HHS awards $64M for Other Management Support Services to Mathematica Inc. over 11 years
Contract Overview
Contract Amount: $64,258,731 ($64.3M)
Contractor: Mathematica Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2002-09-30
End Date: 2013-12-31
Contract Duration: 4,110 days
Daily Burn Rate: $15.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: OTHER MANAGEMENT SUPPORT SERVICES
Place of Performance
Location: PRINCETON, MERCER County, NEW JERSEY, 08543, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Health and Human Services obligated $64.3 million to MATHEMATICA INC. for work described as: OTHER MANAGEMENT SUPPORT SERVICES Key points: 1. Contract awarded to Mathematica Inc. for management support services. 2. Significant contract value of $64.26 million over an 11-year period. 3. Full and open competition was utilized for this award. 4. The contract falls under the 'Other Management Support Services' category.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The total award value is substantial, but the duration spans over a decade, making direct price comparisons difficult without more granular data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the long duration and cost-plus nature may still present challenges in ensuring optimal value for taxpayer money.
Taxpayer Impact: The long-term nature and cost-plus structure of this contract warrant close monitoring to ensure efficient use of taxpayer funds.
Public Impact
Taxpayers are funding management support services for the Department of Health and Human Services. The extended duration of the contract raises questions about long-term necessity and potential for evolving needs. The use of full and open competition is a positive indicator for fair pricing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Long contract duration (11 years)
- No small business participation indicated
Positive Signals
- Full and open competition utilized
- Awarded to a single entity, potentially indicating specialized expertise
Sector Analysis
This contract falls under 'Other Management Support Services,' a broad category. Benchmarking requires specific details on the services provided, but general administrative and management support contracts can vary widely in cost depending on scope and duration.
Small Business Impact
The data indicates that small businesses were not involved in this contract, either as prime contractors or subcontractors. This represents a missed opportunity for small business engagement.
Oversight & Accountability
The long duration of the contract necessitates robust oversight from the Department of Health and Human Services to ensure performance standards are met and costs remain controlled. Regular reviews of the Cost Plus Fixed Fee components are crucial.
Related Government Programs
- Office Administrative Services
- Department of Health and Human Services Contracting
- Office of the Assistant Secretary for Administration Programs
Risk Flags
- Cost Plus Fixed Fee contract type can lead to uncontrolled costs.
- Long contract duration may not reflect current needs or market conditions.
- Lack of small business participation.
- Broad service category makes specific value assessment difficult.
- Potential for scope creep over the contract's extended term.
Tags
office-administrative-services, department-of-health-and-human-services, nj, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $64.3 million to MATHEMATICA INC.. OTHER MANAGEMENT SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is MATHEMATICA INC..
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 $64.3 million.
What is the period of performance?
Start: 2002-09-30. End: 2013-12-31.
What specific management support services are being provided under this contract, and how do they align with HHS's strategic objectives?
The contract is for 'Other Management Support Services,' a broad classification. To assess value, a detailed breakdown of services is needed, such as program management, administrative support, data analysis, or consulting. Understanding the specific deliverables and their contribution to HHS's mission is key to determining if the $64 million expenditure is justified and effectively supports agency goals.
Given the Cost Plus Fixed Fee structure and 11-year duration, what mechanisms are in place to mitigate potential cost overruns and ensure continued relevance of services?
The Cost Plus Fixed Fee (CPFF) structure inherently carries risk of cost escalation. Robust oversight, including detailed audits of allowable costs and strict adherence to the fixed fee, is essential. For relevance, periodic reviews and potential contract modifications should be scheduled to adapt services to evolving HHS needs and technological advancements over the 11-year period.
How does the performance of Mathematica Inc. on this contract compare to industry benchmarks for similar management support services, and what is the impact on service effectiveness?
Performance data and specific metrics are not provided. A comparison to industry benchmarks would require access to Mathematica's performance reports and data from comparable contracts. Evaluating service effectiveness involves assessing whether the provided support has demonstrably improved HHS operations, achieved stated objectives, and contributed to the agency's overall mission success.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Mathematica Inc (UEI: 154125140)
Address: 600 ALEXANDER PARK, PRINCETON, NJ, 08540
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $69,962,811
Exercised Options: $65,359,883
Current Obligation: $64,258,731
Timeline
Start Date: 2002-09-30
Current End Date: 2013-12-31
Potential End Date: 2013-12-31 00:00:00
Last Modified: 2016-04-18
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