HHS awarded $46.2M to Computer Sciences Corporation for services related to fur-bearing animal and rabbit production

Contract Overview

Contract Amount: $46,239,659 ($46.2M)

Contractor: Computer Sciences Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2002-09-15

End Date: 2007-11-30

Contract Duration: 1,902 days

Daily Burn Rate: $24.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Place of Performance

Location: ALASKA

State: Alaska Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $46.2 million to COMPUTER SCIENCES CORPORATION for work described as: Key points: 1. The contract's value of $46.2 million over approximately 5 years suggests a significant investment in the specified services. 2. Full and open competition was utilized, indicating a potentially competitive bidding process that could lead to better pricing. 3. The contract type is Cost Plus Award Fee (CPAF), which incentivizes contractor performance but can lead to higher costs if not managed carefully. 4. The duration of 1902 days (approx. 5.2 years) is substantial, requiring ongoing oversight to ensure continued value. 5. The awarding agency is the Department of Health and Human Services (HHS), specifically the Centers for Medicare and Medicaid Services (CMS). 6. The contract was awarded in Alaska, suggesting a specific geographic focus for the services.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details. However, a $46.2 million award over five years for services related to 'Fur-Bearing Animal and Rabbit Production' by CMS appears unusual given CMS's primary mission. The Cost Plus Award Fee (CPAF) structure allows for costs plus a fee that is adjusted based on performance, which can sometimes lead to costs exceeding initial estimates if performance targets are aggressively pursued or poorly defined. Without comparable contracts for similar services within HHS or other agencies, it's difficult to definitively assess if the pricing is competitive or represents good value for money.

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 bids. The presence of 2 offers indicates that there was some level of competition, though the exact number of bidders can influence price discovery. A higher number of bidders generally leads to more competitive pricing, while a lower number might suggest limited market interest or specialized requirements.

Taxpayer Impact: Taxpayers benefit from full and open competition as it is intended to drive down costs through market forces. However, the ultimate benefit depends on the effectiveness of the competition and the pricing achieved.

Public Impact

The primary beneficiaries of this contract are likely entities involved in or impacted by fur-bearing animal and rabbit production, potentially including researchers, breeders, or regulatory bodies. The services delivered are broadly categorized under 'Fur-Bearing Animal and Rabbit Production,' which could encompass a range of activities from research and development to regulatory compliance or data collection. The contract has a geographic impact in Alaska (ST: AK, SN: ALASKA), indicating that the services or their effects are concentrated in this region. Workforce implications are unclear without specific service details, but could involve specialized scientific, technical, or administrative roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The nature of the services ('Fur-Bearing Animal and Rabbit Production') seems outside the core mission of CMS, raising questions about the necessity and appropriateness of the expenditure.
The Cost Plus Award Fee (CPAF) contract type can lead to cost overruns if performance metrics are not tightly controlled.
The geographic focus on Alaska for a CMS contract warrants further investigation into the specific needs being addressed.

Positive Signals

The use of 'FULL AND OPEN COMPETITION' suggests an effort to ensure a fair and potentially cost-effective procurement process.
The contract was awarded to COMPUTER SCIENCES CORPORATION, a large and established government contractor with a history of performance.
The contract has a defined period of performance, allowing for periodic review and reassessment of needs and contractor performance.

Sector Analysis

The contract falls under the broad category of government services, but its specific focus on 'Fur-Bearing Animal and Rabbit Production' is unusual for the Centers for Medicare and Medicaid Services (CMS). Typically, CMS contracts relate to healthcare services, insurance programs, and health IT. This contract might represent a niche requirement or a specialized research initiative within HHS. Comparable spending benchmarks are difficult to establish due to the unique service description.

Small Business Impact

There is no indication that this contract included small business set-asides (SS: false, SB: false). Therefore, small businesses were likely not specifically targeted for this procurement. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in the provided data. The impact on the small business ecosystem is likely minimal unless CSC engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Centers for Medicare and Medicaid Services (CMS) within HHS. As a Cost Plus Award Fee (CPAF) contract, performance monitoring and evaluation are critical to ensure the award fee is justified and that costs remain reasonable. Transparency would depend on the public availability of contract performance reports and any associated Inspector General audits, which are not detailed here. The specific oversight mechanisms and accountability measures would be outlined in the contract's terms and conditions.

Related Government Programs

HHS Research and Development Contracts
CMS Health Services Contracts
Government Animal Welfare Programs
Federal Scientific Research Grants

Risk Flags

Unusual Service Description for Awarding Agency
Potential for Cost Overruns with CPAF Structure
Lack of Clear Public Benefit Justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $46.2 million to COMPUTER SCIENCES CORPORATION. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is COMPUTER SCIENCES CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).

What is the total obligated amount?

The obligated amount is $46.2 million.

What is the period of performance?

Start: 2002-09-15. End: 2007-11-30.

What is the specific nature of the services related to 'Fur-Bearing Animal and Rabbit Production' being procured by CMS, and why is this within CMS's purview?

The provided data does not specify the exact nature of the services. However, the description 'Fur-Bearing Animal and Rabbit Production' is highly unusual for the Centers for Medicare and Medicaid Services (CMS), whose primary mission involves administering Medicare, Medicaid, and the Health Insurance Marketplace. It is possible this contract supports a niche research initiative, a public health study related to zoonotic diseases, or perhaps an administrative function that has been miscategorized. Without further clarification from HHS or CMS, the rationale for their involvement remains unclear and warrants investigation into the contract's statement of work and justification.

How does the $46.2 million contract value compare to similar contracts for specialized production or research services within the federal government?

Direct comparison is difficult due to the unique service description ('Fur-Bearing Animal and Rabbit Production') and the awarding agency (CMS). Federal contracts for specialized research or production services can range widely in value, from hundreds of thousands to billions of dollars, depending on the scope, duration, and criticality of the work. For instance, large-scale agricultural research might command significant funding, while niche scientific studies could be much smaller. The $46.2 million over approximately five years suggests a moderately sized, long-term commitment. However, its relevance to CMS's core mission makes a direct benchmark against typical CMS contracts impossible and requires comparison against other agencies' scientific or specialized service procurements, which are not readily available in this context.

What are the key performance indicators (KPIs) and award fee criteria for this Cost Plus Award Fee (CPAF) contract, and how are they measured?

The specific Key Performance Indicators (KPIs) and award fee criteria for this contract are not detailed in the provided data. For a Cost Plus Award Fee (CPAF) contract, these elements are crucial for determining the contractor's performance and the amount of award fee earned. Typically, KPIs would be objective measures related to the successful completion of tasks, adherence to schedules, quality of deliverables, and cost control. The award fee criteria would outline how performance against these KPIs translates into a fee. Effective oversight by CMS would involve rigorous monitoring of these metrics and a fair, documented assessment process to ensure the award fee is earned based on exceptional performance, not just satisfactory completion.

What is the track record of Computer Sciences Corporation (CSC) in managing Cost Plus Award Fee (CPAF) contracts, particularly those with unusual service descriptions?

Computer Sciences Corporation (now part of DXC Technology) has a long history of performing a wide range of government contracts, including many Cost Plus Award Fee (CPAF) arrangements across various federal agencies. CSC has managed complex IT services, system integration, and support functions for the Department of Defense, NASA, and civilian agencies. While specific details on their performance with CPAF contracts related to 'Fur-Bearing Animal and Rabbit Production' are not available, their extensive experience suggests a capability to manage such contract types. However, the unusual nature of this particular service description might require specialized expertise or unique management approaches that would need to be assessed on a case-by-case basis through performance reviews and contract close-out data.

How has federal spending in the 'Fur-Bearing Animal and Rabbit Production' sector evolved over the past decade, and does this contract represent a significant shift?

Federal spending data specifically for 'Fur-Bearing Animal and Rabbit Production' is not readily available as a distinct category within standard federal budget classifications. This suggests that such spending is either very niche, integrated into broader research or agricultural programs, or potentially an anomaly. If this contract represents a new or significant investment by CMS in this area, it could indicate a shift in agency priorities or the initiation of a new research program. Without historical data for this specific service category, it's impossible to determine if this contract is part of an evolving trend or an isolated expenditure.

Industry Classification

NAICS: Agriculture, Forestry, Fishing and Hunting › Other Animal Production › Fur-Bearing Animal and Rabbit Production

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

Address: 4061 POWDER MILL RD # 600, BELTSVILLE, MD, 04

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $10,097,053

Exercised Options: $10,091,711

Current Obligation: $46,239,659

Timeline