HHS awarded $16.7M for professional services, with 3 bidders competing for this delivery order

Contract Overview

Contract Amount: $16,681,334 ($16.7M)

Contractor: Safeguard Services LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2010-09-30

End Date: 2018-04-30

Contract Duration: 2,769 days

Daily Burn Rate: $6.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: TAS::75 8393::TAS ZPIC ZONE 1

Place of Performance

Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90017

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $16.7 million to SAFEGUARD SERVICES LLC for work described as: TAS::75 8393::TAS ZPIC ZONE 1 Key points: 1. The contract's cost-plus award fee structure allows for flexibility but requires robust oversight to ensure value. 2. Competition dynamics suggest a potentially competitive bidding environment, which can drive better pricing. 3. The duration of the contract (over 7 years) indicates a long-term need for these services. 4. The professional, scientific, and technical services sector is broad, making direct comparisons challenging without more specific service details. 5. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. The absence of small business set-aside flags suggests this was not specifically targeted to small businesses.

Value Assessment

Rating: fair

Benchmarking the value of this $16.7 million contract is difficult without knowing the specific services rendered. The cost-plus award fee (CPAF) structure can lead to higher costs if not managed tightly, as contractor incentives are tied to performance metrics. Comparing it to similar contracts for 'All Other Professional, Scientific, and Technical Services' would require detailed service descriptions and performance outcomes. The total value over nearly 8 years averages to approximately $2.1 million annually, which seems moderate for complex professional services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with three bidders participating. This level of competition is generally positive, suggesting that multiple vendors were interested and capable of providing the required services. Three bidders indicate a reasonable degree of market interest, which can help in price discovery and potentially lead to more favorable terms for the government compared to a sole-source or limited competition scenario.

Taxpayer Impact: A competitive process with multiple bidders helps ensure that taxpayer funds are used efficiently by driving down prices and encouraging quality service delivery.

Public Impact

Beneficiaries likely include federal agencies requiring specialized professional, scientific, and technical support. Services delivered are broadly categorized under 'All Other Professional, Scientific, and Technical Services,' suggesting a wide range of potential support functions. The geographic impact is primarily within California, where the contract is noted as being administered. Workforce implications could involve skilled professionals in technical, scientific, and analytical fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus award fee contracts require diligent oversight to prevent cost overruns and ensure performance aligns with award criteria.
The broad 'All Other Professional, Scientific, and Technical Services' category makes it hard to assess if the most specialized expertise was secured.
The contract's long duration could lead to vendor lock-in if not periodically re-evaluated for market competitiveness.

Positive Signals

Full and open competition with three bidders suggests a healthy market response and potential for competitive pricing.
The award of a delivery order implies it was part of a pre-competed IDIQ vehicle, potentially streamlining acquisition.
The contract was awarded by the Centers for Medicare and Medicaid Services (CMS), a major health agency, indicating a significant need.

Sector Analysis

The professional, scientific, and technical services sector is a vast and critical component of the federal procurement landscape, encompassing a wide array of specialized expertise. This contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' which is a catch-all category. Spending in this sector is substantial across government, supporting everything from research and development to administrative and operational functions. Benchmarking requires granular data on specific service types within this broad category.

Small Business Impact

There is no indication that this contract was set aside for small businesses, nor are there explicit flags for small business subcontracting. This suggests that the competition was open to all qualified vendors, including large businesses. The absence of small business participation requirements means that the direct impact on the small business ecosystem for this specific award is likely minimal, unless the prime contractor voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services, specifically the Centers for Medicare and Medicaid Services (CMS). As a Cost Plus Award Fee (CPAF) contract, robust oversight is crucial to monitor performance against established criteria and ensure that award fees are justified. Transparency would depend on the agency's reporting practices for delivery orders under IDIQ vehicles. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Professional and Technical Services Contracts
Health and Human Services Contracts
Centers for Medicare and Medicaid Services (CMS) Contracts
Indefinite Delivery/Indefinite Quantity (IDIQ) Vehicles

Risk Flags

Long contract duration may require re-evaluation of market competitiveness.
Cost-plus award fee structure necessitates stringent oversight to ensure value for money.
Broad service category ('All Other Professional, Scientific, and Technical Services') lacks specificity for detailed performance assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $16.7 million to SAFEGUARD SERVICES LLC. TAS::75 8393::TAS ZPIC ZONE 1

Who is the contractor on this award?

The obligated recipient is SAFEGUARD 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 $16.7 million.

What is the period of performance?

Start: 2010-09-30. End: 2018-04-30.

What specific services were provided under this contract?

The provided data classifies this contract under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This is a very broad category that can encompass a wide range of activities, including research, consulting, data analysis, technical support, and specialized scientific services. Without more specific details from the contract award or associated documentation, it is impossible to determine the exact nature of the services rendered. However, given the awarding agency is the Centers for Medicare and Medicaid Services (CMS), the services likely relate to healthcare policy, administration, data management, or technical support for their systems and programs.

How does the $16.7 million total value compare to similar contracts for professional services?

Comparing the $16.7 million total value over approximately 7.6 years (from Sep 2010 to Apr 2018) requires context about the specific services. The average annual spend was roughly $2.19 million. For 'All Other Professional, Scientific, and Technical Services,' this is a moderate amount. Larger federal agencies like HHS often award contracts in the tens or hundreds of millions for complex IT, research, or program management services. However, without knowing the precise nature of the services, it's difficult to definitively state if this represents high, low, or average spending. Contracts for highly specialized scientific research or large-scale IT modernization would typically be significantly higher.

What are the key risks associated with a Cost Plus Award Fee (CPAF) contract structure?

The primary risk with a CPAF contract is the potential for cost escalation if performance incentives are not carefully structured and monitored. Unlike fixed-price contracts, the government agrees to pay allowable costs plus a fee that is determined by the contractor's performance against predefined metrics. If these metrics are poorly defined, easily achievable, or if oversight is lax, contractors may be incentivized to incur higher costs to achieve a higher fee, rather than focusing on efficiency. This necessitates robust government oversight, clear performance standards, and diligent evaluation of award fee determinations to ensure the government receives good value for money and that costs remain reasonable.

What does the 'Delivery Order' (AW) designation imply about this contract?

The 'Delivery Order' (AW) designation indicates that this contract is likely a task order issued under a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar type of multiple-award contract vehicle. IDIQ contracts establish terms and conditions for services, but the specific quantities and delivery schedules are defined in individual delivery orders. This approach allows agencies to procure services more efficiently as needed, without having to conduct a full competitive procurement for each individual requirement. It implies that the initial IDIQ contract itself underwent a competitive process, and this delivery order represents a specific call against that established agreement.

How does the contract's duration (2769 days) impact its overall value and risk?

A contract duration of 2769 days, approximately 7.6 years, is quite long for a federal contract. This extended period suggests a sustained and significant need for the services provided. From a value perspective, a longer duration can sometimes lead to economies of scale and more stable service delivery. However, it also increases the risk of vendor lock-in, where the government becomes overly reliant on a single contractor. Furthermore, over such a long period, market conditions, technology, and the government's own needs can change significantly, potentially making the contract terms less optimal or the services less relevant if not actively managed and reviewed. Periodic reviews and potential re-competition are crucial.

What is the significance of the 'ST' contract type code (CALIFORNIA)?

The 'ST' designation in the provided data, paired with 'CALIFORNIA', likely refers to the state where the contract is administered or where the primary place of performance is located. Federal contracts often track performance by state for various administrative, reporting, or even geographic economic impact purposes. While 'ST' itself isn't a standard contract type code (like CPAF, FFP, etc.), its association with a state indicates a geographic locus for the contract's execution or administration. This could be relevant for understanding regional spending patterns or for logistical purposes.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: RFPCMS20080014

Offers Received: 3

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 5400 LEGACY DRIVE, PLANO, TX, 75024

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,242,340

Exercised Options: $16,681,334

Current Obligation: $16,681,334

Actual Outlays: $4,421

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSM500201000022I

IDV Type: IDC

Timeline