NIH awards $211M for Cancer Trials Support Unit, with Westat Inc. as prime contractor
Contract Overview
Contract Amount: $211,049,904 ($211.0M)
Contractor: Westat, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2006-09-01
End Date: 2013-08-30
Contract Duration: 2,555 days
Daily Burn Rate: $82.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Healthcare
Official Description: CANCER TRIALS SUPPORT UNIT (CTSU)
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $211.0 million to WESTAT, INC. for work described as: CANCER TRIALS SUPPORT UNIT (CTSU) Key points: 1. Contract awarded via full and open competition, suggesting a robust market for these services. 2. The contract duration of 2555 days (approx. 7 years) indicates a long-term need for these support services. 3. The 'Other Scientific and Technical Consulting Services' NAICS code points to a broad range of potential support activities. 4. The Cost Plus Fixed Fee (CPFF) contract type may allow for flexibility but requires careful monitoring of costs. 5. The prime contractor, Westat, Inc., has a significant contract value, suggesting established capabilities. 6. The contract was awarded to a single vendor, despite full and open competition, warranting a review of the award process.
Value Assessment
Rating: fair
The total award of $211,049,904.4 over approximately 7 years averages to about $30 million annually. Benchmarking this against similar large-scale clinical trial support contracts is difficult without more specific service details. The CPFF structure means that while the fixed fee is set, the cost reimbursement component requires diligent oversight to ensure value for money. Without comparable contract data or detailed cost breakdowns, a definitive value assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. The fact that only one award was made, despite the open competition, could suggest that only one offeror met all the requirements, or that the evaluation criteria heavily favored a single bidder. Further details on the number of bids received and the evaluation process would be needed to fully assess the effectiveness of the competition.
Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it aims to solicit the best possible offers, potentially leading to more competitive pricing and higher quality services. However, the single award outcome warrants scrutiny to ensure that the competition was truly robust and did not inadvertently limit options.
Public Impact
Patients participating in National Institutes of Health (NIH) sponsored cancer clinical trials benefit from streamlined support services. The contract supports the operational efficiency of cancer research by providing essential administrative and technical assistance. The geographic impact is national, as NIH-funded trials are conducted across various research institutions in the United States. The contract likely supports a workforce of researchers, project managers, data analysts, and administrative staff involved in clinical trial operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed meticulously.
- The single award despite full and open competition raises questions about the breadth of effective competition.
- Limited public information on specific performance metrics makes it difficult to assess the contractor's effectiveness.
- The long contract duration could present risks if the contractor's performance degrades over time.
Positive Signals
- Awarded through full and open competition, suggesting a competitive bidding process.
- The significant contract value indicates a substantial investment in critical cancer research support.
- The prime contractor, Westat, Inc., has a long-standing relationship with the government, implying experience.
- The contract supports vital public health initiatives related to cancer research.
Sector Analysis
The healthcare sector, particularly within government-funded research, relies heavily on specialized support services for clinical trials. This contract falls under 'Other Scientific and Technical Consulting Services,' a broad category encompassing a range of expertise needed to manage complex research projects. The market for such services is competitive, with numerous firms offering capabilities in data management, statistical analysis, and project coordination for clinical research. NIH's spending in this area is substantial, reflecting its mission to advance medical knowledge and improve public health.
Small Business Impact
The provided data indicates that small business participation (sb) was false and there was no small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses. While the prime contractor is a large entity, there may be subcontracting opportunities for small businesses within the scope of this contract, though this information is not detailed here. The absence of set-asides means that large businesses were eligible to compete fully.
Oversight & Accountability
Oversight for this contract would primarily fall under the National Institutes of Health (NIH), a component of the Department of Health and Human Services (HHS). The contract type (CPFF) necessitates robust financial oversight to manage cost reimbursements. Performance monitoring would likely involve regular reviews of deliverables, milestones, and adherence to research protocols. Transparency is typically managed through contract reporting requirements and potentially through public-facing NIH research portals, though specific oversight mechanisms for this particular contract are not detailed.
Related Government Programs
- National Cancer Institute (NCI) Research Programs
- Clinical Trials.gov
- NIH Extramural Research Support Contracts
- Health and Human Services IT and Consulting Services
Risk Flags
- Sole awardee despite full and open competition
- Cost Plus Fixed Fee contract type requires diligent oversight
- Long contract duration may limit adaptability
Tags
healthcare, scientific-and-technical-consulting-services, department-of-health-and-human-services, national-institutes-of-health, definitive-contract, full-and-open-competition, cost-plus-fixed-fee, maryland, large-contract, research-and-development, cancer-research, clinical-trials
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $211.0 million to WESTAT, INC.. CANCER TRIALS SUPPORT UNIT (CTSU)
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 $211.0 million.
What is the period of performance?
Start: 2006-09-01. End: 2013-08-30.
What specific services does the Cancer Trials Support Unit (CTSU) provide under this contract?
The Cancer Trials Support Unit (CTSU) contract, awarded to Westat, Inc., likely encompasses a broad range of support services essential for the successful execution of National Institutes of Health (NIH)-sponsored cancer clinical trials. These services typically include, but are not limited to, protocol development assistance, patient recruitment and enrollment support, data collection and management, statistical analysis, quality assurance, regulatory compliance, and overall project management. The 'Other Scientific and Technical Consulting Services' NAICS code suggests a comprehensive support role that facilitates the smooth operation of complex multi-site clinical research, ensuring data integrity and adherence to scientific and ethical standards.
How does the Cost Plus Fixed Fee (CPFF) contract structure impact value for money compared to other contract types?
The Cost Plus Fixed Fee (CPFF) contract structure involves the government reimbursing the contractor for allowable costs plus a predetermined fixed fee representing profit. This structure offers flexibility, particularly for research and development or services where the scope of work may evolve. For taxpayers, the 'cost-plus' aspect means that the government bears the risk of cost overruns, necessitating stringent oversight to ensure costs remain reasonable and necessary. The 'fixed fee' component provides the contractor with an incentive to control costs, as the fee does not increase with higher expenditures. Compared to a Firm-Fixed-Price (FFP) contract, CPFF generally offers less price certainty for the government but can be more appropriate for complex, evolving projects. Effective value for money under CPFF hinges on robust government oversight of incurred costs and performance.
What is the significance of Westat, Inc. being the sole awardee despite a full and open competition?
The fact that Westat, Inc. was the sole awardee under a full and open competition for the Cancer Trials Support Unit (CTSU) contract warrants further investigation. It could indicate that Westat submitted the most advantageous proposal based on the evaluation criteria, potentially offering superior technical capabilities, past performance, or a more compelling management approach. Alternatively, it might suggest that the solicitation's requirements were highly specific, or that the competitive landscape for these specialized services is limited, resulting in only one compliant and competitive offer. Understanding the number of proposals received and the detailed evaluation findings would provide clarity on whether the competition was truly robust or if there were barriers to entry for other potential bidders.
What are the potential risks associated with the 7-year duration of this contract?
A contract duration of approximately seven years, as seen with the CTSU award, presents several potential risks. Firstly, the technological landscape and research methodologies in cancer treatment and clinical trials can evolve rapidly; a long-term contract might not easily adapt to these changes without costly modifications. Secondly, contractor performance can degrade over extended periods due to shifts in key personnel, organizational priorities, or complacency. Thirdly, market conditions and pricing for services can change significantly over seven years, potentially leading to the government paying above-market rates towards the end of the contract term. Finally, long durations can reduce flexibility for the agency to pivot to new approaches or contractors if needs change substantially.
How does this contract align with the broader mission and spending priorities of the National Institutes of Health (NIH)?
This contract directly aligns with the core mission of the National Institutes of Health (NIH) to conduct and support biomedical and behavioral research. Specifically, by funding the Cancer Trials Support Unit (CTSU), the NIH is investing in the infrastructure necessary to advance cancer research and develop new treatments. Cancer research is a significant priority for the NIH, consistently receiving substantial funding allocations. Contracts like this enable the efficient and effective management of clinical trials, which are crucial for translating laboratory discoveries into clinical applications and ultimately improving patient outcomes. The scale of the award ($211 million) underscores the importance NIH places on robust support for its cancer research portfolio.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N02CM6700148
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1650 RESEARCH BLVD, ROCKVILLE, MD, 20850
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $2,386,684,477
Exercised Options: $419,875,761
Current Obligation: $211,049,904
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2006-09-01
Current End Date: 2013-08-30
Potential End Date: 2013-08-30 00:00:00
Last Modified: 2017-03-16
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