HHS awards $7.9M contract to Manhattan Strategy Group for grantee support, with a 2-year term

Contract Overview

Contract Amount: $7,971,451 ($8.0M)

Contractor: THE Manhattan Strategy Group LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2024-09-30

End Date: 2026-09-29

Contract Duration: 729 days

Daily Burn Rate: $10.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE PURPOSE OF THIS SERVICES COMPONENT IS TO PROVIDE TARGETED SUPPORT TO HMRF AND TTCW GRANTEES, WITH AN AIM OF IMPROVING GRANTEE PERFORMANCE. THE CONTRACT WILL ALSO PROVIDE TARGETED SUPPORT TO THE FED INNOVATION DIVISION PROGRAM OFFICE, WITH THE AIM

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20201

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $8.0 million to THE MANHATTAN STRATEGY GROUP LLC for work described as: THE PURPOSE OF THIS SERVICES COMPONENT IS TO PROVIDE TARGETED SUPPORT TO HMRF AND TTCW GRANTEES, WITH AN AIM OF IMPROVING GRANTEE PERFORMANCE. THE CONTRACT WILL ALSO PROVIDE TARGETED SUPPORT TO THE FED INNOVATION DIVISION PROGRAM OFFICE, WITH THE AIM Key points: 1. Contract aims to enhance performance for HMRF and TTCW grantees, and support the Fed Innovation Division. 2. The firm fixed-price contract structure provides cost certainty for the government. 3. A 729-day duration suggests a focused, project-based engagement. 4. The contract is a delivery order, indicating it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 5. The North American Industry Classification System (NAICS) code 541519 suggests a broad range of computer-related services. 6. The contract is awarded to a single entity, Manhattan Strategy Group LLC.

Value Assessment

Rating: fair

The contract value of $7.9 million over two years averages to approximately $3.95 million annually. Without specific benchmarks for 'targeted support' to HMRF and TTCW grantees, a direct value-for-money assessment is challenging. However, the firm fixed-price nature suggests a defined scope and cost control. Further analysis would require understanding the specific deliverables and comparing them to similar support contracts within HHS or other agencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 4 bids suggests a moderate level of competition for this specific delivery order. While full and open competition is generally preferred, the number of bidders can influence price discovery.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple vendors to offer competitive pricing, potentially leading to cost savings for the government.

Public Impact

Grantees of the HMRF (Healthy Marriage and Responsible Fatherhood) and TTCW (Transitional Living Centers for Women) programs are direct beneficiaries, receiving enhanced support to improve their performance. The Fed Innovation Division program office will receive targeted support, potentially leading to more effective program management and innovation. The primary geographic impact is within the District of Columbia, where the contract is registered. The contract is likely to impact a specialized workforce within the consulting and IT services sector, particularly those with expertise in government program support and innovation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The specific nature of 'targeted support' is not detailed, making it difficult to assess if the scope fully aligns with grantee needs.
The contract is a delivery order, implying it's part of a larger IDIQ, and the overall value and performance of the parent contract are not detailed here.
Benchmarking the value for 'targeted support' services is difficult without more granular data on deliverables and outcomes.

Positive Signals

Awarded under full and open competition, suggesting a fair and accessible process.
The firm fixed-price contract type provides cost certainty for the government.
The contract has a defined performance period, allowing for focused execution and evaluation.

Sector Analysis

This contract falls within the broader professional, scientific, and technical services sector, specifically under IT and computer-related services. The market for government support and consulting services is substantial, with agencies frequently outsourcing specialized functions to enhance program delivery and innovation. Comparable spending benchmarks would typically involve analyzing other contracts for program management support, technical assistance, and innovation consulting within federal agencies, particularly within HHS.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited for this specific award, though the prime contractor may engage small businesses in their overall operations.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services, specifically the Office of the Assistant Secretary for Financial Resources. As a delivery order under a larger IDIQ (implied), oversight may also be tied to the parent contract's structure. Transparency is facilitated by public contract databases, but detailed performance metrics and specific oversight activities are not publicly detailed in this summary.

Related Government Programs

HHS Grant Management Support
Federal Program Innovation Support
IT Consulting Services for Government
Technical Assistance Programs

Risk Flags

Scope Definition Risk
Contractor Performance Risk
Value for Money Assessment Difficulty
Limited Competition Data

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $8.0 million to THE MANHATTAN STRATEGY GROUP LLC. THE PURPOSE OF THIS SERVICES COMPONENT IS TO PROVIDE TARGETED SUPPORT TO HMRF AND TTCW GRANTEES, WITH AN AIM OF IMPROVING GRANTEE PERFORMANCE. THE CONTRACT WILL ALSO PROVIDE TARGETED SUPPORT TO THE FED INNOVATION DIVISION PROGRAM OFFICE, WITH THE AIM

Who is the contractor on this award?

The obligated recipient is THE MANHATTAN STRATEGY GROUP LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $8.0 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-09-29.

What is the track record of Manhattan Strategy Group LLC with federal contracts, particularly within HHS?

Manhattan Strategy Group LLC has a history of federal contracting, though specific details on their performance and past contracts within HHS require deeper investigation. A review of federal procurement databases would reveal the number and types of contracts they have previously held, their performance ratings (if available), and the agencies they have served. Understanding their past performance, especially on similar program support or IT-related contracts, is crucial for assessing their capability to deliver on this $7.9 million award. Past performance is a key factor in evaluating contractor reliability and the likelihood of successful contract execution.

How does the $7.9 million value compare to similar federal contracts for grantee support and innovation consulting?

Benchmarking the $7.9 million value requires identifying comparable federal contracts that provide 'targeted support' to grantees and assist innovation divisions. This would involve searching for contracts with similar NAICS codes (e.g., 541519, 541611) and service descriptions within HHS and other agencies. Factors like contract duration (729 days), contract type (firm fixed-price), and the specific deliverables will influence comparisons. Without access to detailed contract histories and performance data for similar services, it's difficult to definitively state if this represents excellent, fair, or questionable value. However, the annual average of approximately $3.95 million suggests a significant investment in specialized support.

What are the primary risks associated with this contract, and how are they being mitigated?

Potential risks include scope creep if the 'targeted support' is not clearly defined, potential underperformance by the contractor, or challenges in achieving the desired improvements in grantee performance. Mitigation strategies likely involve robust contract management by HHS, clear performance metrics, regular progress reviews, and the firm fixed-price structure which incentivizes the contractor to manage costs. The limited number of bids (4) could also pose a risk if it indicates a lack of market interest or capacity for such services, potentially impacting future competition or pricing. The success of the Fed Innovation Division program office's objectives also presents a risk if the support provided is not effective.

How effective is the 'full and open competition' process likely to be in ensuring optimal value for this contract?

The 'full and open competition' process is designed to maximize value by allowing all eligible sources to compete. With 4 bids received, there was a degree of competition, which generally helps in achieving better pricing and service offerings compared to sole-source or limited competition scenarios. However, the effectiveness also depends on the clarity of the solicitation, the evaluation criteria, and the overall market capacity for these specialized services. If the 4 bidders represented a robust and capable pool, the competition likely contributed positively to value. If the pool was limited, the value achieved might be less optimal than in a more crowded field.

What are the historical spending patterns for similar grantee support services within HHS?

Analyzing historical spending patterns for similar grantee support services within HHS would involve examining past contracts awarded for program management, technical assistance, and capacity building across various HHS operating divisions. This would include looking at contract values, durations, types of services rendered, and the contractors involved. Understanding these patterns can reveal trends in outsourcing these functions, average contract costs, and the typical competitive landscape. Such analysis helps in contextualizing the current $7.9 million award and assessing whether it aligns with historical investment levels or represents a significant shift in spending.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 420 LEXINGTON AVE RM 300, NEW YORK, NY, 10017

Business Categories: Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,557,149

Exercised Options: $7,971,451

Current Obligation: $7,971,451

Actual Outlays: $4,235,169

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA18D00KV

IDV Type: FSS

Timeline