HHS awards $12.45M for scientific support services, with NIH utilizing a firm-fixed-price delivery order

Contract Overview

Contract Amount: $12,450,255 ($12.5M)

Contractor: Kelly Services, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2020-03-30

End Date: 2021-07-13

Contract Duration: 470 days

Daily Burn Rate: $26.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

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

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $12.5 million to KELLY SERVICES, INC. for work described as: SCIENTIFIC, TECHNICAL AND OTHER PROFESSIONAL SUPPORT SERVICES (STOPS) Key points: 1. The contract was awarded under a firm-fixed-price structure, which shifts cost risk to the contractor. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The contract duration of 470 days indicates a medium-term need for these services. 4. The primary agency, HHS, and its sub-agency NIH, are significant players in federal scientific procurement. 5. The North American Industry Classification System (NAICS) code 541690 points to specialized consulting services. 6. The award amount of over $12 million warrants scrutiny for value and performance. 7. The absence of small business set-aside flags suggests this was not specifically targeted for small business participation.

Value Assessment

Rating: good

The contract's firm-fixed-price nature is generally favorable for the government, locking in costs. Benchmarking against similar 'Other Scientific and Technical Consulting Services' contracts would provide a clearer picture of value. Given the $12.45 million award, a detailed cost-benefit analysis is recommended to ensure optimal resource utilization. The contract's duration and scope will influence its overall value proposition.

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 a bid. The specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open nature of the competition suggests that the government sought the best value from the widest possible pool of qualified contractors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a robust bidding process, ensuring that the government receives competitive pricing and high-quality services.

Public Impact

The primary beneficiaries are likely the researchers and scientific programs within the National Institutes of Health (NIH) that require specialized support services. Services delivered include scientific, technical, and other professional support, crucial for advancing medical research and public health initiatives. The geographic impact is primarily centered around the National Institutes of Health facilities, likely in Maryland (ST), but could extend to other research sites. Workforce implications may involve the direct employment of scientific and technical personnel by the contractor, Kelly Services, Inc., to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific bidder count for full and open competition makes it difficult to assess the true level of competition and its impact on pricing.
The 'Other Scientific and Technical Consulting Services' category is broad; the specific nature of the support required needs further clarification to assess value.
Performance metrics and quality assurance details are not provided, making it challenging to evaluate the contractor's track record on this specific award.
The contract was a delivery order, implying it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, which could have its own set of oversight considerations.

Positive Signals

The use of a firm-fixed-price contract structure is a positive signal, as it transfers cost overrun risks to the contractor.
Awarding under full and open competition suggests an effort to leverage market forces for the best possible outcome.
The contracting agency, NIH, is a reputable institution with established procurement processes for scientific services.
The contract duration of 470 days allows for a reasonable period to assess performance and impact.

Sector Analysis

The contract falls under the 'Other Scientific and Technical Consulting Services' sector, a broad category encompassing specialized expertise provided to government agencies. This sector is vital for supporting complex government missions, particularly in research and development, healthcare, and technology. Federal spending in this area is substantial, reflecting the government's reliance on external expertise to supplement its internal capabilities. Comparable spending benchmarks would involve analyzing other contracts for similar scientific and technical support services across various federal agencies.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside (SB: false). Furthermore, there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary focus was on securing the necessary scientific and technical support services through the most competitive means available, rather than specifically targeting small business participation. The impact on the small business ecosystem would depend on whether Kelly Services, Inc. utilizes small businesses as subcontractors, which is not detailed in the provided information.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services (HHS) and the National Institutes of Health (NIH). As a delivery order, it likely falls under a larger contract vehicle with its own oversight mechanisms. Accountability measures would be tied to the contract's performance clauses and the firm-fixed-price structure, which incentivizes the contractor to meet defined deliverables within the agreed-upon cost. Transparency is generally facilitated through federal procurement databases, though specific performance details may be less publicly accessible.

Related Government Programs

Scientific and Technical Consulting Services
Research and Development Support
Healthcare Services Procurement
Federal Agency Support Contracts
National Institutes of Health Contracts

Risk Flags

Potential for cost overruns if scope is not well-defined (though mitigated by FFP).
Risk of contractor prioritizing profit over quality if performance is not closely monitored.
Dependence on contractor's ability to source and retain qualified scientific personnel.
Potential for scope creep if requirements are not managed tightly.
Limited insight into specific performance metrics and outcomes from provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $12.5 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 $12.5 million.

What is the period of performance?

Start: 2020-03-30. 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 award details specify the contractor (Kelly Services, Inc.), the agency (HHS/NIH), and the contract type (firm-fixed-price delivery order), the precise services rendered are not explicitly defined. Typically, this category encompasses a wide range of specialized expertise, such as laboratory support, data analysis, research assistance, technical writing, program management support, and regulatory consulting. To understand the full scope, one would need to examine the contract's statement of work (SOW) or task order details, which would outline the specific scientific and technical challenges the contractor is expected to address for the NIH.

How does the $12.45 million award compare to similar contracts for scientific support services at NIH?

Benchmarking the $12.45 million award requires comparing it against historical contracts for similar 'Other Scientific and Technical Consulting Services' awarded by the National Institutes of Health (NIH) or other agencies within the Department of Health and Human Services (HHS). Without access to a detailed contract database that allows for granular comparison based on service type, duration, and scope, a precise comparison is difficult. However, $12.45 million for a 470-day contract (approximately 1.3 years) suggests a significant engagement. Factors such as the level of expertise required, the number of personnel involved, and the criticality of the research supported would influence the 'fairness' of the price. A review of contracts with similar NAICS codes and agency focus would be necessary to determine if this award represents a competitive market rate.

What are the key risks associated with this firm-fixed-price contract for the government?

While firm-fixed-price (FFP) contracts are generally favored by the government for cost control, there are still potential risks. The primary risk for the government with an FFP contract is that the contractor may prioritize profit over quality if not adequately monitored. If the contractor underestimates the effort required or encounters unforeseen challenges, they might cut corners to maintain their profit margin, potentially impacting the quality or timeliness of the scientific support services. Another risk is that the contractor may not have sufficient incentive to propose innovative solutions or efficiencies beyond what is strictly required by the contract, as their profit is fixed. Robust performance monitoring and clear acceptance criteria are crucial to mitigate these risks and ensure the government receives the intended value.

What is Kelly Services, Inc.'s track record in performing federal contracts, particularly for scientific support?

Kelly Services, Inc. is a large staffing and workforce solutions company that frequently engages in federal contracting. Their track record typically involves providing personnel and support services across various sectors. For scientific and technical support, their experience would likely involve sourcing and managing qualified personnel to meet specific agency needs, as indicated by this NIH contract. A comprehensive assessment of their track record would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), the number and types of federal contracts they have held, their success rate in recompetes, and any past performance issues or disputes. Given their size, they likely have experience with various contract types and agencies, but specific performance on NIH scientific support contracts would be the most relevant indicator.

How does the duration of 470 days impact the assessment of this contract's value and performance?

The contract duration of 470 days (approximately 1 year and 3.5 months) is a moderate timeframe for a federal contract of this value ($12.45 million). This duration allows for a substantial period to implement and assess the scientific support services. For the government, it provides enough time to evaluate the contractor's performance, the effectiveness of the support provided, and the overall value for money. It's long enough to establish a working relationship and see tangible results but not so long that it becomes difficult to manage or adapt to changing requirements. From a contractor's perspective, it offers a stable revenue stream. The assessment of value is intrinsically linked to the successful completion of tasks within this timeframe, meeting quality standards, and staying within the fixed price.

What does the absence of small business subcontracting requirements imply for this contract?

The absence of explicit small business subcontracting requirements in the provided data suggests that this contract was not specifically structured to promote small business participation through subcontracting. While Kelly Services, Inc. is a large business, they may still choose to subcontract portions of the work to small businesses as part of their standard business practices or if specific expertise is needed. However, without a formal requirement, there is no guarantee. This implies that the primary driver for this contract award was likely the full and open competition seeking the best overall solution, rather than a specific mandate to foster small business growth via subcontracting opportunities on this particular award. Taxpayers benefit from the core competition, but potential opportunities for small businesses might be less structured.

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

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: $12,450,255

Exercised Options: $12,450,255

Current Obligation: $12,450,255

Actual Outlays: $38,177

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