HHS awarded $24.6M for administrative management consulting, with 2 bidders competing

Contract Overview

Contract Amount: $24,651,099 ($24.7M)

Contractor: Mdrc

Awarding Agency: Department of Health and Human Services

Start Date: 2001-09-28

End Date: 2012-06-26

Contract Duration: 3,924 days

Daily Burn Rate: $6.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Sector: Other

Official Description: OTHER PROFESSIONAL SERVICES

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10016, UNITED STATES OF AMERICA

State: New York Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $24.7 million to MDRC for work described as: OTHER PROFESSIONAL SERVICES Key points: 1. The contract provided essential administrative management and general management consulting services. 2. A full and open competition was utilized, indicating a broad search for qualified contractors. 3. The contract duration was substantial, spanning over 10 years. 4. The award was made to MDRC, a known entity in the public sector consulting space. 5. The services provided fall under a broad professional services category, requiring careful benchmarking. 6. The relatively low number of bidders (2) warrants a closer look at competition effectiveness.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables and performance metrics. The total award of $24.6 million over nearly 11 years averages to approximately $2.2 million annually. This figure needs to be compared against the scope and complexity of the administrative management and general management consulting services provided. Given the broad nature of the services, it's difficult to assess if this represents excellent value without more granular data on the specific tasks performed and their impact on HHS operations. The fact that it was a full and open competition suggests an attempt to secure competitive pricing, but the final price relative to outcomes remains unclear.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The data indicates two bidders participated in this competition. While two bidders represent some level of competition, it is on the lower end for a contract of this duration and value. A higher number of bidders typically suggests a more robust market and potentially better price discovery for the government. The limited number of bidders could indicate specific expertise required or a less competitive market for these particular services.

Taxpayer Impact: A full and open competition, even with two bidders, is generally favorable for taxpayers as it allows for a wider pool of potential providers to vie for the contract, theoretically driving down costs. However, with only two offers, the government may not have achieved the most competitive pricing possible.

Public Impact

The primary beneficiaries of this contract are the various offices within the Department of Health and Human Services (HHS) that received administrative management and general management consulting services. These services likely supported improvements in operational efficiency, strategic planning, and overall management effectiveness within the department. The geographic impact is primarily within New York, where the contractor is located, but the services provided likely had a national impact on HHS operations. The contract supported the workforce by engaging consulting professionals to deliver specialized expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) may have resulted in higher costs than a more robustly competed contract.
The long contract duration (over 10 years) could lead to potential inefficiencies or a lack of agility in adapting to evolving needs.
The broad nature of 'Administrative Management and General Management Consulting Services' makes it difficult to precisely measure performance and value.
Lack of specific performance metrics or outcome data makes it hard to assess the true impact of the consulting services.

Positive Signals

Awarded through full and open competition, ensuring a wide search for qualified contractors.
The contractor, MDRC, is likely experienced in providing these types of services.
The contract supported critical administrative functions within a major federal agency (HHS).
The long duration suggests a sustained need for these services and a potentially stable relationship.

Sector Analysis

The contract falls under the 'Other Professional Services' category, specifically 'Administrative Management and General Management Consulting Services' (NAICS 541611). This is a broad sector encompassing a wide range of advisory and assistance services to government agencies. The market for these services is large and diverse, with numerous firms ranging from large, established consultancies to smaller, specialized boutique firms. Comparable spending benchmarks would depend heavily on the specific nature of the consulting provided, such as strategic planning, organizational development, or process improvement. The $24.6 million awarded over more than a decade suggests a significant, long-term engagement for specialized expertise within HHS.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside requirement. However, as a large contract, it's possible that the prime contractor, MDRC, may have engaged small businesses as subcontractors, though this information is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Health and Human Services responsible for the administrative management and general management consulting services. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is generally facilitated through contract award databases like FPDS, where basic information is publicly available. Specific Inspector General jurisdiction would depend on the nature of any potential fraud, waste, or abuse identified within the contract's execution.

Related Government Programs

Management and Financial Consulting, Acquisition and Commercialization Services
Professional, Scientific, and Technical Services
Management Consulting Services
Government Administration

Risk Flags

Limited competition observed (2 bidders).
Long contract duration (over 10 years) may indicate potential for reduced agility or evolving needs.
Broad service category ('Administrative Management and General Management Consulting Services') makes specific value assessment difficult without detailed SOW.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $24.7 million to MDRC. OTHER PROFESSIONAL SERVICES

Who is the contractor on this award?

The obligated recipient is MDRC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $24.7 million.

What is the period of performance?

Start: 2001-09-28. End: 2012-06-26.

What was the specific scope of work for MDRC under this contract?

The provided data classifies the contract under NAICS code 541611, 'Administrative Management and General Management Consulting Services.' This broad category suggests that MDRC likely provided a range of services aimed at improving the efficiency, effectiveness, and strategic direction of HHS operations. Examples could include organizational analysis, process improvement initiatives, strategic planning support, policy development assistance, and general management advisory. Without access to the contract's statement of work or task orders, the precise deliverables and specific areas of focus remain undefined. The contract's long duration implies a sustained need for these consulting functions across various HHS components.

How does the average annual cost of $2.2 million compare to similar HHS consulting contracts?

Comparing the average annual cost of approximately $2.2 million requires detailed benchmarking against similar contracts within HHS or other large federal agencies for administrative and management consulting. Factors such as the specific expertise required, the complexity of the HHS environment, and the duration of the engagement are critical. A contract of this size and duration could be considered moderate to large depending on the specific services rendered. Without access to detailed performance metrics, deliverables, and the specific outcomes achieved, it is difficult to definitively state whether this represents a competitive or excessive cost. A comprehensive analysis would involve comparing hourly rates, team composition, and project outcomes against industry standards and government benchmarks for similar scope engagements.

What are the key performance indicators (KPIs) used to measure MDRC's success under this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or performance metrics for this contract. Typically, for administrative management and general management consulting services, KPIs would be defined within the contract's Statement of Work (SOW) and could include metrics related to efficiency improvements, cost savings achieved, successful implementation of strategic plans, enhanced organizational effectiveness, or timely delivery of advisory reports and recommendations. The absence of this information in the summary data makes it impossible to objectively assess the contractor's performance and the value derived from the services provided. Further review of the contract documentation would be necessary to identify these measures.

What is MDRC's track record with federal contracts, particularly within HHS?

MDRC (Manpower Demonstration Research Corporation) is a research organization focused on social policy and program effectiveness, often working with government agencies. While the data indicates MDRC was awarded this contract, it doesn't detail their broader federal contracting history. A thorough assessment of their track record would involve examining their past performance on similar contracts, including client satisfaction, adherence to timelines and budgets, and the quality of deliverables. Given their focus on research and evaluation, their experience likely aligns with providing analytical and advisory services, but specific details on their performance across numerous federal contracts would require a deeper dive into federal procurement databases and performance reviews.

What are the potential risks associated with a long-term consulting contract like this?

Long-term consulting contracts, such as this one spanning over 10 years, carry several potential risks. One primary risk is 'scope creep,' where the project's objectives expand beyond the original agreement without corresponding adjustments in cost or timeline. Another risk is vendor lock-in, where the agency becomes overly reliant on the contractor, potentially stifling internal expertise development or hindering the adoption of new approaches. Furthermore, the relevance of the consulting advice may diminish over time if the contractor does not adapt to evolving agency needs and the broader external environment. Finally, there's a risk of complacency or reduced innovation from the contractor if performance incentives are not robustly structured and monitored throughout the contract's life.

How does the 'Administrative Management and General Management Consulting Services' category typically perform in terms of value for money?

The value for money in 'Administrative Management and General Management Consulting Services' can vary significantly. When executed effectively, these services can lead to substantial improvements in operational efficiency, cost reductions, better strategic alignment, and enhanced organizational performance. However, the intangible nature of consulting services and the difficulty in quantifying direct impact can make 'value for money' assessments challenging. Success is highly dependent on the clarity of objectives, the quality of the consultant's expertise, the agency's engagement and willingness to implement recommendations, and robust performance monitoring. Without clear metrics and outcomes, it's difficult to generalize performance across the entire category.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Evaluated Preference: NONE

Contractor Details

Address: 16 E 34TH ST, NEW YORK, NY, 10016

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

Financial Breakdown

Contract Ceiling: $41,361,249

Exercised Options: $26,024,170

Current Obligation: $24,651,099

Timeline