HHS awarded $21.5M for management and procurement support services over 10 years

Contract Overview

Contract Amount: $21,484,356 ($21.5M)

Contractor: THE Medical College of Wisconsin, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2006-09-15

End Date: 2016-09-20

Contract Duration: 3,658 days

Daily Burn Rate: $5.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Other

Official Description: MGT SVCS/CONTRACT&PROCUREMENT SUP

Place of Performance

Location: MILWAUKEE, MILWAUKEE County, WISCONSIN, 53226

State: Wisconsin Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $21.5 million to THE MEDICAL COLLEGE OF WISCONSIN, INC. for work described as: MGT SVCS/CONTRACT&PROCUREMENT SUP Key points: 1. Contract provided essential management and procurement support over a decade. 2. The contract was awarded using full and open competition. 3. The duration of the contract suggests a long-term need for these services. 4. The contract type (Cost No Fee) indicates a focus on service delivery rather than profit. 5. The award was made to a single entity, The Medical College of Wisconsin, Inc. 6. The North American Industry Classification System (NAICS) code 541990 covers 'All Other Professional, Scientific, and Technical Services'.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its long duration and specific service nature. The 'Cost No Fee' award type suggests the contractor was reimbursed for actual costs incurred without an additional profit margin, which can be a cost-effective approach for certain services. However, without detailed cost breakdowns or comparisons to similar long-term management support contracts, a definitive value assessment is difficult. The total award amount of over $21 million spread across 10 years averages to approximately $2.15 million annually, which may be reasonable for comprehensive support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit offers. The fact that it resulted in a definitive contract awarded to a single entity suggests that while competition was open, the final award was made to one specific offeror. The level of competition at the initial bidding stage is not detailed, but the process itself implies a structured evaluation of multiple proposals.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality. It ensures that the government explores a wide range of options before selecting a contractor.

Public Impact

The primary beneficiary of this contract is the Health Resources and Services Administration (HRSA) within HHS, which received management and procurement support. The services delivered likely encompassed a range of administrative, operational, and technical assistance crucial for program execution. The geographic impact is primarily within Wisconsin, where The Medical College of Wisconsin, Inc. is located, though the services may have supported national programs. Workforce implications could include employment opportunities at The Medical College of Wisconsin, Inc. for individuals involved in providing these support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The long duration of the contract (over 10 years) could indicate potential for vendor lock-in or a lack of agility in adapting to evolving needs.
The 'Cost No Fee' contract type, while potentially cost-saving, requires robust oversight to ensure costs are reasonable and necessary.
Limited information on the specific performance metrics and outcomes makes it difficult to fully assess the effectiveness of the services provided.
The single awardee over such a long period might suggest limited opportunities for other vendors to compete for similar work within HRSA.

Positive Signals

The use of full and open competition at the outset suggests a commitment to finding the best value.
The contract's long tenure indicates a stable and consistent need for the services, implying the contractor has met requirements satisfactorily over time.
The Medical College of Wisconsin, Inc. is a well-established institution, suggesting a degree of reliability and capacity.
The 'Cost No Fee' structure, if managed properly, can lead to cost efficiencies for the government.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on management and procurement support. This sector is broad and encompasses a wide range of activities essential for government operations. Comparable spending in this area can vary significantly based on the agency's mission and size. The Medical College of Wisconsin, Inc., as a large academic and healthcare institution, likely has the infrastructure and expertise to handle complex support contracts. The total award of $21.5 million over 10 years represents an average annual expenditure of approximately $2.15 million, which is a moderate amount for a federal agency's support services.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is also no specific information provided regarding subcontracting plans or performance related to small businesses. Therefore, the direct impact on the small business ecosystem from this particular award is likely minimal, unless the prime contractor voluntarily engaged small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily reside with the Health Resources and Services Administration (HRSA) contracting officers and program managers. As a definitive contract awarded by HHS, it would be subject to internal agency oversight and potentially audits by the HHS Office of Inspector General (OIG). Transparency regarding the specific performance metrics and cost reimbursements would be key to assessing accountability, though such details are often not publicly available for individual contracts.

Related Government Programs

HHS Management and Administrative Support Contracts
Federal Procurement Support Services
Health Services Administration Support
Long-Term Government Service Contracts

Risk Flags

Long contract duration may limit flexibility
Cost-reimbursement requires strong oversight
Limited public data on performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $21.5 million to THE MEDICAL COLLEGE OF WISCONSIN, INC.. MGT SVCS/CONTRACT&PROCUREMENT SUP

Who is the contractor on this award?

The obligated recipient is THE MEDICAL COLLEGE OF WISCONSIN, INC..

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 $21.5 million.

What is the period of performance?

Start: 2006-09-15. End: 2016-09-20.

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

The data indicates the contract was for 'MGT SVCS/CONTRACT&PROCUREMENT SUP' under NAICS code 541990 ('All Other Professional, Scientific, and Technical Services'). While specific details are not provided in the summary data, this typically encompasses a range of functions such as strategic planning, program management, policy development, administrative support, financial management, and procurement assistance. For the Health Resources and Services Administration (HRSA), these services could have been crucial for managing its various health programs, grants, and operational needs. The 'Cost No Fee' award type suggests the contractor was reimbursed for allowable costs incurred in performing these services, without an additional profit margin, focusing on efficient service delivery.

How does the $21.5 million total award compare to similar contracts for management and procurement support?

Comparing the $21.5 million total award over 10 years (approximately $2.15 million annually) to similar contracts is challenging without more specific details about the scope of services and the agency's needs. However, for a federal agency like HRSA, this annual figure appears moderate for comprehensive management and procurement support. Larger agencies or those with more complex missions might award significantly larger sums. The 'Cost No Fee' structure also differentiates it from contracts with profit margins. Benchmarking would ideally involve comparing it to contracts with similar durations, service scopes, and award types within HHS or other health-focused federal agencies.

What were the key performance indicators (KPIs) used to evaluate the contractor's performance over the 10-year period?

The provided summary data does not include specific Key Performance Indicators (KPIs) or details about the contractor's performance evaluation. For a 'Cost No Fee' contract focused on management and procurement support, KPIs would likely revolve around efficiency, timeliness, accuracy, adherence to regulations, and client satisfaction. Examples could include metrics related to the number of procurements processed, turnaround times for administrative tasks, budget adherence, and successful program support outcomes. Robust oversight by HRSA contracting officers would be essential to monitor these aspects and ensure the value derived from the $21.5 million investment.

What is the significance of the 'Cost No Fee' (PT: COST NO FEE) contract type in terms of value for taxpayers?

The 'Cost No Fee' contract type signifies that the contractor, The Medical College of Wisconsin, Inc., is reimbursed only for its actual, allowable costs incurred in performing the services, without any additional profit or fee. From a taxpayer perspective, this can be advantageous as it removes the profit motive, potentially leading to lower overall costs compared to fixed-price or cost-plus-incentive-fee contracts where profit is a component. However, it places a greater emphasis on the government's ability to effectively audit and control the contractor's costs to ensure they are reasonable and necessary for the services rendered. Robust oversight is critical to realizing the cost-saving potential.

What is the historical spending pattern for management and procurement support services by HRSA or similar agencies?

The provided data focuses on a single, long-term contract awarded in 2006 and ending in 2016. To understand historical spending patterns, one would need to analyze HRSA's procurement history over a broader period, looking at multiple contracts for similar services. This would involve examining trends in contract values, durations, award types, and the number of competitors. Analyzing such patterns would reveal whether spending on these services has increased or decreased, whether competition levels have changed, and if the agency relies on long-term contracts or more frequent, shorter-term awards for its support needs.

What is the track record of The Medical College of Wisconsin, Inc. as a federal contractor, particularly for services of this nature?

The Medical College of Wisconsin, Inc. was awarded this significant 10-year contract, suggesting a positive track record or strong proposal that met the government's requirements at the time of award. As an established institution, it likely possesses the organizational capacity and expertise to manage complex contracts. However, a comprehensive assessment of their track record would require examining other federal contracts they may have held, including their performance history, any past performance issues, and their experience in providing management and procurement support services to other government agencies. This single contract award indicates capability but doesn't provide a full picture of their broader federal contracting history.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical 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 NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 8701 WATERTOWN PLANK RD, MILWAUKEE, WI, 53226

Business Categories: Category Business, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $21,484,356

Exercised Options: $21,484,356

Current Obligation: $21,484,356

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline