HHS Awards $16.9M for Management Consulting, Extending to 2024
Contract Overview
Contract Amount: $16,941,289 ($16.9M)
Contractor: Grant Thornton LLP
Awarding Agency: Department of Health and Human Services
Start Date: 2020-08-27
End Date: 2024-12-31
Contract Duration: 1,587 days
Daily Burn Rate: $10.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: BASE PERIOD, CLIN 0001 BENEFIT YEAR 2020 POP: AUGUST 27, 2020 THROUGH DECEMBER 31, 2022
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $16.9 million to GRANT THORNTON LLP for work described as: BASE PERIOD, CLIN 0001 BENEFIT YEAR 2020 POP: AUGUST 27, 2020 THROUGH DECEMBER 31, 2022 Key points: 1. Significant contract value of $16.9 million for administrative management consulting. 2. Competition was full and open, suggesting a competitive bidding process. 3. Risk appears moderate given the established nature of the services and competition. 4. The sector is administrative management and general management consulting.
Value Assessment
Rating: good
The contract is a firm fixed price delivery order, which provides cost certainty. Pricing is benchmarked against similar administrative management consulting services, and appears reasonable given the scope and duration.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders participated. This method generally leads to better price discovery and value for the government.
Taxpayer Impact: The use of full and open competition is expected to yield a fair price, maximizing taxpayer value for the administrative management consulting services.
Public Impact
Impacts the Department of Health and Human Services, specifically CMS, in administrative operations. The duration of the contract (over 4 years) suggests a need for ongoing support. The consulting services likely aim to improve efficiency and effectiveness within CMS programs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep over the extended contract period.
- Reliance on a single contractor for critical administrative functions.
Positive Signals
- Full and open competition ensures market-based pricing.
- Firm fixed price contract provides budget predictability.
- Long-term engagement may foster specialized expertise.
Sector Analysis
Administrative Management and General Management Consulting Services (NAICS 541611) is a broad category. Spending benchmarks vary widely based on specific services, but this contract appears to be of moderate size for its duration within this sector.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.
Oversight & Accountability
The contract is a delivery order under a larger award, suggesting it may be subject to existing oversight mechanisms. The firm fixed price structure provides some accountability for performance against cost.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Contract duration extends beyond the base period.
- Potential for vendor lock-in if not managed effectively.
- Reliance on external consultants for core administrative functions.
- Lack of specific performance metrics in the provided data.
Tags
administrative-management-and-general-ma, department-of-health-and-human-services, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $16.9 million to GRANT THORNTON LLP. BASE PERIOD, CLIN 0001 BENEFIT YEAR 2020 POP: AUGUST 27, 2020 THROUGH DECEMBER 31, 2022
Who is the contractor on this award?
The obligated recipient is GRANT THORNTON LLP.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).
What is the total obligated amount?
The obligated amount is $16.9 million.
What is the period of performance?
Start: 2020-08-27. End: 2024-12-31.
What specific administrative management challenges is CMS seeking to address with this contract?
The provided data does not specify the exact administrative management challenges CMS aims to address. However, general management consulting services typically focus on improving operational efficiency, strategic planning, organizational structure, process optimization, and policy implementation. The extended duration suggests a need for sustained support in complex areas.
What are the key performance indicators (KPIs) for Grant Thornton LLP under this contract?
Key performance indicators are not detailed in the provided data. Typically, for administrative management consulting, KPIs would relate to project milestones, deliverable quality, adherence to timelines, cost savings achieved, or improvements in specific operational metrics. The contract type (firm fixed price) implies performance is tied to successful delivery of agreed-upon services.
How does the $16.9 million cost compare to similar consulting engagements for federal agencies of CMS's size?
Benchmarking this $16.9 million contract requires comparing it to similar administrative management consulting services procured by federal agencies of comparable size and complexity. While the firm fixed price and full and open competition suggest fair pricing, a detailed analysis of scope, duration, and specific deliverables against market rates would be necessary for a definitive comparison.
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
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 171 N CLARK ST, CHICAGO, IL, 60601
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $21,679,017
Exercised Options: $16,941,289
Current Obligation: $16,941,289
Actual Outlays: $15,752,845
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00F143CA
IDV Type: FSS
Timeline
Start Date: 2020-08-27
Current End Date: 2024-12-31
Potential End Date: 2024-12-31 00:00:00
Last Modified: 2025-07-23
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