HHS awards $6.6M for consulting services to Kelly Services, Inc. with a 5-year duration

Contract Overview

Contract Amount: $6,634,954 ($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: $3.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SOAR-D12-04843 KELLY -- TASK ORDER # 493

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-D12-04843 KELLY -- TASK ORDER # 493 Key points: 1. The contract value of $6.6 million over five years suggests a moderate annual spend for consulting services. 2. The 'Other Scientific and Technical Consulting Services' category indicates a broad scope, potentially encompassing various expert advisory needs. 3. A firm-fixed-price contract type generally shifts risk to the contractor, which can be beneficial for predictable budgeting. 4. The contract's duration of over five years implies a need for sustained support or a long-term project. 5. The absence of small business set-aside flags suggests this contract was not specifically targeted to small businesses. 6. The award was made by the National Institutes of Health (NIH), a major component of HHS, indicating a focus on scientific and research-related consulting.

Value Assessment

Rating: fair

The contract value of approximately $1.3 million per year for consulting services appears within a reasonable range for specialized scientific and technical advisory support, especially given the duration and the awarding agency's mission. Benchmarking against similar contracts for 'Other Scientific and Technical Consulting Services' at NIH would provide a more precise value-for-money assessment. Without specific deliverables or performance metrics, it's challenging to definitively assess the efficiency of this spend.

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 offers. This suggests a competitive bidding process was utilized, which typically promotes price discovery and potentially leads to more favorable pricing for the government. The number of bidders is not specified, but the 'full and open' designation implies a robust competition was sought.

Taxpayer Impact: 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 programs and initiatives within the National Institutes of Health (NIH) that require specialized consulting expertise. The services delivered are expected to support scientific and technical endeavors, potentially aiding in research planning, data analysis, or program management. The geographic impact is primarily centered around the NIH's operations, likely within the United States, though remote support is also possible. Workforce implications may include the engagement of highly skilled consultants who supplement the government's internal expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to gauge the effectiveness and efficiency of the consulting services.
The broad nature of 'Other Scientific and Technical Consulting Services' could lead to scope creep if not managed tightly.
Reliance on external consultants may reduce opportunities for internal knowledge building within NIH.
The contract duration of over five years requires careful monitoring to ensure continued relevance and value.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that should yield fair pricing.
Firm-fixed-price contract type shifts performance risk to the contractor.
The contract is awarded to a known entity, Kelly Services, Inc., which may have a track record with government contracts.
The long duration indicates a strategic need for sustained support, potentially for complex, long-term projects.

Sector Analysis

The 'Other Scientific and Technical Consulting Services' sector encompasses a wide array of specialized advisory roles supporting government agencies. This contract fits within the broader federal IT and professional services market, where agencies procure external expertise for complex projects. Benchmarks for similar consulting contracts at NIH or other large research institutions would typically range from hundreds of thousands to several million dollars annually, depending on the scope and seniority of the consultants.

Small Business Impact

This contract does not appear to have a small business set-aside. Therefore, the direct impact on small businesses is likely minimal unless Kelly Services, Inc. utilizes small businesses as subcontractors. The absence of a set-aside suggests the requirement was not specifically tailored to be fulfilled by small business capabilities, or that larger prime contractors were deemed more suitable for the scope.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers at the National Institutes of Health (NIH). As a task order under a larger contract vehicle, the underlying contract likely has its own oversight mechanisms. Transparency is facilitated by public contract databases, but detailed performance reports and specific oversight activities are typically internal. The Inspector General for the Department of Health and Human Services would have jurisdiction over potential fraud, waste, or abuse.

Related Government Programs

NIH Research Support Contracts
Scientific and Technical Consulting Services
Federal Professional Services Contracts
HHS Advisory and Assistance Services

Risk Flags

Potential for scope creep
Contractor performance variability
Long-term relevance of services
Lack of specific performance metrics

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-D12-04843 KELLY -- TASK ORDER # 493

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 is Kelly Services, Inc.'s track record with federal contracts, particularly within HHS and NIH?

Kelly Services, Inc. has a history of performing federal contracts. A review of federal procurement data would reveal the extent and nature of their past performance, including awards, task orders, and any reported performance issues. For this specific contract (SOAR-D12-04843, Task Order #493), the firm-fixed-price structure and the duration suggest a level of confidence in the contractor's ability to deliver. However, a deeper dive into their past performance ratings, any disputes, or contract terminations would be necessary for a comprehensive assessment of their track record with HHS and NIH specifically.

How does the annual cost of this contract compare to similar consulting services procured by NIH?

The annual cost of this contract is approximately $1.33 million ($6.63M / 5 years). To benchmark this effectively, one would need to compare it against contracts for 'Other Scientific and Technical Consulting Services' awarded by NIH with similar durations and scopes. Factors such as the specific expertise required (e.g., biostatistics, regulatory affairs, research program management), the level of consultants engaged (e.g., senior scientists, analysts), and the number of bidders in those comparable procurements are crucial. Without access to a detailed database of comparable NIH contracts, a precise benchmark is difficult, but this annual spend appears moderate for specialized, long-term support within a large research agency.

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

Key risks include the potential for scope creep due to the broad nature of 'Other Scientific and Technical Consulting Services,' contractor underperformance, or the services becoming outdated over the five-year period. Mitigation strategies likely involve robust contract management by NIH program officials, clearly defined statements of work within task orders, regular performance reviews, and the firm-fixed-price structure which incentivizes contractor efficiency. The full and open competition process also aims to mitigate risks by selecting a capable contractor. However, the lack of specific performance metrics in the provided data makes a thorough risk assessment challenging.

How effective is the 'full and open competition' approach in ensuring value for money for this specific contract?

The 'full and open competition' approach is designed to maximize value for money by allowing a wide range of potential contractors to bid, thereby fostering price competition and encouraging innovation. For this $6.6 million contract, this method suggests that NIH sought the best possible offer from the market. The effectiveness hinges on the clarity of the solicitation, the number and quality of bids received, and the evaluation criteria used. While competition generally drives value, the ultimate effectiveness depends on the specific market dynamics for these consulting services and how well NIH managed the procurement process to attract and select the most capable and cost-effective provider.

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

Historical spending trends for 'Other Scientific and Technical Consulting Services' at NIH are likely substantial, given the agency's mission. NIH relies heavily on external expertise to support its vast research portfolio, including areas like data analysis, scientific program evaluation, and technical advisory. Annual spending in this category can fluctuate based on specific research initiatives, funding appropriations, and the need for specialized skills not available internally. A detailed analysis would require examining NIH's procurement data over several fiscal years to identify patterns, peak spending periods, and the average contract values within this service category.

What are the implications of the firm-fixed-price (FFP) contract type for NIH and the contractor?

The firm-fixed-price (FFP) contract type places the primary risk of cost overruns on the contractor, Kelly Services, Inc. This is generally advantageous for NIH as it provides cost certainty and predictability, making budgeting easier. The contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. For Kelly Services, Inc., this means they must accurately estimate their costs and manage their performance efficiently to ensure profitability. This contract type is suitable when the scope of work is well-defined and risks are manageable, incentivizing the contractor to control costs and deliver 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: $6,634,954

Exercised Options: $6,634,954

Current Obligation: $6,634,954

Actual Outlays: $2,406,771

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