HHS Awards $167M Contract for Management Consulting Services to ACUMEN LLC
Contract Overview
Contract Amount: $167,339,085 ($167.3M)
Contractor: Acumen LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2021-09-30
End Date: 2026-09-29
Contract Duration: 1,825 days
Daily Burn Rate: $91.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: DATALINK
Place of Performance
Location: BURLINGAME, SAN MATEO County, CALIFORNIA, 94010
Plain-Language Summary
Department of Health and Human Services obligated $167.3 million to ACUMEN LLC for work described as: DATALINK Key points: 1. Contract awarded to ACUMEN LLC for administrative management and general management consulting services. 2. The contract has a duration of 5 years, ending in September 2026. 3. The total award value is $167,339,084.50. 4. This contract falls under the Administrative Management and General Management Consulting Services NAICS code. 5. The contract was awarded using full and open competition.
Value Assessment
Rating: good
The contract's value of $167.3M over five years suggests a significant investment in consulting services. Benchmarking against similar large-scale management consulting contracts would be necessary for a precise pricing assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a robust process for soliciting bids and ensuring fair market pricing. This method generally leads to better price discovery.
Taxpayer Impact: The use of full and open competition aims to secure the best value for taxpayers by fostering a competitive environment among potential contractors.
Public Impact
Impacts federal health agencies by providing essential management consulting expertise. Supports the Centers for Medicare and Medicaid Services in administrative functions. Ensures continuity of critical consulting services over a five-year period. Potential for improved efficiency and effectiveness in government operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for cost overruns in time and materials contracts.
- Dependence on a single contractor for critical services.
Positive Signals
- Awarded through full and open competition.
- Long-term contract provides stability.
- Significant investment suggests high perceived value.
Sector Analysis
This contract falls within the professional services sector, specifically management consulting. Spending benchmarks for this sector often vary widely based on the scope and complexity of services required.
Small Business Impact
The provided data does not indicate if small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to assess small business participation.
Oversight & Accountability
The contract's duration and value necessitate robust oversight to ensure performance, adherence to scope, and cost control. Regular performance reviews and audits are crucial.
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
- Time and Materials contract type can lead to cost overruns if not managed tightly.
- Long contract duration may reduce flexibility to adapt to changing needs.
- Potential for vendor lock-in if not carefully managed.
- Lack of specific performance metrics in the summary data.
Tags
administrative-management-and-general-ma, department-of-health-and-human-services, ca, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $167.3 million to ACUMEN LLC. DATALINK
Who is the contractor on this award?
The obligated recipient is ACUMEN LLC.
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 $167.3 million.
What is the period of performance?
Start: 2021-09-30. End: 2026-09-29.
What specific management consulting services are being provided under this contract, and how do they align with HHS strategic goals?
The contract is for 'Administrative Management and General Management Consulting Services' under NAICS code 541611. While the specific services aren't detailed, they likely encompass areas such as organizational efficiency, process improvement, strategic planning, and operational support for agencies like CMS. Alignment with HHS goals would depend on the specific task orders issued under this contract, which are not provided.
What is the projected cost per hour or per deliverable, and how does it compare to industry standards for similar consulting services?
The contract is 'Time and Materials' based, meaning costs are tied to labor hours and direct expenses. Without specific labor rates or task order details, a precise per-unit cost benchmark is not possible. However, the total award value of $167.3M over 1825 days suggests an average daily burn rate of approximately $91,693, which can be used as a high-level indicator for comparison.
What mechanisms are in place to ensure the effectiveness and value for money of the consulting services provided by ACUMEN LLC?
Effectiveness and value for money are typically ensured through performance-based metrics defined in task orders, regular progress reviews, and potential incentives or penalties. Given the 'Time and Materials' nature, oversight will be critical to manage scope creep and ensure deliverables meet expectations. The contracting officer's representative (COR) plays a key role in monitoring performance.
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: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 500 AIRPORT BLVD, BURLINGAME, CA, 94010
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $175,834,610
Exercised Options: $167,339,085
Current Obligation: $167,339,085
Actual Outlays: $144,422,670
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS10F0133S
IDV Type: FSS
Timeline
Start Date: 2021-09-30
Current End Date: 2026-09-29
Potential End Date: 2026-09-29 00:00:00
Last Modified: 2025-09-30
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