HHS Awards $17.5M Engineering Services Contract to USMAX Corporation for 3 Years
Contract Overview
Contract Amount: $17,498,520 ($17.5M)
Contractor: Usmax Corporation
Awarding Agency: Department of Health and Human Services
Start Date: 2023-06-08
End Date: 2026-06-07
Contract Duration: 1,095 days
Daily Burn Rate: $16.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 8
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: EDUCATION & OUTREACH
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22031
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $17.5 million to USMAX CORPORATION for work described as: EDUCATION & OUTREACH Key points: 1. Contract value of $17.5M over 3 years. 2. USMAX Corporation is the awardee. 3. Competition method was 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. 4. The sector is Engineering Services within the broader Health and Human Services domain.
Value Assessment
Rating: fair
The contract is a Time and Materials type, which can lead to cost overruns if not managed closely. The awarded value is $17.5M, with a base of $15.98M, suggesting potential for growth.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition was 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', indicating some restrictions. This method may limit price discovery compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayers are funding a significant contract for engineering services, with the final cost dependent on the time and materials utilized.
Public Impact
Supports critical healthcare infrastructure and services through engineering expertise. Ensures continued operation and improvement of CMS programs. Potential for job creation within the engineering services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type
- Limited competition method
Positive Signals
- Full and open competition utilized
- Supports essential government functions
Sector Analysis
This contract falls under Engineering Services (NAICS 541330), a sector crucial for government infrastructure and program support. Benchmarks for similar contracts would typically consider project scope, duration, and specific engineering disciplines required.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if small business participation was sought or if larger prime contractors were deemed necessary.
Oversight & Accountability
The contract is managed by the Centers for Medicare and Medicaid Services (CMS), a major agency within HHS. Oversight would focus on ensuring the engineering services meet defined requirements and are delivered efficiently within the Time and Materials framework.
Related Government Programs
- Engineering Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Time and Materials contract type
- Limited competition method
- No small business set-aside indicated
- Potential for cost overruns
Tags
engineering-services, 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 $17.5 million to USMAX CORPORATION. EDUCATION & OUTREACH
Who is the contractor on this award?
The obligated recipient is USMAX CORPORATION.
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 $17.5 million.
What is the period of performance?
Start: 2023-06-08. End: 2026-06-07.
What specific engineering services are being provided under this contract?
The contract is for Engineering Services (NAICS 541330) awarded to USMAX CORPORATION by the Department of Health and Human Services, specifically the Centers for Medicare and Medicaid Services. While the exact nature of the services isn't detailed, it likely pertains to supporting CMS's vast healthcare programs and infrastructure, potentially involving design, analysis, consulting, or project management related to healthcare systems or facilities.
What are the primary risks associated with this Time and Materials contract?
The primary risk with a Time and Materials (T&M) contract is cost escalation. Without a fixed price, the government pays for the actual labor hours and material costs incurred by the contractor. This necessitates robust oversight to ensure efficiency, prevent overcharging, and confirm that the work performed is necessary and aligns with the contract's objectives. Scope creep can also be a significant risk if not managed proactively.
How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method impact overall value for taxpayers?
This competition method, while technically 'full and open,' implies that certain sources were initially excluded before the open competition phase. This could limit the pool of potential bidders, potentially reducing the competitive pressure on pricing compared to a truly unrestricted full and open competition. While it aims for fairness, it might not always yield the absolute lowest price achievable if a broader range of qualified vendors were considered from the outset.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 75FCMC22R0027
Offers Received: 8
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 3060 WILLIAMS DR STE 530, FAIRFAX, VA, 22031
Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $27,124,377
Exercised Options: $17,498,520
Current Obligation: $17,498,520
Actual Outlays: $14,897,569
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47QRAD20D1002
IDV Type: IDC
Timeline
Start Date: 2023-06-08
Current End Date: 2026-06-07
Potential End Date: 2028-06-07 00:00:00
Last Modified: 2026-04-03
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