HHS awarded $21.8M to Luther Consulting LLC for HIV prevention research, a sole-source contract

Contract Overview

Contract Amount: $21,820,263 ($21.8M)

Contractor: Luther Consulting LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2012-06-29

End Date: 2017-09-28

Contract Duration: 1,917 days

Daily Burn Rate: $11.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: IGF::OT::IGF COLLECTION&REPORTING FOR HIV PREVENTION PROGRAM

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46204

State: Indiana Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $21.8 million to LUTHER CONSULTING LLC for work described as: IGF::OT::IGF COLLECTION&REPORTING FOR HIV PREVENTION PROGRAM Key points: 1. Contract awarded on a sole-source basis, limiting competitive pricing benefits. 2. Duration of over 5 years suggests a significant, long-term need for these services. 3. The contract's fixed-price nature provides cost certainty for the government. 4. Focus on HIV prevention research aligns with critical public health priorities. 5. The contractor, Luther Consulting LLC, has a track record with this agency. 6. Geographic location of the contractor in Indiana may influence local economic impact.

Value Assessment

Rating: fair

The contract value of $21.8 million over approximately five years for research and development services appears within a reasonable range for specialized consulting. However, without comparable sole-source contracts or detailed performance metrics, a precise value-for-money assessment is challenging. The fixed-price structure offers predictability, but the lack of competition means potential savings from a competitive bidding process were not realized. Benchmarking against similar R&D contracts in public health would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not openly competed. This approach is typically used when only one responsible source is available or capable of meeting the requirement. The lack of competition means that the government did not benefit from the price discovery and potential cost reductions that typically arise from multiple bidders vying for a contract. This can sometimes lead to higher prices than might be achieved in a competitive environment.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. The justification for sole-source procurement needs to be robust to ensure funds are used efficiently.

Public Impact

The primary beneficiaries are public health initiatives focused on combating HIV. Services delivered likely include research, data analysis, and program development related to HIV prevention strategies. The geographic impact is national, given the focus on a widespread public health issue, though the contractor is based in Indiana. Workforce implications may include specialized research and analytical roles within Luther Consulting LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits transparency and potential cost savings.
Lack of competition may indicate potential barriers to entry for other firms.
Contract duration could lead to vendor lock-in if not managed carefully.

Positive Signals

Contract supports critical public health research in HIV prevention.
Fixed-price contract provides budget certainty.
Contractor has a history with the agency, suggesting familiarity with requirements.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on social sciences and humanities applied to public health. The market for specialized public health research and consulting is competitive, but sole-source awards bypass typical market dynamics. Comparable spending in federal R&D for health initiatives can range widely, but contracts of this size often involve significant expertise and long-term engagement.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to Luther Consulting LLC, a single entity, does not directly indicate opportunities or impacts for the broader small business ecosystem in this specific instance, beyond the potential for the prime contractor to engage small businesses if it chooses.

Oversight & Accountability

Oversight for this contract would typically fall under the Centers for Disease Control and Prevention (CDC) program managers and the Department of Health and Human Services (HHS) contracting officers. The Inspector General's office for HHS would have jurisdiction for audits and investigations. Transparency is limited by the sole-source nature, but contract awards and basic details are usually publicly available through federal procurement databases.

Related Government Programs

HIV/AIDS Prevention Programs
Public Health Research Grants
Social Science Research Contracts
Federal Health IT Services
CDC Research and Development Contracts

Risk Flags

Sole-source award may limit competition and potentially increase costs.
Lack of detailed performance metrics in provided data hinders effectiveness assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $21.8 million to LUTHER CONSULTING LLC. IGF::OT::IGF COLLECTION&REPORTING FOR HIV PREVENTION PROGRAM

Who is the contractor on this award?

The obligated recipient is LUTHER CONSULTING LLC.

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 $21.8 million.

What is the period of performance?

Start: 2012-06-29. End: 2017-09-28.

What is the track record of Luther Consulting LLC with the Department of Health and Human Services?

Luther Consulting LLC has a history of receiving contracts from the Department of Health and Human Services (HHS), including this specific definitive contract for HIV prevention program collection and reporting. The provided data indicates this contract was active from June 2012 to September 2017, spanning over five years and valued at approximately $21.8 million. While this suggests a level of established performance and familiarity with HHS requirements, a comprehensive assessment would require reviewing past performance evaluations, any disputes, and the successful completion of deliverables across all their HHS engagements.

How does the value of this contract compare to similar HIV prevention research contracts?

Comparing the $21.8 million value of this sole-source contract to similar HIV prevention research contracts is challenging without access to a broader dataset of federal procurements. Sole-source awards, by their nature, bypass the competitive benchmarking that typically informs price reasonableness. However, for a five-year engagement involving specialized research and reporting for a critical public health issue like HIV prevention, this value could be considered within a typical range for significant federal R&D contracts. A detailed comparison would necessitate identifying other contracts with similar scopes of work, durations, and agencies, ideally those awarded competitively.

What are the primary risks associated with a sole-source award for public health research?

The primary risks associated with a sole-source award for public health research include potential lack of cost-effectiveness due to the absence of competitive bidding, which could lead to higher prices for taxpayers. There's also a risk of reduced innovation, as a single contractor may not be incentivized to explore novel approaches as vigorously as multiple competing firms might. Furthermore, sole-source awards can raise concerns about fairness and equal opportunity for other qualified firms seeking to do business with the government. Ensuring the sole-source justification is robust and that the selected contractor possesses unique capabilities is crucial to mitigate these risks.

How effective has Luther Consulting LLC been in delivering on HIV prevention research objectives?

The provided data does not contain specific metrics or evaluations regarding the effectiveness of Luther Consulting LLC's performance on this particular HIV prevention research contract. While the contract was awarded and executed over a five-year period, assessing its effectiveness would require access to performance reports, program outcomes, and potentially feedback from the Centers for Disease Control and Prevention (CDC) program officials. Without such information, it's impossible to definitively state how effective the contractor was in achieving the stated objectives of the 'COLLECTION & REPORTING FOR HIV PREVENTION PROGRAM'.

What are the historical spending patterns for HIV prevention research by the CDC?

Historical spending patterns for HIV prevention research by the Centers for Disease Control and Prevention (CDC) are substantial, reflecting the agency's mandate to address this critical public health issue. The CDC allocates significant resources annually towards research, surveillance, and program implementation aimed at preventing HIV transmission. While this specific $21.8 million contract represents a portion of that spending over its five-year duration, the CDC's overall budget for HIV prevention activities encompasses numerous grants, contracts, and internal research efforts, often totaling hundreds of millions of dollars each fiscal year. Tracking these patterns requires analyzing the CDC's annual budget justifications and procurement data.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Social Sciences and Humanities

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10435 COMMERCE DR, CARMEL, IN, 46032

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,889,465

Exercised Options: $21,889,464

Current Obligation: $21,820,263

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline