unit. Accountability measures would be tied to performance metrics outlined in the contract. Transparency is generally maintained through federal contract databases, though specific performance details and IG oversight reports would require further investigation.

Related Government Programs

National Cancer Institute (NCI) Programs
Clinical Trials.gov
NIH Research Grants
Biomedical Research Support Services
Federal Health IT Contracts

Risk Flags

Cost Overrun Risk
Performance Dependency
Contract Management Intensity

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $151.6 million to WESTAT, INC.. IGF::OT::IGF CANCER TRIALS SUPPORT UNIT

Who is the contractor on this award?

The obligated recipient is WESTAT, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $151.6 million.

What is the period of performance?

Start: 2013-08-31. End: 2020-08-30.

What is the track record of Westat, Inc. in supporting large-scale federal research initiatives, particularly in healthcare?

Westat, Inc. has a significant history of supporting federal agencies, including the NIH, with research, data collection, and statistical analysis. Their expertise spans various domains, including health, education, and social sciences. For large-scale federal research initiatives, Westat has been involved in numerous projects requiring complex data management, survey design, and program evaluation. Their experience with health-related research, including clinical trials support, is extensive, making them a well-established player in this sector. Evaluating their specific performance on past NIH contracts, especially those with similar scope and duration, would provide further insight into their capabilities and reliability.

How does the awarded amount of $151.6 million compare to similar contracts for cancer trials support?

Directly comparing the $151.6 million award to similar contracts requires access to a comprehensive database of federal procurements for cancer trials support, including details on scope, duration, and specific services rendered. However, given the seven-year duration (approximately 2013-2020), the average annual value of roughly $21.6 million suggests a substantial and ongoing need for comprehensive support services. This level of funding is indicative of a large, complex program requiring significant resources for administrative, data management, and logistical functions essential for advancing cancer research through clinical trials. It reflects a significant investment by the NIH in maintaining robust infrastructure for its cancer research portfolio.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for this type of service?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to Westat, Inc., is that the government may end up paying more than anticipated if the contractor's costs exceed initial estimates, even though the fee is fixed. While the fixed fee provides some predictability, the 'cost-plus' element means the government bears the risk of cost overruns. For a contract supporting cancer trials, where research complexities can lead to unforeseen expenses, effective cost monitoring and control by the government are crucial. The contractor has an incentive to manage costs to ensure their fixed fee is profitable, but the government must diligently audit expenditures to prevent excessive spending.

What is the expected impact of this contract on the advancement of cancer research?

This contract is expected to have a significant positive impact on the advancement of cancer research by ensuring the efficient and effective execution of clinical trials. The support provided by Westat, Inc. likely encompasses critical functions such as patient recruitment, data collection and management, regulatory compliance, and logistical coordination. By outsourcing these essential, often complex, operational aspects to a specialized contractor, the NIH can allow its researchers to focus more intently on the scientific aspects of cancer treatment and prevention. This streamlined support system can accelerate the pace at which new therapies are tested and brought to patients, ultimately contributing to better outcomes in the fight against cancer.

How has federal spending on cancer research support services evolved over the period of this contract (2013-2020)?

Federal spending on cancer research support services, including those related to clinical trials, has generally seen increases over the period of this contract (2013-2020), driven by sustained bipartisan support for cancer research and advancements in medical science. Agencies like the National Institutes of Health (NIH) and the National Cancer Institute (NCI) are primary recipients of these funds. While specific figures for 'cancer trials support services' as a distinct category can be difficult to isolate, overall federal investment in biomedical research, including cancer, has trended upwards. Factors contributing to this include new legislative initiatives, increased appropriations, and the growing complexity and scale of clinical trials, necessitating greater investment in support infrastructure and specialized contracting.

What are the implications of awarding a large contract like this to a single prime contractor for the broader research ecosystem?

Awarding a large, comprehensive contract like this to a single prime contractor, such as Westat, Inc., can have several implications for the broader research ecosystem. On the positive side, it can lead to greater efficiency, streamlined communication, and a unified approach to managing complex operations, potentially accelerating research timelines. However, it also concentrates significant resources and operational control within one entity. This can limit opportunities for other organizations, including smaller specialized firms or academic institutions, to directly participate in delivering these specific support services. While subcontracting can mitigate this to some extent, the prime contractor often dictates the terms and scope of such arrangements, potentially influencing the diversity of expertise and innovation within the support network.

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) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N02CM3100275

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1600 RESEARCH BLVD, ROCKVILLE, MD, 20850

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

Financial Breakdown

Contract Ceiling: $164,454,302

Exercised Options: $152,424,362

Current Obligation: $151,576,045

Actual Outlays: $47,599

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $6,350,270

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSN261201300028I

IDV Type: IDC

Timeline