NIH awards $18M for scientific, operations, and administrative resources to Kelly Services, Inc

Contract Overview

Contract Amount: $18,018,845 ($18.0M)

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: $8.3K/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 # 460 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 $18.0 million to KELLY SERVICES, INC. for work described as: SOAR-D12-KELLY -- TASK ORDER # 460 SCIENTIFIC, OPERATIONS, AND ADMINISTRATIVE RESOURCES (SOAR) TO THE NIH Key points: 1. Contract value of $18M over approximately 6 years suggests a moderate annual spend. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. Competition was full and open, indicating a potentially competitive bidding process. 4. The North American Industry Classification System (NAICS) code 541690 points to specialized consulting services. 5. The contract is a delivery order under a larger task order, implying it's part of an existing framework. 6. The contract duration of 2174 days (approx. 6 years) allows for long-term resource planning. 7. The small business set-aside flag is false, suggesting no specific preference for small businesses in this award.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more granular data on the specific services provided. However, an average annual spend of approximately $3 million for scientific, operations, and administrative support services appears within a reasonable range for a federal agency of the NIH's size. Without specific performance metrics or comparisons to similar contracts for identical services, a definitive value-for-money assessment is challenging. The firm fixed-price structure is generally favorable for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The number of bidders is not specified, but this approach generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open competition suggests that the agency sought the best value proposition from the market.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages a wider range of providers to compete, potentially driving down costs and improving the quality of services received.

Public Impact

The National Institutes of Health (NIH) benefits from this contract by securing essential scientific, operational, and administrative support. Services delivered likely include research support, administrative assistance, and operational management crucial for NIH's mission. The geographic impact is primarily centered around the NIH's facilities, likely in Maryland and potentially other research sites. Workforce implications include the potential for employment opportunities for individuals with scientific, administrative, and operational expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the contractor's effectiveness.
The broad nature of 'scientific, operations, and administrative resources' could lead to scope creep if not managed tightly.
Reliance on a single delivery order under a task order might indicate a need for specialized, long-term support that could be difficult to re-compete.

Positive Signals

Firm Fixed Price contract type helps control costs and provides budget certainty.
Full and open competition suggests a robust selection process aimed at achieving best value.
The contract duration allows for stable support, reducing disruption and transition costs.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically consulting services. This sector is a significant component of federal spending, supporting various agency functions from research and development to administrative operations. The NIH, as a leading biomedical research agency, relies heavily on such services to augment its internal capabilities and manage complex projects. Comparable spending benchmarks would typically involve analyzing other contracts for similar support services across federal health and research agencies.

Small Business Impact

The contract was not awarded as a small business set-aside, nor does it indicate specific subcontracting goals for small businesses. This suggests that the primary competition was not focused on maximizing small business participation. While Kelly Services, Inc. may engage small businesses as subcontractors, the contract structure itself does not prioritize their involvement, potentially limiting opportunities for smaller firms in this specific award.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program managers at the National Institutes of Health. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is generally maintained through federal procurement databases, though specific performance reviews and audits may not be publicly disclosed. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Scientific and Technical Consulting Services
Administrative Support Services
Research and Development Support
Federal Task Order Contracts
Health and Human Services Contracts

Risk Flags

Potential for scope creep due to broad service description.
Performance variability inherent in long-term service contracts.
Reliance on a single task order framework.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $18.0 million to KELLY SERVICES, INC.. SOAR-D12-KELLY -- TASK ORDER # 460 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 $18.0 million.

What is the period of performance?

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

What is the historical spending pattern for scientific, operations, and administrative resources at NIH?

Analyzing historical spending patterns for similar services at the NIH is crucial for context. While this specific contract is for approximately $18 million over six years, understanding the NIH's overall budget allocation for support services provides a broader perspective. Federal procurement data indicates that agencies like NIH consistently award significant contracts for scientific, technical, and administrative support to manage their extensive research portfolios and operational needs. Past spending trends would reveal whether this contract represents an increase, decrease, or stable level of investment in such services. Without access to detailed historical data specific to this task order or similar service categories, it's difficult to pinpoint precise trends, but the NIH's mission inherently requires substantial support services.

How does the pricing of this contract compare to similar services procured by other federal agencies?

Benchmarking the pricing of this contract against similar services procured by other federal agencies is challenging without specific details on the exact services rendered and their associated labor categories or deliverables. The total award of $18 million over approximately six years translates to an average annual spend of $3 million. This figure needs to be evaluated in the context of the specific tasks performed. Firm Fixed Price contracts aim for predictable costs, but the underlying rates and efficiency can vary. A comprehensive comparison would require analyzing contracts with similar NAICS codes (541690) and service scopes across agencies like HHS, NSF, or DOD, considering factors like geographic location, labor mix, and required expertise to determine if the pricing is competitive.

What are the key performance indicators (KPIs) used to evaluate Kelly Services, Inc.'s performance under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, for a contract encompassing 'Scientific, Operations, and Administrative Resources,' typical KPIs would likely include metrics related to service delivery timeliness, accuracy of administrative support, quality of scientific assistance (e.g., adherence to protocols, data integrity), responsiveness to requests, and overall client satisfaction. The effectiveness of these KPIs would be assessed through regular performance reviews, reporting requirements stipulated in the contract, and potentially through user feedback mechanisms within the NIH. The absence of publicly available KPIs makes a detailed assessment of contractor performance difficult.

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

Kelly Services, Inc. is a large, established workforce solutions company with a significant history of performing contracts for the federal government across various agencies and service types. Their track record typically involves providing staffing, administrative support, and specialized professional services. Publicly available contract databases often show numerous awards to Kelly Services for similar functions, including support services for scientific and administrative operations. While specific performance ratings for individual contracts are not always public, their continued success in winning federal bids suggests a generally positive history of meeting contractual obligations. A deeper dive into specific past performance evaluations would be necessary for a comprehensive assessment.

What are the potential risks associated with this contract, and how are they being mitigated?

Potential risks for this contract include scope creep, where the services requested expand beyond the original agreement, potentially leading to cost overruns or delays, although the Firm Fixed Price structure mitigates direct cost overrun risk for the government. Another risk is the potential for contractor performance issues, where Kelly Services may not meet the required service levels. Mitigation strategies typically involve clear contract language, defined deliverables, robust oversight by NIH program managers, regular performance reviews, and established procedures for addressing issues. The long duration also presents a risk of evolving needs not being fully met by the initial contract scope.

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: $18,018,845

Exercised Options: $18,018,845

Current Obligation: $18,018,845

Actual Outlays: $8,101,999

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