HHS awarded $234M to Research Triangle Institute for broadcast and distribution services over 8 years

Contract Overview

Contract Amount: $234,244,476 ($234.2M)

Contractor: Research Triangle Institute

Awarding Agency: Department of Health and Human Services

Start Date: 2003-12-15

End Date: 2011-10-30

Contract Duration: 2,876 days

Daily Burn Rate: $81.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: ADP INF, BROADCAST&DIST SVCS

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27709

State: North Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $234.2 million to RESEARCH TRIANGLE INSTITUTE for work described as: ADP INF, BROADCAST&DIST SVCS Key points: 1. The contract's value of $234 million over nearly eight years suggests a significant investment in broadcast and distribution capabilities. 2. The full and open competition indicates a potentially competitive bidding process, which could lead to better pricing. 3. The contract's duration and cost-plus award fee structure warrant scrutiny for potential cost overruns and performance incentives. 4. The services provided fall under 'All Other Professional, Scientific, and Technical Services,' a broad category that requires clear performance metrics. 5. The contract's significant value places it as a notable expenditure within the broader federal IT and professional services landscape.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without specific service details, but $234 million over eight years averages to approximately $29 million annually. This figure needs to be compared against similar federal contracts for broadcast and distribution services to assess value for money. The Cost Plus Award Fee (CPAF) structure means the contractor is reimbursed for allowable costs plus a fee that is based on performance. While CPAF can incentivize good performance, it also carries a risk of higher costs if not managed tightly, as the fee can increase with performance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. This level of competition is generally favorable for price discovery and can lead to more competitive pricing for the government. The number of bidders is not specified, but the 'full and open' designation implies a robust solicitation process.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging innovative solutions from multiple vendors.

Public Impact

The primary beneficiaries are likely federal agencies requiring broadcast and distribution services, potentially for public health information dissemination or other communication needs. The services delivered are broadly categorized as 'All Other Professional, Scientific, and Technical Services,' with a specific focus on broadcast and distribution. The geographic impact is likely national, given the nature of broadcast and distribution services, though specific reach would depend on the scope of work. Workforce implications could include employment opportunities for professionals in broadcasting, media production, technical support, and project management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus award fee contracts can sometimes lead to higher overall costs if performance metrics are not rigorously defined and monitored.
The broad 'All Other Professional, Scientific, and Technical Services' category may lack specificity, potentially leading to scope creep or unclear deliverables.
Long contract durations (nearly 8 years) can reduce flexibility and may not keep pace with rapidly evolving broadcast and distribution technologies.

Positive Signals

Awarding under full and open competition suggests a commitment to leveraging market competition to achieve best value.
The use of an award fee structure, if well-implemented, can incentivize high performance and quality service delivery.
The significant contract value indicates a substantial need and potential for long-term strategic partnership in critical communication services.

Sector Analysis

The broadcast and distribution services sector is a critical component of the broader information technology and professional services market. Federal spending in this area supports government communication, public outreach, and internal operational needs. This contract, valued at $234 million over nearly eight years, represents a significant investment within this niche. Comparable spending benchmarks would typically be found within IT services, media production, and telecommunications categories, where agencies procure services for disseminating information to broad audiences or specific target groups.

Small Business Impact

Information regarding small business set-asides or subcontracting plans for this contract was not explicitly provided in the data. However, given the contract's substantial value and the nature of broadcast and distribution services, it is plausible that a portion of the work could be subcontracted to specialized small businesses. A full and open competition does not preclude the use of subcontracting goals, but the primary awardee is Research Triangle Institute, a large research organization.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services (HHS) and its contracting officers. The Substance Abuse and Mental Health Services Administration (SAMHSA) would also play a key role in monitoring performance and ensuring compliance. The Cost Plus Award Fee (CPAF) structure implies performance-based oversight, where the contractor's fee is contingent on meeting defined metrics. Transparency would be enhanced through regular reporting requirements and potential audits by HHS's Office of Inspector General (OIG) if deemed necessary.

Related Government Programs

Federal Communications Commission (FCC) regulatory activities
Government Publishing Office (GPO) services
National Archives and Records Administration (NARA) dissemination
Public broadcasting grants and support
Agency-specific communication and media services

Risk Flags

Long contract duration may lead to technological obsolescence.
Cost-plus award fee structure carries inherent cost escalation risks.
Broad service category may lack specificity, impacting performance measurement.
Limited data on number of bidders in full and open competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $234.2 million to RESEARCH TRIANGLE INSTITUTE. ADP INF, BROADCAST&DIST SVCS

Who is the contractor on this award?

The obligated recipient is RESEARCH TRIANGLE INSTITUTE.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Substance Abuse and Mental Health Services Administration).

What is the total obligated amount?

The obligated amount is $234.2 million.

What is the period of performance?

Start: 2003-12-15. End: 2011-10-30.

What specific broadcast and distribution services were procured under this contract?

The provided data categorizes the contract under 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) with a focus on 'ADP INF, BROADCAST&DIST SVCS'. While specific details are limited, this suggests services related to the management, production, and dissemination of information through various broadcast channels (e.g., radio, television, online streaming) and distribution networks. This could encompass content creation, media planning, technical infrastructure management, data transmission, and audience engagement strategies for federal agencies, likely SAMHSA, to reach target populations with critical information.

How does the $234 million contract value compare to similar federal spending on broadcast and distribution services?

Direct comparison is difficult without granular data on specific service types and contract durations. However, $234 million over nearly eight years ($29 million annually) is a substantial sum, indicating a significant and ongoing need for these services within HHS or its sub-agencies like SAMHSA. Federal spending on IT and professional services is vast, and this contract represents a notable portion within the specialized area of broadcast and distribution. Benchmarking against other large-scale federal media production, public affairs, or information dissemination contracts would be necessary for a precise value assessment.

What are the potential risks associated with a Cost Plus Award Fee (CPAF) contract of this magnitude?

The primary risk with CPAF contracts is the potential for costs to escalate beyond initial projections, as the contractor is reimbursed for allowable costs plus a performance-based fee. If performance metrics are not clearly defined, measurable, and rigorously monitored, the 'award' portion of the fee could be inflated, leading to higher overall expenditure than anticipated. There's also a risk that the focus shifts to achieving fee targets rather than optimal mission outcomes. Effective oversight, clear performance standards, and strong contract management are crucial to mitigate these risks and ensure value for taxpayer money.

What is the track record of Research Triangle Institute (RTI) in performing similar federal contracts?

Research Triangle Institute (RTI) is a large, well-established non-profit research organization with extensive experience in government contracting across various sectors, including health, education, and technology. While specific details on their broadcast and distribution contract history are not provided here, RTI frequently undertakes large-scale federal projects requiring data analysis, program evaluation, and communication support. Their track record generally indicates a capacity to manage complex, multi-year contracts. A deeper dive into their past performance ratings and specific contract outcomes would be needed for a comprehensive assessment.

How does the 'full and open competition' impact the government's ability to secure competitive pricing?

Full and open competition is the statutory preference for federal procurements, designed to maximize the pool of potential offerors and foster robust competition. This process typically involves publicizing the requirement, allowing any responsible source to submit a bid, and evaluating proposals based on pre-defined criteria. By encouraging a wide range of bidders, the government increases the likelihood of receiving innovative proposals and competitive pricing. This mechanism is intended to drive down costs and ensure that the government obtains the best value for its investment, as vendors vie to win the contract.

What are the implications of the contract's long duration (2003-2011) for technological relevance?

A contract spanning from 2003 to 2011, nearly eight years, in the field of broadcast and distribution services presents a significant risk of technological obsolescence. This period witnessed rapid advancements in digital media, streaming technologies, and communication platforms. If the contract's scope was not regularly updated or if it locked the government into specific legacy technologies, it could have resulted in suboptimal performance or higher costs to maintain relevance. Flexibility and adaptability in contract terms are crucial for long-term procurements in technology-driven sectors.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 3040 CORNWALLIS ROAD, RESEARCH TRIANGLE PARK, NC, 04

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

Financial Breakdown

Contract Ceiling: $252,110,254

Exercised Options: $234,250,476

Current Obligation: $234,244,476

Contract Characteristics

Cost or Pricing Data: NO

Timeline