HHS awarded $19.5M for management and procurement support services to Arbor Research Collaborative for Health

Contract Overview

Contract Amount: $19,475,150 ($19.5M)

Contractor: Arbor Research Collaborative for Health

Awarding Agency: Department of Health and Human Services

Start Date: 2005-09-20

End Date: 2010-12-27

Contract Duration: 1,924 days

Daily Burn Rate: $10.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: MGT SVCS/CONTRACT & PROCUREMENT SUP

Place of Performance

Location: ANN ARBOR, WASHTENAW County, MICHIGAN, 48103

State: Michigan Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $19.5 million to ARBOR RESEARCH COLLABORATIVE FOR HEALTH for work described as: MGT SVCS/CONTRACT & PROCUREMENT SUP Key points: 1. The contract value of $19.5 million over five years suggests a significant investment in specialized consulting services. 2. The 'Other Scientific and Technical Consulting Services' NAICS code indicates a broad scope of potential support. 3. The contract was awarded under full and open competition, implying a robust bidding process. 4. The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not carefully managed. 5. The duration of 1924 days (approximately 5.3 years) indicates a long-term need for these services. 6. The contractor, Arbor Research Collaborative for Health, is based in Michigan, suggesting potential geographic concentration of services.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or performance metrics. The CPFF structure introduces inherent risk to cost control. Comparing it to similar contracts for management and procurement support would require detailed analysis of the scope of work and the specific services provided. The total award amount of $19.5 million over more than five years averages to approximately $3.6 million annually, which could be reasonable for specialized consulting depending on the complexity and criticality of the support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This approach generally fosters a competitive environment, allowing the government to solicit proposals from a wide range of qualified contractors. The number of bidders is not specified, but the 'full and open' designation suggests a healthy level of competition was pursued, which is beneficial for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it increases the likelihood of obtaining services at the best possible price through a broad market solicitation.

Public Impact

The primary beneficiaries are likely the Department of Health and Human Services (HHS) and its Health Resources and Services Administration (HRSA), receiving essential management and procurement support. The services delivered are expected to enhance the efficiency and effectiveness of HHS's operational and procurement processes. The geographic impact is primarily centered around the contractor's location in Michigan, though the services may support federal operations nationwide. Workforce implications could include the employment of consultants and administrative staff by Arbor Research Collaborative for Health to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type can incentivize contractors to increase costs to achieve a higher fixed fee, potentially leading to less cost efficiency.
The broad NAICS code (541690) for 'Other Scientific and Technical Consulting Services' might indicate a less defined scope, increasing the risk of scope creep or misinterpretation of requirements.
The long contract duration (over 5 years) could lead to vendor lock-in and reduced flexibility for the agency if needs change significantly over time.
Lack of specific performance metrics or deliverables in the provided data makes it difficult to assess the contractor's performance and value for money.

Positive Signals

Awarding under 'full and open competition' suggests a deliberate effort to ensure a competitive process, potentially leading to better pricing and quality.
The contractor, Arbor Research Collaborative for Health, may possess specialized expertise relevant to health and human services, indicating a potentially good fit for the agency's needs.
The contract's existence implies a recognized need within HRSA for management and procurement support, suggesting the services are considered valuable for agency operations.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically consulting. This sector is characterized by a wide range of specialized expertise offered to government and private entities. The market for such services is large and competitive. Benchmarking this specific contract's value against others in the 'Other Scientific and Technical Consulting Services' category would require detailed comparison of the scope of work, deliverables, and contractor qualifications. The $19.5 million award over five years represents a moderate investment for specialized support within a large federal agency.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside criterion for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside requirement. The prime contractor is not identified as a small business, and the contract was awarded through full and open competition, suggesting larger firms or established entities were likely participants.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve contract officers, program managers within HRSA, and potentially an Inspector General's office for HHS. Accountability measures would be tied to the terms and conditions of the Cost Plus Fixed Fee contract, including adherence to the scope of work and budget. Transparency would be facilitated through contract databases like FPDS-NG, which provide public access to contract awards, though detailed performance reports are often internal.

Related Government Programs

Management and Administrative Support Services
Procurement and Acquisition Support
Scientific and Technical Consulting Services
Health Policy and Program Support
Federal Consulting Contracts

Risk Flags

Cost Plus Fixed Fee contract type may lead to cost overruns.
Broad NAICS code could indicate undefined scope.
Long contract duration may reduce agency flexibility.
Lack of specific performance metrics hinders value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $19.5 million to ARBOR RESEARCH COLLABORATIVE FOR HEALTH. MGT SVCS/CONTRACT & PROCUREMENT SUP

Who is the contractor on this award?

The obligated recipient is ARBOR RESEARCH COLLABORATIVE FOR HEALTH.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Health Resources and Services Administration).

What is the total obligated amount?

The obligated amount is $19.5 million.

What is the period of performance?

Start: 2005-09-20. End: 2010-12-27.

What specific management and procurement support services were provided under this contract?

The provided data indicates the contract was for 'MGT SVCS/CONTRACT & PROCUREMENT SUP' under NAICS code 541690 (Other Scientific and Technical Consulting Services). However, the specific nature of these services is not detailed. Typically, such contracts could encompass a wide range of support, including strategic planning, process improvement, organizational analysis, policy development, acquisition strategy, contract administration, and vendor management. Without access to the contract's statement of work (SOW) or performance reports, the precise deliverables and activities remain unspecified. The broad categorization suggests a need for expert advice and assistance in managing complex organizational functions and procurement processes within the Health Resources and Services Administration (HRSA).

How does the $19.5 million award compare to similar contracts for management and procurement support within HHS?

Direct comparison of the $19.5 million award to similar contracts within HHS is difficult without knowing the specific scope, duration, and complexity of services rendered. However, the average annual value of this contract is approximately $3.6 million ($19.5M / 5.3 years). This figure falls within a reasonable range for specialized consulting services supporting federal agencies. Larger agencies like HHS often award multi-million dollar contracts for critical support functions. To provide a more precise comparison, one would need to analyze contracts with similar NAICS codes, contract types (like CPFF), and service objectives within HHS or comparable agencies, considering factors like the number of personnel involved and the criticality of the support.

What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type used for this award?

The Cost Plus Fixed Fee (CPFF) contract type carries inherent risks for the government. While it allows for flexibility in scope, the 'cost-plus' element means the contractor is reimbursed for allowable costs incurred, plus a predetermined fixed fee. This can incentivize contractors to incur higher costs, as their fee is fixed regardless of the total cost. Effective oversight is crucial to ensure that only reasonable and necessary costs are reimbursed. Without stringent monitoring and control, CPFF contracts can lead to cost overruns and potentially less value for money compared to fixed-price contracts. The government must diligently manage the scope and monitor expenditures to mitigate these risks.

What is the track record of Arbor Research Collaborative for Health in performing federal contracts?

Information on Arbor Research Collaborative for Health's specific track record with federal contracts is not detailed in the provided data. However, the fact that they were awarded a significant contract by the Department of Health and Human Services (HHS) suggests they possess the necessary qualifications and experience to meet federal requirements. To assess their track record thoroughly, one would need to examine their past performance evaluations, any reported contract disputes or terminations, and the types and values of previous federal awards they have received. Publicly available contract databases (like FPDS-NG) can offer insights into their federal contracting history, including agencies served and contract types.

How does the competition level (full and open) impact the value received by taxpayers for this contract?

Awarding this contract under 'full and open competition' is generally beneficial for taxpayers. This approach maximizes the pool of potential bidders, encouraging a wider range of companies to submit proposals. Increased competition typically drives down prices and improves the quality of services offered as contractors vie for the award. It ensures that the government is not limited to a select few providers and has a greater opportunity to secure the best value. While the specific number of bidders isn't provided, the 'full and open' designation signals a commitment to market-based pricing and efficiency, which directly benefits taxpayer funds by promoting cost-effectiveness.

What is the historical spending pattern for management and procurement support services at HRSA or HHS?

The provided data only details a single contract award. To understand historical spending patterns for management and procurement support services at HRSA or HHS, a comprehensive analysis of past contract awards over several fiscal years would be necessary. This would involve querying federal procurement databases (e.g., FPDS-NG) for contracts categorized under relevant NAICS codes (like 541690) and service descriptions within these agencies. Such an analysis would reveal trends in spending levels, common contract types, key contractors, and the overall investment in these support services, providing context for the $19.5 million award.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 315 WEST HURON STE260, ANN ARBOR, MI, 06

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $19,475,150

Exercised Options: $19,475,150

Current Obligation: $19,475,150

Timeline