NIH awards $99M for epidemiology support services over 10 years, with 2 bids received

Contract Overview

Contract Amount: $99,067,398 ($99.1M)

Contractor: Social & Scientific Systems, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2005-06-30

End Date: 2015-06-29

Contract Duration: 3,651 days

Daily Burn Rate: $27.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SUPPORT SERVICES FOR EPIDEMIOLOGY

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27703

State: North Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $99.1 million to SOCIAL & SCIENTIFIC SYSTEMS, INC. for work described as: SUPPORT SERVICES FOR EPIDEMIOLOGY Key points: 1. Contract value of $99M over a decade suggests a long-term need for specialized support. 2. Limited competition with only two bidders may indicate a niche market or specialized requirements. 3. The contract's duration and cost structure warrant scrutiny for potential cost efficiencies. 4. Performance context is crucial to understand if the services delivered met evolving public health needs. 5. This contract falls within the broader Research and Development sector, specifically supporting life sciences. 6. The absence of small business set-asides means opportunities for smaller firms may be limited.

Value Assessment

Rating: fair

The total award of $99M over 10 years averages to $9.9M annually. Benchmarking this against similar long-term support contracts for federal research agencies is difficult without more specific service details. The Cost Plus Fixed Fee (CPFF) structure can sometimes lead to higher costs if not managed tightly, as it incentivizes the contractor to incur costs to achieve a fixed profit. However, it also allows for flexibility in scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', with only two bids received. This suggests that while the competition was technically open, the pool of qualified bidders was likely small. The limited number of bidders could potentially lead to less aggressive pricing compared to a more robustly competed contract, as the contractor may face less pressure to offer the lowest possible price.

Taxpayer Impact: With only two bidders, taxpayers may not have benefited from the full price discovery that a larger pool of competitors could have provided, potentially resulting in a higher overall cost for the services.

Public Impact

The primary beneficiaries are likely the researchers and scientists at the National Institutes of Health (NIH) who receive essential support for epidemiological studies. Services delivered include crucial support for public health research, potentially impacting disease surveillance, prevention strategies, and treatment development. The geographic impact is primarily national, supporting federal research initiatives, though the findings can have global health implications. Workforce implications include the employment of specialized personnel by the contractor to fulfill the contract's requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to CPFF contract type if not rigorously monitored.
Limited competition may have resulted in a higher price than if more bidders were involved.
Long contract duration (10 years) could lead to vendor lock-in or reduced agility in adapting to new technologies or methodologies.

Positive Signals

Long-term contract provides stability and continuity for critical research support services.
The award to a single contractor suggests a potentially strong performance history or specialized capability.
NIH's continued investment indicates the perceived value and necessity of these support services for their mission.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on epidemiological support services. The market for such specialized scientific and administrative support is often characterized by a limited number of highly qualified firms. Comparable spending benchmarks are difficult to establish without knowing the precise nature of the 'support services,' but federal agencies frequently contract for specialized research assistance to augment their internal capabilities.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside requirement (ss: false, sb: false). This suggests that the competition was open to all qualified offerors, including large businesses. While there's no explicit subcontracting information provided, the absence of a set-aside means that opportunities for small businesses to participate as subcontractors would depend on the prime contractor's strategy and the nature of the services required.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and program managers within the NIH. Accountability measures would be tied to the performance work statement and the Cost Plus Fixed Fee (CPFF) structure, requiring detailed reporting and justification of costs. Transparency is generally maintained through contract databases, though specific performance metrics and detailed cost breakdowns may not always be publicly accessible.

Related Government Programs

Public Health Surveillance
Epidemiological Research Grants
Biomedical Research Support
National Center for Health Statistics
Centers for Disease Control and Prevention Contracts

Risk Flags

Limited Competition
Cost Plus Fixed Fee Structure
Long Contract Duration
Potential for Cost Overruns
Lack of Small Business Set-Aside

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $99.1 million to SOCIAL & SCIENTIFIC SYSTEMS, INC.. SUPPORT SERVICES FOR EPIDEMIOLOGY

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 $99.1 million.

What is the period of performance?

Start: 2005-06-30. End: 2015-06-29.

What specific types of epidemiology support services were provided under this contract?

The contract description 'SUPPORT SERVICES FOR EPIDEMIOLOGY' is broad. Typically, such services could encompass data collection and management, statistical analysis, study design consultation, literature reviews, report generation, and administrative support for epidemiological research projects. Without more granular detail, it's difficult to ascertain the exact scope, but it likely involves assisting NIH researchers in conducting and analyzing public health studies related to disease patterns, causes, and effects within populations.

How does the $9.9M annual average cost compare to similar NIH support contracts?

Direct comparison is challenging without knowing the specific deliverables and service levels. However, $9.9M annually for specialized research support is substantial, reflecting the complexity and long-term nature of epidemiological research. To benchmark effectively, one would need to compare it against contracts for similar scientific support functions at agencies like the CDC or other NIH institutes, considering factors like the number of personnel, required expertise, and the criticality of the research supported. The CPFF structure also adds a layer of complexity to direct cost comparisons.

What are the risks associated with a 10-year contract duration for R&D support?

A 10-year duration presents several risks. Firstly, technological advancements or shifts in research priorities could render the contracted services less relevant or efficient over time. Secondly, it increases the risk of vendor complacency or a decline in service quality due to a lack of competitive pressure. Thirdly, the government's ability to adapt to new methodologies or requirements might be constrained by the existing contract terms. Finally, long-term cost predictability can be challenging, especially with a CPFF structure, as unforeseen cost increases are possible over such an extended period.

Given only two bidders, what does this imply about the contractor's track record and the market?

The limited competition suggests that the market for these specific epidemiology support services may be concentrated, with only a few entities possessing the necessary expertise, clearances, and capacity. For the awarded contractor, 'SOCIAL & SCIENTIFIC SYSTEMS, INC.', this could indicate a strong, established position in this niche. It implies they likely have a proven track record with the government or possess unique qualifications that few others can match. However, it also raises questions about whether the government adequately explored all potential sources or if barriers to entry are high for new competitors.

How has NIH's spending on epidemiology support services evolved over time?

This specific contract (ID 541710) ran from 2005 to 2015, totaling approximately $99M. To understand the evolution, one would need to examine NIH's broader spending patterns in this category before, during, and after this period. Analyzing historical contract databases for similar services (e.g., NAICS code 541710 or related service codes) awarded by NIH or other HHS agencies would reveal trends in contract volume, average award values, and the number of competitors over time. This could indicate whether reliance on external support services for epidemiology has increased, decreased, or remained stable.

What is the significance of the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation?

This designation is somewhat contradictory. 'Full and open competition' implies that all responsible sources were permitted to compete. However, 'after exclusion of sources' suggests that certain potential sources were deliberately excluded prior to the competition phase, perhaps due to specific requirements, security concerns, or prior performance issues. This could mean that while the competition wasn't a sole-source award, it wasn't as broad as standard full and open competition, potentially limiting the bidder pool and impacting price discovery, similar to a limited competition scenario.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: NIHES0411

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: DLH Holdings Corp (UEI: 068678788)

Address: 8757 GEORGIA AVE STE 1200, SILVER SPRING, MD, 20910

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

Financial Breakdown

Contract Ceiling: $174,337,094

Exercised Options: $174,337,094

Current Obligation: $99,067,398

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline