HHS awards $6.5M contract for administrative management consulting services to American Institutes for Research

Contract Overview

Contract Amount: $6,475,356 ($6.5M)

Contractor: American Institutes for Research in the Behavioral Sciences

Awarding Agency: Department of Health and Human Services

Start Date: 2025-09-09

End Date: 2026-06-08

Contract Duration: 272 days

Daily Burn Rate: $23.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: THE CONTRACTOR SHALL OBTAIN ALL SERVICES NECESSARY FOR THE OPTN BOARD OF DIRECTORS, EXECUTIVE COMMITTEE AND NOMINATING COMMITTEE TO EFFECTIVELY CARRY OUT THEIR OBLIGATIONS.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $6.5 million to AMERICAN INSTITUTES FOR RESEARCH IN THE BEHAVIORAL SCIENCES for work described as: THE CONTRACTOR SHALL OBTAIN ALL SERVICES NECESSARY FOR THE OPTN BOARD OF DIRECTORS, EXECUTIVE COMMITTEE AND NOMINATING COMMITTEE TO EFFECTIVELY CARRY OUT THEIR OBLIGATIONS. Key points: 1. Contract focuses on supporting the OPTN Board of Directors and committees. 2. Services are classified under Administrative Management and General Management Consulting. 3. The contract is a delivery order under a larger contract vehicle. 4. Performance period spans approximately 20 months. 5. The contract type is Time and Materials, which can pose cost control challenges. 6. No small business set-aside was utilized for this specific award.

Value Assessment

Rating: fair

The contract value of $6.5 million for approximately 20 months of administrative consulting services appears to be within a reasonable range for specialized support to a board and its committees. Benchmarking against similar contracts for executive advisory services or management consulting for non-profit or quasi-governmental entities would provide a clearer picture of value for money. The Time and Materials pricing structure, while flexible, necessitates careful monitoring to ensure costs remain aligned with the scope of work and do not escalate unexpectedly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple offerors had the opportunity to bid. The specific number of bidders is not provided, but the competitive nature of the award suggests that the government sought the best value from the market. Full and open competition is generally expected to drive more favorable pricing and service offerings.

Taxpayer Impact: Taxpayers benefit from the assurance that the government sought competitive proposals, which should lead to a more efficient use of funds and potentially better service quality compared to non-competitive awards.

Public Impact

The primary beneficiaries are the OPTN Board of Directors, Executive Committee, and Nominating Committee, who will receive administrative support. The services delivered will enable these bodies to effectively carry out their governance and oversight obligations. The geographic impact is primarily within Virginia, where the contractor is located. Workforce implications are likely limited to the personnel at American Institutes for Research assigned to this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely managed.
Lack of specific performance metrics in the provided data makes it difficult to assess effectiveness.
The broad nature of 'administrative management' could lead to scope creep if not clearly defined.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Contractor is American Institutes for Research, a known entity in behavioral science and research.
Clear objective to support critical governance functions of the OPTN.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is characterized by a wide range of services supporting organizational efficiency and strategic planning. The market size for such consulting services is substantial, with government contracts forming a significant portion. This award represents a small segment of overall federal spending on management consulting.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses based on the provided data. The prime contractor, American Institutes for Research, is a large organization. This means that the direct economic benefit to the small business ecosystem from this specific award is likely minimal, unless the prime contractor voluntarily engages small businesses for subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Health Resources and Services Administration (HRSA). Accountability measures would be tied to the terms and conditions of the Time and Materials contract, including adherence to the Statement of Work and reporting requirements. Transparency is generally facilitated through contract databases, though specific details of performance and cost management may not be publicly available.

Related Government Programs

Federal Management and Consulting Services
Health Resources and Services Administration Contracts
Organ Transplant Network (OPTN) Support Services

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Lack of specific performance metrics in provided data.
Scope definition and management critical for success.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $6.5 million to AMERICAN INSTITUTES FOR RESEARCH IN THE BEHAVIORAL SCIENCES. THE CONTRACTOR SHALL OBTAIN ALL SERVICES NECESSARY FOR THE OPTN BOARD OF DIRECTORS, EXECUTIVE COMMITTEE AND NOMINATING COMMITTEE TO EFFECTIVELY CARRY OUT THEIR OBLIGATIONS.

Who is the contractor on this award?

The obligated recipient is AMERICAN INSTITUTES FOR RESEARCH IN THE BEHAVIORAL SCIENCES.

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 $6.5 million.

What is the period of performance?

Start: 2025-09-09. End: 2026-06-08.

What is the track record of American Institutes for Research in performing similar administrative management consulting services for federal agencies?

American Institutes for Research (AIR) has a substantial track record in research, evaluation, and technical assistance across various domains, including health and education. While their primary focus is often research and program evaluation, they do engage in management consulting and administrative support, particularly for complex health-related initiatives. Their experience with government contracts is extensive, often involving large-scale projects. To assess their suitability for this specific contract, a review of their past performance on similar contracts, particularly those involving governance support for advisory boards or committees, would be necessary. This would include examining client satisfaction, adherence to schedule and budget, and the quality of deliverables in previous engagements.

How does the awarded amount of $6.5 million compare to similar contracts for executive board support services?

Comparing the $6.5 million award for approximately 20 months of service requires context regarding the scope and complexity of the OPTN's board and committee functions. Executive board support can range widely in cost depending on the size of the board, the frequency of meetings, the level of strategic input required, and the administrative infrastructure needed. Contracts for similar high-level advisory or governance support for large organizations or federal entities can range from hundreds of thousands to several million dollars annually. Without specific details on the deliverables and the size of the OPTN's operational needs, a precise benchmark is difficult. However, the amount suggests a significant level of support is anticipated.

What are the primary risks associated with a Time and Materials (T&M) contract for administrative consulting?

The primary risk with a Time and Materials (T&M) contract for administrative consulting is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual labor hours and materials used. If the scope of work is not precisely defined, or if project management is weak, the contractor may incur more hours than initially anticipated, leading to a higher final cost. This necessitates robust oversight from the government to monitor labor hours, ensure efficiency, and prevent scope creep. Another risk is ensuring the quality of services delivered, as the focus can sometimes shift to hours billed rather than outcomes achieved. Clear task orders and regular performance reviews are crucial mitigation strategies.

What is the expected effectiveness of these administrative services in supporting the OPTN's obligations?

The effectiveness of these administrative services hinges on the contractor's ability to provide timely, accurate, and comprehensive support to the OPTN Board of Directors and its committees. This includes logistical support for meetings, preparation of agendas and minutes, dissemination of information, and potentially research assistance for board-related matters. If American Institutes for Research delivers high-quality administrative and logistical support, it should free up board members' time to focus on strategic decision-making and governance, thereby enhancing the OPTN's overall effectiveness. The success will be measured by the board's ability to function efficiently and meet its obligations without administrative bottlenecks.

How has federal spending on administrative management and general management consulting services trended in recent years?

Federal spending on administrative management and general management consulting services (NAICS code 541611) has generally trended upwards over the past decade, reflecting the government's reliance on external expertise to improve efficiency, manage complex programs, and implement policy changes. Agencies across the federal government utilize these services for a wide array of needs, from strategic planning and organizational restructuring to IT management and human capital consulting. Factors such as evolving technological landscapes, increased regulatory requirements, and the need for specialized skills contribute to this sustained demand. While specific year-over-year fluctuations occur, the overall trajectory indicates a consistent and significant federal investment in this service category.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1400 CRYSTAL DR FL 10, ARLINGTON, VA, 22202

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,475,356

Exercised Options: $6,475,356

Current Obligation: $6,475,356

Actual Outlays: $2,418,870

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $228,206

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 75R60224D00021

IDV Type: IDC

Timeline