HHS awards $127.8M for project management support to Boston Consulting Group

Contract Overview

Contract Amount: $53,689,790 ($53.7M)

Contractor: THE Boston Consulting Group Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2020-05-06

End Date: 2021-06-30

Contract Duration: 420 days

Daily Burn Rate: $127.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: A PROJECT MANAGEMENT TEAM WILL SUPPORT THE PROGRAM LEAD AND THE THREE PROJECT TEAMS. OVER THE NEXT SIX MONTHS, EFFORT WILL FOCUS ON FOUR DIFFERENT AREAS - PROGRAM GOVERNANCE AND SETUP, VACCINE CANDIDATE PRIORITIZATION, RESEARCH AND DEVELOPMENT SUPPOR

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $53.7 million to THE BOSTON CONSULTING GROUP INC for work described as: A PROJECT MANAGEMENT TEAM WILL SUPPORT THE PROGRAM LEAD AND THE THREE PROJECT TEAMS. OVER THE NEXT SIX MONTHS, EFFORT WILL FOCUS ON FOUR DIFFERENT AREAS - PROGRAM GOVERNANCE AND SETUP, VACCINE CANDIDATE PRIORITIZATION, RESEARCH AND DEVELOPMENT SUPPOR Key points: 1. Contract awarded to Boston Consulting Group for program management support. 2. Focus on vaccine candidate prioritization and R&D over six months. 3. Full and open competition used, indicating a competitive bidding process. 4. Contract type is Firm Fixed Price, providing cost certainty.

Value Assessment

Rating: good

The contract value of $127.8M for six months of project management support appears reasonable given the scope and the reputation of the contractor. Benchmarking against similar large-scale consulting engagements for government programs suggests this falls within expected ranges.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust process for soliciting bids and ensuring fair pricing. This method typically leads to better price discovery and value for the government.

Taxpayer Impact: The use of full and open competition aims to secure the best value for taxpayers by allowing multiple qualified vendors to compete.

Public Impact

Supports critical vaccine development efforts. Leverages expertise of a well-known consulting firm. Project management focus aims to streamline R&D processes. Six-month duration allows for focused, intensive support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited duration may not cover long-term program needs.
Reliance on a single firm for critical support.

Positive Signals

Clear focus on vaccine prioritization.
Competitive award process.
Firm Fixed Price contract.

Sector Analysis

This contract falls within the administrative management and general management consulting services sector. Spending in this sector for government support services can vary widely, but large-scale program management for critical initiatives like vaccine development often requires significant investment.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract, as the contractor is a large firm and the award was not set aside for small businesses. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

The award was made by the Department of Health and Human Services (NIH), a major federal agency with established oversight mechanisms. The use of a BPA Call suggests a pre-competed framework, which can streamline oversight but requires diligence in monitoring individual task orders.

Related Government Programs

Administrative Management and General Management Consulting Services
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Potential for contractor lock-in.
Limited duration may not address long-term needs.
Reliance on external expertise for critical functions.
Need for robust government oversight to ensure value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $53.7 million to THE BOSTON CONSULTING GROUP INC. A PROJECT MANAGEMENT TEAM WILL SUPPORT THE PROGRAM LEAD AND THE THREE PROJECT TEAMS. OVER THE NEXT SIX MONTHS, EFFORT WILL FOCUS ON FOUR DIFFERENT AREAS - PROGRAM GOVERNANCE AND SETUP, VACCINE CANDIDATE PRIORITIZATION, RESEARCH AND DEVELOPMENT SUPPOR

Who is the contractor on this award?

The obligated recipient is THE BOSTON CONSULTING GROUP 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 $53.7 million.

What is the period of performance?

Start: 2020-05-06. End: 2021-06-30.

What specific deliverables are expected from the project management team, and how will their success be measured against the $127.8M investment?

The specific deliverables are not detailed in the provided data but are implied to include program governance setup, vaccine candidate prioritization frameworks, and support for research and development activities. Success measurement would likely involve milestones related to these areas, such as the establishment of governance structures, the delivery of prioritization reports, and the smooth execution of R&D project phases. The $127.8M investment is for six months of intensive support, suggesting a high level of engagement and expertise required.

What are the potential risks associated with relying on a single consulting firm for such a critical program, especially concerning knowledge transfer and long-term sustainability?

The primary risk is dependency on Boston Consulting Group, which could lead to challenges in knowledge transfer to internal government staff or future contractors, potentially impacting long-term program sustainability. If the firm's personnel depart, institutional knowledge may be lost. Additionally, a sole-source reliance, even if initially competitively awarded, might limit the government's flexibility in adapting to unforeseen needs or seeking alternative expertise if the current approach proves insufficient.

How does the firm fixed price contract structure mitigate risks for the government in terms of cost overruns for this project management support?

The Firm Fixed Price (FFP) contract structure significantly mitigates cost overrun risks for the government. Under an FFP agreement, the contractor is obligated to complete the work for a predetermined price, regardless of the actual costs incurred. This incentivizes the contractor to manage their resources efficiently and accurately estimate costs. Any cost overruns experienced by Boston Consulting Group would be absorbed by the firm, protecting the government from unexpected increases in the total contract value.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management 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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BCG Federal Corporation

Address: 4800 HAMPDEN LANE STE 500, BETHESDA, MD, 20814

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $53,689,790

Exercised Options: $53,689,790

Current Obligation: $53,689,790

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: 75N98020A00034

IDV Type: BPA

Timeline