HHS awards $5.6M task order to Summome Native Ventures for administrative management consulting

Contract Overview

Contract Amount: $5,623,824 ($5.6M)

Contractor: Summome Native Ventures LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2023-08-23

End Date: 2024-08-22

Contract Duration: 365 days

Daily Burn Rate: $15.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: TASK ORDER 3

Place of Performance

Location: ATMORE, ESCAMBIA County, ALABAMA, 36502

State: Alabama Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $5.6 million to SUMMOME NATIVE VENTURES LLC for work described as: TASK ORDER 3 Key points: 1. The contract is a delivery order under an existing contract, indicating a potential for streamlined acquisition but requiring scrutiny of the original award. 2. The administrative management and general management consulting services are broad, necessitating a clear understanding of the specific deliverables and their impact. 3. The contract's duration of 365 days suggests a focused scope of work, but the absence of a defined ceiling price warrants attention. 4. The 'Not Available for Competition' status raises questions about the justification for limiting competition and potential impacts on price. 5. The contract is a Time and Materials type, which can lead to cost overruns if not closely managed and monitored. 6. The small business status of the contractor is not specified, impacting potential subcontracting opportunities and the distribution of federal dollars.

Value Assessment

Rating: questionable

Benchmarking the value of this specific task order is challenging without knowing the scope of services and the original contract's pricing structure. However, the Time and Materials (T&M) contract type, especially when awarded without full and open competition, carries inherent risks of cost escalation. The absence of a ceiling price on this delivery order further compounds this risk. Without comparable T&M contracts for similar administrative management consulting services, it's difficult to definitively assess if the pricing is competitive or represents good value for money. Further analysis would require details on the labor categories, rates, and estimated hours.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'Not Available for Competition' (NAF) status, which implies that a justification for other than full and open competition was likely required and approved. This typically occurs when only one source is capable of meeting the agency's needs. The limited competition means that the agency did not benefit from the price discovery and innovation that typically arises from a competitive bidding process.

Taxpayer Impact: The lack of robust competition for this contract means taxpayers may not have received the most cost-effective solution. The agency's ability to negotiate the best possible price is diminished when only one vendor is considered.

Public Impact

The primary beneficiaries are likely the Department of Health and Human Services (HHS) and its Health Resources and Services Administration (HRSA), which will receive administrative management and general management consulting services. The services delivered are expected to support the operational efficiency and management of HRSA programs. The geographic impact is primarily within Alabama, where the contractor is located, but the services provided likely support national-level HHS initiatives. Workforce implications are not immediately clear but could involve the contractor's personnel supporting HRSA's internal management functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Not Available for Competition' award limits transparency and potentially drives up costs for taxpayers.
The Time and Materials contract type, without a ceiling price, presents a risk of cost overruns if not rigorously managed.
The broad nature of 'Administrative Management and General Management Consulting Services' requires careful oversight to ensure the work is necessary and effective.
Lack of defined performance metrics or clear deliverables in the provided data makes it difficult to assess the expected outcomes.
The original contract under which this task order was issued is not detailed, obscuring the initial award rationale and competition.

Positive Signals

The award is a task order under an existing contract, suggesting a potentially faster acquisition process for immediate needs.
The contractor, Summome Native Ventures LLC, is being awarded federal funds, which can stimulate economic activity.
The contract is managed by the Health Resources and Services Administration, an agency focused on improving health outcomes.
The contract duration is one year, allowing for focused efforts on specific administrative management objectives.

Sector Analysis

The administrative management and general management consulting services sector is a significant part of the federal contracting landscape, supporting various government functions. This contract falls within the professional services category, which is characterized by a wide range of specialized expertise. Comparable spending benchmarks are difficult to establish without a precise definition of the services rendered, but federal agencies frequently procure consulting services to improve efficiency, implement new policies, or manage complex programs. The market for these services is competitive, though specific niches can be dominated by specialized firms.

Small Business Impact

The provided data does not indicate if Summome Native Ventures LLC is a small business, nor does it specify any small business set-aside requirements or subcontracting plans for this particular task order. If the contractor is not a small business, it limits opportunities for small business participation through subcontracting. Further investigation into the contractor's size status and the terms of the parent contract would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services (HHS) and specifically the Health Resources and Services Administration (HRSA). As a delivery order under an existing contract, the initial oversight mechanisms were established during the parent contract's award. The Time and Materials nature of this order necessitates close monitoring of labor hours, rates, and expenditures to prevent cost overruns. Transparency would be enhanced by public reporting of task order performance and expenditures, and any Inspector General jurisdiction would depend on the nature of any potential fraud, waste, or abuse identified.

Related Government Programs

Administrative Management and General Management Consulting Services
Professional Services Contracts
Health Resources and Services Administration Contracts
Department of Health and Human Services Task Orders

Risk Flags

Limited Competition
Time and Materials Contract Type
Lack of Defined Ceiling Price
Unspecified Deliverables/Scope
Unknown Contractor Performance History

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $5.6 million to SUMMOME NATIVE VENTURES LLC. TASK ORDER 3

Who is the contractor on this award?

The obligated recipient is SUMMOME NATIVE VENTURES LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Health Resources and Services Administration).

What is the total obligated amount?

The obligated amount is $5.6 million.

What is the period of performance?

Start: 2023-08-23. End: 2024-08-22.

What is the specific scope of work and expected deliverables for this $5.6 million task order?

The provided data classifies this contract under NAICS code 541611, 'Administrative Management and General Management Consulting Services.' However, it does not detail the specific tasks, projects, or expected outcomes for this $5.6 million task order. These services can encompass a wide range of activities, from strategic planning and organizational assessment to process improvement and operational support. Without a detailed statement of work (SOW), it is impossible to ascertain the precise nature of the services being procured, the specific problems being addressed, or the tangible results expected by the Health Resources and Services Administration (HRSA). This lack of specificity makes it challenging to evaluate the necessity and effectiveness of the expenditure.

What was the justification for awarding this task order on a 'Not Available for Competition' basis?

The 'Not Available for Competition' (NAF) status indicates that the Health Resources and Services Administration (HRSA) did not conduct a full and open competition for this task order. Federal acquisition regulations require agencies to justify such awards, typically when only one source is capable of meeting the agency's needs (e.g., unique capabilities, urgent requirements where no other source can be found in time, or specific follow-on work to a prior contract where only that contractor can perform). The specific justification for this NAF award is not provided in the data. Understanding this justification is crucial for assessing whether the agency adequately explored competitive options and if taxpayers are receiving fair value, as limited competition often leads to higher prices.

How does the Time and Materials (T&M) contract type, with no specified ceiling, impact cost control and taxpayer risk?

A Time and Materials (T&M) contract pays the contractor for direct labor hours at specified hourly rates and for the cost of materials. When a T&M contract does not have a ceiling price, it means there is no upper limit on the total amount the government will pay. This structure places a significant burden on the government to closely monitor the contractor's labor hours, efficiency, and material costs. Without a ceiling, the risk of cost overruns is substantially higher, as the contractor is incentivized to bill for all hours worked. For taxpayers, this translates to increased financial risk, as the final cost could significantly exceed initial estimates if not managed with extreme diligence and robust oversight by the agency.

What is the track record of Summome Native Ventures LLC in performing similar federal contracts, particularly under T&M or NAF awards?

Information regarding Summome Native Ventures LLC's track record, especially concerning similar federal contracts, Time and Materials (T&M) awards, or 'Not Available for Competition' (NAF) procurements, is not detailed in the provided data. A comprehensive assessment of the contractor's past performance, including their ability to deliver quality services on time and within budget on comparable projects, is essential for evaluating the risk associated with this award. Understanding their history with T&M contracts would reveal their efficiency and cost management practices. Similarly, their experience with NAF awards could shed light on their ability to meet unique agency requirements. Without this performance history, it's difficult to gauge their reliability and value proposition.

Are there any benchmarks or comparable contracts that indicate whether the pricing for these consulting services is reasonable?

The provided data does not include specific pricing details such as labor rates, hours, or material costs, nor does it offer any benchmarks or comparable contracts for the administrative management and general management consulting services being procured. Without this information, it is impossible to determine if the $5.6 million award represents a reasonable price for the services rendered. Benchmarking would typically involve comparing the negotiated labor rates and estimated hours against market data for similar services, or against other contracts awarded by HHS or other agencies for comparable work. The 'Not Available for Competition' status further complicates price reasonableness assessment, as the agency may not have had the benefit of competitive bids to drive down costs.

What are the specific performance metrics and oversight mechanisms in place to ensure accountability for this task order?

The provided data does not specify the performance metrics or detailed oversight mechanisms established for this particular task order. While it is a delivery order under an existing contract managed by the Health Resources and Services Administration (HRSA), the specifics of how performance will be measured, monitored, and evaluated are absent. For a Time and Materials contract, effective oversight typically involves rigorous tracking of labor hours, regular progress reviews, and clear deliverables. The lack of defined metrics makes it challenging to hold the contractor accountable for specific outcomes and to objectively assess the value derived from the $5.6 million expenditure. Robust oversight is critical, especially given the NAF award and T&M contract type.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 100 BROOKWOOD RD, ATMORE, AL, 36502

Business Categories: Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,623,824

Exercised Options: $5,623,824

Current Obligation: $5,623,824

Actual Outlays: $5,623,824

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75R60223D00001

IDV Type: IDC

Timeline