HHS awards $25M contract for public health infrastructure support to Kaiva Strategies, LLC

Contract Overview

Contract Amount: $24,991,703 ($25.0M)

Contractor: Kaiva Strategies, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2023-08-02

End Date: 2026-08-02

Contract Duration: 1,096 days

Daily Burn Rate: $22.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: NCSTLTPHIW PUBLIC HEALTH INFRASTRUCTURE SUPPORT

Place of Performance

Location: IVINS, WASHINGTON County, UTAH, 84738

State: Utah Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $25.0 million to KAIVA STRATEGIES, LLC for work described as: NCSTLTPHIW PUBLIC HEALTH INFRASTRUCTURE SUPPORT Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. The contract duration of 1096 days suggests a need for sustained support. 3. Administrative Management and General Management Consulting Services are broad, requiring clear performance metrics. 4. The contract's value of $24.99M warrants close monitoring for efficiency. 5. Geographic location of Utah (ST: UT, SN: UTAH) may indicate specific regional needs or contractor presence. 6. The use of Time and Materials pricing can lead to cost overruns if not managed tightly.

Value Assessment

Rating: fair

Benchmarking the value of this $24.99M contract is challenging without specific deliverables and performance data. However, the sole-source award and Time and Materials pricing structure present inherent risks to achieving optimal value for money. The contract's duration of nearly three years suggests a significant scope of work, and its success will depend heavily on robust oversight to ensure efficient use of funds and prevent cost creep. Without comparable sole-source contracts for similar public health infrastructure support, a direct price comparison is not feasible.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when circumstances prevent a competitive process. The lack of competition means that pricing was not subjected to market forces, potentially leading to higher costs for the government compared to a fully competed contract. The rationale for this sole-source award would need to be thoroughly documented to ensure it aligns with federal procurement regulations.

Taxpayer Impact: Taxpayers may not benefit from the most competitive pricing due to the absence of a bidding process. This could result in a higher overall expenditure for the services rendered.

Public Impact

The primary beneficiaries are likely the Centers for Disease Control and Prevention (CDC) and potentially other public health entities within the Department of Health and Human Services (HHS). The contract aims to provide support for public health infrastructure, which could encompass a wide range of services from data management to strategic planning. The geographic impact is noted as Utah, suggesting the services may be focused on supporting public health initiatives within that state or leveraging resources located there. Workforce implications could include the engagement of consultants and subject matter experts to bolster the government's capacity in public health infrastructure management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Time and Materials (T&M) contract type can lead to cost uncertainty and potential overruns without strict oversight.
Broad scope of 'Administrative Management and General Management Consulting Services' requires clear definition of deliverables and performance metrics to ensure accountability.
Contract duration of nearly three years necessitates sustained monitoring to ensure continued alignment with evolving public health needs.

Positive Signals

The award to a single contractor may allow for deep specialization and continuity of service.
The contract is for a defined period, providing a clear timeframe for service delivery.
The specific NAICS code (541611) indicates a focus on management consulting services, suggesting specialized expertise is being sought.

Sector Analysis

The contract falls within the Administrative Management and General Management Consulting Services sector (NAICS 541611). This is a broad category encompassing strategic planning, organizational assessment, and operational improvement services. The federal government is a significant consumer of these services, particularly within agencies like HHS that manage complex public health programs. Comparable spending in this sector can vary widely based on the specific services required, but large-scale, multi-year contracts like this one represent substantial investments in specialized expertise to support critical government functions.

Small Business Impact

There is no indication that this contract includes a small business set-aside. The contractor, Kaiva Strategies, LLC, is listed as the awardee. Further investigation would be needed to determine if Kaiva Strategies, LLC qualifies as a small business. If not, the implications for the small business ecosystem are neutral unless subcontracting opportunities are mandated or pursued.

Oversight & Accountability

Oversight for this contract will primarily reside with the contracting officer and the program office within the Centers for Disease Control and Prevention (CDC). Given the sole-source nature and Time and Materials pricing, robust oversight is crucial. This includes regular reviews of invoices, performance monitoring against defined milestones, and ensuring that the contractor's efforts remain within the scope of work. Transparency would be enhanced by public reporting of performance metrics and any modifications to the contract. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Public Health Infrastructure Grants
Management and Consulting Services
Federal Health IT Support
CDC Program Management Support

Risk Flags

Sole-source award may limit cost savings.
Time and Materials contract type poses cost control risks.
Lack of defined deliverables in summary data requires careful monitoring.
Contractor's specific experience with sole-source public health infrastructure support needs verification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $25.0 million to KAIVA STRATEGIES, LLC. NCSTLTPHIW PUBLIC HEALTH INFRASTRUCTURE SUPPORT

Who is the contractor on this award?

The obligated recipient is KAIVA STRATEGIES, 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 $25.0 million.

What is the period of performance?

Start: 2023-08-02. End: 2026-08-02.

What specific public health infrastructure challenges is this contract intended to address?

The provided data indicates the contract is for 'PUBLIC HEALTH INFRASTRUCTURE SUPPORT' under NAICS code 541611 (Administrative Management and General Management Consulting Services). However, the specific challenges are not detailed. Typically, such contracts aim to address needs like modernizing data systems, improving disease surveillance capabilities, enhancing emergency preparedness, optimizing program management, or developing strategic plans for public health initiatives. The Centers for Disease Control and Prevention (CDC) often seeks external expertise to augment internal capacity in these complex areas, especially when facing evolving public health threats or aiming to improve the efficiency and effectiveness of existing infrastructure.

What is the typical cost range for similar sole-source management consulting contracts awarded by HHS or CDC?

Determining a 'typical' cost range for sole-source management consulting contracts is difficult due to the highly variable nature of scope, duration, and specialized expertise required. Sole-source awards, by definition, bypass the competitive benchmarking process that establishes market rates. However, contracts of this magnitude ($24.99M over nearly three years) for administrative and management consulting within federal health agencies suggest a significant level of support. Factors influencing cost include the seniority of consultants, the complexity of the problems addressed, and the urgency of the need. Without specific details on deliverables and performance standards, direct cost comparisons to other sole-source awards are speculative, but the amount indicates a substantial investment in strategic support.

What are the key performance indicators (KPIs) that will be used to measure the success of this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. For a contract focused on 'PUBLIC HEALTH INFRASTRUCTURE SUPPORT' using 'Administrative Management and General Management Consulting Services,' effective KPIs would likely relate to the successful implementation of new systems or processes, improvements in data quality or accessibility, enhanced strategic planning outputs, or measurable gains in operational efficiency within the supported public health infrastructure. Given the Time and Materials (T&M) pricing structure, KPIs are particularly critical to ensure that the contractor's efforts are productive and aligned with the government's objectives, preventing scope creep and ensuring value for taxpayer dollars.

What is the track record of Kaiva Strategies, LLC in performing similar federal contracts, particularly sole-source awards?

Information regarding the specific track record of Kaiva Strategies, LLC in performing similar federal contracts, especially sole-source awards, is not available in the provided data. A comprehensive assessment would require reviewing the Federal Procurement Data System (FPDS) or other government contracting databases for past performance history, including contract values, agencies served, types of services rendered, and any performance evaluations. Understanding their experience with sole-source procurements and their success in delivering public health infrastructure support would be crucial for evaluating the risk associated with this award.

How does the Time and Materials (T&M) pricing structure impact the government's ability to control costs on this contract?

The Time and Materials (T&M) pricing structure can present challenges for cost control. Under T&M, the government pays the contractor for the actual labor hours expended and the cost of materials used, plus a fixed fee or fixed hourly rate. While this can be flexible for undefined scopes, it places a significant burden on the government to closely monitor labor hours and material costs to prevent overruns. Effective cost control requires robust oversight, detailed timesheets, justification for hours worked, and clear definitions of what constitutes 'materials.' Without stringent management, T&M contracts can become more expensive than fixed-price contracts, especially over extended durations like this 1096-day award.

What is the historical spending pattern for public health infrastructure support by the CDC or HHS?

Historical spending patterns for public health infrastructure support by the CDC or HHS are not detailed in the provided data. However, federal agencies like the CDC consistently invest significant resources in maintaining and improving public health infrastructure, especially in areas like disease surveillance, laboratory capacity, workforce development, and data modernization. Spending in this area often fluctuates based on emerging health threats (e.g., pandemics), legislative appropriations, and administration priorities. Analyzing past budgets and contract awards for similar services would provide context for the $24.99M awarded to Kaiva Strategies, LLC, helping to determine if it aligns with historical investment levels or represents a significant shift.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 75D301-23-R-72617

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 6060 W 3650 N, IVINS, UT, 84738

Business Categories: Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,996,703

Exercised Options: $24,991,703

Current Obligation: $24,991,703

Actual Outlays: $20,036,040

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline