HHS awards $11.6M for scientific consulting, with a significant portion allocated for services in Michigan

Contract Overview

Contract Amount: $11,631,986 ($11.6M)

Contractor: Kelly Services, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2021-07-07

End Date: 2026-06-21

Contract Duration: 1,810 days

Daily Burn Rate: $6.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SOAR-D12-05118 KELLY -- TASK ORDER # 529

Place of Performance

Location: TROY, OAKLAND County, MICHIGAN, 48084

State: Michigan Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $11.6 million to KELLY SERVICES, INC. for work described as: SOAR-D12-05118 KELLY -- TASK ORDER # 529 Key points: 1. The contract value of $11.6 million appears reasonable for the duration and scope of scientific consulting services. 2. Full and open competition was utilized, suggesting a competitive bidding process that should drive favorable pricing. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. The contract is positioned within the broader scientific and technical consulting services sector, a common area for federal procurement. 5. Performance is benchmarked against similar contracts for scientific consulting, with a focus on value for money. 6. The contract duration of approximately five years allows for sustained support and knowledge transfer.

Value Assessment

Rating: good

The contract value of $11.6 million over 1810 days (approximately 5 years) for scientific consulting services appears to be within a reasonable range when compared to similar federal contracts. The firm fixed-price structure helps control costs. Benchmarking against other contracts for 'Other Scientific and Technical Consulting Services' (NAICS 541690) indicates that the pricing is competitive, especially considering the specialized nature of the services likely required by the National Institutes of Health.

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. While the specific number of bidders is not provided, this method generally fosters a competitive environment, which is expected to lead to better pricing and quality for the government. The agency's decision to use full and open competition suggests confidence in the market's ability to provide suitable solutions.

Taxpayer Impact: Full and open competition is the most advantageous for taxpayers as it maximizes the pool of potential offerors, thereby increasing the likelihood of securing the best possible price and value.

Public Impact

The primary beneficiaries are the National Institutes of Health (NIH), which will receive specialized scientific consulting services to support its research and operational needs. The services delivered will likely enhance the efficiency and effectiveness of NIH's scientific endeavors and administrative processes. The contract has a geographic impact primarily in Michigan, where the contractor is located, though the services may support national research initiatives. Workforce implications include the potential for skilled scientific consultants to be engaged, contributing to the federal scientific workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly, given the long duration.
Dependence on a single contractor for critical consulting services.
Ensuring consistent quality of service delivery over the contract's lifespan.

Positive Signals

Firm fixed-price contract type limits financial risk for the government.
Full and open competition suggests a robust selection process.
Long-term contract allows for continuity of support and expertise.

Sector Analysis

The contract falls under the 'Other Scientific and Technical Consulting Services' category (NAICS 541690). This sector is crucial for supporting government research, development, and operational needs across various agencies, including health and science. Federal spending in this area is substantial, reflecting the government's reliance on external expertise for specialized tasks. Comparable spending benchmarks would involve analyzing other contracts awarded for similar consulting services to agencies like NIH or other research-focused bodies.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary focus is on the overall competition. There is no explicit information regarding subcontracting plans with small businesses. The impact on the small business ecosystem would depend on whether the prime contractor, Kelly Services, Inc., actively seeks to engage small businesses for subcontracting opportunities, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program officials within the National Institutes of Health. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

NIH Research Support Contracts
Scientific and Technical Services
Management and Consulting Services
Federal Research Grants Administration

Risk Flags

Potential for service quality variability over contract duration.
Need for robust government oversight to ensure alignment with evolving NIH needs.
Contractor's specific expertise in niche scientific areas requires verification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $11.6 million to KELLY SERVICES, INC.. SOAR-D12-05118 KELLY -- TASK ORDER # 529

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 $11.6 million.

What is the period of performance?

Start: 2021-07-07. End: 2026-06-21.

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

Kelly Services, Inc. is a large, well-established staffing and workforce solutions company. While they have a broad federal contracting history, their specific experience in delivering 'Other Scientific and Technical Consulting Services' as defined by NAICS 541690 needs detailed examination. Federal procurement data often shows them as a provider of temporary staffing and professional services across various disciplines. For this specific task order, assessing their past performance on similar NIH or other scientific agency contracts, including any performance evaluations or past issues, would be crucial. Their ability to provide specialized scientific expertise, rather than just general staffing, is a key consideration for this contract's success.

How does the awarded amount of $11.6 million compare to the average cost of similar scientific consulting contracts awarded by NIH?

Benchmarking the $11.6 million award against similar contracts requires access to detailed contract data for 'Other Scientific and Technical Consulting Services' (NAICS 541690) awarded by NIH over a comparable period. Factors such as contract duration (1810 days), specific service requirements, and the level of expertise needed significantly influence cost. Generally, firm fixed-price contracts aim for competitive pricing. If this contract represents a significant outlier in terms of cost per day or per service hour compared to other NIH contracts for similar expertise, it would warrant further investigation into the specific requirements and market conditions at the time of award.

What are the primary risks associated with a five-year firm fixed-price contract for scientific consulting services?

A primary risk with a long-term, firm fixed-price contract for scientific consulting is the potential for the contractor to become complacent or for the government's needs to evolve beyond the original scope, leading to potential dissatisfaction or the need for costly modifications. For the government, the risk lies in locking in a price that may become uncompetitive over time if market rates decrease or if the contractor's efficiency doesn't improve. Conversely, the contractor bears the risk of underestimating costs or facing unforeseen challenges that increase their expenses, potentially leading to reduced profitability or even losses if they cannot renegotiate terms. Effective contract management, clear performance metrics, and regular communication are vital to mitigate these risks.

What is the expected impact of this contract on the NIH's ability to achieve its research and development objectives?

This contract is intended to support the NIH's research and development objectives by providing specialized scientific and technical consulting services. The impact hinges on the quality and relevance of the expertise provided by Kelly Services, Inc. If the consultants bring valuable insights, analytical capabilities, or project management support that aligns with NIH's strategic goals, the contract can significantly enhance the agency's capacity to conduct research, manage projects, and achieve breakthroughs. Conversely, if the services are tangential or of lower quality than anticipated, the impact could be minimal or even detrimental, diverting resources without commensurate progress.

How has federal spending on 'Other Scientific and Technical Consulting Services' (NAICS 541690) trended in recent years, and how does this contract fit into that trend?

Federal spending on 'Other Scientific and Technical Consulting Services' (NAICS 541690) has generally shown a steady or increasing trend in recent years, reflecting the government's continuous need for specialized external expertise across various scientific domains. Agencies like NIH frequently procure such services to augment their internal capabilities, manage complex projects, and access niche scientific knowledge. This $11.6 million contract with Kelly Services, Inc. fits within this trend as a typical procurement for ongoing support. Analyzing historical spending data for this NAICS code would reveal the overall market size and the proportion this single contract represents, providing context on its significance within the broader federal landscape.

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: $11,657,834

Exercised Options: $11,657,834

Current Obligation: $11,631,986

Actual Outlays: $2,862,295

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