HHS awards $124M contract for scientific consulting services to Kelly Services, Inc

Contract Overview

Contract Amount: $124,005 ($124.0K)

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: $69/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SOAR - TO#538_NBS75N95025F00059

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $124,004.72 to KELLY SERVICES, INC. for work described as: SOAR - TO#538_NBS75N95025F00059 Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for Other Scientific and Technical Consulting Services, a broad category. 3. The duration of the contract is approximately 5 years, indicating a long-term need. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. The award was made to Kelly Services, Inc., a large staffing and consulting firm. 6. The contract is a delivery order under a larger contract vehicle. 7. The contract is for services to be performed in Maryland.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the services provided and the deliverables. The firm fixed price structure is generally favorable for the government, as it caps costs. However, the overall value depends heavily on the quality and efficiency of the services rendered by Kelly Services, Inc. Further analysis would require comparing the specific task orders and their pricing against similar consulting engagements within the federal government or private sector.

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. The presence of 69 bids suggests a robust competitive environment for this requirement. A high number of bidders typically leads to more competitive pricing and a wider selection of qualified contractors, potentially resulting in better value for the government.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers as it likely drove down prices and ensured the government received proposals from a diverse range of capable firms.

Public Impact

The National Institutes of Health (NIH) benefits from access to specialized scientific and technical consulting services. These services are crucial for supporting NIH's mission in biomedical research and public health. The contract supports scientific endeavors that could lead to advancements in healthcare and disease prevention. The primary geographic impact is within Maryland, where the services are performed. The contract likely supports a workforce of consultants and subject matter experts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single large contractor for diverse scientific needs.
Ensuring consistent quality and expertise across various task orders may be a challenge.
The broad nature of 'Other Scientific and Technical Consulting Services' could lead to scope creep if not managed tightly.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm Fixed Price contract type provides cost certainty for the government.
Long contract duration suggests a stable and ongoing need for these critical services.
High number of bids received (69) points to strong market interest and potential for competitive pricing.

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 to management consulting. The federal government is a major consumer of these services, often procuring them to supplement internal capabilities or access specialized knowledge. Comparable spending benchmarks would involve analyzing other contracts for scientific consulting services across various agencies, particularly those supporting research institutions like NIH.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and the prime contractor, Kelly Services, Inc., is a large corporation. While there is no direct small business set-aside, the potential for subcontracting opportunities with small businesses exists, depending on the specific task orders issued. The impact on the small business ecosystem would be indirect, primarily through potential subcontracting relationships rather than direct prime contract awards.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the National Institutes of Health (NIH). The firm fixed price nature of the contract provides a degree of accountability by placing cost control on the contractor. Transparency is facilitated through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

NIH Research Support Contracts
Scientific and Technical Consulting Services
Federal Professional Services Procurement
Health and Human Services Consulting Awards

Risk Flags

Potential for performance issues with a large number of task orders.
Ensuring consistent quality of specialized consulting services.
Risk of scope creep in broad service categories.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $124,004.72 to KELLY SERVICES, INC.. SOAR - TO#538_NBS75N95025F00059

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 $124,004.72.

What is the period of performance?

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

What specific types of scientific and technical consulting services are being procured under this contract?

The contract is broadly categorized under 'Other Scientific and Technical Consulting Services' (NAICS code 541690). This category can encompass a wide array of specialized support, including but not limited to, research design and analysis, data interpretation, laboratory support, technical writing, regulatory compliance consulting, and expert advisory services related to biomedical research. Without specific task orders, the precise nature of the services remains general. However, given the awarding agency is NIH, it is highly probable that the services directly support biomedical research initiatives, clinical trials, public health programs, or the operational aspects of scientific research administration.

How does the pricing of this contract compare to similar federal contracts for scientific consulting services?

Directly comparing the total award amount of $124,004.72 to other federal contracts is difficult without knowing the specific services rendered and the duration of the work. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. The 'value' is realized through individual task orders. A firm fixed price contract generally aims for predictable costs. To benchmark effectively, one would need to analyze the hourly rates or fixed prices for comparable consulting roles (e.g., senior scientist consultant, biostatistician) within similar agencies (like CDC, FDA) or for similar research support functions, considering factors like experience levels, geographic location, and specific technical expertise required.

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

Key risks include potential scope creep due to the broad service category, ensuring the quality and consistency of consultant expertise over the contract's duration, and managing the performance of a large contractor. Mitigation strategies likely involve robust task order management, clear performance work statements (PWS), defined deliverables, regular progress reviews, and strong government oversight. The firm fixed price structure mitigates financial risk for the government by capping costs, but performance risk remains. The high number of bidders suggests a competitive market, which can also mitigate risks by providing alternatives if performance issues arise.

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

Kelly Services, Inc. is a large, well-established global staffing and workforce solutions company. They frequently hold federal contracts across various agencies, often providing professional staffing, administrative support, and specialized technical personnel. Their track record typically involves managing large numbers of contingent workers and fulfilling diverse requirements. Performance on specific contracts can vary, but their extensive experience suggests a capacity to manage complex service delivery. A deeper dive into their past performance ratings on federal contract databases (like the Contractor Performance Assessment Reporting System - CPARS) would provide more granular insights into their reliability and quality of service for similar engagements.

How does this contract fit into the broader spending patterns of the National Institutes of Health (NIH) for scientific support?

This contract represents a portion of NIH's significant investment in external scientific and technical support services. NIH relies heavily on contractors to augment its federal workforce, access specialized expertise, and manage research projects. Spending in this category is consistent with NIH's mission to support biomedical research. Analyzing NIH's historical spending on similar service codes (like 541690) and comparing the number and value of delivery orders issued under various IDIQ vehicles would provide context. This specific award, being a delivery order, suggests it's one of many mechanisms NIH uses to procure such services, reflecting a strategic approach to flexible resource acquisition.

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: 2

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: $124,005

Exercised Options: $124,005

Current Obligation: $124,005

Actual Outlays: $28,552

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