HHS awards $12M for fitness and wellness services, with Millennium Health & Fitness Inc. as the primary contractor

Contract Overview

Contract Amount: $12,016,194 ($12.0M)

Contractor: Millennium Health & Fitness, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2018-11-01

End Date: 2021-01-31

Contract Duration: 822 days

Daily Burn Rate: $14.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: TIME AND MATERIALS

Sector: Healthcare

Official Description: IGF::OT::IGF SUPPORT STAFF FOR WELLNESS AND HEALTH PROMOTION SERVICES

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $12.0 million to MILLENNIUM HEALTH & FITNESS, INC. for work described as: IGF::OT::IGF SUPPORT STAFF FOR WELLNESS AND HEALTH PROMOTION SERVICES Key points: 1. The contract focuses on fitness and recreational sports centers, indicating a need for health promotion services within the agency. 2. Awarded via full and open competition, suggesting a competitive bidding process was utilized. 3. The contract type is Time and Materials, which can pose risks if not managed closely to control costs. 4. The duration of the contract is over two years, implying a sustained need for these services. 5. The geographic location is Maryland, potentially indicating a focus on a specific regional workforce or facility. 6. No small business set-aside was utilized, suggesting the primary contractor is not a small business.

Value Assessment

Rating: fair

The total award amount of $12,016,194.03 over approximately two years for fitness and wellness services appears to be within a reasonable range for a federal agency of this size. However, without specific benchmarks for per-participant costs or detailed service breakdowns, a precise value-for-money assessment is challenging. The Time and Materials (T&M) contract type introduces inherent risk for cost overruns if not meticulously monitored, potentially impacting overall value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that the solicitation was broadly advertised, and multiple bids were likely considered. The specific exclusion of sources might relate to prior performance or specific requirements not met by all potential bidders. The level of competition, while broad, is not quantified by the number of bids received.

Taxpayer Impact: A full and open competition generally benefits taxpayers by encouraging competitive pricing and potentially leading to better service quality as contractors vie for the award.

Public Impact

Federal employees within the Department of Health and Human Services (HHS) are the primary beneficiaries, gaining access to fitness and wellness programs. The services delivered likely include fitness classes, recreational activities, and potentially health promotion resources. The geographic impact is concentrated in Maryland, where the services are presumably delivered. Workforce implications include potential improvements in employee health, morale, and productivity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials contract type can lead to cost overruns if not closely managed and monitored.
Lack of specific performance metrics or outcome data makes it difficult to assess the effectiveness and true value of the services provided.
The 'exclusion of sources' clause, while potentially justified, warrants scrutiny to ensure it did not unduly limit competition.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Focus on wellness and health promotion aligns with federal employee well-being initiatives.
The contractor, Millennium Health & Fitness, Inc., has experience in providing similar services.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on health and wellness programs. Federal spending in this area supports employee well-being and productivity. Comparable spending benchmarks are difficult to establish without more granular data on the scope of services and the number of beneficiaries, but agency-wide wellness programs can represent significant investments.

Small Business Impact

The contract was not awarded as a small business set-aside, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary focus was on securing the best offer from any qualified vendor, rather than specifically promoting small business participation in this particular contract.

Oversight & Accountability

Oversight would typically be managed by the contracting officer and the program office within the Office of the Assistant Secretary for Administration at HHS. Transparency is facilitated by the contract award being publicly available. Accountability measures would be tied to the performance work statement and the T&M contract terms, requiring diligent monitoring of hours and costs.

Related Government Programs

Federal Employee Health and Wellness Programs
Health Promotion Services
Fitness Center Management
Agency Support Services

Risk Flags

Time and Materials Contract Type Risk
Potential for Cost Overruns
Limited Geographic Scope
Lack of Specific Performance Metrics in Provided Data

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $12.0 million to MILLENNIUM HEALTH & FITNESS, INC.. IGF::OT::IGF SUPPORT STAFF FOR WELLNESS AND HEALTH PROMOTION SERVICES

Who is the contractor on this award?

The obligated recipient is MILLENNIUM HEALTH & FITNESS, 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 $12.0 million.

What is the period of performance?

Start: 2018-11-01. End: 2021-01-31.

What is the specific scope of services provided under this contract?

The provided data indicates the contract is for 'Fitness and Recreational Sports Centers' (NAICS code 713940) and awarded to Millennium Health & Fitness, Inc. While the specific details of the services are not enumerated in the provided data, typical services under such a contract would include the operation and maintenance of fitness facilities, offering fitness classes, personal training, recreational sports programming, and potentially health and wellness education. The contract's objective is to support the health and well-being of federal employees within the Department of Health and Human Services (HHS) in Maryland.

How does the cost of this contract compare to similar federal contracts for fitness and wellness services?

Benchmarking this $12 million contract against similar federal contracts is challenging without access to a comprehensive database of comparable awards with detailed service scopes and participant numbers. However, federal spending on employee wellness programs can vary significantly based on agency size, location, and the breadth of services offered. The Time and Materials (T&M) nature of this contract means the final cost is dependent on the hours worked and materials used, making direct cost-per-unit comparisons difficult unless specific labor rates and material markups are analyzed against market standards. A detailed review of the contract's performance work statement and the contractor's pricing structure would be necessary for a robust comparison.

What are the potential risks associated with the Time and Materials (T&M) contract type for this service?

The primary risk with a Time and Materials (T&M) contract is the potential for cost overruns, as the government pays for the actual labor hours and materials used, plus a fixed fee or fixed hourly rate. If the contractor's hours are not diligently monitored, or if the scope of work expands without proper controls, costs can escalate beyond initial estimates. For fitness and wellness services, this could manifest as excessive staff hours billed or unforeseen material costs. Effective risk mitigation requires strong government oversight, detailed tracking of all billable hours and expenses, and clear definition of tasks within the contract's performance work statement to prevent scope creep.

What is the track record of Millennium Health & Fitness, Inc. in performing federal contracts?

Information regarding the specific track record of Millennium Health & Fitness, Inc. in performing federal contracts is not detailed in the provided data snippet. A comprehensive assessment would require reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), other federal contract awards to this entity, and any history of disputes or contract terminations. Without this external data, it's impossible to definitively assess their past performance reliability and suitability for this HHS contract.

How does the geographic concentration in Maryland impact the overall value and accessibility of these services?

The geographic concentration in Maryland means that the primary beneficiaries of these fitness and wellness services are likely HHS employees located in that region. This can be efficient if there is a significant concentration of federal employees in Maryland requiring these services. However, it limits accessibility for federal employees in other geographic locations. The value is tied to the effectiveness of service delivery within Maryland; if the services are well-utilized and positively impact employee health and morale there, it represents good value for that specific population. If the goal was broader national employee wellness, this contract's geographic scope would be a limitation.

What oversight mechanisms are in place to ensure the quality and cost-effectiveness of the services provided?

Oversight for this contract would primarily fall under the purview of the Contracting Officer (CO) and the Contracting Officer's Representative (COR) within HHS. They are responsible for monitoring contractor performance against the Performance Work Statement (PWS), ensuring compliance with contract terms, and approving invoices. Given the T&M nature, rigorous oversight of labor hours and material costs is crucial. Regular performance reviews, site visits, and analysis of utilization data would be key oversight activities to ensure both quality of service delivery and cost-effectiveness for the taxpayer.

Industry Classification

NAICS: Arts, Entertainment, and Recreation › Other Amusement and Recreation Industries › Fitness and Recreational Sports Centers

Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 610 TIMEA ST, KEOKUK, IA, 52632

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $12,786,989

Exercised Options: $12,016,194

Current Obligation: $12,016,194

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSP233201300013I

IDV Type: IDC

Timeline