NIH awards $27M+ for scientific support services, with Kelly Services Inc. delivering on a firm-fixed-price contract

Contract Overview

Contract Amount: $27,090,914 ($27.1M)

Contractor: Kelly Services, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2019-09-23

End Date: 2021-07-13

Contract Duration: 659 days

Daily Burn Rate: $41.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SCIENTIFIC, TECHNICAL AND OTHER PROFESSIONAL SUPPORT SERVICES (STOPS)

Place of Performance

Location: TROY, OAKLAND County, MICHIGAN, 48084

State: Michigan Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $27.1 million to KELLY SERVICES, INC. for work described as: SCIENTIFIC, TECHNICAL AND OTHER PROFESSIONAL SUPPORT SERVICES (STOPS) Key points: 1. Contract value exceeds $27 million, indicating a significant investment in professional support services. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The firm-fixed-price structure shifts cost risk to the contractor, potentially benefiting the government. 4. The duration of the contract (659 days) suggests a medium-term need for these services. 5. The North American Industry Classification System (NAICS) code 541690 points to specialized consulting services. 6. The award was a delivery order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract value of over $27 million for scientific and technical consulting services appears reasonable given the duration and scope. Benchmarking against similar contracts for professional support services at NIH would provide a clearer picture of value for money. The firm-fixed-price nature of the award is generally favorable for cost control, as it places the financial risk on the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this method generally fosters a competitive environment, which can lead to better pricing and service quality. The agency sought proposals from a wide range of potential contractors.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces and encouraging a broader pool of qualified vendors to offer their best terms.

Public Impact

The National Institutes of Health (NIH) benefits from specialized scientific and technical support, enabling research and operational efficiency. Services delivered likely include a range of consulting, analysis, and technical assistance crucial for scientific endeavors. The geographic impact is primarily centered around NIH facilities, though remote support may also be utilized. The contract supports a professional workforce, potentially including scientists, researchers, and administrative staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Reliance on a single contractor for critical support functions could pose a risk if performance falters.

Positive Signals

Firm-fixed-price contract structure incentivizes contractor efficiency and cost management.
Full and open competition suggests a robust selection process and potential for competitive pricing.
Award to an established provider like Kelly Services, Inc. may indicate a track record of reliability.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, a broad category encompassing consulting, research, and specialized technical support. The market for these services is highly competitive, with numerous firms offering expertise across various scientific disciplines. Spending in this sector by federal agencies like NIH is substantial, supporting critical research, development, and operational functions.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Kelly Services, Inc., is likely a large business. There is no explicit information on subcontracting plans for small businesses within this specific award, but large prime contractors are often encouraged or required to utilize small businesses for a portion of their work on larger contracts.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers at the National Institutes of Health. Performance monitoring, adherence to contract terms, and quality of services delivered would be key areas of focus. Transparency is generally maintained through contract databases and reporting requirements, though specific internal oversight mechanisms are not detailed here.

Related Government Programs

Scientific and Technical Consulting Services
Professional and Management Support Services
Research and Development Support Services
Health Services Support Contracts

Risk Flags

Potential for cost overruns if scope is not managed.
Risk of service quality degradation if contractor prioritizes profit over performance.
Dependence on a single contractor for critical support functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $27.1 million to KELLY SERVICES, INC.. SCIENTIFIC, TECHNICAL AND OTHER PROFESSIONAL SUPPORT SERVICES (STOPS)

Who is the contractor on this award?

The obligated recipient is KELLY SERVICES, INC..

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 $27.1 million.

What is the period of performance?

Start: 2019-09-23. End: 2021-07-13.

What is the specific nature of the 'Other Scientific and Technical Consulting Services' provided under this contract?

The provided data categorizes this contract under NAICS code 541690, 'Other Scientific and Technical Consulting Services.' While the specific details of the services are not itemized in the summary data, this classification typically encompasses a wide range of expert advice and technical assistance. This could include areas such as laboratory support, data analysis, research methodology consultation, regulatory compliance advice, or specialized scientific project management. The National Institutes of Health (NIH), as the awarding agency, likely utilized these services to augment their internal expertise, manage complex research projects, or provide specialized technical support for their scientific mission.

How does the $27 million award compare to typical spending on similar support services at NIH?

The $27 million award represents a significant investment in scientific and technical support services. To benchmark this effectively, one would need to compare it against historical spending patterns for similar service categories (e.g., NAICS 541690 or related professional services) at NIH and other health-focused federal agencies. Factors such as contract duration (659 days), the specific scope of work, and the number of bidders would influence the 'typical' cost. Without access to a broader dataset of comparable contracts, it's challenging to definitively state if this award is high or low. However, given the substantial value, it suggests a critical and ongoing need for these specialized external capabilities within NIH's operations.

What are the potential risks associated with a firm-fixed-price contract of this magnitude?

Firm-fixed-price (FFP) contracts, while generally favorable for cost certainty, do carry potential risks, especially for large-value awards. A primary risk is that the contractor might cut corners on quality or service delivery to maximize profit if the initial price was set too low or if unforeseen challenges arise. Conversely, if the initial price was set too high due to inadequate market research or overly conservative contractor bidding, taxpayers could overpay. For the government, managing scope creep is crucial; any expansion of work beyond the original agreement requires careful negotiation and potential contract modification, which can negate some of the FFP benefits. Ensuring clear performance metrics and robust oversight is vital to mitigate these risks.

What does the 'delivery order' designation imply about the contract's structure?

The 'delivery order' (aw: DELIVERY ORDER) designation indicates that this contract was likely issued under a larger, pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar multiple-award framework. IDIQ contracts allow agencies to procure services or supplies over a period of time, with specific quantities and delivery schedules defined by individual orders placed against the contract. This approach provides flexibility for the agency to order services as needed. Therefore, the $27 million represents the total value of this specific delivery order, not necessarily the total value of the underlying IDIQ contract, which could be significantly larger and potentially awarded to multiple contractors.

What is Kelly Services, Inc.'s track record in securing and performing federal contracts, particularly with NIH?

Kelly Services, Inc. is a large, well-established global staffing and HR services company. Their track record in the federal contracting space is extensive, often providing temporary staffing, professional services, and workforce solutions across various government agencies. While this specific data point highlights a significant award from NIH, Kelly Services likely holds numerous other federal contracts. A deeper analysis would involve examining their past performance ratings, any past performance issues or disputes, and their success rate in winning competitive bids within the scientific and technical support domain. Their long-standing presence suggests a capacity to manage large contracts and meet government requirements.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HHSNIHNIDASOL2018231

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 999 W BIG BEAVER RD, TROY, MI, 48084

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

Financial Breakdown

Contract Ceiling: $27,090,914

Exercised Options: $27,090,914

Current Obligation: $27,090,914

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75N95018D00012

IDV Type: IDC

Timeline