HHS awarded $21.8M in consulting services to Health Services Advisory Group, Inc. over 5 years

Contract Overview

Contract Amount: $21,776,901 ($21.8M)

Contractor: Health Services Advisory Group, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2014-07-18

End Date: 2019-07-17

Contract Duration: 1,825 days

Daily Burn Rate: $11.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::CT::IGF

Place of Performance

Location: COLUMBUS, FRANKLIN County, OHIO, 43215

State: Ohio Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $21.8 million to HEALTH SERVICES ADVISORY GROUP, INC. for work described as: IGF::CT::IGF Key points: 1. The contract's value of $21.8 million over five years suggests a significant investment in consulting expertise. 2. The 'Other Management Consulting Services' category indicates a broad scope, potentially covering strategic planning, operational efficiency, or policy analysis. 3. The contract was awarded under full and open competition, implying a competitive bidding process. 4. The Cost Plus Fixed Fee (CPFF) pricing structure means the government reimburses the contractor for allowable costs plus a fixed fee, which can introduce cost overrun risks. 5. The duration of 1825 days (5 years) indicates a long-term need for these services. 6. The contract was awarded to a single vendor, Health Services Advisory Group, Inc., raising questions about the breadth of competition experienced. 7. The absence of small business set-aside flags suggests this contract was not specifically targeted towards small businesses.

Value Assessment

Rating: fair

Benchmarking the value of this $21.8 million contract over five years is challenging without specific service details. However, the CPFF pricing structure warrants scrutiny, as it can incentivize cost increases. Comparing this to similar large-scale management consulting contracts within HHS or other agencies would provide better context on whether the pricing is competitive for the services rendered. The fixed fee component offers some cost control, but the variable cost reimbursement requires careful oversight.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' suggesting that all responsible sources were permitted to submit bids. However, the data indicates only one award was made to Health Services Advisory Group, Inc. This could mean that while the opportunity was open, only one bid was deemed responsive or the most advantageous. Further analysis would be needed to determine the number of bids received and the specific evaluation criteria that led to a single award.

Taxpayer Impact: A full and open competition, even with a single award, theoretically allows for price discovery. However, if few bids were submitted, taxpayers may not have benefited from the most competitive pricing possible.

Public Impact

The primary beneficiaries are likely the Centers for Medicare and Medicaid Services (CMS) within HHS, which would receive expert advice to improve operations or policy. The services delivered are broadly categorized as 'Other Management Consulting Services,' potentially impacting program management, strategic planning, and operational efficiency within CMS. The geographic impact is not specified but likely centers around the administrative functions of CMS, which could be national in scope. Workforce implications are not directly evident, but the contract may support existing government staff by providing external expertise or by outsourcing specific analytical tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type can lead to cost overruns if not managed diligently.
Limited information on the specific deliverables makes it difficult to assess the true value for money.
The long duration of the contract might reduce flexibility if needs change significantly over the five-year period.

Positive Signals

Awarded under full and open competition, suggesting an attempt at a fair and transparent process.
The fixed fee component in the CPFF structure provides a baseline for contractor profit.
The contract duration indicates a sustained need for the services, suggesting potential importance to the agency's mission.

Sector Analysis

This contract falls within the Management Consulting Services sector, a significant market for government services. Agencies frequently procure these services to gain external expertise in areas such as strategic planning, operational improvement, and policy analysis. The total federal spending on management and financial consulting services is substantial, with contracts like this representing a portion of that expenditure. Benchmarking against similar contracts would require detailed service descriptions and pricing structures.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside (ss: false, sb: false). This means that the competition was open to all eligible businesses, including large corporations. There is no explicit information regarding subcontracting plans for small businesses. Without this data, it's difficult to assess the direct impact on the small business ecosystem, though the absence of a set-aside suggests it wasn't a primary goal for this specific award.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program managers within the Centers for Medicare and Medicaid Services (CMS). The CPFF structure necessitates robust monitoring of costs and performance to ensure value for money. Transparency would be enhanced through contract data reporting systems like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

HHS Management and Program Support Services
CMS Program Support Contracts
Federal Management Consulting Services
Healthcare Policy Consulting

Risk Flags

Cost Plus Fixed Fee pricing structure requires diligent oversight to manage potential cost growth.
Limited detail on specific services provided makes value assessment difficult.
Single award under full and open competition may indicate limited market interest or high barriers to entry.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $21.8 million to HEALTH SERVICES ADVISORY GROUP, INC.. IGF::CT::IGF

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 $21.8 million.

What is the period of performance?

Start: 2014-07-18. End: 2019-07-17.

What specific management consulting services were provided under this contract?

The contract is broadly categorized under NAICS code 541618, 'Other Management Consulting Services.' This designation typically encompasses a wide range of advisory services, including strategic planning, organizational analysis, process improvement, and policy development. Without access to the contract's statement of work (SOW) or task orders, the precise nature of the services rendered remains unspecified. However, given the awarding agency is the Centers for Medicare and Medicaid Services (CMS), it is plausible that the consulting focused on areas such as healthcare program administration, regulatory compliance, operational efficiency within CMS programs, or strategic initiatives related to healthcare policy.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar services?

The Cost Plus Fixed Fee (CPFF) structure is common for services where the scope is not precisely defined at the outset, allowing for flexibility. It involves reimbursing the contractor for allowable costs plus a predetermined fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers less cost certainty for the government but greater flexibility for the contractor to adapt to evolving requirements. It differs from Cost Plus Incentive Fee (CPIF) by having a fixed fee rather than one that can be adjusted based on performance targets. While CPFF can be suitable for research and development or complex services, it carries a higher risk of cost growth if not rigorously managed and monitored by the government compared to FFP.

What was the competitive landscape for this specific contract award?

The contract was awarded under 'full and open competition,' indicating that the solicitation was made available to all interested and responsible sources. However, the data shows only one award was made to Health Services Advisory Group, Inc. This suggests that while the opportunity was broadly advertised, the number of proposals received, or the number deemed technically acceptable and within the competitive range, may have been limited. To fully understand the competitive landscape, one would need to examine the number of proposals submitted, the evaluation process, and the reasons why only one vendor was selected. It's possible that only one vendor met the stringent requirements or offered the best value.

What is the historical spending pattern for Health Services Advisory Group, Inc. with the federal government?

Analyzing the historical spending patterns for Health Services Advisory Group, Inc. requires accessing comprehensive federal procurement databases. This specific contract represents a significant award of $21.8 million over five years. To assess their track record, one would need to aggregate all their federal contract awards, noting the agencies involved, the types of services provided, contract values, and performance history. A review of past performance evaluations and any contract disputes or terminations would also be crucial. Without this broader historical data, it's difficult to determine if this contract is an anomaly, a consistent pattern of large awards, or indicative of a particular specialization within the federal market.

Are there any performance concerns or notable successes associated with Health Services Advisory Group, Inc. on similar contracts?

Assessing performance concerns or successes for Health Services Advisory Group, Inc. on similar contracts necessitates a review of past performance information, such as Contractor Performance Assessment Reporting System (CPARS) data, if available. This contract, valued at $21.8 million over five years, is substantial. Without specific CPARS reports or publicly available performance reviews linked to this vendor and contract type, it is impossible to definitively state their performance record. Generally, for CPFF contracts, performance is measured against cost control, schedule adherence, and the quality and effectiveness of the consulting services delivered in meeting the agency's objectives.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HHSM5002014RFPQINQIO

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Health Services Holdings, Inc.

Address: 3133 E CAMELBACK RD, PHOENIX, AZ, 85016

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $21,776,901

Exercised Options: $21,776,901

Current Obligation: $21,776,901

Actual Outlays: $100,000

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HHSM5002014QIN008I

IDV Type: IDC

Timeline