HHS awards $16.2M for administrative support services to Summome Native Ventures LLC

Contract Overview

Contract Amount: $16,214,777 ($16.2M)

Contractor: Summome Native Ventures LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2023-09-25

End Date: 2026-09-24

Contract Duration: 1,095 days

Daily Burn Rate: $14.8K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: PROFESSIONAL AND ADMINISTRATIVE SUPPORT

Place of Performance

Location: ATMORE, ESCAMBIA County, ALABAMA, 36502

State: Alabama Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $16.2 million to SUMMOME NATIVE VENTURES LLC for work described as: PROFESSIONAL AND ADMINISTRATIVE SUPPORT Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost savings through competition. 2. The contract duration of 1095 days suggests a need for sustained administrative support. 3. Focus on administrative management and general management consulting services indicates a need for operational efficiency. 4. The award to a single entity may limit opportunities for broader market engagement and innovation. 5. Geographic location in Alabama may point to specific regional support needs or contractor presence.

Value Assessment

Rating: questionable

Without a competitive bidding process, it is difficult to benchmark the value for money. The contract's value of $16.2 million over three years for administrative management and general management consulting services needs comparison against similar sole-source awards or publicly available pricing for such services. The absence of competition suggests that taxpayers may not be receiving the most advantageous pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded on a sole-source basis. This means that only one vendor, Summome Native Ventures LLC, was solicited and awarded the contract. The lack of competition limits the government's ability to explore a wider range of potential solutions and pricing structures.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the price reductions and service improvements that typically arise from a competitive bidding environment.

Public Impact

The Centers for Disease Control and Prevention (CDC) will benefit from enhanced administrative and management support. Services delivered are expected to improve the operational efficiency and effectiveness of CDC programs. The contract's geographic impact is noted as Alabama, suggesting potential local economic benefits or specific regional operational needs. Workforce implications are not explicitly detailed but likely involve support roles within the CDC or through the contractor's personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential innovation.
Lack of transparency in the procurement process due to sole-source nature.
Potential for cost overruns without competitive pressure.

Positive Signals

Award to a single entity may ensure continuity of service for critical administrative functions.
The contract duration suggests a stable, long-term need for the services provided.
Focus on administrative management implies support for core government operations.

Sector Analysis

The contract falls under the Professional and Administrative Support services sector, specifically Administrative Management and General Management Consulting Services (NAICS 541611). This sector is crucial for government operations, providing essential support functions that enable agencies to execute their missions. The total federal spending in this category is substantial, with this contract representing a portion of that expenditure. Benchmarking would involve comparing this award to other contracts for similar consulting services within HHS and other agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The award to Summome Native Ventures LLC, without specific small business designation, means opportunities for small business participation are not explicitly mandated by this contract's structure.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services (HHS) and the Centers for Disease Control and Prevention (CDC). As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency is limited due to the sole-source nature of the award. The Inspector General's office within HHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Administrative Management and General Management Consulting Services
Professional and Administrative Support Services
HHS Administrative Support Contracts
CDC Operational Support

Risk Flags

Sole-source award
Lack of competition
Potential for non-competitive pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $16.2 million to SUMMOME NATIVE VENTURES LLC. PROFESSIONAL AND ADMINISTRATIVE SUPPORT

Who is the contractor on this award?

The obligated recipient is SUMMOME NATIVE VENTURES 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 $16.2 million.

What is the period of performance?

Start: 2023-09-25. End: 2026-09-24.

What is the track record of Summome Native Ventures LLC in performing similar administrative support services for the federal government?

Information regarding Summome Native Ventures LLC's specific track record in performing administrative management and general management consulting services for the federal government is not detailed in the provided data. As this was a sole-source award, the justification for selecting this particular contractor would typically include an assessment of their past performance and capability. Further investigation into federal procurement databases like SAM.gov or FPDS might reveal past awards and performance evaluations, if publicly available. Understanding their experience with contracts of similar size, scope, and duration would be crucial for assessing the risk and potential success of this award.

How does the awarded value of $16.2 million compare to similar administrative support contracts awarded by the CDC or HHS?

The provided data does not include comparative contract values. However, $16.2 million over three years for administrative and management consulting services is a significant award. To benchmark this value, one would need to analyze other definitive contracts awarded by the CDC or HHS for similar services (NAICS 541611) within the last few fiscal years. Factors such as contract duration, specific deliverables, and the number of bidders in competitive scenarios would be important for a fair comparison. Given this is a sole-source award, it is harder to ascertain if this represents a competitive market rate or a premium.

What are the primary risks associated with a sole-source award for administrative support services?

The primary risks associated with a sole-source award for administrative support services include a lack of price competition, potentially leading to higher costs for taxpayers. There's also a reduced incentive for the contractor to innovate or provide exceptional service, as there are no competitors to outperform. Furthermore, a sole-source award can limit the government's access to a broader range of expertise and potentially newer, more efficient methodologies that might be offered by other firms. It can also raise concerns about fairness and transparency in the procurement process, potentially leading to perceptions of favoritism if not adequately justified.

What specific administrative management and general management consulting services are encompassed by this contract?

The contract specifies services under NAICS code 541611, which covers Administrative Management and General Management Consulting Services. This broad category typically includes services such as organizational planning, business process reengineering, strategic planning, executive-level policy management, and general management consulting. For the CDC, these services likely support the planning, execution, and oversight of public health programs, operational efficiency improvements, and strategic decision-making. The specific tasks would be detailed in the contract's Statement of Work (SOW), which is not provided here.

What is the historical spending pattern for administrative support services at the CDC or HHS?

The provided data focuses on a single contract and does not offer historical spending patterns. To analyze historical spending, one would need to examine aggregated federal procurement data for the CDC and HHS over several fiscal years, specifically looking at contracts awarded under NAICS code 541611 and related categories. This would reveal trends in spending levels, the prevalence of competitive versus sole-source awards, and the types of contractors that have historically received these awards. Such analysis is crucial for understanding the agency's reliance on external administrative support and the evolution of its spending in this area.

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 COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 75D301-23-R-72689

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 100 BROOKWOOD RD, ATMORE, AL, 36502

Business Categories: Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, 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: $20,684,277

Exercised Options: $16,214,777

Current Obligation: $16,214,777

Actual Outlays: $12,427,716

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline