HHS awards $17.2M for scientific consulting services to Kelly Services, Inc

Contract Overview

Contract Amount: $17,246,077 ($17.2M)

Contractor: Kelly Services, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2021-07-07

End Date: 2026-09-24

Contract Duration: 1,905 days

Daily Burn Rate: $9.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SOAR-D12-04533 KELLY -- TASK ORDER # 462

Place of Performance

Location: TROY, OAKLAND County, MICHIGAN, 48084

State: Michigan Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $17.2 million to KELLY SERVICES, INC. for work described as: SOAR-D12-04533 KELLY -- TASK ORDER # 462 Key points: 1. Value for money appears fair given the firm-fixed-price contract type, though detailed performance metrics are needed for a full assessment. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Risk indicators are moderate, with a long performance period and a single awardee for this task order. 4. Performance context is within scientific and technical consulting, a broad category with varying service needs. 5. The contract positions Kelly Services within the broader federal IT and professional services sector.

Value Assessment

Rating: fair

The contract's value of $17.2 million over approximately four years for scientific consulting services requires further benchmarking against similar contracts. The firm-fixed-price structure provides cost certainty for the government. However, without specific details on the services rendered and their impact, a definitive value-for-money assessment is challenging. Comparisons to other federal contracts for similar consulting services would be necessary to determine if the pricing is competitive.

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 number of bidders is not specified, but the competitive nature of the award process generally supports price discovery and potentially more favorable pricing for the government. The agency's approach to competition suggests a commitment to leveraging the market.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that can drive down costs and improve service quality.

Public Impact

The National Institutes of Health (NIH) benefits from specialized scientific and technical consulting services. Services delivered likely support research, development, or administrative functions within NIH. The geographic impact is primarily within the scope of NIH operations, likely centered around its facilities. Workforce implications may involve specialized consultants contributing to scientific endeavors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 4 years) could lead to scope creep or evolving needs not fully captured in initial pricing.
Lack of specific performance metrics makes it difficult to assess the true value and impact of the services.
Reliance on a single awardee for this task order, even if competed broadly, concentrates risk.
The broad nature of 'Other Scientific and Technical Consulting Services' can sometimes obscure the specific value delivered.

Positive Signals

Awarded under full and open competition, suggesting a robust and fair bidding process.
Firm-fixed-price contract type provides cost certainty for the government.
Kelly Services, Inc. is an established provider of staffing and consulting services.
The contract supports critical scientific endeavors within the National Institutes of Health.

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 expertise, from research and development support to management consulting. Federal spending in this area often supports agency missions that require specialized knowledge not available in-house. Benchmarking would involve comparing this contract's value and scope to other federal contracts for similar consulting services, particularly those awarded by agencies like HHS.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary impact on the small business ecosystem would be through indirect competition or potential subcontracting opportunities if Kelly Services, Inc. chooses to engage small businesses for specific tasks, which is not explicitly stated in the provided data.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) at NIH, responsible for monitoring performance and ensuring compliance with contract terms. Accountability measures are inherent in the firm-fixed-price structure, requiring delivery of specified services. Transparency is facilitated by federal contract databases, though detailed performance reports are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

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

Risk Flags

Long contract duration may increase risk of scope creep or price misalignment.
Broad service category ('Other Scientific and Technical Consulting Services') requires further definition for precise value assessment.
Lack of specific performance metrics in summary data hinders detailed value-for-money analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $17.2 million to KELLY SERVICES, INC.. SOAR-D12-04533 KELLY -- TASK ORDER # 462

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 $17.2 million.

What is the period of performance?

Start: 2021-07-07. End: 2026-09-24.

What specific scientific and technical consulting services are being provided under this task order?

The provided data classifies the contract under NAICS code 541690, 'Other Scientific and Technical Consulting Services.' This is a broad category that can encompass a wide array of specialized support. Without further details from the contract's statement of work, it is difficult to ascertain the precise nature of the services. These could range from laboratory support, data analysis, research methodology consultation, regulatory compliance advice, to technical program management. The National Institutes of Health (NIH), the awarding agency, funds a vast amount of biomedical research, suggesting the consulting services likely support these scientific endeavors in some capacity, potentially aiding in research design, data interpretation, or the management of research projects.

How does the $17.2 million award compare to typical spending on similar consulting services by NIH or other federal agencies?

Benchmarking the $17.2 million award requires comparing it to similar contracts for 'Other Scientific and Technical Consulting Services' awarded by the National Institutes of Health (NIH) or other federal agencies over a comparable period (approximately four years). Federal procurement data can reveal average contract values for this NAICS code. Given the broad nature of the service category, direct comparisons are challenging without knowing the specific deliverables. However, for context, federal agencies collectively spend billions annually on professional, scientific, and technical services. A $17.2 million award over four years, averaging around $4.3 million per year, is a substantial but not necessarily outlier amount for specialized consulting supporting a large research institution like NIH. Further analysis would involve examining the number of bidders, contract duration, and specific service scope of comparable contracts.

What is Kelly Services, Inc.'s track record with federal contracts, particularly within the Department of Health and Human Services?

Kelly Services, Inc. is a large, well-established global staffing and workforce solutions company. Their track record with federal contracts is extensive, encompassing numerous awards across various agencies. Within the Department of Health and Human Services (HHS) and its sub-agencies like the National Institutes of Health (NIH), Kelly Services has likely secured contracts for staffing, temporary services, and potentially specialized consulting. A review of federal procurement databases would detail the specific types, values, and performance history of their past awards. Their long-standing presence suggests a capacity to meet federal requirements, though the performance quality on any given contract can vary and is best assessed through specific contract performance reports or past performance evaluations, which are not publicly detailed in this summary data.

What are the potential risks associated with a firm-fixed-price contract of this duration for consulting services?

Firm-fixed-price (FFP) contracts aim to provide cost certainty for the government. However, for long-duration consulting services, risks can emerge. One primary risk is that the initial fixed price may not accurately reflect the evolving needs or complexities of the services over the contract's lifespan (1905 days, approx. 4+ years). If the scope of work changes significantly, the government might be locked into a price that no longer represents fair value, or conversely, the contractor may face challenges in delivering the required services within the fixed budget if unforeseen issues arise. Another risk is contractor complacency or reduced incentive to innovate once the price is set, although performance clauses can mitigate this. Ensuring a well-defined initial scope and incorporating mechanisms for equitable adjustments if scope changes are crucial for mitigating FFP risks on longer contracts.

How does the 'Other Scientific and Technical Consulting Services' category differ from more specific consulting categories, and what does this imply for analysis?

The NAICS code 541690, 'Other Scientific and Technical Consulting Services,' is a residual category used when a company's primary business activity does not fit into more specific scientific or technical consulting codes (e.g., environmental consulting, engineering services, IT consulting). This broad classification implies that the services provided under this contract could be highly varied. For analytical purposes, this lack of specificity presents a challenge. It means that direct comparisons to narrowly defined consulting services might be less accurate. To gain a clearer understanding, one would need to examine the contract's statement of work to identify the precise nature of the consulting provided. This category often includes support for specialized research, niche technical advice, or services that blend scientific expertise with administrative or program management functions, making detailed benchmarking more complex.

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: $17,246,077

Exercised Options: $17,246,077

Current Obligation: $17,246,077

Actual Outlays: $8,294,200

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