HHS awards $6.8M for scientific consulting, with a 5-year duration and firm fixed-price contract

Contract Overview

Contract Amount: $6,820,249 ($6.8M)

Contractor: Kelly Services, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2021-07-07

End Date: 2026-05-12

Contract Duration: 1,770 days

Daily Burn Rate: $3.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SOAR-D12-04756 KELLY -- TASK ORDER # 487

Place of Performance

Location: TROY, OAKLAND County, MICHIGAN, 48084

State: Michigan Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $6.8 million to KELLY SERVICES, INC. for work described as: SOAR-D12-04756 KELLY -- TASK ORDER # 487 Key points: 1. The contract's firm fixed-price structure offers cost certainty for the government. 2. A 5-year performance period suggests a need for sustained support in scientific consulting. 3. The award to Kelly Services, Inc. indicates a specific capability match for NIH's requirements. 4. The 'Other Scientific and Technical Consulting Services' NAICS code points to a broad range of potential support activities. 5. The contract's value, while significant, needs benchmarking against similar NIH procurements for a full value assessment.

Value Assessment

Rating: fair

The contract value of approximately $6.8 million over nearly five years averages to about $1.4 million annually. Without specific details on the services rendered, it is difficult to benchmark this against similar contracts. However, the firm fixed-price nature suggests an attempt to control costs. Further analysis would require understanding the scope of work and comparing it to the average cost of similar consulting services procured by NIH or other agencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is generally expected to yield fair market prices and encourage innovation. The presence of only one bid (no: 1) is noted, which warrants further investigation into the reasons for limited participation despite the open competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces. However, a single bid in such a scenario might suggest that the government did not receive the full benefit of a robust competitive environment.

Public Impact

The National Institutes of Health (NIH) is the primary beneficiary, receiving specialized scientific consulting services. The services delivered are categorized under 'Other Scientific and Technical Consulting Services,' implying a wide range of potential support for research and development initiatives. The contract is managed by the NIH, suggesting a focus on supporting federal health and biomedical research efforts. The geographic impact is likely concentrated around NIH facilities, though the nature of consulting could involve remote work or travel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition despite full and open award (only 1 bid).
Lack of detailed service description makes value assessment difficult.
Potential for contractor lock-in if follow-on work is required.

Positive Signals

Firm fixed-price contract provides cost predictability.
Long-term duration (nearly 5 years) allows for sustained support.
Awarded under full and open competition, theoretically promoting market fairness.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically consulting. This sector is a significant part of federal spending, supporting various agencies' missions. The NAICS code 541690, 'Other Scientific and Technical Consulting Services,' is broad and can encompass a wide array of specialized expertise. Benchmarking this contract's value would involve comparing it to other consulting services procured by health-focused agencies like NIH, considering the specific nature of the scientific expertise required.

Small Business Impact

The data indicates that small business participation (sb: false) was not a specific set-aside requirement for this contract. There is no explicit information on subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal unless Kelly Services, Inc. voluntarily engages small businesses in their subcontracting efforts.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the National Institutes of Health (NIH). As a delivery order under a larger contract vehicle, the initial award process and ongoing performance monitoring are subject to federal acquisition regulations. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

NIH Research Support Contracts
Scientific and Technical Consulting Services
Federal Health IT Consulting
Biomedical Research Support

Risk Flags

Limited competition despite full and open award.
Lack of detailed service scope hinders value assessment.
Potential for cost overruns or quality issues in FFP contracts for complex services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $6.8 million to KELLY SERVICES, INC.. SOAR-D12-04756 KELLY -- TASK ORDER # 487

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 $6.8 million.

What is the period of performance?

Start: 2021-07-07. End: 2026-05-12.

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

The provided data classifies this contract under NAICS code 541690, 'Other Scientific and Technical Consulting Services.' This is a broad category that can include a wide range of specialized expertise, such as scientific research support, technical analysis, program management consulting, and advisory services related to scientific endeavors. Without further details from the contract's statement of work, the precise nature of the services remains unspecified. However, given the awarding agency is the National Institutes of Health (NIH), it is highly probable that the services are directly related to supporting biomedical research, public health initiatives, or the operational aspects of scientific research programs.

How does the $6.8 million contract value compare to similar scientific consulting contracts at NIH?

Benchmarking the $6.8 million contract value requires access to detailed spending data for comparable contracts at the National Institutes of Health (NIH). The average annual value of this contract is approximately $1.4 million over its 5-year term. To assess value for money, this figure should be compared against contracts for similar scientific and technical consulting services, considering factors like the specific expertise required, the duration, and the complexity of the tasks. Without specific comparable contract data, it's challenging to definitively state whether this represents excellent, fair, or questionable value. However, the firm fixed-price nature suggests an effort to establish a predictable cost ceiling.

What are the potential risks associated with a firm fixed-price contract for scientific consulting?

Firm fixed-price (FFP) contracts, while offering cost certainty to the government, can present risks, especially in complex scientific consulting. One primary risk is that the contractor may cut corners on quality or scope to maintain profitability if unforeseen challenges arise or if the initial cost estimates were too low. Conversely, if the contractor significantly underestimates costs, they may seek to renegotiate or face financial distress. For the government, the risk lies in potentially paying a premium for services if the contractor's initial pricing was conservative to account for uncertainties. Effective oversight is crucial to ensure the contractor delivers the full scope and quality of services agreed upon.

What does the fact that only one bid was received under 'full and open competition' imply?

Receiving only one bid under a 'full and open competition' solicitation is unusual and can imply several things. It might suggest that the requirements were highly specialized, deterring many potential bidders. Alternatively, the solicitation's terms, evaluation criteria, or the estimated value might not have been attractive enough to elicit broader interest. It could also indicate a lack of market awareness or insufficient outreach by the agency. From a taxpayer perspective, this limited competition raises concerns about whether the government secured the best possible price and solution, as the full benefits of a robust competitive environment may not have been realized. Further investigation into the solicitation process and market research would be beneficial.

What is the historical spending trend for 'Other Scientific and Technical Consulting Services' at NIH?

Analyzing historical spending trends for 'Other Scientific and Technical Consulting Services' (NAICS 541690) at the National Institutes of Health (NIH) requires access to comprehensive federal procurement databases. Generally, spending in this category can fluctuate based on agency priorities, research funding cycles, and the need for specialized external expertise. An upward trend might indicate increasing reliance on external consultants for scientific support, while a downward trend could suggest a shift towards in-house capabilities or reduced research funding. Understanding these patterns provides context for the current award and helps forecast future spending needs in this service area.

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: $6,820,249

Exercised Options: $6,820,249

Current Obligation: $6,820,249

Actual Outlays: $3,397,029

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