HHS awards $6.6M contract for scientific consulting services to Kelly Services, Inc

Contract Overview

Contract Amount: $6,619,824 ($6.6M)

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: $3.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SOAR-D12-04714 KELLY -- TASK ORDER # 485

Place of Performance

Location: TROY, OAKLAND County, MICHIGAN, 48084

State: Michigan Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $6.6 million to KELLY SERVICES, INC. for work described as: SOAR-D12-04714 KELLY -- TASK ORDER # 485 Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of approximately 5 years provides a stable period for service delivery. 3. The firm-fixed-price contract type shifts performance risk to the contractor. 4. The services fall under 'Other Scientific and Technical Consulting Services,' a broad category. 5. The awardee, Kelly Services, Inc., is a large business, with no small business set-aside indicated. 6. The contract is a delivery order under a larger contract vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the underlying contract vehicle's terms and the specific services rendered. However, the total award amount of $6.6 million over nearly five years suggests a moderate annual spend. Without comparable task orders for similar scientific consulting services, it's difficult to definitively assess if this represents excellent value for money. The firm-fixed-price structure implies that the contractor is responsible for cost overruns, which can be a positive indicator of value if the price was set competitively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This typically leads to a more robust price discovery process and potentially better pricing for the government. The number of bidders is not specified, but the designation implies a competitive environment was sought and achieved.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received.

Public Impact

The primary beneficiaries are likely the various research initiatives and programs within the National Institutes of Health (NIH) that require specialized scientific and technical consulting. Services delivered will support the NIH's mission in advancing scientific knowledge and improving human health. The geographic impact is primarily within the United States, supporting federal research efforts. Workforce implications may include the engagement of specialized consultants, potentially augmenting government staff capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the services rendered makes it difficult to assess the true value and necessity of the consulting.
The broad NAICS code (541690) for 'Other Scientific and Technical Consulting Services' could encompass a wide range of activities, making precise performance evaluation challenging.
The duration of the contract (nearly 5 years) could lead to vendor lock-in if not managed carefully.
Reliance on external consultants may not build long-term internal capacity for the agency.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should yield fair pricing.
Firm-fixed-price contract type transfers cost risk to the contractor.
The contract provides a defined period for essential scientific support services.
The awardee, Kelly Services, Inc., is an established provider of staffing and consulting services.

Sector Analysis

The scientific and technical consulting services sector is a significant component of the broader professional services market. Federal agencies, particularly those involved in research and development like NIH, frequently procure these services to supplement in-house expertise. Spending in this category can fluctuate based on research priorities and funding levels. Comparable spending benchmarks would require analysis of other NIH contracts for similar consulting services or broader federal IT and professional services spending data.

Small Business Impact

This contract was not awarded as a small business set-aside, and the prime contractor, Kelly Services, Inc., is a large business. There is no explicit information provided regarding subcontracting plans or goals for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award appears minimal, though subcontracting opportunities may arise depending on Kelly Services' approach.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting officer and program managers within the National Institutes of Health. Accountability measures are inherent in the firm-fixed-price contract type, which requires the contractor to deliver specified services within the agreed-upon price. Transparency is generally facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

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

Risk Flags

Potential for scope creep given the broad service category.
Performance variability inherent in consulting services.
Long contract duration may not adapt to rapidly changing scientific needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $6.6 million to KELLY SERVICES, INC.. SOAR-D12-04714 KELLY -- TASK ORDER # 485

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 $6.6 million.

What is the period of performance?

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

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

The provided data indicates the contract falls under NAICS code 541690, 'Other Scientific and Technical Consulting Services.' However, the specific nature of the consulting services is not detailed in the abbreviated data. These services could range widely, potentially including support for research design, data analysis, regulatory compliance, scientific program management, or technical advisory roles for various NIH institutes and centers. A deeper dive into the contract's statement of work would be necessary to understand the precise deliverables and expertise required from Kelly Services, Inc.

How does the $6.6 million award compare to other similar consulting contracts awarded by NIH or other federal agencies?

Direct comparison is difficult without knowing the specific services and duration. However, $6.6 million over nearly five years averages to approximately $1.32 million per year. This is a moderate-sized award for consulting services within a large agency like HHS/NIH. Many federal agencies award consulting contracts ranging from hundreds of thousands to tens of millions of dollars annually, depending on the scope and complexity. To benchmark effectively, one would need to identify contracts with similar NAICS codes, service descriptions, and agency missions, and then compare total award values, annual spending, and pricing structures.

What is Kelly Services, Inc.'s track record with the federal government, particularly with HHS/NIH?

Kelly Services, Inc. is a large, established company that frequently contracts with the federal government. While the provided data confirms they received this specific delivery order from NIH, a comprehensive track record analysis would involve reviewing their past performance on other federal contracts. This includes examining contract history for performance ratings, any past disputes or terminations, and the types and values of services previously provided to various agencies. Their history suggests they are capable of handling federal requirements, but specific performance on similar scientific consulting tasks would be a key indicator.

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

Potential risks include scope creep, contractor underperformance, or the services not aligning with evolving scientific needs. Mitigation strategies are embedded in the contract type and oversight. The firm-fixed-price nature shifts financial risk to the contractor. The government's mitigation involves clear performance standards in the statement of work, regular progress reviews by contracting officers and program managers, and the potential for contract modifications or termination for cause if performance is unsatisfactory. The multi-year duration also presents a risk of the services becoming outdated if not actively managed.

How does this contract fit into the broader landscape of federal spending on scientific and technical consulting services?

This contract represents a small fraction of the overall federal spending on scientific and technical consulting. Agencies like HHS, DOD, and agencies involved in R&D (e.g., NASA, DOE) are major consumers of these services. Federal spending in this area often supports specialized research, program management, technical analysis, and advisory functions that government personnel may not possess internally or have the capacity to perform. This award to Kelly Services aligns with the government's strategy of leveraging external expertise to achieve specific scientific and technical objectives efficiently.

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: $6,619,824

Exercised Options: $6,619,824

Current Obligation: $6,619,824

Actual Outlays: $3,130,662

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