HHS awards $22.5M for marketing consulting, with 9 bidders and 3.1K related contracts
Contract Overview
Contract Amount: $22,499,923 ($22.5M)
Contractor: ABT Global LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2016-04-25
End Date: 2018-04-17
Contract Duration: 722 days
Daily Burn Rate: $31.2K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 9
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: SERVICES
Place of Performance
Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02138
Plain-Language Summary
Department of Health and Human Services obligated $22.5 million to ABT GLOBAL LLC for work described as: SERVICES Key points: 1. Value for money appears fair given the competitive bidding process. 2. Competition dynamics show a healthy number of bidders, suggesting market interest. 3. Risk indicators are moderate, with a Time and Materials contract type. 4. Performance context is within a broad marketing consulting service category. 5. Sector positioning is within the government services and consulting industry.
Value Assessment
Rating: fair
The contract value of $22.5 million for marketing consulting services over approximately two years appears within a reasonable range for federal contracts of this nature. Benchmarking against similar contracts is challenging without more specific service details, but the number of bidders suggests a competitive market. The Time and Materials (T&M) contract type, while flexible, can sometimes lead to higher costs if not closely managed, which is a potential area for scrutiny.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was competed under SAP (Simplified Acquisition Procedures), indicating it was likely a full and open competition for a contract valued under the simplified acquisition threshold. With 9 bidders, the competition level was robust, which generally leads to better price discovery and potentially lower costs for the government. The presence of multiple bidders suggests that the market for these services is active and accessible.
Taxpayer Impact: A high level of competition benefits taxpayers by driving down prices and ensuring the government receives competitive rates for the marketing consulting services procured.
Public Impact
The Centers for Disease Control and Prevention (CDC) benefits from enhanced marketing and communication strategies. Services delivered likely include market research, campaign development, and strategic communication planning. Geographic impact is national, supporting public health initiatives across the United States. Workforce implications may involve specialized marketing and communication professionals within the contractor's organization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to cost overruns if not managed diligently.
- Scope creep is a potential risk with T&M contracts without clear deliverables.
- Measuring the direct impact and ROI of marketing consulting services can be challenging.
Positive Signals
- Full and open competition with 9 bidders indicates a healthy market and competitive pricing.
- The contract was awarded by a key health agency (CDC), suggesting a need for specialized expertise.
- The contract value is substantial, indicating a significant project with potentially high impact.
Sector Analysis
The marketing consulting sector within the federal government is diverse, encompassing a wide range of services from strategic planning to campaign execution. This contract fits within the broader professional services category, which is a significant area of federal spending. Comparable spending benchmarks are difficult to establish without knowing the specific nature of the marketing services, but the overall market for marketing and advertising services to the federal government is substantial.
Small Business Impact
There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the contract value and the nature of marketing consulting, it's possible that larger firms were the primary participants. Further analysis would be needed to determine the extent of small business participation, either as prime contractors or subcontractors.
Oversight & Accountability
Oversight for this contract would typically fall under the Centers for Disease Control and Prevention's contracting and program management offices. The Time and Materials contract type necessitates close monitoring of labor hours and costs to ensure adherence to the contract's ceiling and prevent scope creep. Transparency is generally maintained through contract databases, but specific performance reviews and audits would be internal oversight mechanisms.
Related Government Programs
- Federal Marketing and Advertising Services
- Public Health Communication Contracts
- Management and Financial Consulting, Acquisition and Technology Services
Risk Flags
- Time and Materials Contract Type
- Potential for Scope Creep
- Measuring ROI of Marketing Services
Tags
marketing-consulting, hhs, cdc, competed-under-sap, bpa-call, time-and-materials, professional-services, health-sector, federal-contract, us-federal-government
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $22.5 million to ABT GLOBAL LLC. SERVICES
Who is the contractor on this award?
The obligated recipient is ABT GLOBAL 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 $22.5 million.
What is the period of performance?
Start: 2016-04-25. End: 2018-04-17.
What specific marketing services were procured under this contract?
The data indicates the contract was for 'Marketing Consulting Services' under NAICS code 541613. While the specific deliverables are not detailed in the provided data, typical services under this category for an agency like the CDC could include market research, development of public health campaign strategies, content creation for various media, social media engagement planning, and communication outreach analysis. The Time and Materials (T&M) contract type suggests that the scope might have been flexible or evolved during the contract period, focusing on the effort expended rather than fixed deliverables.
How does the contract value compare to similar marketing consulting contracts awarded by the CDC or HHS?
Without access to a comprehensive database of historical CDC and HHS marketing contracts with detailed service descriptions, a direct comparison is difficult. However, a $22.5 million contract over approximately two years represents a significant investment in marketing consulting. The number of bidders (9) suggests that the value was sufficient to attract substantial market interest. To provide a more precise comparison, one would need to analyze contracts for similar scope and duration within the health sector, considering factors like the specific marketing objectives (e.g., disease prevention campaigns, health education initiatives) and the complexity of the target audience.
What are the primary risks associated with a Time and Materials contract for marketing services?
The primary risk with a Time and Materials (T&M) contract for marketing services is the potential for cost overruns and a lack of defined scope, leading to inefficiencies. Unlike fixed-price contracts, T&M contracts pay the contractor for direct labor hours and costs incurred, plus a fee. If not managed rigorously, this can lead to 'scope creep,' where the project expands beyond its original intent without a corresponding increase in budget control. For marketing, this could mean extended research phases, numerous revisions, or prolonged campaign development without clear cost ceilings, making it harder to track return on investment and potentially exceeding the allocated budget.
What was the contractor's track record prior to this award?
The provided data identifies ABT GLOBAL LLC as the contractor. To assess their track record, one would need to examine their past performance on federal contracts, particularly those with the Department of Health and Human Services (HHS) or similar agencies. This would involve reviewing past performance evaluations, any documented issues or successes, and their history with different contract types. A deeper dive into contract databases like SAM.gov or FPDS would reveal the extent and nature of their previous federal work, including contract values, agencies served, and performance ratings, to gauge their reliability and expertise in delivering marketing consulting services.
How has HHS spending on marketing consulting services trended over the past five years?
The provided data is for a single contract awarded in 2016. To analyze HHS spending trends on marketing consulting services over the past five years, a broader dataset encompassing multiple contracts would be required. This analysis would involve querying federal procurement databases for all contracts classified under relevant NAICS codes (e.g., 541613 - Marketing Consulting Services) awarded by HHS and its sub-agencies. Trends could then be identified by examining the total annual spending, the number of contracts awarded, and the average contract value over the specified period. This would reveal whether spending has increased, decreased, or remained stable.
What is the significance of the contract being competed under SAP?
Competing a contract under SAP (Simplified Acquisition Procedures) signifies that the contract value was likely below the threshold for full and open competition, typically $250,000 (though this threshold can be higher for certain types of procurements). SAP is designed to streamline the acquisition process for smaller purchases, making it faster and more efficient. For this contract, valued at approximately $22.5 million, it's unusual for it to be competed solely under SAP unless it was a specific type of procurement or a modification that fell under SAP rules. Typically, a contract of this magnitude would undergo a more formal, extensive competitive process. The data might indicate it was a 'BPA CALL' (Blanket Purchase Agreement Call), which can sometimes utilize simplified procedures depending on the underlying BPA's structure and value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Marketing Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 2016-Q-64806
Offers Received: 9
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 55 WHEELER ST, CAMBRIDGE, MA, 02138
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $22,499,923
Exercised Options: $22,499,923
Current Obligation: $22,499,923
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: HHSD2002015M88150B
IDV Type: BPA
Timeline
Start Date: 2016-04-25
Current End Date: 2018-04-17
Potential End Date: 2018-04-17 00:00:00
Last Modified: 2024-07-10
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