HHS awarded $25.5M for management consulting, with 8 bidders competing for this 7-year contract

Contract Overview

Contract Amount: $25,507,040 ($25.5M)

Contractor: National Opinion Research Center

Awarding Agency: Department of Health and Human Services

Start Date: 2004-09-30

End Date: 2010-12-31

Contract Duration: 2,283 days

Daily Burn Rate: $11.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: OTHER MANAGEMENT SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20036, UNITED STATES OF AMERICA

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $25.5 million to NATIONAL OPINION RESEARCH CENTER for work described as: OTHER MANAGEMENT SUPPORT SERVICES Key points: 1. The contract's value appears reasonable given its long duration and the nature of management consulting services. 2. Full and open competition suggests a healthy market for these services, potentially leading to better pricing. 3. The duration of the contract (7 years) presents a moderate risk of scope creep or evolving needs. 4. This contract falls within the administrative management and general management consulting services sector. 5. The contractor has a significant history with the government, indicating established performance. 6. The contract type (Cost Plus Fixed Fee) can incentivize cost control while ensuring contractor profit.

Value Assessment

Rating: good

The contract's total value of $25.5 million over approximately seven years averages to about $3.6 million annually. This figure seems within a reasonable range for comprehensive management consulting services provided to a federal agency like AHRQ. Benchmarking against similar large-scale management consulting contracts within HHS or other agencies would provide a more precise value-for-money assessment, but the initial figure does not immediately raise concerns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with eight bidders participating. This level of competition is a positive indicator, suggesting that multiple qualified firms were interested and capable of performing the required services. A robust bidding process generally leads to more competitive pricing and a wider selection of qualified contractors, benefiting the government.

Taxpayer Impact: The broad competition for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award. It ensures that the agency received proposals from various sources, driving down costs through market forces.

Public Impact

The primary beneficiary is the Agency for Healthcare Research and Quality (AHRQ), which receives support for its administrative and management functions. Services delivered include general management consulting, aiding in the efficiency and effectiveness of AHRQ's operations. The geographic impact is primarily within the District of Columbia, where AHRQ is located and where the contractor's services would likely be concentrated. The contract supports a professional workforce of consultants, contributing to the specialized services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility, can sometimes lead to higher costs if not closely monitored for efficiency.
The long contract duration (over 7 years) increases the risk of the services becoming outdated or misaligned with evolving agency needs without proper oversight and potential modifications.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's performance quality beyond general completion.
The absence of small business subcontracting goals (sb: false) means potential missed opportunities for small business participation.
The contract's primary focus on administrative management might not directly translate to immediate, tangible improvements in healthcare research outcomes, making impact assessment indirect.

Positive Signals

The contract was awarded through full and open competition, indicating a competitive process that likely secured a fair price.
The contractor, National Opinion Research Center (NORC), has a long-standing relationship with the government, suggesting a track record of performance and reliability.
The contract duration of over 7 years (2283 days) suggests a stable, long-term need for these services, providing continuity for the agency.
The fixed fee component in the CPFF contract provides a degree of cost certainty for the agency once the fee is established.
The contract is managed by the Agency for Healthcare Research and Quality (AHRQ), a reputable entity focused on improving healthcare quality and safety.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is crucial for government operations, providing expertise to improve efficiency, strategy, and program execution. The market for these services is large and competitive, with numerous firms offering specialized consulting capabilities. Comparable spending benchmarks would involve looking at other large federal contracts for management consulting services across various agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This means that large businesses were eligible to compete and likely won the contract. Without specific subcontracting requirements, there is no explicit mechanism to ensure small business participation. This could represent a missed opportunity to leverage the capabilities of small businesses and foster their growth within the federal contracting ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Agency for Healthcare Research and Quality (AHRQ) and potentially the Department of Health and Human Services (HHS) contracting officers. The contract type (Cost Plus Fixed Fee) necessitates diligent oversight to ensure costs are reasonable and the fixed fee is justified. Transparency would be enhanced through regular reporting requirements and performance reviews. While no specific Inspector General jurisdiction is mentioned, HHS OIG would likely have oversight authority over potential fraud, waste, or abuse related to this contract.

Related Government Programs

HHS Management and Administrative Support Contracts
Federal Consulting Services
Agency for Healthcare Research and Quality Operations Support
General Management Consulting Services
Cost Plus Fixed Fee Contracts

Risk Flags

Long Contract Duration
Cost Plus Fixed Fee Contract Type
Lack of Specific Performance Metrics
No Small Business Set-Aside

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $25.5 million to NATIONAL OPINION RESEARCH CENTER. OTHER MANAGEMENT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is NATIONAL OPINION RESEARCH CENTER.

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 $25.5 million.

What is the period of performance?

Start: 2004-09-30. End: 2010-12-31.

What is the National Opinion Research Center's (NORC) track record with federal contracts, particularly within HHS?

NORC has a substantial history of performing federal contracts, including those with HHS and its various agencies. While specific details for this particular contract (awarded in 2004) are limited in the provided data, NORC is known for its work in research, survey operations, and program evaluation across numerous government sectors. Their long-standing presence suggests a capacity to meet federal requirements and manage complex projects. A deeper dive into their contract performance history, including past performance evaluations and any documented issues, would be necessary for a comprehensive assessment.

How does the average annual cost of this contract compare to similar management consulting contracts within HHS?

This contract averages approximately $3.6 million per year ($25.5 million over ~7 years). To benchmark this effectively, one would need to compare it against other large-scale management consulting or administrative support contracts awarded by HHS or similar agencies during the same period (mid-2000s). Factors such as the scope of services, duration, complexity, and specific deliverables would need to be considered. Without access to a database of comparable contracts and their pricing, a precise comparison is difficult, but the figure appears within a plausible range for significant federal consulting engagements.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this duration?

The primary risks with a CPFF contract of this duration (over 7 years) include potential cost overruns if the 'cost' element is not rigorously controlled and audited, and the risk of the 'fixed fee' becoming disproportionately high or low relative to the actual effort over time. For the government, the risk is that costs could escalate beyond initial expectations. For the contractor, the risk is that the fixed fee might not adequately compensate for unforeseen complexities or increased scope. The long duration also increases the risk that the services may become less relevant or that the contractor's performance may degrade without continuous oversight and performance management.

How effective has NORC been in delivering administrative management and general management consulting services under this contract?

The provided data does not include specific performance metrics or evaluations for this contract, making it impossible to definitively assess NORC's effectiveness. Effectiveness would typically be measured by factors such as adherence to project timelines, quality of deliverables, client satisfaction (AHRQ), achievement of contract objectives, and efficiency in resource utilization. Given the contract's long duration and renewal (implied by the end date), it suggests a level of satisfaction, but without formal performance reports or audits, a conclusive judgment on effectiveness cannot be made.

What were the historical spending patterns for administrative management consulting services at AHRQ prior to this contract?

The provided data does not include historical spending patterns for AHRQ's administrative management consulting services prior to this contract. To analyze this, one would need to access historical federal procurement databases (like FPDS or USASpending) to identify spending on similar services by AHRQ or related HHS entities in the years preceding 2004. Understanding past spending levels would help contextualize the $25.5 million award, indicating whether it represented an increase, decrease, or stable level of investment in these types of services.

What is the significance of the contract being awarded under 'full and open competition' with 8 bidders?

Awarding the contract under 'full and open competition' signifies that all responsible sources were permitted to submit a bid. The presence of eight bidders indicates a healthy level of market interest and competition for these services. This broad competition is generally advantageous for the government as it increases the likelihood of receiving competitive pricing, innovative solutions, and a wider pool of qualified contractors. It suggests that the market has sufficient capacity and that the requirements were clearly defined, attracting multiple capable firms.

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: FULL AND OPEN COMPETITION

Offers Received: 8

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 1155 EAST 60TH STREET, CHICAGO, IL, 60637

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

Financial Breakdown

Contract Ceiling: $25,507,040

Exercised Options: $25,507,040

Current Obligation: $25,507,040

Timeline