HHS awarded $36.8M for medical and health studies to HP Enterprise Services, LLC

Contract Overview

Contract Amount: $36,806,093 ($36.8M)

Contractor: HP Enterprise Services, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2005-01-25

End Date: 2009-01-31

Contract Duration: 1,467 days

Daily Burn Rate: $25.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 21

Pricing Type: COST PLUS FIXED FEE

Sector: Healthcare

Official Description: MEDICAL AND HEALTH STUDIES

Place of Performance

Location: PLANO, COLLIN County, TEXAS, 75024

State: Texas Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $36.8 million to HP ENTERPRISE SERVICES, LLC for work described as: MEDICAL AND HEALTH STUDIES Key points: 1. Contract value of $36.8M over 4 years for administrative management and consulting services. 2. Awarded under full and open competition, indicating a broad market search. 3. Contract type is Cost Plus Fixed Fee, which can incentivize cost control. 4. Performance period spans from January 2005 to January 2009. 5. The North American Industry Classification System (NAICS) code 541611 suggests management consulting services. 6. The contract was a delivery order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: fair

The contract value of $36.8M over four years averages to approximately $9.2M annually. Benchmarking this against similar administrative management and general management consulting services contracts is challenging without more specific details on the scope of work. However, the Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility, can sometimes lead to higher costs if not managed tightly, as the contractor is reimbursed for all allowable costs plus a fixed fee. Further analysis would require comparing the specific deliverables and outcomes against industry standards and other government contracts for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that the government actively sought proposals from all responsible sources. The presence of 21 bids indicates a healthy level of interest and competition for this requirement. A competitive process like this generally leads to better price discovery and potentially more favorable terms for the government, as multiple contractors vie for the award.

Taxpayer Impact: The full and open competition with 21 bidders suggests that taxpayer dollars were likely used efficiently, as the government had a wide range of options to choose from, driving down costs through competitive pressure.

Public Impact

The primary beneficiaries are likely the Centers for Medicare and Medicaid Services (CMS) and the Department of Health and Human Services (HHS), who receive administrative management and consulting services. The services delivered are related to medical and health studies, contributing to the understanding and improvement of healthcare programs. The contract was performed in Texas (ST: TX, SN: TEXAS), indicating a geographic focus for service delivery or contractor presence. The contract likely supported a workforce involved in consulting, research, and administrative support roles within the healthcare sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to ensure costs remain reasonable and the fixed fee is justified by the scope of work.
The duration of the contract (1467 days) necessitates ongoing performance monitoring to ensure objectives are met.
Without specific details on the 'medical and health studies,' it's difficult to assess the direct impact or effectiveness of the services rendered.

Positive Signals

Awarded under full and open competition with 21 bidders, indicating a robust and competitive procurement process.
The contract was a delivery order, suggesting it was part of a potentially larger, pre-competed framework, which can streamline acquisition.
The fixed fee component in the CPFF structure provides a degree of cost certainty for the government once the fee is established.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. The market for these services within the federal government is substantial, supporting a wide array of agency functions. Comparable spending benchmarks would typically be found by analyzing other contracts awarded under NAICS code 541611, particularly those for health-related consulting services. The federal government frequently procures such services to support policy development, program evaluation, and operational improvements within agencies like HHS.

Small Business Impact

There is no indication from the provided data that this contract included a small business set-aside. The large contract value and the nature of the services (management consulting) often lend themselves to larger prime contractors. However, it is possible that HP Enterprise Services, LLC, as the prime contractor, may have engaged small businesses as subcontractors to fulfill portions of the contract requirements, though this information is not detailed here.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the relevant program officials within the Centers for Medicare and Medicaid Services (CMS) or the Department of Health and Human Services (HHS). As a delivery order under a potentially larger IDIQ, oversight might also be influenced by the terms of the base contract. Transparency is generally facilitated through contract award databases like FPDS. Accountability measures would be tied to the performance work statement and the terms of the Cost Plus Fixed Fee agreement, with potential for audits by agency Inspector Generals.

Related Government Programs

Medical and Health Studies
Management and General Management Consulting Services
Healthcare Policy and Program Support
Centers for Medicare and Medicaid Services Contracts
Department of Health and Human Services Administrative Support

Risk Flags

Contract type (CPFF) requires careful monitoring of costs and fees.
Scope of 'medical and health studies' is broad and requires clear definition of deliverables.
Performance data is not readily available in summary, necessitating further research.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $36.8 million to HP ENTERPRISE SERVICES, LLC. MEDICAL AND HEALTH STUDIES

Who is the contractor on this award?

The obligated recipient is HP ENTERPRISE SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).

What is the total obligated amount?

The obligated amount is $36.8 million.

What is the period of performance?

Start: 2005-01-25. End: 2009-01-31.

What was the specific scope of 'medical and health studies' covered under this contract?

The provided data indicates the contract was for 'MEDICAL AND HEALTH STUDIES' under NAICS code 541611 (Administrative Management and General Management Consulting Services). However, the specific nature of these studies is not detailed. Typically, such studies could encompass a wide range of activities, including program evaluations, policy analysis, research into health outcomes, development of best practices, or feasibility studies for new healthcare initiatives. Without access to the contract's statement of work or performance reports, the precise deliverables and objectives remain unspecified. Further investigation would require accessing contract documentation beyond the summary data.

How does the $36.8M contract value compare to similar health consulting contracts awarded by HHS during the 2005-2009 period?

Comparing the $36.8M contract value requires a detailed analysis of similar contracts awarded by HHS for management consulting services (NAICS 541611) or specifically for health studies during the 2005-2009 timeframe. The average annual value of this contract was approximately $9.2M ($36.8M / 4 years). To benchmark effectively, one would need to identify contracts with comparable scopes of work, durations, and agencies within HHS. Factors like the number of bidders, contract type (e.g., FFP, CPFF, T&M), and specific deliverables significantly influence pricing. A preliminary search might reveal if $9.2M annually was within the typical range for such specialized consulting services, or if it represented a higher or lower investment compared to peer contracts.

What were the key performance indicators (KPIs) and how did HP Enterprise Services, LLC perform against them?

The provided summary data does not include specific Key Performance Indicators (KPIs) or performance ratings for this contract. For a Cost Plus Fixed Fee (CPFF) contract, performance is typically evaluated against a Statement of Work (SOW) that outlines specific tasks, deliverables, and timelines. Success would be measured by the timely and satisfactory completion of these requirements. Without access to contract performance reports, award fee determinations, or termination details, it is impossible to assess HP Enterprise Services, LLC's performance objectively. Government contract performance information is often available through sources like the Contractor Performance Assessment Reporting System (CPARS), which would need to be consulted for a detailed evaluation.

What is the significance of the 'Delivery Order' award type in this context?

The award type being a 'Delivery Order' signifies that this contract was likely issued under a broader Indefinite Delivery/Indefinite Quantity (IDIQ) contract vehicle. IDIQ contracts establish terms and conditions for services over a period, allowing agencies to issue specific orders (delivery orders for goods, task orders for services) against the contract as needed. This approach streamlines the procurement process for recurring or anticipated needs. In this case, the $36.8M represents the total value of this specific delivery order placed against a pre-existing IDIQ contract, which itself would have undergone a separate, often competitive, award process. The significance lies in the efficiency gained by not having to re-compete the entire requirement each time services were needed.

What is the historical spending trend for 'MEDICAL AND HEALTH STUDIES' by HHS or CMS?

To analyze historical spending trends for 'MEDICAL AND HEALTH STUDIES' by HHS or CMS, one would need to query federal procurement databases (like FPDS or USASpending.gov) for relevant NAICS codes (e.g., 541611 for consulting, or others related to research and analysis) and keywords over multiple fiscal years. This specific $36.8M contract from 2005-2009 represents a data point within that history. Examining spending patterns before and after this period would reveal whether investments in such studies have increased, decreased, or remained stable. Factors influencing these trends could include shifts in healthcare policy priorities, budget allocations, and the perceived value of data-driven insights for program management and reform.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 21

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: HP, Inc.

Address: 5400 LEGACY DR, PLANO, TX, 75024

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $103,288,034

Exercised Options: $39,037,996

Current Obligation: $36,806,093

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 500990012

IDV Type: IDC

Timeline