HHS awarded $19.6M contract for scientific consulting, with a high benchmarked per-unit cost

Contract Overview

Contract Amount: $19,584,566 ($19.6M)

Contractor: Social & Scientific Systems, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2009-09-28

End Date: 2015-03-31

Contract Duration: 2,010 days

Daily Burn Rate: $9.7K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TAS::75 0900::TAS RECOVERY ACT ARRA::YES::ARRA

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910, UNITED STATES OF AMERICA

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $19.6 million to SOCIAL & SCIENTIFIC SYSTEMS, INC. for work described as: TAS::75 0900::TAS RECOVERY ACT ARRA::YES::ARRA Key points: 1. The contract value of $19.6M represents a significant investment in scientific consulting services. 2. Competition dynamics appear limited, with only two bidders, potentially impacting price discovery. 3. The contract's duration of nearly six years suggests a long-term need for these services. 4. Performance context is provided by the National Institutes of Health, a major research funding agency. 5. The sector positioning is within scientific and technical consulting, a broad but critical area for government research. 6. The contract was awarded under the Recovery Act, indicating a focus on economic stimulus during its term.

Value Assessment

Rating: questionable

The contract's total value of $19.6M for consulting services requires careful benchmarking. Given the limited competition and the high per-unit cost, the value for money is questionable. Further analysis comparing the specific deliverables and the contractor's performance against industry standards is needed to definitively assess value. The cost-plus-fixed-fee structure can sometimes lead to cost overruns if not managed tightly.

Cost Per Unit: $1,000,000+ per year (estimated based on total value and duration)

Competition Analysis

Competition Level: limited

This contract was competed with only two bidders, indicating a limited level of competition. While not a sole-source award, the low number of participants suggests that the market may not have been fully engaged or that barriers to entry for other potential contractors were significant. This limited competition could have implications for the final price and the range of innovative solutions considered.

Taxpayer Impact: Limited competition can lead to higher prices for taxpayers as it reduces the pressure on contractors to offer the most competitive bids.

Public Impact

The primary beneficiaries are likely researchers and institutions funded by the National Institutes of Health, who receive support through these consulting services. The services delivered are categorized as 'Other Scientific and Technical Consulting Services,' supporting various research and administrative functions within NIH. The geographic impact is centered in Maryland, where the contractor is located and likely where much of the work is performed or managed. Workforce implications may include the employment of scientific and technical consultants, contributing to the specialized workforce in the health research sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential overpayment and lack of innovative solutions.
The cost-plus-fixed-fee contract type can incentivize cost increases if not rigorously monitored.
The high estimated per-unit cost warrants scrutiny to ensure efficiency and effectiveness.

Positive Signals

Awarded under the Recovery Act, suggesting alignment with economic stimulus goals during its period of performance.
The contractor, SOCIAL & SCIENTIFIC SYSTEMS, INC., has a track record with federal contracts, implying some level of established capability.
The contract supports the National Institutes of Health, a critical agency for medical research and public health.

Sector Analysis

The scientific and technical consulting services sector is vital for government agencies, particularly in research and development. This contract falls within a broad category that supports various scientific endeavors. Comparable spending benchmarks for similar consulting services at NIH or other large research institutions would provide a clearer picture of whether this contract's pricing is within the expected range. The market for these services is competitive, but specialized expertise can command higher rates.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal. The focus was likely on securing specialized expertise regardless of business size.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officers and program managers within the National Institutes of Health. Accountability measures would be tied to the performance standards outlined in the contract. Transparency is generally facilitated through contract databases, though specific performance details may be proprietary. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

NIH Research Support Contracts
Federal Scientific Consulting Services
ARRA Funded Contracts
Health and Human Services Consulting

Risk Flags

Limited competition
High per-unit cost
Cost-plus-fixed-fee contract type

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $19.6 million to SOCIAL & SCIENTIFIC SYSTEMS, INC.. TAS::75 0900::TAS RECOVERY ACT ARRA::YES::ARRA

Who is the contractor on this award?

The obligated recipient is SOCIAL & SCIENTIFIC SYSTEMS, 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 $19.6 million.

What is the period of performance?

Start: 2009-09-28. End: 2015-03-31.

What is the specific nature of the 'Other Scientific and Technical Consulting Services' provided under this contract?

The contract details 'Other Scientific and Technical Consulting Services,' which is a broad category. Based on the awarding agency, the National Institutes of Health (NIH), these services likely encompass a range of support functions critical to biomedical research. This could include assistance with grant management, data analysis, scientific literature review, regulatory compliance consulting, program evaluation, or technical writing for research proposals and publications. Without more specific line-item details, the exact nature remains general, but it is tied to supporting NIH's mission of advancing health through research.

How does the contractor's past performance compare to expectations for a contract of this size and duration?

Assessing the contractor's past performance requires access to detailed performance reviews and award histories, which are not fully provided in the abbreviated data. However, SOCIAL & SCIENTIFIC SYSTEMS, INC. has a history of federal contracting. For a contract valued at $19.6M over nearly six years, agencies typically look for a demonstrated ability to manage complex projects, deliver quality services on time and within budget, and maintain strong client relationships. The limited competition suggests that perhaps not many contractors met the specific qualifications or had the capacity for a contract of this scale and duration, or that the incumbent had a strong performance record.

What are the key risks associated with the Cost Plus Fixed Fee (CPFF) contract type in this context?

The Cost Plus Fixed Fee (CPFF) contract type presents specific risks. For the government, the primary risk is that the contractor may have less incentive to control costs compared to fixed-price contracts, as the government agrees to pay all allowable costs plus a predetermined fixed fee. This can lead to higher overall expenditures if cost overruns occur. For the contractor, the risk lies in accurately estimating all costs to ensure the fixed fee remains profitable. Effective oversight by the government is crucial to monitor costs, ensure efficiency, and prevent scope creep that could inflate expenses beyond the initial expectations.

How does the $19.6M contract value compare to other scientific consulting contracts awarded by HHS or NIH?

The $19.6M contract value over approximately six years is a substantial award for scientific consulting. To benchmark this effectively, one would need to compare it against similar contracts awarded by HHS and NIH for 'Other Scientific and Technical Consulting Services' or closely related categories. Factors like the specific services required, the duration, and the level of expertise needed significantly influence contract values. If this contract's per-unit cost or overall value is significantly higher than comparable contracts with similar scopes and durations, it would indicate a potential issue with value for money. Without direct comparative data, it's difficult to definitively state if it's high or low, but the estimated per-unit cost suggests it may be on the higher side.

What was the rationale for awarding this contract under the Recovery Act?

The contract was awarded in September 2009, a period when the American Recovery and Reinvestment Act (ARRA) of 2009 was actively being implemented. ARRA aimed to stimulate the economy through investments in infrastructure, education, health, and energy, among other areas. Awarding this contract under ARRA suggests that the services procured were deemed essential for supporting NIH's mission and potentially contributing to economic stimulus through job creation or supporting research that could lead to economic benefits. The 'YES' under 'ARRA' in the data confirms its funding source and intent.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: NIHAO200816

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 8757 GEORGIA AVE FL 12, SILVER SPRING, MD, 20910

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $19,584,566

Exercised Options: $19,584,566

Current Obligation: $19,584,566

Parent Contract

Parent Award PIID: HHSN272200900001I

IDV Type: IDC

Timeline