HHS awards $17.1M for National Staffing Services Support, extending contract for another year

Contract Overview

Contract Amount: $17,113,145 ($17.1M)

Contractor: STG International, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2024-03-01

End Date: 2025-02-28

Contract Duration: 364 days

Daily Burn Rate: $47.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: Healthcare

Official Description: THIS IS AN ISSUANCE OF TASK ORDER 7, AGAINST STG INTERNATIONAL CONTRACT # HHSP233201800010I FOR THE NATIONAL STAFFING SERVICES SUPPORT. THIS TASK ORDER WILL HAVE A BASE PERIOD OF PERFORMANCE MARCH 1, 2024 THROUGH MAY 31, 2024.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22206

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $17.1 million to STG INTERNATIONAL, INC. for work described as: THIS IS AN ISSUANCE OF TASK ORDER 7, AGAINST STG INTERNATIONAL CONTRACT # HHSP233201800010I FOR THE NATIONAL STAFFING SERVICES SUPPORT. THIS TASK ORDER WILL HAVE A BASE PERIOD OF PERFORMANCE MARCH 1, 2024 THROUGH MAY 31, 2024. Key points: 1. Contract focuses on staffing services, indicating a need for personnel support within the agency. 2. The award is a task order against a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, suggesting a pre-vetted vendor. 3. The duration of the base period is three months, with an extended period of performance up to one year. 4. The contract type is labor hours, which can be efficient for variable staffing needs but requires careful monitoring. 5. The agency is the Department of Health and Human Services (HHS), a large federal entity with diverse operational needs. 6. The specific North American Industry Classification System (NAICS) code is 621999, related to miscellaneous ambulatory health care services.

Value Assessment

Rating: fair

The task order value of $17.1 million for a one-year period appears substantial for staffing services. Without specific details on the number of personnel or roles covered, a direct value-for-money assessment is challenging. Benchmarking against similar staffing contracts within HHS or other large federal agencies would be necessary to determine if this pricing is competitive. The labor hours contract type means costs are directly tied to hours worked, necessitating robust oversight to prevent overbilling.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The fact that it is a task order against an existing IDIQ contract suggests that the initial IDIQ was competed broadly. The specific number of bidders for this particular task order is not provided, but the full and open competition for the IDIQ implies a competitive environment was established.

Taxpayer Impact: Full and open competition generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are likely federal agencies within HHS requiring administrative and potentially clinical support staff. The services delivered are national staffing support, which could encompass a wide range of roles from administrative to specialized personnel. The geographic impact is national, as the contract supports the Department of Health and Human Services across its various locations. Workforce implications include the potential for STG International to provide a significant number of personnel, impacting the federal workforce landscape.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor hours contracts can lead to cost overruns if not closely monitored for efficiency and necessity of hours billed.
The broad NAICS code (621999) might obscure the specific nature of the staffing services, making detailed performance evaluation more complex.
Reliance on a single vendor (STG International) for a significant task order, even if the IDIQ was competed, warrants attention to ensure continued performance and competitive pricing.

Positive Signals

Awarded under full and open competition, suggesting a competitive process was used to select the vendor.
The contract is a task order against an existing IDIQ, implying that the vendor has already been vetted and demonstrated capability.
The contract duration of up to one year provides stability for essential staffing needs within the agency.

Sector Analysis

The healthcare support services sector is a significant component of federal contracting, particularly for agencies like HHS. This contract falls under miscellaneous ambulatory health care services, a broad category that can include administrative, operational, and potentially some direct patient support roles. Federal spending in this area often reflects the government's need for flexible staffing solutions to manage fluctuating workloads or specialized requirements without increasing permanent federal employee headcount. Benchmarks for similar staffing contracts can vary widely based on the specific roles, duration, and geographic scope.

Small Business Impact

The provided data indicates that small business set-aside (ss) and subcontracting (sb) flags are false for this specific task order. This suggests that the contract was not specifically set aside for small businesses, nor are there explicit requirements for subcontracting to small businesses within this task order's details. While the initial IDIQ contract might have had small business considerations, this particular award does not appear to prioritize them directly. This could mean that larger businesses are expected to fulfill the staffing needs, potentially limiting opportunities for smaller firms in this specific instance.

Oversight & Accountability

Oversight for this task order would primarily fall under the Department of Health and Human Services' contracting officers and program managers. As a task order against an existing IDIQ, the initial contract likely underwent a review process. Transparency is facilitated by the contract's public availability. Accountability measures would involve performance metrics, invoicing reviews, and adherence to labor hour reporting. The Inspector General's office for HHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

National Staffing Services Support Contracts
HHS Administrative Support Contracts
Federal Healthcare Staffing Solutions
IDIQ Contract Task Orders

Risk Flags

Potential for cost creep in labor hours contracts.
Vendor performance dependency.
Limited visibility into specific staffing roles without SOW.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $17.1 million to STG INTERNATIONAL, INC.. THIS IS AN ISSUANCE OF TASK ORDER 7, AGAINST STG INTERNATIONAL CONTRACT # HHSP233201800010I FOR THE NATIONAL STAFFING SERVICES SUPPORT. THIS TASK ORDER WILL HAVE A BASE PERIOD OF PERFORMANCE MARCH 1, 2024 THROUGH MAY 31, 2024.

Who is the contractor on this award?

The obligated recipient is STG INTERNATIONAL, 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 $17.1 million.

What is the period of performance?

Start: 2024-03-01. End: 2025-02-28.

What specific types of positions are being filled under this National Staffing Services Support contract?

The provided data indicates the contract is for 'National Staffing Services Support' under NAICS code 621999 (All Other Miscellaneous Ambulatory Health Care Services). While this code suggests a focus on health-related support, the exact positions are not detailed. Typically, such contracts can cover a wide range of roles including administrative assistants, program support specialists, schedulers, data entry clerks, and potentially some entry-level clinical support staff. The 'labor hours' contract type implies flexibility in the roles and number of personnel required. A deeper dive into the Statement of Work (SOW) for this task order would be necessary to ascertain the precise job functions and qualifications sought by the Department of Health and Human Services.

How does the $17.1 million value compare to previous years' spending on this specific National Staffing Services Support contract?

The provided data represents a single task order (Task Order 7) with a base period value of $17,113,144.69 for a three-month period, with an extended period of performance up to one year. To compare this to previous years' spending, one would need access to historical data for Task Orders 1 through 6 under the parent contract HHSP233201800010I, as well as any prior contracts for similar National Staffing Services Support. Without this historical context, it's impossible to determine if this award represents an increase, decrease, or consistent level of spending for these services. Analyzing the cumulative spending across all task orders under the IDIQ would provide a more comprehensive view of the program's financial trajectory.

What is the track record of STG International, Inc. as a federal contractor, particularly with HHS?

STG International, Inc. is a federal contractor that has secured various awards across different agencies. Information available through federal procurement data systems (like SAM.gov or FPDS) would detail their contract history, including performance ratings, past performance evaluations, and any reported issues or successes. As the awardee of Task Order 7 under contract HHSP233201800010I, STG International has demonstrated its ability to meet the requirements of the Department of Health and Human Services (HHS) at least to the extent required for this IDIQ and task order. A thorough assessment would involve reviewing their performance on this and other HHS contracts, looking for patterns in on-time delivery, quality of service, and compliance with contract terms.

Given the 'labor hours' contract type, what mechanisms are in place to ensure efficient use of taxpayer funds?

Labor hours contracts, while offering flexibility, require stringent oversight to ensure efficiency and prevent cost overruns. For this HHS contract, mechanisms likely include detailed timesheet tracking and approval processes, requiring federal personnel to verify the hours worked by contractor staff. The contracting officer's representative (COR) plays a crucial role in monitoring performance and ensuring that the hours billed are necessary and directly related to the contract's objectives. Regular performance reviews, audits of billing records, and clear deliverables tied to labor hours can also serve as controls. Furthermore, the contract's Statement of Work (SOW) should define expected outcomes and productivity standards, allowing for evaluation beyond just the hours expended.

What are the potential risks associated with relying on a single vendor for national staffing support, even under full and open competition?

While this task order was awarded under full and open competition, relying on a single vendor, STG International, Inc., for national staffing support presents several potential risks. Firstly, there's a risk of vendor lock-in, where the agency becomes highly dependent on the incumbent, potentially diminishing future competitive leverage. Secondly, if the vendor's performance degrades or they face internal challenges (e.g., financial instability, staffing shortages), it could significantly disrupt critical agency operations. Thirdly, even with initial competition, the long-term pricing might not remain optimal if market rates for staffing services increase significantly over time. Continuous market research and periodic re-competition of the underlying IDIQ are essential to mitigate these risks and ensure sustained value.

Industry Classification

NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › All Other Miscellaneous Ambulatory Health Care Services

Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 2900 S QUINCY ST STE 888, ARLINGTON, VA, 22206

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

Financial Breakdown

Contract Ceiling: $17,113,145

Exercised Options: $17,113,145

Current Obligation: $17,113,145

Actual Outlays: $16,417,108

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75P00118D00010

IDV Type: IDC

Timeline