HHS awards $7.6M for support services to Tanaq Management Services LLC, a sole-source contract

Contract Overview

Contract Amount: $7,658,565 ($7.7M)

Contractor: Tanaq Management Services LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2023-08-14

End Date: 2024-11-30

Contract Duration: 474 days

Daily Burn Rate: $16.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: SUPPORT SERVICES

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30329

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $7.7 million to TANAQ MANAGEMENT SERVICES LLC for work described as: SUPPORT SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting potential cost savings from competition. 2. The contract duration of 474 days suggests a need for ongoing support services. 3. The North American Industry Classification System (NAICS) code 541690 indicates a focus on specialized consulting. 4. The contract type is a Definitive Contract, typically used for services or supplies over a period. 5. The award was made to Tanaq Management Services LLC, a single entity. 6. The contract is for support services, a broad category that requires further definition for detailed analysis.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without more specific details on the services provided and comparable market rates. The sole-source nature raises concerns about whether the government secured the best possible price. Without competitive bids, it's difficult to assess if the $7.6 million represents a fair market value for the support services rendered. Further analysis would require understanding the specific deliverables and comparing them to industry standards and pricing for similar support functions within the federal government.

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 only one vendor can provide the required services, often due to unique capabilities, existing infrastructure, or urgent needs. The lack of competition means that the government did not benefit from the price discovery and potential cost reductions that typically arise from a competitive bidding process.

Taxpayer Impact: Taxpayers may not have received the most cost-effective solution due to the absence of competitive pressure. The government's ability to negotiate favorable terms is also reduced in a sole-source scenario.

Public Impact

The Centers for Disease Control and Prevention (CDC) is the primary beneficiary of these support services. The services are intended to support the operational needs of the CDC. The contract is geographically focused on Georgia (ST: GA, SN: GEORGIA), suggesting local support operations. The contract likely supports a workforce involved in the delivery of these essential public health services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing benefits.
Lack of detailed service description hinders value assessment.
Potential for cost overruns without competitive oversight.

Positive Signals

Award to a single entity may indicate specialized capabilities.
Definitive contract type suggests a structured service agreement.
Contract duration implies a recognized need for sustained support.

Sector Analysis

The contract falls under the Other Scientific and Technical Consulting Services sector, a broad category within the professional services industry. This sector is crucial for government agencies requiring specialized expertise to support their missions. The market for such services is competitive, but sole-source awards can bypass this dynamic. Benchmarking spending in this area requires detailed service descriptions, as 'support services' can encompass a wide range of activities.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not available for this contract. As a sole-source award, it is less likely to have been specifically targeted for small business participation through set-aside mechanisms. Further investigation would be needed to determine if Tanaq Management Services LLC has any subcontracting requirements that would involve small businesses.

Oversight & Accountability

Oversight mechanisms for this contract would typically be managed by the contracting officer and the program office within the Centers for Disease Control and Prevention. Accountability measures would be tied to the performance standards outlined in the Definitive Contract. Transparency is limited by the sole-source nature and the lack of publicly available detailed service descriptions and performance metrics.

Related Government Programs

CDC Support Services
Federal Consulting Services
Scientific and Technical Consulting

Risk Flags

Sole-source award lacks competitive justification.
Limited transparency on specific services and performance metrics.
Potential for non-optimal pricing due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $7.7 million to TANAQ MANAGEMENT SERVICES LLC. SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is TANAQ MANAGEMENT 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 $7.7 million.

What is the period of performance?

Start: 2023-08-14. End: 2024-11-30.

What specific support services are being provided under this contract?

The provided data indicates the contract is for 'SUPPORT SERVICES' under NAICS code 541690 (Other Scientific and Technical Consulting Services). However, the specific nature of these services is not detailed. This could range from administrative support, IT consulting, research assistance, program management, to specialized scientific advisory roles. Without a more granular description of the tasks, deliverables, and objectives, it is impossible to fully assess the contract's scope, value, and impact. Further inquiry with the agency would be necessary to obtain a Statement of Work (SOW) or similar documentation that elaborates on the precise support being rendered by Tanaq Management Services LLC.

How does the $7.6 million award compare to similar support service contracts at the CDC or HHS?

Direct comparison of the $7.6 million award is difficult without knowing the specific services rendered. However, for context, the Centers for Disease Control and Prevention (CDC) and the broader Department of Health and Human Services (HHS) frequently award contracts for various support services. These can range from a few hundred thousand dollars for specialized consulting to tens or hundreds of millions for large-scale program support. The duration of this contract (474 days, approximately 1.3 years) suggests a mid-range value for ongoing support. A sole-source award inherently limits direct price comparison to competitive bids, making it harder to benchmark against market rates for similar, competed services. A comprehensive value assessment would require comparing the contracted services to industry benchmarks for similar roles and deliverables.

What is Tanaq Management Services LLC's track record with federal contracts, particularly with HHS?

Tanaq Management Services LLC has a history of receiving federal contracts. To assess their track record specifically with the Department of Health and Human Services (HHS) and the Centers for Disease Control and Prevention (CDC), a review of contract databases like FPDS-NG or SAM.gov would be necessary. This would reveal the types of contracts awarded, their values, performance history (if available), and any past performance issues or awards. Understanding their prior experience, especially in providing similar support services, is crucial for evaluating the risk associated with this current sole-source award and assessing their capability to deliver effectively.

What are the potential risks associated with a sole-source award for these support services?

The primary risk associated with a sole-source award is the lack of competition, which can lead to higher prices than might be achieved in a competitive environment. Without multiple bids, there is less incentive for the contractor to offer the lowest possible price. Additionally, the government may have limited leverage in negotiating terms and conditions. There's also a risk that the chosen vendor, while potentially capable, may not be the absolute best value provider available in the market. Transparency is reduced, making it harder to scrutinize the justification for the sole-source award and the fairness of the pricing. Finally, without the vetting process of a competitive bid, there's a slightly elevated risk regarding contractor performance if not adequately managed.

How does the geographic location (Georgia) influence the nature or cost of these support services?

The designation of Georgia (ST: GA, SN: GEORGIA) as the contract's location suggests that the support services are likely being performed by personnel based in or operating within that state. This could imply services related to regional CDC operations, state-level public health initiatives, or logistical support managed from a Georgia-based facility. The cost implications could include local labor rates, which may differ from national averages, and potentially travel or facility costs specific to the region. While not a primary driver of cost for many professional services, geographic focus can influence operational expenses and the pool of available talent, potentially impacting the overall value proposition.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical 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-72663

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 3201 C ST, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,658,565

Exercised Options: $7,658,565

Current Obligation: $7,658,565

Actual Outlays: $5,408,361

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline