HHS awards $11.7M task order to Henry Ford Health System for unspecified professional services

Contract Overview

Contract Amount: $11,679,399 ($11.7M)

Contractor: Henry Ford Health System

Awarding Agency: Department of Health and Human Services

Start Date: 2024-09-27

End Date: 2026-09-19

Contract Duration: 722 days

Daily Burn Rate: $16.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST NO FEE

Sector: Other

Official Description: CONNECT TASK ORDER 8

Place of Performance

Location: DETROIT, WAYNE County, MICHIGAN, 48202

State: Michigan Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $11.7 million to HENRY FORD HEALTH SYSTEM for work described as: CONNECT TASK ORDER 8 Key points: 1. The contract value represents a significant investment in specialized professional services. 2. Competition dynamics for this task order are favorable, indicating potential for competitive pricing. 3. The duration of the contract suggests a need for sustained support. 4. The specific nature of the services delivered remains unclear, impacting performance assessment. 5. This award falls within the broad 'All Other Professional, Scientific, and Technical Services' NAICS code.

Value Assessment

Rating: fair

Benchmarking the value of this $11.7 million task order is challenging due to the lack of specific service details. Without knowing the exact nature of the professional, scientific, or technical services provided, it's difficult to compare pricing against similar contracts or market rates. The 'COST NO FEE' contract type suggests that the government will reimburse the contractor for allowable costs, which can sometimes lead to less price certainty compared to fixed-price contracts. Further analysis would require understanding the scope of work and the specific deliverables.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 4 bids suggests a reasonable level of competition for this specific requirement. A competitive process generally helps in achieving fair market prices and encourages contractors to offer their best value propositions.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces and ensures that the government receives competitive pricing for the services rendered.

Public Impact

The primary beneficiary appears to be the National Institutes of Health (NIH), which will receive the professional services. The services delivered are categorized broadly as 'All Other Professional, Scientific, and Technical Services,' suggesting a wide range of potential applications. The geographic impact is centered in Michigan (MI), where Henry Ford Health System is located. Workforce implications are likely to involve specialized professionals within the healthcare and scientific sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific service details hinders a thorough assessment of value and performance.
The 'COST NO FEE' contract type may present challenges in cost control if not managed diligently.
The broad NAICS code makes it difficult to ascertain the precise nature and criticality of the services.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Multiple bids received (4) indicate market interest and potential for competitive pricing.
The contract is with a recognized health system, potentially bringing specialized expertise.

Sector Analysis

This contract falls under the Professional, Scientific, and Technical Services sector, a broad category encompassing a wide array of specialized expertise. The 'All Other Professional, Scientific, and Technical Services' NAICS code (541990) is a catch-all for services not classified elsewhere, including research, consulting, and technical support. Spending in this sector is substantial across the federal government, supporting diverse mission requirements. Benchmarking requires detailed understanding of the specific services provided, which is currently limited.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal based on the provided information. Further investigation into subcontracting opportunities would be necessary to fully assess the impact.

Oversight & Accountability

Oversight for this task order would primarily fall under the Department of Health and Human Services (HHS) and the National Institutes of Health (NIH). The 'COST NO FEE' contract type necessitates careful monitoring of incurred costs to ensure they are allowable and reasonable. Transparency regarding the specific services and performance metrics would be crucial for effective oversight. The Inspector General's office for HHS would have jurisdiction for audits and investigations.

Related Government Programs

Professional, Scientific, and Technical Services
Healthcare Services Contracts
Research and Development Support Services

Risk Flags

Lack of specific service details
Potential for cost overruns in 'COST NO FEE' contract
Broad NAICS code limits understanding of service scope

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $11.7 million to HENRY FORD HEALTH SYSTEM. CONNECT TASK ORDER 8

Who is the contractor on this award?

The obligated recipient is HENRY FORD HEALTH SYSTEM.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $11.7 million.

What is the period of performance?

Start: 2024-09-27. End: 2026-09-19.

What specific professional, scientific, or technical services are being procured under this task order?

The provided data classifies this task order under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This is a broad category that encompasses a wide range of activities not specified elsewhere, such as research services, consulting, and technical support. Without further details on the Statement of Work (SOW) or specific deliverables, the exact nature of the services remains undefined. This lack of specificity makes it challenging to assess the contract's objectives, the contractor's capabilities in relation to the need, and the ultimate value derived by the agency.

How does the $11.7 million award compare to historical spending on similar services by the NIH?

Comparing this $11.7 million task order to historical NIH spending requires access to detailed historical contract data filtered by the specific services rendered and the NAICS code. Given that NAICS 541990 is a broad category, direct comparisons are difficult without knowing the precise nature of the services. However, the NIH does award numerous contracts in the professional and scientific services domain, often in the multi-million dollar range, particularly for research support and specialized technical assistance. To provide a meaningful comparison, one would need to identify contracts with similar scopes of work and durations, which are not detailed in the provided data.

What are the key performance indicators (KPIs) for this contract, and how will performance be measured?

The provided data does not specify the key performance indicators (KPIs) or the methodology for measuring performance for this task order. For a 'COST NO FEE' contract, performance measurement is critical to ensure that the services are delivered effectively and efficiently, and that costs incurred are reasonable and allocable to the contract. Typically, KPIs would be defined in the Statement of Work (SOW) and could include metrics related to timeliness, quality of deliverables, adherence to project milestones, and responsiveness. Without this information, assessing the contractor's performance and the overall success of the task order is not possible.

What is the track record of Henry Ford Health System as a federal contractor, particularly for services under NAICS 541990?

Henry Ford Health System, as a large healthcare provider, has a significant presence in the healthcare sector. Its track record as a federal contractor, especially for services falling under the broad NAICS code 541990 ('All Other Professional, Scientific, and Technical Services'), would need to be examined through federal procurement databases like SAM.gov or FPDS. While they are likely experienced in providing healthcare-related services, their specific experience with non-healthcare-related professional, scientific, or technical services procured by agencies like NIH would require a detailed review of past awards, performance evaluations (e.g., CPARS), and any past issues or successes.

What are the potential risks associated with a 'COST NO FEE' contract of this magnitude and duration?

A 'COST NO FEE' contract, while reimbursing the contractor for allowable costs, carries inherent risks. The primary risk is cost overrun, as the government is obligated to pay for all reasonable and allocable costs incurred, regardless of a pre-defined ceiling (though often there are cost ceilings). This necessitates robust government oversight to scrutinize expenses and ensure they align with the contract's objectives. The duration of 722 days (approximately 2 years) for this $11.7 million task order amplifies this risk, as costs can accumulate over an extended period. Without clear performance metrics and diligent cost monitoring, there's a risk of inefficient spending and a potential for the final cost to exceed initial expectations or budgeted amounts.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 2024-01

Offers Received: 4

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 1 FORD PLACE, DETROIT, MI, 48202

Business Categories: Category Business, Corporate Entity Tax Exempt, Hospital, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,563,700

Exercised Options: $15,224,949

Current Obligation: $11,679,399

Actual Outlays: $2,494,712

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75N91018D00020

IDV Type: IDC

Timeline