HHS awards $30M for Health Services Advisory Group consulting, facing limited competition
Contract Overview
Contract Amount: $30,105,606 ($30.1M)
Contractor: Health Services Advisory Group, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2009-02-20
End Date: 2011-11-28
Contract Duration: 1,011 days
Daily Burn Rate: $29.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: TAS::75 0511::TAS
Place of Performance
Location: PHOENIX, MARICOPA County, ARIZONA, 85016
State: Arizona Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $30.1 million to HEALTH SERVICES ADVISORY GROUP, INC. for work described as: TAS::75 0511::TAS Key points: 1. Significant contract value of $30.1 million. 2. Limited competition raises questions about price discovery. 3. Potential risk associated with sole-source or limited competition awards. 4. Consulting services sector with potential for efficiency gains.
Value Assessment
Rating: fair
The contract value of $30.1 million for consulting services appears substantial. Benchmarking against similar contracts is difficult without more detailed scope information, but the 'NOT COMPETED' status suggests potential for overpayment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, indicating limited or no competition. This method of award can hinder price discovery and may lead to less favorable pricing for the government.
Taxpayer Impact: The lack of robust competition could result in higher costs for taxpayers compared to a fully competed contract.
Public Impact
Taxpayers may be paying more due to limited competition. The effectiveness of the consulting services is not detailed. Oversight of this contract is crucial to ensure value for money.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Cost-plus contract type
- Long duration
Positive Signals
- Specific agency award
- Defined contract type
Sector Analysis
This contract falls within the Other Management Consulting Services sector. Spending in this sector can vary widely, but robust competition is generally expected to drive efficiency and cost savings.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors.
Oversight & Accountability
The 'NOT COMPETED' status warrants close oversight to ensure the services provided were necessary and that the pricing was fair and reasonable given the limited competition.
Related Government Programs
- Other Management Consulting Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Limited competition
- Cost-plus contract type
- Lack of performance metrics
- Lack of justification for non-competition
Tags
other-management-consulting-services, department-of-health-and-human-services, az, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $30.1 million to HEALTH SERVICES ADVISORY GROUP, INC.. TAS::75 0511::TAS
Who is the contractor on this award?
The obligated recipient is HEALTH SERVICES ADVISORY GROUP, INC..
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 $30.1 million.
What is the period of performance?
Start: 2009-02-20. End: 2011-11-28.
What was the justification for not competing this contract, and how was the price determined to be fair and reasonable?
The justification for not competing the contract is not provided in the data. Typically, agencies must document reasons such as urgent need, sole-source availability, or specific technical requirements. Without this documentation, it's difficult to assess the validity of the award method and the fairness of the price. Price reasonableness is usually determined through cost analysis or comparison to market data, which is absent here.
What specific services were provided under this $30.1 million contract, and what were the measurable outcomes?
The provided data classifies the service as 'Other Management Consulting Services' (NAICS 541618) but lacks specifics on the actual tasks performed or deliverables. Without knowing the scope of work, it's impossible to assess the effectiveness of the services or determine if the $30.1 million expenditure yielded tangible benefits or achieved its intended objectives for the Centers for Medicare and Medicaid Services.
Given the 'NOT COMPETED' status and cost-plus contract type, what are the primary risks to the government and taxpayers?
The primary risks include potential overpayment due to lack of competitive pricing pressure and the contractor having less incentive to control costs under a cost-plus structure. The 'NOT COMPETED' status also raises concerns about whether the government received the best possible value and if alternative solutions were overlooked. Ensuring stringent oversight and detailed reporting is critical to mitigate these risks.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services
Product/Service Code: MEDICAL SERVICES › DEPENDENT MEDICARE SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Health Services Holdings, Inc.
Address: 1600 E NORTHERN AVE STE 100, PHOENIX, AZ, 85020
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $33,204,266
Exercised Options: $30,105,606
Current Obligation: $30,105,606
Actual Outlays: $-63,378
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2009-02-20
Current End Date: 2011-11-28
Potential End Date: 2011-11-28 00:00:00
Last Modified: 2024-09-06
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