HHS Awards $62.7M Task Order to Loyal Source for Temporary Staffing Services

Contract Overview

Contract Amount: $62,674,168 ($62.7M)

Contractor: Loyal Source Government Services LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2020-09-17

End Date: 2022-03-20

Contract Duration: 549 days

Daily Burn Rate: $114.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: DGMQ ENTRY SCREENING TASK ORDER

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32826

State: Florida Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $62.7 million to LOYAL SOURCE GOVERNMENT SERVICES LLC for work described as: DGMQ ENTRY SCREENING TASK ORDER Key points: 1. Significant contract value of $62.7 million for temporary staffing. 2. Loyal Source Government Services LLC is the sole awardee. 3. The contract falls under the Temporary Help Services NAICS code. 4. Awarded via a BPA Call under Full and Open Competition. 5. Duration of 549 days with a Time and Materials pricing structure.

Value Assessment

Rating: fair

The Time and Materials pricing structure can lead to cost overruns if not closely monitored. The awarded amount of $62.7 million for 549 days suggests a daily rate of approximately $114,161, which needs further benchmarking against similar contracts for temporary staffing services.

Cost Per Unit: $114,161 per day (estimated)

Competition Analysis

Competition Level: full-and-open

The contract was awarded under Full and Open Competition via a BPA Call, indicating a competitive process. However, the specific details of the price discovery mechanism within the BPA Call are not provided, making it difficult to fully assess the effectiveness of competition in achieving optimal pricing.

Taxpayer Impact: Taxpayer funds are utilized for temporary staffing, with the ultimate impact depending on the efficiency and necessity of the services provided and the competitiveness of the final pricing.

Public Impact

Ensures continued operational capacity for the CDC by providing necessary temporary personnel. Supports federal agencies in meeting staffing needs without long-term commitments. Potential for increased costs if service hours or rates exceed initial projections. The use of a BPA Call suggests an existing framework for streamlined procurement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can be prone to cost escalation.
Lack of detailed pricing breakdown makes benchmarking difficult.
Small business participation not specified.

Positive Signals

Awarded under Full and Open Competition.
Utilizes an existing BPA Call for efficient procurement.
Addresses critical staffing needs for a key federal agency.

Sector Analysis

The contract falls under Temporary Help Services (NAICS 561320), a sector that supports government operations by providing flexible workforce solutions. Spending in this sector can vary significantly based on agency needs and economic conditions. Benchmarks for similar contracts are essential for evaluating cost-effectiveness.

Small Business Impact

The data indicates that small business participation was not a factor in this specific award (ss: false, sb: false). Further analysis would be needed to determine if small businesses were excluded from the competition or if the BPA itself did not prioritize small business set-asides.

Oversight & Accountability

The award was made via a BPA Call, suggesting that the initial BPA underwent some level of review. However, the specific oversight mechanisms for task orders issued under the BPA, particularly regarding performance and cost control, are not detailed in this data.

Related Government Programs

Temporary Help Services
Department of Health and Human Services Contracting
Centers for Disease Control and Prevention Programs

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Limited transparency on specific labor rates and profit margins.
Lack of detail on small business participation.
The 'entry screening' service description is vague.
High daily estimated cost requires further validation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $62.7 million to LOYAL SOURCE GOVERNMENT SERVICES LLC. DGMQ ENTRY SCREENING TASK ORDER

Who is the contractor on this award?

The obligated recipient is LOYAL SOURCE GOVERNMENT SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $62.7 million.

What is the period of performance?

Start: 2020-09-17. End: 2022-03-20.

What specific services are covered under this task order, and how do they align with the CDC's critical mission requirements?

The task order is for 'DGMQ ENTRY SCREENING TASK ORDER' under 'Temporary Help Services'. While the exact nature of 'entry screening' isn't detailed, it likely supports the CDC's public health mission by providing personnel for administrative, operational, or potentially specialized screening functions. The duration and cost suggest a significant operational support role.

How effectively did the 'Full and Open Competition' process ensure competitive pricing for this Time and Materials contract?

While 'Full and Open Competition' indicates a broad solicitation, the Time and Materials (T&M) pricing structure inherently carries risk for cost control. The effectiveness of the competition in securing favorable rates depends on the specific labor categories, skill levels, and hourly rates negotiated within the BPA call and subsequently within this task order. Without detailed rate information, it's difficult to definitively assess price discovery.

What mechanisms are in place to monitor contractor performance and control costs under this T&M task order to ensure value for taxpayer money?

Monitoring contractor performance and controlling costs on T&M contracts typically involves robust government oversight, including detailed review of timesheets, verification of work performed, and adherence to pre-negotiated labor rates. The effectiveness of these mechanisms relies on the contracting officer's representative (COR) and the agency's internal controls to prevent scope creep and ensure efficient service delivery.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Employment Services › Temporary Help Services

Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 3680 AVALON PARK EAST BLVD., SUITE 310, ORLANDO, FL, 32828

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $74,569,912

Exercised Options: $74,569,912

Current Obligation: $62,674,168

Actual Outlays: $62,674,168

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75D30120A09083

IDV Type: BPA

Timeline