HHS Spends $102M on Management Services for Marrow Donor Program Over 9 Years
Contract Overview
Contract Amount: $102,394,998 ($102.4M)
Contractor: National Marrow Donor Program
Awarding Agency: Department of Health and Human Services
Start Date: 2006-09-25
End Date: 2016-01-20
Contract Duration: 3,404 days
Daily Burn Rate: $30.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: Healthcare
Official Description: MGT SVCS/CONTRACT&PROCUREMENT SUP
Place of Performance
Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55413
Plain-Language Summary
Department of Health and Human Services obligated $102.4 million to NATIONAL MARROW DONOR PROGRAM for work described as: MGT SVCS/CONTRACT&PROCUREMENT SUP Key points: 1. Significant long-term contract awarded to a single organization. 2. Administrative Management and General Management Consulting Services (NAICS 541611) are broad. 3. The contract spanned a decade, suggesting a sustained need. 4. No small business participation noted.
Value Assessment
Rating: fair
The contract type is 'COST NO FEE', which typically means the government reimburses the contractor for allowable costs but pays no fee. This can be appropriate for non-profit organizations or specific research initiatives, but limits direct price comparison to fee-based contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders were considered. However, the long duration and single award suggest the National Marrow Donor Program was uniquely positioned or the most competitive over time.
Taxpayer Impact: Taxpayer funds were used for administrative and management consulting services, the value of which depends on the effectiveness and efficiency of the services provided to the National Marrow Donor Program.
Public Impact
Supports the operations of the National Marrow Donor Program, a critical health resource. Ensures administrative and management functions are handled, potentially improving program efficiency. Long-term funding stability for a vital public health service.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Long contract duration without clear performance metrics for review.
Positive Signals
- Full and open competition was utilized.
- Supports a critical national health resource.
Sector Analysis
This contract falls under administrative and management consulting services, a common area of government spending. Benchmarks for this sector vary widely based on the specific services rendered and the organization's size and mission.
Small Business Impact
The data indicates no small business participation in this contract. This could be due to the specialized nature of the services required or the size and scope of the award, which may not be conducive to small business prime contracting.
Oversight & Accountability
The contract was awarded under full and open competition, suggesting a degree of oversight in the initial selection process. However, the long duration (over 9 years) warrants scrutiny to ensure continued value and performance.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Health and Human Services Contracting
- Health Resources and Services Administration Programs
Risk Flags
- Long contract duration without clear performance review indicators.
- No small business participation.
- Lack of specific service details to assess true value.
- Potential for incumbent advantage despite full and open competition.
Tags
administrative-management-and-general-ma, department-of-health-and-human-services, mn, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $102.4 million to NATIONAL MARROW DONOR PROGRAM. MGT SVCS/CONTRACT&PROCUREMENT SUP
Who is the contractor on this award?
The obligated recipient is NATIONAL MARROW DONOR PROGRAM.
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 $102.4 million.
What is the period of performance?
Start: 2006-09-25. End: 2016-01-20.
What specific management and administrative services were provided, and how did they demonstrably improve the National Marrow Donor Program's operations or outcomes?
The provided data lacks specifics on the services rendered. To assess value, a review of performance reports, deliverables, and documented improvements in operational efficiency, donor recruitment, or patient matching directly attributable to these management services would be necessary. Without this, the $102M spend is difficult to fully justify beyond basic administrative support.
Given the 'COST NO FEE' contract type and full and open competition, what prevented other entities from competing for or winning subsequent contract modifications or renewals over the 9-year period?
The 'COST NO FEE' structure, while potentially cost-effective for the government by avoiding profit margins, might not be attractive to all types of service providers. The National Marrow Donor Program's unique role and established infrastructure could also create high barriers to entry for competitors, even under full and open competition, leading to sustained awards to the incumbent.
How was the effectiveness and necessity of these ongoing management services evaluated throughout the contract's 9-year duration to ensure continued taxpayer value?
The data does not detail the oversight mechanisms employed. Effective evaluation would involve regular performance reviews, milestone tracking, and periodic assessments of whether the contracted services remained essential and delivered measurable benefits. The long duration necessitates robust oversight to prevent cost creep and ensure alignment with evolving program needs and government efficiency standards.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: MEDICAL SERVICES › MEDICAL, DENTAL, AND SURGICAL SVCS
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: 3001 BROADWAY ST NE STE 500, MINNEAPOLIS, MN, 55413
Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $102,394,998
Exercised Options: $102,394,998
Current Obligation: $102,394,998
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2006-09-25
Current End Date: 2016-01-20
Potential End Date: 2016-01-20 00:00:00
Last Modified: 2016-02-09
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