HHS awarded $104.8M to RTI for research services, with a significant portion for data collection

Contract Overview

Contract Amount: $104,766,132 ($104.8M)

Contractor: Research Triangle Institute

Awarding Agency: Department of Health and Human Services

Start Date: 2008-08-29

End Date: 2013-07-15

Contract Duration: 1,781 days

Daily Burn Rate: $58.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Healthcare

Official Description: 2010-2011 NSDUH.

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 $104.8 million to RESEARCH TRIANGLE INSTITUTE for work described as: 2010-2011 NSDUH. Key points: 1. Contract value of $104.8M over nearly 5 years suggests substantial investment in research services. 2. Full and open competition indicates a potentially competitive bidding process for these services. 3. The contract's Cost Plus Award Fee (CPA) structure incentivizes performance but requires careful oversight. 4. The primary contractor, Research Triangle Institute (RTI), has a significant track record in government contracting. 5. The contract's duration of 1781 days (approx. 4.8 years) points to a long-term research need. 6. The North Carolina location of the contractor may have implications for local economic impact. 7. The NAICS code 541990 suggests a broad scope of 'All Other Professional, Scientific, and Technical Services'.

Value Assessment

Rating: fair

The contract value of $104.8M over nearly five years for 'All Other Professional, Scientific, and Technical Services' is substantial. Benchmarking this against similar large-scale research and data collection contracts would be necessary for a precise value-for-money assessment. The Cost Plus Award Fee (CPA) structure, while common for research, can lead to costs exceeding initial estimates if not managed rigorously. Without specific performance metrics and award fee payouts, it's difficult to definitively assess if the final cost represents excellent value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' suggesting that all responsible sources were permitted to submit a bid. This typically leads to a more competitive environment, potentially driving down prices and improving the quality of services offered. The number of bidders is not specified, but the open competition is a positive indicator for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a marketplace where contractors vie for the best price and performance, potentially leading to more efficient use of public funds.

Public Impact

The primary beneficiaries are likely the Substance Abuse and Mental Health Services Administration (SAMHSA) and the Department of Health and Human Services (HHS), who will receive critical research data and analysis. The services delivered are broadly categorized under professional, scientific, and technical services, likely involving data collection, analysis, and reporting related to substance abuse and mental health. The geographic impact is primarily national, given the nature of federal health research, though the contractor is based in North Carolina. Workforce implications include employment opportunities at Research Triangle Institute and potentially its subcontractors, particularly for researchers, data collectors, and analysts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Award Fee (CPA) structure requires diligent oversight to ensure costs remain reasonable and that award fees are tied to demonstrable performance improvements.
The broad 'All Other Professional, Scientific, and Technical Services' category could mask specific cost drivers or performance challenges if not clearly defined within the contract's statement of work.
Lack of specific details on the number of bidders in the 'full and open competition' makes it harder to assess the true level of market engagement.

Positive Signals

Awarding under 'Full and Open Competition' suggests a robust process aimed at securing competitive pricing and quality.
The contractor, Research Triangle Institute (RTI), is a well-established research organization with experience in federal contracts, implying a degree of reliability.
The contract's long duration (nearly 5 years) indicates a sustained need for the services, suggesting the program is considered important by the agency.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically related to health research and data analysis. This sector is characterized by a mix of large, established research institutions (like RTI) and smaller specialized firms. Government spending in this area is crucial for informing policy and public health initiatives. Comparable spending benchmarks would involve looking at other large federal contracts for similar research services, particularly those managed by HHS or other health-focused agencies.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a large contract awarded through full and open competition, the primary contractor, RTI, would be responsible for any subcontracting efforts. Analysis of subcontracting plans and actual awards to small businesses would be necessary to determine the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services (HHS) and its contracting officers. The Cost Plus Award Fee (CPA) structure necessitates close monitoring of costs and performance to ensure award fees are justified. Transparency would depend on the agency's public disclosure practices regarding contract performance reports and financial expenditures. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

National Survey on Drug Use and Health (NSDUH)
Substance Abuse Treatment Services Block Grant
Mental Health Services Block Grant
HHS Research and Development Contracts
Federal Data Collection Services

Risk Flags

Cost Overrun Risk (CPA Structure)
Performance Measurement Ambiguity
Scope Creep Potential (Broad NAICS Code)

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $104.8 million to RESEARCH TRIANGLE INSTITUTE. 2010-2011 NSDUH.

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 $104.8 million.

What is the period of performance?

Start: 2008-08-29. End: 2013-07-15.

What is the historical spending pattern for Research Triangle Institute (RTI) with the federal government, particularly within HHS?

Research Triangle Institute (RTI) has a substantial history of federal contracting. While specific figures require a deep dive into federal procurement databases like FPDS, RTI is known to be a significant recipient of federal funds, particularly for research and data collection services across various agencies, including HHS. Their awards often span large, multi-year contracts similar to the one detailed here. Analyzing their past performance, contract types (e.g., cost-reimbursement, fixed-price), and the agencies they've served would provide context on their track record and the government's reliance on their expertise for large-scale research initiatives.

How does the $104.8M contract value compare to similar large-scale health research and data collection contracts awarded by HHS?

The $104.8M value over approximately 4.8 years places this contract in the upper tier of federal research service awards. To benchmark effectively, one would compare it to other contracts for national surveys, epidemiological studies, or large data analysis projects managed by agencies like SAMHSA, CDC, or NIH. Factors such as the scope of work (e.g., survey methodology, data sources, analytical depth), contract duration, and competition level are critical. Without direct comparisons, it appears to be a significant investment, suggesting the scope and importance of the research being undertaken are substantial.

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

The primary risks with a CPA contract of this size ($104.8M) revolve around cost control and performance verification. The 'cost plus' element means the contractor is reimbursed for allowable costs, plus a fee that can be adjusted based on performance. Risks include potential cost overruns if the government's oversight of allowable costs is insufficient, and the possibility of the award fee being paid for performance that doesn't fully justify the incentive. Ensuring the criteria for the award fee are objective, measurable, and rigorously applied is crucial. Contractor performance monitoring must be robust to mitigate the risk of paying for suboptimal outcomes.

What specific research or services does the NAICS code 541990 ('All Other Professional, Scientific, and Technical Services') typically encompass in the context of HHS contracts?

The NAICS code 541990 is a broad category used when the specific nature of the professional, scientific, or technical services doesn't fit into more specialized categories. For HHS, this could encompass a wide range of activities, including but not limited to: survey design and administration, data collection (surveys, interviews, focus groups), statistical analysis, program evaluation, health policy research, technical assistance, and specialized scientific consulting. Given the context of SAMHSA, it likely relates to research and data collection concerning substance abuse and mental health trends, program effectiveness, or treatment outcomes, requiring expertise beyond standard scientific or engineering services.

What is the typical duration and funding profile for large federal research contracts like this one?

Large federal research contracts, especially those involving national data collection and analysis like this one appears to be, often have durations ranging from 3 to 5 years, with options for extensions. The funding profile is typically spread across the contract period, often allocated annually based on the government's fiscal year appropriations and the contractor's progress. Contracts like this $104.8M award over 1781 days (approx. 4.8 years) are common for long-term research initiatives that require sustained effort and data gathering. The funding is usually performance-based, especially under structures like CPA, where payments are tied to milestones and deliverables.

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 RD, RESEARCH TRIANGLE PARK, NC, 04

Business Categories: Category Business, Corporate Entity Tax Exempt, Federally Funded Research and Development Corp, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $108,287,245

Exercised Options: $108,287,245

Current Obligation: $104,766,132

Contract Characteristics

Cost or Pricing Data: NO

Timeline