HHS awards $50.7M to CSRA LLC for management consulting services over 10 years

Contract Overview

Contract Amount: $50,774,241 ($50.8M)

Contractor: Csra LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2013-08-01

End Date: 2023-09-30

Contract Duration: 3,712 days

Daily Burn Rate: $13.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF FOR OTHER FUNCTIONS

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $50.8 million to CSRA LLC for work described as: IGF::OT::IGF FOR OTHER FUNCTIONS Key points: 1. The contract's long duration suggests a need for sustained support in management consulting. 2. The 'Other Management Consulting Services' category indicates a broad scope of potential activities. 3. A single awardee over a decade may limit opportunities for competitive pricing and innovation. 4. The cost-plus-fixed-fee structure can incentivize cost overruns if not closely monitored. 5. The contract's value is substantial, requiring robust oversight to ensure taxpayer value. 6. The lack of competition raises questions about the initial procurement strategy and market availability.

Value Assessment

Rating: fair

The total award of $50.7 million over 10 years averages to approximately $5 million annually. Without specific benchmarks for 'Other Management Consulting Services' for the CDC, it's difficult to definitively assess value. However, the lack of competition and the cost-plus-fixed-fee structure suggest potential risks to achieving optimal value for money. Further analysis would require comparing the specific services rendered against industry standards and the pricing of similar contracts awarded competitively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source, definitive contract. This indicates that the agency identified a specific contractor, CSRA LLC, as the only viable source for the required services. The absence of a competitive bidding process means that potential alternative providers were not considered, and the pricing was not subjected to market-driven negotiation. This approach can be justified if unique capabilities or prior performance are critical, but it bypasses the benefits of open competition.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage competition to secure the best possible prices. Taxpayers may be paying a premium compared to what could have been achieved through a competitive process.

Public Impact

The Centers for Disease Control and Prevention (CDC) is the primary beneficiary, receiving management consulting support. Services likely encompass strategic planning, operational efficiency improvements, and program management assistance. The geographic impact is primarily within the agency's operational locations, likely centered in Maryland. The contract supports a workforce of consultants, contributing to employment in the professional services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Cost-plus-fixed-fee contract type can incentivize increased spending if not managed tightly.
Long contract duration without re-competition could lead to complacency or outdated service delivery.

Positive Signals

Sustained support over a decade suggests a critical and ongoing need for these services.
A single, long-term contractor can foster deep institutional knowledge and continuity.
The definitive contract award implies a specific justification for selecting CSRA LLC.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. This sector is characterized by a wide range of services supporting government and private organizations in areas like strategy, operations, and technology. The federal government is a significant consumer of these services, with spending often driven by complex program management needs and the desire for specialized expertise. Benchmarking this contract's value would involve comparing its annual cost against similar consulting engagements for large federal agencies, considering the scope and duration.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false) and there is no specific mention of subcontracting goals (sb: false). Therefore, this contract does not appear to directly benefit the small business ecosystem through set-asides. Any involvement of small businesses would likely be through subcontracting opportunities offered by the prime contractor, CSRA LLC, which are not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the CDC. As a definitive contract, it is subject to standard federal procurement regulations. The cost-plus-fixed-fee structure necessitates close monitoring of costs and performance to ensure adherence to the contract terms and prevent potential overruns. Transparency would depend on the agency's reporting practices and any specific clauses related to performance metrics and financial reporting.

Related Government Programs

Management and Financial Consulting, Acquisition and Commercialization Services
Professional Services
Other Business Support Services

Risk Flags

Lack of Competition
Cost-Plus-Fixed-Fee Structure
Long Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $50.8 million to CSRA LLC. IGF::OT::IGF FOR OTHER FUNCTIONS

Who is the contractor on this award?

The obligated recipient is CSRA 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 $50.8 million.

What is the period of performance?

Start: 2013-08-01. End: 2023-09-30.

What specific management consulting services has CSRA LLC provided under this contract?

The contract is categorized under NAICS code 541618, 'Other Management Consulting Services.' This broad classification suggests that CSRA LLC has likely provided a range of services beyond typical strategic or IT consulting. These could include areas such as organizational development, process improvement, program management support, policy analysis, and potentially specialized public health consulting. Without access to detailed task orders or performance reports, the precise nature of the services remains general. However, given the agency is the CDC, the consulting likely supports public health initiatives, operational efficiency within the agency, or program implementation and oversight.

How does the annual cost of this contract compare to similar management consulting contracts at the CDC or HHS?

The contract's total value of $50.7 million over approximately 10 years (August 2013 - September 2023) averages to roughly $5.07 million per year. Benchmarking this against similar contracts is challenging without specific details on the scope of services and the level of expertise required. However, for large federal agencies like HHS and its sub-agencies such as the CDC, annual consulting expenditures can range from a few million to tens of millions of dollars, depending on the complexity and duration of the need. The sole-source nature and cost-plus-fixed-fee structure warrant a closer look at whether this annual average represents competitive market rates or if efficiencies could have been gained through competition.

What are the primary risks associated with a sole-source, cost-plus-fixed-fee contract of this duration?

The primary risks associated with this contract structure are multifaceted. Firstly, the sole-source nature eliminates the competitive pressure that typically drives down prices and fosters innovation. The government may not be receiving the best possible value for its money. Secondly, the cost-plus-fixed-fee (CPFF) pricing model, while allowing for flexibility, can incentivize the contractor to incur higher costs to increase their fixed fee, especially if oversight is not rigorous. This requires diligent monitoring by the agency to ensure costs are reasonable and allocable. Finally, a decade-long engagement without re-competition risks the contractor becoming entrenched, potentially leading to service stagnation or a lack of responsiveness to evolving agency needs compared to a more dynamic, competitively sourced environment.

What is CSRA LLC's track record with the federal government, particularly with HHS and CDC?

CSRA LLC, prior to its acquisition by General Dynamics Information Technology (GDIT) in 2018, was a significant federal contractor. Its history with HHS and the CDC would likely involve providing a range of IT and professional services. As a large, established entity, CSRA (and subsequently GDIT) has a substantial portfolio of government contracts. Assessing their specific track record on this particular contract would involve reviewing performance evaluations, any past performance issues or commendations, and their overall history of meeting contractual obligations. Given the long duration and sole-source nature of this award, it suggests a history of satisfactory performance or a unique capability that the agency deemed essential.

How has federal spending on 'Other Management Consulting Services' evolved over the life of this contract?

Federal spending on 'Other Management Consulting Services' (NAICS 541618) has generally seen fluctuations but has remained a significant category within professional services. Over the period of this contract (2013-2023), agencies have increasingly sought external expertise for complex challenges, including program management, strategic planning, and operational improvements. While specific aggregate data for this NAICS code across the entire federal government isn't readily available in this format, trends indicate a consistent demand for such services, often driven by evolving policy landscapes, technological advancements, and the need for specialized skills not always available in-house. The CDC's reliance on such services underscores the ongoing need for external support in navigating complex public health issues.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 2013N15643

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 3170 FAIRVIEW PARK DR, FALLS CHURCH, VA, 22042

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

Financial Breakdown

Contract Ceiling: $50,774,241

Exercised Options: $50,774,241

Current Obligation: $50,774,241

Actual Outlays: $752,241

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $11,920,000

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline