NIH's $423M PICS II contract awarded to FORS MARSH GROUP LLC for publishing services

Contract Overview

Contract Amount: $422,847,010 ($422.8M)

Contractor: Fors Marsh Group LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2022-01-06

End Date: 2024-08-06

Contract Duration: 943 days

Daily Burn Rate: $448.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: NIH PUBLIC INFORMATION AND COMMUNICATION SERVICES (PICS) II

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $422.8 million to FORS MARSH GROUP LLC for work described as: NIH PUBLIC INFORMATION AND COMMUNICATION SERVICES (PICS) II Key points: 1. Contract aims to provide comprehensive public information and communication services for NIH. 2. The contract's duration of 943 days suggests a sustained need for these services. 3. Awarded under full and open competition, indicating a broad market search. 4. The contract type is Time and Materials, which can pose cost control challenges. 5. The base award amount of $4.48M is a small fraction of the total contract value. 6. The North American Industry Classification System (NAICS) code 511199 covers 'All Other Publishers'. 7. The contract is managed by the Department of Health and Human Services (HHS).

Value Assessment

Rating: fair

The total contract value of $422.8M over approximately 2.5 years is substantial for public information services. Benchmarking this against similar large-scale communication contracts is difficult without more granular data on the specific services provided. The Time and Materials pricing structure, while flexible, carries inherent risks for cost overruns if not meticulously managed and monitored. The relatively small base award of $4.48M compared to the total ceiling suggests significant potential for task orders and modifications, necessitating close oversight.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, suggesting that the NIH sought a wide range of potential offerors. The specific number of bidders is not provided, but this method generally promotes a competitive environment. A robust competition is expected to drive better pricing and service quality, as multiple firms vie for the award. The success of this competition in achieving optimal value will depend on the evaluation criteria and the rigor of the selection process.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining services at competitive prices and encourages innovation from a broader pool of contractors.

Public Impact

The primary beneficiaries are the National Institutes of Health (NIH) and the public, who will receive enhanced communication and information dissemination. Services delivered likely include content creation, media relations, digital outreach, and strategic communication planning. The geographic impact is national, supporting NIH's mission across the United States. Workforce implications may include support for communication specialists, writers, editors, and digital media professionals, both within the contractor's organization and potentially through subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely managed.
The large total contract value necessitates robust oversight to ensure value for money.
Lack of specific performance metrics in the provided data makes assessing effectiveness challenging.
The broad scope of 'publishing services' could lead to scope creep if not clearly defined in task orders.

Positive Signals

Awarded via full and open competition, indicating a competitive bidding process.
The contract supports a critical government function: public health communication.
The long duration suggests a stable, ongoing need for these services.
The Department of Health and Human Services (HHS) is the awarding agency, a major federal entity.

Sector Analysis

The Public Information and Communication Services (PICS) II contract falls within the broader 'Publishing Services' sector, specifically NAICS code 511199. This sector encompasses a wide range of activities from traditional print to digital content creation and dissemination. The market for government communication services is competitive, with many firms offering specialized expertise. This contract represents a significant investment by the NIH in ensuring effective public outreach and information sharing, aligning with government-wide efforts to improve transparency and public engagement. Comparable spending benchmarks would typically be found within agencies that have large public affairs or communication divisions.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) is false for this contract. This suggests that the contract was not set aside for small businesses, nor does it appear to have specific small business subcontracting goals mandated in the initial award data. Consequently, the direct impact on the small business ecosystem from this specific contract award is likely minimal, unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services (HHS) and the National Institutes of Health (NIH). Specific oversight mechanisms would typically include contract officers, program managers, and potentially the HHS Office of Inspector General (OIG) for audits and investigations. Transparency is facilitated through contract award databases, but detailed performance reporting and specific task order details may not be publicly available. The effectiveness of oversight hinges on the agency's diligence in monitoring performance, costs, and adherence to contract terms.

Related Government Programs

NIH Communication Services
HHS Public Affairs Contracts
Federal Publishing and Printing Services
Government Public Relations Contracts
Health Information Dissemination Contracts

Risk Flags

Cost control risk due to Time and Materials pricing
Potential for scope creep in broad service categories
Need for robust contract oversight given high value
Limited visibility into specific performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $422.8 million to FORS MARSH GROUP LLC. NIH PUBLIC INFORMATION AND COMMUNICATION SERVICES (PICS) II

Who is the contractor on this award?

The obligated recipient is FORS MARSH GROUP LLC.

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 $422.8 million.

What is the period of performance?

Start: 2022-01-06. End: 2024-08-06.

What specific types of publishing and communication services are included under the PICS II contract?

While the provided data identifies the contract as 'NIH PUBLIC INFORMATION AND COMMUNICATION SERVICES (PICS) II' under NAICS code 511199 (All Other Publishers), it does not detail the specific services. Typically, such contracts encompass a broad range of activities including, but not limited to, content development (writing, editing, graphic design), media relations, digital communications (website management, social media, email campaigns), strategic communication planning, event support, and dissemination of health information to various target audiences. The 'Time and Materials' pricing structure suggests flexibility in service scope, often used when the exact quantity or nature of work is not precisely defined upfront.

How does the $422.8M total contract value compare to previous NIH communication contracts?

Without historical data on prior NIH communication contracts, a direct comparison of the $422.8M total value is not possible. However, the substantial ceiling indicates a significant and ongoing investment by NIH in its public information and communication capabilities. Large federal agencies often consolidate communication needs into multi-year, high-value contracts like PICS II to achieve economies of scale and streamline procurement. The value suggests a comprehensive scope, likely covering a wide array of NIH's communication needs across multiple institutes and centers over its performance period.

What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude?

The primary risk with a T&M contract of this $422.8M magnitude is cost control. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified rates and for actual material costs. This structure can lead to cost overruns if the scope of work expands, if labor hours are not efficiently utilized, or if material costs escalate unexpectedly. For NIH, effective risk mitigation requires rigorous monitoring of labor hours, detailed justification for all expenses, clear definition of tasks, and strong contract administration to prevent scope creep and ensure that the work performed is necessary and reasonable.

What is the significance of the base award of $4.48M relative to the total contract ceiling?

The base award of $4.48M is significantly lower than the total contract ceiling of $422.8M. This is common for indefinite-delivery, indefinite-quantity (IDIQ) or similar contract vehicles, especially those with a Time and Materials (T&M) pricing structure. The low base award typically represents the minimum guaranteed amount or the initial funding allocated to kick off the contract and allow for the issuance of initial task orders. The vast difference indicates that the majority of the contract's value is expected to be realized through subsequent task orders or delivery orders issued over the contract's performance period, reflecting anticipated future needs and flexibility.

What does the 'All Other Publishers' NAICS code (511199) imply about the contractor's capabilities?

The NAICS code 511199, 'All Other Publishers,' is a broad category that encompasses establishments primarily engaged in publishing, but not classified elsewhere. This can include publishers of books, newspapers, magazines, directories, and also entities involved in digital content publishing, data aggregation, and information services. For a contract like PICS II, it suggests that the contractor, FORS MARSH GROUP LLC, possesses a wide range of publishing and information dissemination capabilities, potentially extending beyond traditional print media to include digital platforms, content management, and communication strategy, aligning with the diverse needs of NIH's public information efforts.

Industry Classification

NAICS: Information › Newspaper, Periodical, Book, and Directory Publishers › All Other Publishers

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1010 N. GLEBE RD, STE 510, ARLINGTON, VA, 22201

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $422,847,010

Exercised Options: $422,847,010

Current Obligation: $422,847,010

Actual Outlays: $422,846,946

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75N98019D00007

IDV Type: IDC

Timeline