Nearly $11.5M for management support services awarded to Oregon Health & Science University

Contract Overview

Contract Amount: $11,537,273 ($11.5M)

Contractor: Oregon Health & Science University

Awarding Agency: Department of Health and Human Services

Start Date: 2007-09-25

End Date: 2011-09-24

Contract Duration: 1,460 days

Daily Burn Rate: $7.9K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Other

Official Description: OTHER MANAGEMENT SUPPORT SERVICES

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97239, UNITED STATES OF AMERICA

State: Oregon Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $11.5 million to OREGON HEALTH & SCIENCE UNIVERSITY for work described as: OTHER MANAGEMENT SUPPORT SERVICES Key points: 1. Contract awarded for administrative and general management consulting services. 2. Significant duration of 1460 days indicates a long-term need for these services. 3. The contract type is a competitive delivery order, suggesting multiple vendors were considered. 4. The base award amount is substantial, requiring careful evaluation of value for money. 5. The contractor, Oregon Health & Science University, is a large academic institution. 6. The contract falls under the administrative management and general management consulting services NAICS code.

Value Assessment

Rating: fair

The contract's value of nearly $11.5 million over approximately four years for management support services requires careful benchmarking. Without specific deliverables or performance metrics, it's challenging to definitively assess value for money. Comparing this to similar contracts for administrative and general management consulting services within the federal government would be crucial. The 'COST NO FEE' pricing structure suggests that the government reimburses allowable costs, which can sometimes lead to less price discipline compared to fixed-price contracts. Further analysis of the cost components and justification for the total amount is needed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was issued as a competitive delivery order, indicating that it was competed among multiple potential vendors. The specific number of bidders is not provided in the summary data, but the 'full-and-open' competition level suggests a robust process. This approach is generally expected to foster price discovery and encourage competitive pricing among qualified offerors, potentially leading to better value for the government.

Taxpayer Impact: A full and open competition generally benefits taxpayers by ensuring that the government explores a wide range of options and receives the most competitive pricing available in the market.

Public Impact

The primary beneficiary is the Department of Health and Human Services, specifically the Agency for Healthcare Research and Quality, which receives administrative and management support. The services delivered are expected to enhance the operational efficiency and management capabilities of the agency. The geographic impact is primarily within Oregon, where the contractor is located, but the services support a federal agency's national mission. Workforce implications may include the utilization of specialized consulting and administrative staff at Oregon Health & Science University.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness and value of the management support services.
The 'COST NO FEE' pricing structure could potentially lead to cost overruns if not rigorously managed and audited.
The long contract duration without clear interim performance reviews might obscure potential issues or inefficiencies.
Limited information on the specific scope of work makes it hard to determine if the services are truly essential and cost-effective.

Positive Signals

Awarded through a full and open competitive process, suggesting a considered selection of the contractor.
The contractor, Oregon Health & Science University, is a reputable academic and research institution, implying a certain level of expertise.
The contract supports a critical federal agency (HHS/AHRQ), indicating alignment with government objectives.
The delivery order mechanism within a larger contract framework can offer flexibility while maintaining competitive oversight.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This is a broad category encompassing a wide range of services aimed at improving organizational efficiency and effectiveness. The federal government is a significant consumer of these services, utilizing them across various agencies for strategic planning, operational improvements, and program management. Benchmarking this contract's value would involve comparing it to other federal contracts for similar management consulting services, considering factors like the scope of work, contractor expertise, and contract duration.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically tied to small business set-asides for this particular award. The focus was on full and open competition, which typically allows large businesses and institutions like Oregon Health & Science University to compete. The impact on the small business ecosystem is indirect, as opportunities may arise through subcontracting if the primary contractor chooses to engage smaller firms, but this is not mandated by a set-aside.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting agency, the Agency for Healthcare Research and Quality (AHRQ), a part of the Department of Health and Human Services. The contract's 'COST NO FEE' structure necessitates robust financial oversight to ensure that reimbursed costs are allowable, reasonable, and allocable. Performance monitoring would be crucial to ensure the management support services are meeting the agency's needs. Transparency would depend on the agency's reporting practices and the public availability of contract details beyond the summary data provided. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

Management and Administrative Support Services
Consulting Services
Healthcare Administration Support
Federal Agency Operational Efficiency Programs
Cost-Reimbursement Contracts

Risk Flags

Cost Control Risk (COST NO FEE)
Performance Measurement Difficulty
Scope Definition Ambiguity
Long-Term Dependency Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $11.5 million to OREGON HEALTH & SCIENCE UNIVERSITY. OTHER MANAGEMENT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is OREGON HEALTH & SCIENCE UNIVERSITY.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Agency for Healthcare Research and Quality).

What is the total obligated amount?

The obligated amount is $11.5 million.

What is the period of performance?

Start: 2007-09-25. End: 2011-09-24.

What specific management and administrative support services were provided under this contract?

The provided data indicates the contract is for 'OTHER MANAGEMENT SUPPORT SERVICES' under NAICS code 541611, 'Administrative Management and General Management Consulting Services.' However, the specific nature of these services is not detailed. Typically, such services can include strategic planning, organizational analysis, process improvement, program management support, policy development, and general administrative assistance. Given the contractor is Oregon Health & Science University and the agency is AHRQ, the services might be tailored towards healthcare research administration, operational efficiency within a research context, or support for public health initiatives. A detailed statement of work (SOW) would be required to understand the precise deliverables and activities undertaken.

How does the nearly $11.5 million award compare to similar management consulting contracts within HHS or other federal agencies?

Benchmarking this $11.5 million contract requires comparing it to similar 'Administrative Management and General Management Consulting Services' (NAICS 541611) awarded by HHS or other agencies over comparable durations (approximately 4 years). Without access to a comprehensive contract database with detailed scope information, a precise comparison is difficult. However, federal spending on management consulting is substantial. Contracts of this magnitude are not uncommon for large agencies requiring long-term support. Key comparison points would include the hourly rates of personnel, the total number of labor hours, and the specific expertise provided. The 'COST NO FEE' structure also influences comparisons, as it differs from fixed-price arrangements.

What are the potential risks associated with a 'COST NO FEE' contract of this size and duration?

The primary risk with a 'COST NO FEE' contract is the potential for the contractor to incur costs that are not adequately controlled or justified, leading to overall higher expenses for the government than anticipated. While the government reimburses allowable costs, the 'NO FEE' aspect means the contractor does not earn a profit margin on top of costs, which can sometimes disincentivize aggressive cost management if not properly overseen. Risks include potential for scope creep without corresponding cost adjustments, inadequate documentation of expenses, and difficulty in definitively measuring the return on investment. Robust oversight, clear cost accounting standards, and regular audits are essential to mitigate these risks.

What is the track record of Oregon Health & Science University as a federal contractor, particularly for management support services?

Oregon Health & Science University (OHSU) is primarily known as a major academic health and research institution. While they do engage in federal contracting, it is often in the context of research grants and cooperative agreements rather than traditional procurement for management consulting services. Their track record as a direct federal contractor for administrative management and general management consulting services would need specific investigation. It's possible they leverage their internal administrative and management expertise to support federal agencies, especially those related to health and science. A review of their contract history within federal procurement databases would reveal the extent and nature of their prior federal contracting experience in this specific service area.

How does the competitive delivery order mechanism impact price discovery and taxpayer value for this contract?

A competitive delivery order (DO) is issued under an existing indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar multiple-award contract. This means the initial contract vehicle itself was competed, and then this specific DO was competed among the awardees of that vehicle. This layered competition generally enhances price discovery. The initial competition for the IDIQ ensures a pool of qualified contractors, and the competition for each DO allows for pricing specific to the task's requirements. This process is designed to yield competitive prices for individual orders and, by extension, better value for taxpayers compared to a sole-source award or a less competitive process.

What is the historical spending pattern for NAICS code 541611 (Administrative Management and General Management Consulting Services) by the Agency for Healthcare Research and Quality (AHRQ)?

Analyzing AHRQ's historical spending on NAICS code 541611 would provide context for this $11.5 million contract. AHRQ, as an agency focused on health services research and quality improvement, likely utilizes management consulting services to support its operations, research initiatives, and strategic planning. Historical data would reveal whether this contract represents a significant increase or decrease in spending for these services, the typical duration and value of such contracts awarded by AHRQ, and the types of contractors they usually engage. Understanding these patterns helps assess if this specific award is an outlier or consistent with AHRQ's procurement practices for management support.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 2525 SW 1ST AVENUE, PORTLAND, OR, 97201

Business Categories: Category Business, Educational Institution, Higher Education, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $11,537,273

Exercised Options: $11,537,273

Current Obligation: $11,537,273

Parent Contract

Parent Award PIID: HHSA290200710057I

IDV Type: IDC

Timeline