HHS awards $32.1M contract for administrative management consulting to Mathematica Inc

Contract Overview

Contract Amount: $32,112,872 ($32.1M)

Contractor: Mathematica Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2018-09-25

End Date: 2023-09-27

Contract Duration: 1,828 days

Daily Burn Rate: $17.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: NEW APPROACHES TO SERVE HARD TO EMPLOY (H2E - FY18) - NEW AWARD ( 0)

Place of Performance

Location: PRINCETON, MERCER County, NEW JERSEY, 08540

State: New Jersey Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $32.1 million to MATHEMATICA INC. for work described as: NEW APPROACHES TO SERVE HARD TO EMPLOY (H2E - FY18) - NEW AWARD ( 0) Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1828 days indicates a long-term need for these services. 3. The administrative management and general management consulting services are broad, requiring careful performance monitoring. 4. The cost-plus-fixed-fee pricing structure can incentivize contractor efficiency but requires robust oversight. 5. The award to Mathematica Inc. places it within a significant federal contracting landscape for consulting services. 6. The contract's focus on serving hard-to-employ individuals suggests a social impact objective.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables and performance metrics. The cost-plus-fixed-fee (CPFF) structure, while common for complex services, can lead to cost overruns if not managed tightly. Comparing the total award amount to similar administrative consulting contracts within HHS or other agencies would provide better context for value assessment. The fixed fee component, however, offers some predictability for the contractor's profit.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 3 bids suggests a moderate level of competition for this requirement. While more than one bidder is positive, a higher number of bids typically leads to more robust price discovery and potentially lower costs for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and improve service quality.

Public Impact

The primary beneficiaries are likely individuals facing employment challenges, with the goal of improving their employment outcomes. The services delivered are expected to be in administrative management and general management consulting, supporting HHS operations. The contract has a geographic impact primarily in New Jersey, where the contractor is located. Workforce implications could include the creation of jobs within Mathematica Inc. and potentially within the population served by the program.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in CPFF contracts if not meticulously managed.
Ensuring the 'hard to employ' population is effectively reached and served requires specific program design and execution.
Measuring the true impact and success of administrative consulting services can be difficult.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent procurement process.
The long contract duration suggests a sustained commitment and potential for building expertise.
The focus on a socially impactful area (serving hard to employ) aligns with public service goals.

Sector Analysis

The administrative management and general management consulting sector is a significant part of the federal contracting landscape, supporting a wide array of government functions. This contract falls within the professional services category, which is characterized by a mix of large and small businesses. Spending in this sector is driven by the government's need for specialized expertise to improve efficiency, implement new policies, and manage complex programs. Comparable spending benchmarks would involve looking at other large consulting contracts awarded by HHS and similar agencies for management support.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While the prime contractor is Mathematica Inc., there is no explicit information on subcontracting plans for small businesses. The impact on the small business ecosystem would depend on whether Mathematica Inc. actively seeks small business partners for specialized services or if the contract is primarily executed in-house.

Oversight & Accountability

Oversight for this contract would typically be managed by the Office of the Assistant Secretary for Administration (OASA) within HHS. Accountability measures would be tied to the contract's performance work statement and deliverables. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

HHS Administrative Management Support
Management and Consulting Services
Social Services Programs
Employment Assistance Programs

Risk Flags

Cost-plus-fixed-fee pricing requires diligent oversight to prevent cost overruns.
Measuring the tangible impact of administrative consulting services can be challenging.
The broad nature of 'administrative management' necessitates a clearly defined scope of work.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $32.1 million to MATHEMATICA INC.. NEW APPROACHES TO SERVE HARD TO EMPLOY (H2E - FY18) - NEW AWARD ( 0)

Who is the contractor on this award?

The obligated recipient is MATHEMATICA 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 $32.1 million.

What is the period of performance?

Start: 2018-09-25. End: 2023-09-27.

What is Mathematica Inc.'s track record with federal contracts, particularly within HHS?

Mathematica Inc. has a substantial history of federal contracting, with numerous awards across various agencies, including the Department of Health and Human Services (HHS). Their portfolio often includes research, data analysis, program evaluation, and technical assistance, particularly in areas related to health, human services, and education. For HHS, they have been involved in projects related to Medicare, Medicaid, child welfare, and employment services. Their experience suggests a capacity to handle complex, data-intensive projects. However, a detailed review of past performance on similar administrative consulting contracts would be necessary to fully assess their suitability and past success in this specific domain.

How does the $32.1 million award compare to similar administrative consulting contracts?

The $32.1 million award for administrative management and general management consulting services over approximately five years (1828 days) is a significant but not extraordinary sum for a federal contract of this nature. Benchmarking requires comparing it to contracts with similar scope, duration, and agency. For instance, other large federal agencies like the Department of Defense or the General Services Administration also award substantial contracts for management consulting. The key comparison points would be the number of bidders, the specific services rendered, and the pricing structures. Without more granular data on the specific tasks and deliverables, it's difficult to definitively state if this represents superior or inferior value, but it falls within the range of substantial federal consulting engagements.

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

Key risks include potential cost overruns due to the Cost Plus Fixed Fee (CPFF) structure, scope creep if requirements are not clearly defined and managed, and challenges in measuring the effectiveness of administrative consulting services. Mitigation strategies would involve robust contract oversight by HHS, including regular performance reviews, detailed tracking of expenditures against the fixed fee and cost ceilings, and clear definition of deliverables and key performance indicators (KPIs). The CPFF structure itself is a risk, but it's often chosen for services where the exact costs are difficult to predict upfront. Strong program management and communication between the government and contractor are crucial for mitigating these risks.

What is the expected program effectiveness or impact of these consulting services?

The effectiveness of these consulting services is tied to their ability to improve the administrative management and general management functions within the relevant HHS office, and potentially to enhance the delivery of services to the 'hard to employ' population. Expected impacts could include increased operational efficiency, better resource allocation, improved strategic planning, and more effective implementation of programs aimed at assisting individuals facing employment barriers. The success will be measured by the contractor's ability to meet defined performance metrics and achieve the objectives outlined in the contract's statement of work. Without specific program goals, the precise impact remains qualitative.

How has federal spending on administrative management consulting evolved, and where does this contract fit?

Federal spending on administrative management and general management consulting services has been a consistent and substantial component of government expenditures for decades. Agencies continually seek external expertise to optimize operations, implement new technologies, and navigate complex policy landscapes. This contract, valued at $32.1 million, represents a specific investment by HHS in these types of services. It fits within the broader trend of agencies leveraging specialized consulting firms to augment internal capabilities. Historical spending patterns show a steady demand for these services, often fluctuating with budget cycles and administration priorities, but generally remaining robust across administrations.

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

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mathematica Inc

Address: 600 ALEXANDER PARK, PRINCETON, NJ, 08540

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $37,600,963

Exercised Options: $36,936,290

Current Obligation: $32,112,872

Actual Outlays: $25,013,670

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSP233201500035I

IDV Type: IDC

Timeline