FDA awards $15.5M contract for budget and acquisition liaison support to Kaiva Strategies, LLC

Contract Overview

Contract Amount: $15,503,572 ($15.5M)

Contractor: Kaiva Strategies, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2025-09-30

End Date: 2026-09-29

Contract Duration: 364 days

Daily Burn Rate: $42.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: LABOR HOURS

Sector: Other

Official Description: 1-YEAR, LABOR HOUR (LH) TYPE TASK ORDER FOR U.S. FOOD AND DRUG ADMINISTRATION (FDA), OFFICE OF FINANCE, BUDGET, AND ACQUISITIONS (OFBA) FOR BUDGET AND ACQUISITION LIAISON SUPPORT

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20993

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $15.5 million to KAIVA STRATEGIES, LLC for work described as: 1-YEAR, LABOR HOUR (LH) TYPE TASK ORDER FOR U.S. FOOD AND DRUG ADMINISTRATION (FDA), OFFICE OF FINANCE, BUDGET, AND ACQUISITIONS (OFBA) FOR BUDGET AND ACQUISITION LIAISON SUPPORT Key points: 1. Contract focuses on administrative management and general management consulting services. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. Task order type is labor hours, which can pose cost control challenges if not managed effectively. 4. The contract duration is one year, suggesting a need for ongoing support. 5. The Food and Drug Administration (FDA) is the primary agency utilizing these services. 6. The North American Industry Classification System (NAICS) code 541611 points to management consulting services.

Value Assessment

Rating: fair

The contract value of $15.5 million for a one-year labor hour task order for administrative and management consulting services appears to be within a reasonable range for specialized support to a federal agency like the FDA. Benchmarking against similar contracts for liaison support and management consulting within HHS would provide a clearer picture of value for money. The labor hour pricing structure necessitates close monitoring to ensure efficient use of resources and prevent cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' which suggests that while the competition was broad, there might have been specific reasons for excluding certain sources initially. The fact that it was full and open competition implies multiple bidders were likely considered, which generally promotes competitive pricing. However, the 'after exclusion of sources' clause warrants further investigation into the specific circumstances of the competition.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality. This approach ensures that the government explores a wide range of potential contractors, increasing the likelihood of securing the best value.

Public Impact

The primary beneficiaries are the FDA's Office of Finance, Budget, and Acquisitions (OFBA), which will receive essential support. Services delivered include budget and acquisition liaison support, crucial for efficient agency operations. The geographic impact is primarily within the FDA's operational centers, likely in Maryland where the contractor is based. Workforce implications include the direct employment of personnel by Kaiva Strategies, LLC to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor hour contracts can lead to cost overruns if not closely monitored for efficiency and scope creep.
The 'after exclusion of sources' clause in the competition type requires understanding the rationale to ensure fairness and optimal competition.
Reliance on a single one-year task order may indicate a need for more strategic, long-term planning for these critical support functions.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The contract supports critical functions within the FDA's financial and acquisition management.
Kaiva Strategies, LLC is a known entity, implying some level of established performance history.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. This sector is a significant component of federal spending, supporting a wide array of government functions. The market for such services is competitive, with numerous firms offering expertise in administrative, financial, and acquisition support. The FDA's spending in this area is consistent with the need for specialized expertise to manage complex budgetary and procurement processes.

Small Business Impact

The data indicates that Kaiva Strategies, LLC, the awardee, is not a small business (indicated by 'sb': false). There is no explicit mention of small business set-asides or subcontracting requirements in the provided data. Therefore, the direct impact on the small business ecosystem from this specific award appears minimal, though the prime contractor's own subcontracting practices would need further review to assess broader small business involvement.

Oversight & Accountability

Oversight for this contract would primarily reside with the FDA's contracting officers and program managers within the Office of Finance, Budget, and Acquisitions. Standard government contract oversight mechanisms, including performance reviews, invoicing audits, and adherence to task order requirements, would be applied. Transparency is facilitated through contract award databases, though detailed performance metrics are typically internal.

Related Government Programs

Federal Management and Consulting Services
FDA Budget and Financial Management Support
Government Acquisition Support Contracts
Administrative Support Services

Risk Flags

Potential for cost overruns due to labor hour pricing.
Effectiveness of competition given 'exclusion of sources' clause.
Ensuring consistent quality of service delivery over the contract term.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $15.5 million to KAIVA STRATEGIES, LLC. 1-YEAR, LABOR HOUR (LH) TYPE TASK ORDER FOR U.S. FOOD AND DRUG ADMINISTRATION (FDA), OFFICE OF FINANCE, BUDGET, AND ACQUISITIONS (OFBA) FOR BUDGET AND ACQUISITION LIAISON 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 (Food and Drug Administration).

What is the total obligated amount?

The obligated amount is $15.5 million.

What is the period of performance?

Start: 2025-09-30. End: 2026-09-29.

What is the track record of Kaiva Strategies, LLC in performing similar federal contracts, particularly for the FDA or other health agencies?

A review of federal contract databases indicates that Kaiva Strategies, LLC has received multiple federal awards, primarily within the Department of Health and Human Services (HHS) and other agencies. Their contract history often includes services related to program management, administrative support, and consulting. Specific performance metrics for past contracts, especially those with the FDA, would require deeper analysis of contract performance reports (CPARs) and agency-specific evaluations. However, their consistent awards suggest a level of satisfactory performance in securing and executing government contracts within their area of expertise.

How does the $15.5 million value compare to similar one-year labor hour contracts for budget and acquisition liaison support at other federal agencies?

Benchmarking the $15.5 million value for a one-year labor hour contract requires comparing it against contracts with similar scope, duration, and complexity across federal agencies. Contracts for specialized liaison support, particularly in budget and acquisition, can vary significantly based on the agency's size, mission criticality, and the specific expertise required. While $15.5 million for a single year is substantial, it may be competitive if the contract involves a high number of labor hours, senior-level personnel, or highly specialized knowledge critical to the FDA's operations. A detailed comparison would involve analyzing the average number of labor hours, average hourly rates for different labor categories, and the overall scope of work in comparable contracts.

What are the primary risks associated with a labor hour contract of this magnitude and duration for the FDA?

The primary risk associated with a $15.5 million, one-year labor hour contract is cost control. Labor hour contracts provide less certainty on the total cost compared to fixed-price contracts, as the final price is determined by the actual hours worked. This exposes the FDA to potential cost overruns if the project scope expands, if contractor efficiency is low, or if extensive overtime is required. Another risk involves ensuring the quality and effectiveness of the services delivered, as performance is tied to hours logged rather than specific deliverables. Robust oversight, clear performance metrics, and diligent monitoring of labor hours and task completion are crucial to mitigate these risks.

What is the historical spending pattern for budget and acquisition liaison support at the FDA, and how does this award fit within that trend?

Analyzing historical spending for budget and acquisition liaison support at the FDA is essential to contextualize this $15.5 million award. Federal agencies often have recurring needs for such specialized support, leading to consistent contract awards in these areas. If the FDA has previously awarded similar-sized contracts for these services, this award may represent a continuation of established spending patterns. Conversely, a significant increase or decrease compared to prior years could indicate a shift in agency priorities, budget allocations, or contracting strategies. Understanding these historical trends helps assess whether this award is an anomaly or part of a predictable expenditure.

What does the 'after exclusion of sources' clause in the contract type imply about the competition and potential value for taxpayers?

The 'after exclusion of sources' clause within a 'full and open competition' context suggests that while the competition was intended to be broad, certain potential bidders were disqualified or not considered from the outset. The reasons for exclusion can vary, ranging from failure to meet minimum qualifications to specific agency requirements or past performance issues. While full and open competition generally benefits taxpayers by maximizing the pool of potential offerors, the exclusion of sources could potentially limit the breadth of competition and, consequently, the downward pressure on pricing. Understanding the specific criteria for exclusion is key to assessing whether this aspect impacted the final price and overall value achieved for the taxpayer.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: LABOR HOURS (Z)

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: $15,503,572

Exercised Options: $15,503,572

Current Obligation: $15,503,572

Actual Outlays: $811,265

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75F40123D00021

IDV Type: IDC

Timeline