HHS awards $20M contract for scientific and technical consulting services to ICF Macro Inc

Contract Overview

Contract Amount: $19,999,994 ($20.0M)

Contractor: ICF Macro Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2010-05-03

End Date: 2013-09-30

Contract Duration: 1,246 days

Daily Burn Rate: $16.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TAS::75 1701::TAS TAMS 2008 LB CHRONIC

Place of Performance

Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02138, UNITED STATES OF AMERICA

State: Massachusetts Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $20.0 million to ICF MACRO INC for work described as: TAS::75 1701::TAS TAMS 2008 LB CHRONIC Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries inherent risks. 3. The duration of the contract is over 3 years, indicating a significant, long-term need for these services. 4. The North American Industry Classification System (NAICS) code 541690 points to specialized consulting services. 5. The award was made by the Centers for Disease Control and Prevention (CDC), a key agency within HHS. 6. The contract was awarded as a Delivery Order (DO), implying it's part of a larger indefinite-delivery indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: fair

Benchmarking the value of this $20 million contract is challenging without specific performance metrics or comparable contract data. The Cost Plus Fixed Fee (CPFF) structure means the government pays actual costs plus a fixed fee, which can lead to cost overruns if not managed carefully. While the fixed fee provides some cost certainty for the contractor's profit, the government bears the risk of escalating costs. Without details on the specific services rendered and their outcomes, it's difficult to definitively assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit a bid. The presence of two bidders (no: 2) suggests a moderate level of competition for this specific award. While competition is generally beneficial for price discovery and innovation, a low number of bidders could potentially limit the range of solutions and pricing options available to the government.

Taxpayer Impact: A competitive process, even with a limited number of bidders, generally leads to better pricing for taxpayers compared to sole-source awards. However, the ultimate benefit depends on the effectiveness of the competition and the negotiated terms.

Public Impact

The primary beneficiaries are likely the Centers for Disease Control and Prevention (CDC) and the Department of Health and Human Services (HHS), receiving specialized scientific and technical consulting. Services delivered are expected to support public health initiatives and scientific research, aligning with the CDC's mission. The geographic impact is likely national, given the CDC's role in public health across the United States. Workforce implications could include employment opportunities for consultants and subject matter experts within ICF Macro Inc. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to incur costs to achieve the fixed fee, potentially leading to higher overall expenditures than fixed-price contracts if not closely monitored.
Limited competition (2 bidders) may not have driven the most aggressive pricing or innovative solutions.
The duration of the contract (over 3 years) increases the risk of scope creep or evolving requirements not being adequately addressed within the original contract structure.

Positive Signals

Awarded under full and open competition, ensuring a broad range of potential offerors could participate.
The fixed fee component of the CPFF contract provides a degree of predictability regarding the contractor's profit margin.
The contract is a Delivery Order (DO), suggesting it is part of a potentially larger, pre-competed IDIQ vehicle, which can streamline procurement.

Sector Analysis

This contract falls within the Scientific and Technical Consulting Services sector, a broad category encompassing specialized expertise for government agencies. The market for such services is competitive, with numerous firms offering a range of capabilities. The CDC, as a major public health research and prevention agency, frequently procures these types of services to support its mission. Comparable spending benchmarks would typically involve analyzing other contracts for similar consulting services awarded to agencies like the CDC or other HHS divisions.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract, nor does it detail subcontracting plans. As the contract was awarded under full and open competition, it is possible that small businesses could have participated as prime contractors or subcontractors. However, without further information, the direct impact on the small business ecosystem remains unclear.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Centers for Disease Control and Prevention (CDC). The Cost Plus Fixed Fee structure necessitates diligent monitoring of costs incurred by the contractor to ensure they are reasonable and allocable to the contract. Transparency is generally facilitated through contract reporting mechanisms, though specific details of performance and cost breakdowns may not always be publicly available.

Related Government Programs

HHS Scientific and Technical Consulting Services
CDC Research and Development Support Contracts
Public Health Consulting Services
Scientific Advisory Services Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires robust oversight to manage cost risks.
Limited number of bidders (2) may indicate potential challenges in attracting wider competition.
Contract duration exceeds three years, necessitating careful management of evolving requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $20.0 million to ICF MACRO INC. TAS::75 1701::TAS TAMS 2008 LB CHRONIC

Who is the contractor on this award?

The obligated recipient is ICF MACRO INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $20.0 million.

What is the period of performance?

Start: 2010-05-03. End: 2013-09-30.

What specific scientific and technical consulting services were rendered under this contract?

The contract, NAICS code 541690, covers 'Other Scientific and Technical Consulting Services.' While the specific deliverables are not detailed in the provided data, such services typically encompass areas like public health research support, data analysis, program evaluation, scientific literature reviews, development of technical guidance, and expert advice on health-related issues. Given the awarding agency is the CDC, the services likely supported specific public health programs, epidemiological studies, or scientific initiatives aimed at disease prevention and control.

How does the $20 million award compare to typical spending for similar consulting services at the CDC?

Comparing this $20 million award requires context on the scope and duration of the services. The CDC procures a wide range of consulting services, from short-term expert advice to long-term program support. A $20 million contract over approximately three years represents a significant investment, suggesting a substantial and ongoing need for specialized expertise. Without access to historical spending data for comparable contracts or detailed task orders under this award, it's difficult to definitively benchmark this amount. However, it falls within the range of major service contracts often awarded by large federal agencies for critical support functions.

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

The primary risk with a CPFF contract, especially one valued at $20 million, is the potential for cost escalation. While the 'fixed fee' provides a ceiling on the contractor's profit, the government bears the risk of all allowable costs. If the contractor is not diligent in managing its expenses, or if unforeseen circumstances drive up costs significantly, the total expenditure for the government could exceed initial estimates. Effective oversight is crucial to ensure costs are reasonable, allocable, and allowable. Another risk is the potential for less incentive for the contractor to control costs aggressively compared to fixed-price contracts, as their fee is fixed regardless of the final cost.

What was the track record of ICF Macro Inc. with the federal government prior to this award?

ICF Macro Inc. (now part of ICF International) has a long history of contracting with the U.S. federal government, including agencies within the Department of Health and Human Services. Prior to this specific $20 million award in 2010, ICF had secured numerous contracts across various agencies, often related to health, environmental, and social science research and consulting. Their established presence suggests a demonstrated capability to meet federal requirements. A comprehensive review would involve examining past performance evaluations and any documented issues on previous contracts.

How does the competition level (2 bidders) impact the value proposition for taxpayers?

A competition with only two bidders, while technically 'full and open,' presents a moderate risk to the value proposition for taxpayers. Ideally, more bidders would lead to greater price competition and potentially more innovative solutions. With only two offers, the government may not have achieved the lowest possible price or the widest array of technical approaches. However, the contracting agency is still obligated to ensure the price is fair and reasonable. The effectiveness of the evaluation process and negotiation becomes paramount in maximizing taxpayer value in such scenarios.

What is the significance of this contract being awarded as a Delivery Order (DO)?

Awarding this contract as a Delivery Order (DO) implies that it is likely a task order issued under a pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract vehicle. IDIQ contracts are often used to streamline the procurement of services that are expected to be needed over time but with uncertain quantities or timing. This approach allows the government to place orders (DOs) against the IDIQ as needs arise, often after a mini-competition among awardees of the IDIQ or based on pre-negotiated terms. This can lead to faster delivery of services and potentially better pricing due to the established framework.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 2008N09699

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: ICF International, Inc. (UEI: 139001544)

Address: 11785 BELTSVILLE DR STE 300, BELTSVILLE, MD, 20705

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $38,961,389

Exercised Options: $38,961,389

Current Obligation: $19,999,994

Parent Contract

Parent Award PIID: HHSD200200827957I

IDV Type: IDC

Timeline