HHS awards $27.6M for security and administrative support, with Protection Strategies Inc. as prime

Contract Overview

Contract Amount: $27,558,113 ($27.6M)

Contractor: Protection Strategies Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2018-06-01

End Date: 2023-11-30

Contract Duration: 2,008 days

Daily Burn Rate: $13.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF TITLE: SECURITY, ADJUDICATIVE AND ADMINISTRATIVE SUPPORT SERVICES

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $27.6 million to PROTECTION STRATEGIES INC for work described as: IGF::OT::IGF TITLE: SECURITY, ADJUDICATIVE AND ADMINISTRATIVE SUPPORT SERVICES Key points: 1. Contract value represents a significant investment in essential support services for the agency. 2. The award was made under full and open competition, suggesting a robust bidding process. 3. The duration of the contract (over 6 years) indicates a long-term need for these services. 4. The use of Time and Materials pricing may present cost control challenges if not closely managed. 5. The North American Industry Classification System (NAICS) code 561611 points to specialized investigation and background check services. 6. The contract's geographic focus is Maryland, aligning with the agency's operational footprint.

Value Assessment

Rating: fair

The total award of $27.6 million over approximately six years for security, adjudicative, and administrative support services appears to be within a reasonable range for such comprehensive support. However, the Time and Materials (T&M) pricing structure warrants careful monitoring. Without detailed breakdowns of labor rates and hours, it's difficult to benchmark against similar contracts precisely. The absence of a specific Task Order or Delivery Order number makes direct comparison challenging, but the overall value suggests a substantial, ongoing need for these critical support functions within HHS.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters price discovery and encourages competitive pricing. The agency sought a broad range of capabilities, suggesting a well-defined requirement that could attract diverse offerings. The use of a BPA Call implies a pre-existing Blanket Purchase Agreement, which streamlines the ordering process while still allowing for competition among BPA holders.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining services at competitive prices and reduces the risk of overpayment compared to sole-source or limited competition awards.

Public Impact

The Department of Health and Human Services (HHS) benefits from enhanced security and administrative operations. Services include investigation and personal background checks, crucial for maintaining a secure workforce. The contract supports administrative functions essential for the smooth operation of the Office of the Assistant Secretary for Administration. The primary geographic impact is within Maryland, where the services are likely performed or directly support operations. The contract supports a workforce of individuals providing specialized security and administrative expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type can lead to cost overruns if not managed diligently, as it reimburses the contractor for actual labor hours and material costs incurred.
Lack of specific performance metrics or outcome-based measures in the provided data makes it difficult to assess the true effectiveness and efficiency of the services delivered.
The long contract duration (over 6 years) could potentially lead to vendor complacency or a lack of incentive to innovate if not paired with strong performance management.

Positive Signals

The award was made through full and open competition, suggesting a competitive bidding process that likely resulted in a fair market price.
The contractor, Protection Strategies Inc., has secured a significant federal contract, indicating a level of established capability and trust within the government contracting space.
The contract addresses critical needs for security, adjudicative, and administrative support, which are vital for the functioning of a large federal agency like HHS.

Sector Analysis

The contract falls within the professional, scientific, and technical services sector, specifically focusing on security and investigation services (NAICS 561611). This sector is characterized by a demand for specialized expertise in areas such as background checks, security assessments, and administrative support. The federal government is a significant consumer of these services across various agencies to ensure personnel security and operational integrity. Comparable spending benchmarks are difficult to establish without more granular data on service scope and labor categories, but the overall value suggests a substantial requirement.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the direct impact on small businesses through set-asides is negligible. However, Protection Strategies Inc., as the prime contractor, may engage small businesses as subcontractors to fulfill certain aspects of the contract, though this is not explicitly detailed. The absence of small business considerations in the primary award structure means that opportunities for small business growth within this specific contract are likely limited unless proactively pursued by the prime.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Office of the Assistant Secretary for Administration at HHS. Performance monitoring, invoice review, and compliance checks are standard oversight mechanisms. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected or identified.

Related Government Programs

HHS Security Services
Federal Background Check Services
Administrative Support Contracts
Government Security Consulting
Personnel Vetting Services

Risk Flags

Time and Materials Pricing
Long Contract Duration
Limited Bidder Information

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $27.6 million to PROTECTION STRATEGIES INC. IGF::OT::IGF TITLE: SECURITY, ADJUDICATIVE AND ADMINISTRATIVE SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is PROTECTION STRATEGIES INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $27.6 million.

What is the period of performance?

Start: 2018-06-01. End: 2023-11-30.

What is the track record of Protection Strategies Inc. in performing similar federal contracts?

Protection Strategies Inc. (PSI) has a history of performing federal contracts, primarily within the security and administrative support domains. While the provided data highlights a significant award from HHS, a deeper dive into PSI's contract history would reveal their performance across various agencies and contract types. Key areas to examine would include past performance evaluations, any reported contract disputes or terminations, and the types of services they have delivered previously. Understanding their experience with similar NAICS codes (e.g., 561611) and contract vehicles (like BPA Calls) is crucial for assessing their capability to meet the current HHS requirements effectively. Their ability to manage Time and Materials contracts and adhere to federal regulations would also be important considerations.

How does the value of this contract compare to similar security and administrative support contracts awarded by HHS or other agencies?

Benchmarking the $27.6 million value requires comparing it against contracts with similar scope, duration, and service requirements. Contracts for comprehensive security, background investigation, and administrative support can vary widely based on the specific tasks, geographic locations, and labor intensity. For a contract spanning over six years, this value suggests a substantial and ongoing need. However, without detailed service level agreements, labor rates, and specific deliverables, a precise comparison is challenging. Agencies often procure these services through various mechanisms, including GSA schedules, IDIQs, and direct solicitations. A comparative analysis would involve looking at the average award values for NAICS code 561611 across federal agencies and considering the specific context of HHS's operational needs.

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 $27.6 million magnitude is the potential for cost overruns and a lack of defined cost ceiling if not managed rigorously. Unlike fixed-price contracts, T&M reimburses the contractor for actual labor hours and material costs, plus a fixed fee or percentage. This structure can incentivize longer task durations or less efficient work if oversight is weak. For HHS, risks include paying for unneeded services or inflated labor rates. Effective risk mitigation requires robust monitoring of hours worked, validation of material costs, clear task definitions, and strong program management to ensure the contractor remains focused on efficient service delivery and achieving defined objectives within the overall award amount.

How effective are the competition dynamics in ensuring value for money for this specific contract?

The contract was awarded under 'full and open competition,' which is generally the most effective mechanism for ensuring value for money. This approach allows all responsible sources to submit bids, fostering a competitive environment that typically drives down prices and encourages innovation. The specific number of bidders is not detailed, but the process itself suggests that multiple companies vied for the contract, providing the agency with options and leverage. The effectiveness is further influenced by the clarity of the solicitation requirements and the evaluation criteria used. While competition is a strong indicator of potential value, ongoing performance monitoring and contract management are essential to realize that value throughout the contract's lifecycle.

What are the potential implications of the contract's duration (over 6 years) on service quality and cost?

A contract duration exceeding six years can have mixed implications. On the positive side, it provides stability and allows the contractor to develop deep expertise in the agency's specific needs, potentially leading to improved service quality and efficiency over time. It also reduces the administrative burden and cost associated with frequent re-procurement. However, a long duration can also pose risks. It might reduce the incentive for the contractor to innovate or maintain peak performance if they feel secure in their position. Furthermore, it could lock the agency into potentially outdated service models or pricing if market conditions or technological advancements shift significantly. Robust performance management and periodic reviews are crucial to mitigate these risks and ensure continued value.

How does the NAICS code 561611 (Investigation and Personal Background Check Services) align with the overall mission of HHS?

The NAICS code 561611 directly aligns with critical functions within HHS, particularly concerning personnel security, compliance, and the integrity of its operations. HHS is responsible for public health, human services, and biomedical research, all of which require a trusted and vetted workforce. Conducting thorough background checks and investigations is essential for ensuring that individuals in sensitive positions, handling confidential data, or involved in critical research are reliable and pose no security risk. This service supports the agency's need to maintain a secure environment, protect sensitive information, and uphold public trust in its operations and personnel.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Investigation and Personal Background Check 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: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 9717 COGDILL RD, KNOXVILLE, TN, 37932

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $27,558,113

Exercised Options: $27,558,113

Current Obligation: $27,558,113

Actual Outlays: $12,315,201

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 75P00118A00046

IDV Type: BPA

Timeline