HHS awards $7.2M for support services to Tanaq Management Services LLC, a sole-source contract

Contract Overview

Contract Amount: $7,189,390 ($7.2M)

Contractor: Tanaq Management Services LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2024-06-17

End Date: 2026-09-29

Contract Duration: 834 days

Daily Burn Rate: $8.6K/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, 30341

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $7.2 million to TANAQ MANAGEMENT SERVICES LLC for work described as: SUPPORT SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting potential for competitive pricing. 2. Duration of 834 days suggests a need for sustained support. 3. The contract's value is moderate within the broader federal services landscape. 4. Performance is expected in Georgia, indicating a specific geographic focus. 5. The North American Industry Classification System (NAICS) code 541990 covers a broad range of services, making direct benchmarking challenging. 6. No small business set-aside was applied, potentially impacting small business participation.

Value Assessment

Rating: fair

The contract value of $7.2 million over approximately two years for support services appears moderate. Without specific details on the services rendered, direct comparison to similar contracts is difficult. However, the sole-source nature of the award raises concerns about whether the government secured the best possible price through competitive bidding. Benchmarking the per-unit cost would require a detailed understanding of the labor categories and hours involved.

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. This typically occurs when only one responsible source is available or in the interest of economy and efficiency. The lack of competition means that the government did not benefit from multiple bids to drive down costs or explore a wider range of service providers. The justification for this sole-source award would need to be reviewed to understand the specific circumstances.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to ensure the lowest possible price. It also limits opportunities for other businesses to compete for federal dollars.

Public Impact

Tanaq Management Services LLC will benefit from this contract award. The contract is expected to deliver essential support services to the Centers for Disease Control and Prevention (CDC). Services will be performed in Georgia. The contract may have implications for the workforce in the Georgia region, depending on Tanaq's hiring practices.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing opportunities.
Lack of transparency regarding the specific services provided makes value assessment difficult.
Potential for cost overruns due to absence of competitive bidding.

Positive Signals

Award to an established entity (Tanaq Management Services LLC) may indicate a track record of performance.
Contract duration suggests a recognized need for ongoing services.
Awarded by the Department of Health and Human Services, a critical federal agency.

Sector Analysis

This contract falls under the broad category of professional, scientific, and technical services, specifically within NAICS code 541990. This sector is diverse, encompassing a wide array of services. Federal spending in this area is substantial, supporting various agency functions. Benchmarking requires careful consideration of the specific sub-services provided, as the 'All Other' category can include highly specialized or general support functions.

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 requirements mandated by a small business set-aside. The prime contractor, Tanaq Management Services LLC, may still choose to subcontract portions of the work to small businesses, but this is not a contractual obligation stemming from a set-aside. This means the direct impact on the small business ecosystem through this specific award is likely limited unless the prime contractor voluntarily engages small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services (HHS) and the Centers for Disease Control and Prevention (CDC). Specific oversight mechanisms would depend on the contract's terms and conditions, including performance metrics, reporting requirements, and payment schedules. Transparency is enhanced through contract databases like SAM.gov, but detailed operational oversight is an internal agency function. The Inspector General for HHS would have jurisdiction to investigate potential fraud, waste, or abuse.

Related Government Programs

HHS Support Services Contracts
CDC Professional Services
Sole-Source Professional Services Awards
All Other Professional, Scientific, and Technical Services

Risk Flags

Sole-source award
Broad NAICS code classification
Lack of detailed service description

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $7.2 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 $7.2 million.

What is the period of performance?

Start: 2024-06-17. End: 2026-09-29.

What is the track record of Tanaq Management Services LLC with federal contracts, particularly with HHS or CDC?

To assess the track record of Tanaq Management Services LLC, a review of their past federal contract awards and performance history would be necessary. This would involve searching databases like SAM.gov and potentially performance assessment reports (e.g., Contractor Performance Assessment Reporting System - CPARS). Key areas to examine would include on-time delivery, quality of work, adherence to budget, and any past disputes or contract terminations. Understanding their experience with similar types of support services and their performance within the Department of Health and Human Services or the Centers for Disease Control and Prevention specifically would provide crucial context for evaluating their capability to fulfill this current contract effectively.

How does the awarded value of $7.2 million compare to similar support service contracts awarded by the CDC or HHS?

Comparing the $7.2 million value requires understanding the scope and duration of the services provided. Since this contract is for 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) and awarded on a sole-source basis, direct comparisons are challenging without more granular data. However, one could benchmark against other sole-source or competitively awarded contracts for similar support functions within HHS or CDC, looking at total contract value, labor hours, and duration. If comparable contracts exist, an analysis of the average cost per labor hour or cost per service unit could reveal if Tanaq's pricing is within a reasonable range, considering the lack of competition may have influenced the final price.

What are the primary risks associated with awarding this contract on a sole-source basis?

The primary risk associated with a sole-source award is the potential for paying a higher price than would be achieved through a competitive bidding process. Without multiple offers, the government lacks the leverage to negotiate the best possible terms and pricing. This can lead to reduced value for taxpayer money. Another risk is the limited opportunity for innovation or the introduction of new service providers who might offer more efficient or effective solutions. Furthermore, if the justification for the sole-source award is weak or based on incomplete information, it could indicate a failure in procurement planning or execution, potentially leading to suboptimal contract outcomes.

What specific support services are being provided under this contract, and how do they contribute to the CDC's mission?

The provided data classifies the contract under 'SUPPORT SERVICES' and NAICS code '541990 - All Other Professional, Scientific, and Technical Services.' This broad classification indicates that the specific services are not detailed in the summary. To understand their contribution to the CDC's mission, one would need to access the contract's statement of work (SOW). These services could range from administrative support, IT support, research assistance, data analysis, logistical support, or specialized technical consulting. The CDC's mission focuses on protecting public health through disease control and prevention, so these support services likely enable the agency's scientists, researchers, and administrators to carry out their critical public health functions more effectively.

What is the historical spending trend for 'All Other Professional, Scientific, and Technical Services' at the CDC or HHS?

Analyzing historical spending trends for NAICS 541990 at the CDC or HHS would provide context for the $7.2 million award. This involves examining contract data over several fiscal years to identify patterns in the volume and value of contracts awarded under this category. A rising trend might indicate increasing reliance on external support services, while a stable or declining trend could suggest otherwise. Understanding whether this $7.2 million award represents a typical expenditure or a significant deviation from historical norms is crucial for assessing its appropriateness and potential implications for future budgets. This analysis would require access to historical federal procurement databases.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical 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: 75D301-24-R-72994

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: $15,845,112

Exercised Options: $7,189,390

Current Obligation: $7,189,390

Actual Outlays: $5,280,520

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline