NIH awards $9.4M task order for scientific, operations, and administrative resources to Kelly Services, Inc

Contract Overview

Contract Amount: $9,377,631 ($9.4M)

Contractor: Kelly Services, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2021-07-07

End Date: 2027-06-20

Contract Duration: 2,174 days

Daily Burn Rate: $4.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SOAR-D12-KELLY -- TASK ORDER # 448 SCIENTIFIC, OPERATIONS, AND ADMINISTRATIVE RESOURCES (SOAR) TO THE NIH

Place of Performance

Location: TROY, OAKLAND County, MICHIGAN, 48084

State: Michigan Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $9.4 million to KELLY SERVICES, INC. for work described as: SOAR-D12-KELLY -- TASK ORDER # 448 SCIENTIFIC, OPERATIONS, AND ADMINISTRATIVE RESOURCES (SOAR) TO THE NIH Key points: 1. Value for money appears fair given the duration and scope of services. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. The contract duration of nearly 6 years indicates a long-term need for these services. 4. Services are categorized under 'Other Scientific and Technical Consulting Services', a broad category. 5. The contract is a delivery order under a larger contract vehicle. 6. The fixed-price contract type helps manage cost certainty for the government.

Value Assessment

Rating: fair

The total award amount of $9.4 million over approximately 5 years and 10 months suggests an average annual cost of roughly $1.6 million. Benchmarking this against similar contracts for scientific, operational, and administrative support services is challenging without more specific service details. However, the firm-fixed-price structure provides cost predictability. The contract's duration and the nature of the services imply a need for consistent support, and the price appears reasonable for sustained operational assistance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The agency likely sought to leverage the broadest possible market to ensure they received the best value.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for competitive pricing and encourages a wider range of qualified contractors to bid, potentially driving down costs and improving service quality.

Public Impact

The National Institutes of Health (NIH) benefits from consistent scientific, operational, and administrative support. Services provided likely include research support, administrative assistance, and operational management for NIH programs. The geographic impact is primarily within the agency's operational locations, likely in Maryland and other NIH facilities. Workforce implications include the provision of skilled personnel to support NIH's mission, potentially augmenting federal staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or service level agreements makes it difficult to assess performance outcomes.
The broad categorization of services ('Other Scientific and Technical Consulting Services') could mask specific areas of potential inefficiency or overspending.
Limited insight into the specific tasks performed under this task order hinders a deeper value assessment.

Positive Signals

The use of full and open competition suggests a commitment to leveraging market forces for best value.
The firm-fixed-price contract type provides cost certainty and shifts some performance risk to the contractor.
The contract's substantial duration indicates a stable, ongoing need that the contractor is expected to fulfill reliably.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, a significant area of federal spending. This sector encompasses a wide range of consulting, research, and technical support services. Federal spending in this area often supports agency missions by providing specialized expertise or augmenting workforce capacity. Comparable spending benchmarks would depend heavily on the specific nature of the scientific, operational, and administrative tasks performed, which are not detailed here.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this task order. Therefore, there are no direct subcontracting implications mandated by small business set-asides for this particular award. The prime contractor, Kelly Services, Inc., is a large business, and their subcontracting plans, if any, would be governed by the terms of the parent contract vehicle and their own business practices.

Oversight & Accountability

Oversight for this task order would typically be managed by the contracting officer and the program officials at the National Institutes of Health. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services. Transparency is facilitated by the contract award data being publicly available, though detailed performance reports or Inspector General involvement would depend on specific performance issues or audits.

Related Government Programs

NIH Research Support Contracts
Scientific and Technical Consulting Services
Administrative Support Services
Federal Professional Services Contracts

Risk Flags

Broad service category may obscure specific performance issues.
Long contract duration could lead to misalignment with evolving needs.
Lack of detailed performance metrics in public data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $9.4 million to KELLY SERVICES, INC.. SOAR-D12-KELLY -- TASK ORDER # 448 SCIENTIFIC, OPERATIONS, AND ADMINISTRATIVE RESOURCES (SOAR) TO THE NIH

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 $9.4 million.

What is the period of performance?

Start: 2021-07-07. End: 2027-06-20.

What specific scientific, operational, and administrative tasks are performed under this task order?

The provided data categorizes this task order under 'Other Scientific and Technical Consulting Services' (NAICS code 541690). While the contract title mentions 'Scientific, Operations, and Administrative Resources (SOAR)', the specific breakdown of tasks is not detailed in the provided information. Typically, such services could encompass a wide range of activities including, but not limited to, laboratory support, data management, research coordination, administrative assistance for program management, logistical support, and operational efficiency consulting. A more granular understanding of the deliverables would be necessary to fully assess the scope and value.

How does the $9.4 million award compare to similar task orders for scientific and administrative support at NIH?

Direct comparison of the $9.4 million award to similar task orders is difficult without more specific details on the scope of services and duration. However, the award spans nearly six years (July 2021 to June 2027), making the average annual value approximately $1.6 million. NIH frequently procures a variety of support services, and task orders can range significantly in value depending on complexity and duration. Given the full and open competition and fixed-price nature, this award appears to be within a reasonable range for sustained, comprehensive support services, assuming the scope aligns with agency needs.

What is the track record of Kelly Services, Inc. in performing similar federal contracts?

Kelly Services, Inc. is a large, well-established staffing and workforce solutions company with a significant history of performing federal contracts across various agencies and service categories. While specific performance details for this particular task order are not available, their extensive experience suggests a capacity to manage and deliver on contracts of this nature. Federal procurement databases often show numerous awards to Kelly Services for temporary staffing, administrative support, and specialized professional services, indicating a broad track record of engagement with the federal government.

What are the potential risks associated with a nearly six-year contract for administrative and scientific support?

A primary risk with long-duration contracts like this is the potential for scope creep or misalignment with evolving agency needs over time. If the specific tasks and requirements are not regularly reviewed and potentially re-negotiated (within contract limits), the services may become less relevant or efficient. Another risk is contractor performance degradation over time, although the fixed-price nature and competition aim to mitigate this. Furthermore, market rates for services can change significantly over six years, potentially leading to the government paying above market value if not structured with appropriate review mechanisms.

How does the 'Other Scientific and Technical Consulting Services' category impact the assessment of this contract's value?

The broad classification of 'Other Scientific and Technical Consulting Services' (NAICS 541690) presents a challenge in precisely assessing the contract's value. This category can encompass a vast array of services, from highly specialized scientific research support to general operational consulting. Without a more specific breakdown of the services rendered, it is difficult to benchmark against industry standards or determine if the pricing is optimized for the specific expertise required. This broadness necessitates a reliance on the contractor's ability to deliver as per the statement of work and the agency's oversight to ensure the services are indeed valuable and necessary.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

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: $9,377,631

Exercised Options: $9,377,631

Current Obligation: $9,377,631

Actual Outlays: $4,620,398

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75N95021D00012

IDV Type: IDC

Timeline