HHS awarded $20.4M for temporary staffing, with NIH utilizing firm-fixed-price contracts

Contract Overview

Contract Amount: $20,403,059 ($20.4M)

Contractor: Kelly Services, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2012-03-21

End Date: 2014-03-14

Contract Duration: 723 days

Daily Burn Rate: $28.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF:: OTHER FUNCTIONS - PROGRAM MANAGEMENT/SUPPORT SERVICES

Place of Performance

Location: TROY, OAKLAND County, MICHIGAN, 48084, UNITED STATES OF AMERICA

State: Michigan Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $20.4 million to KELLY SERVICES, INC. for work described as: IGF::OT::IGF:: OTHER FUNCTIONS - PROGRAM MANAGEMENT/SUPPORT SERVICES Key points: 1. Value for money assessed through firm-fixed-price contract type, aiming for cost predictability. 2. Competition dynamics indicate full and open competition, suggesting a robust bidding process. 3. Risk indicators include contract duration and fixed-price nature, which can mitigate cost overrun risks. 4. Performance context is within NIH's need for temporary staffing services. 5. Sector positioning is within the administrative and support services for healthcare research.

Value Assessment

Rating: good

The contract's firm-fixed-price structure provides a degree of cost certainty for the government. Benchmarking against similar temporary staffing contracts would be necessary for a definitive value assessment. The award amount of $20.4 million over its period of performance suggests a moderate scale for this type of service. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money judgment is challenging, but the contract type is generally favorable for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 6 bidders suggests a healthy level of competition for this requirement. A competitive bidding process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition likely resulted in a more competitive pricing structure, benefiting taxpayers by ensuring the government received services at a reasonable market rate.

Public Impact

Benefits the National Institutes of Health (NIH) by providing essential temporary staffing to support its research and administrative functions. Delivers temporary help services, potentially filling critical gaps in personnel for various projects and operational needs. Geographic impact is primarily focused on supporting NIH operations, likely within its main facilities. Workforce implications include the provision of temporary employment opportunities, supplementing the existing federal workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on temporary staff impacting institutional knowledge transfer.
Ensuring consistent quality and vetting of temporary personnel across various roles.
Managing the integration and supervision of temporary staff within NIH's established teams.

Positive Signals

Flexibility to scale staffing levels up or down based on project needs.
Access to specialized skills or expertise on a temporary basis.
Cost-effectiveness compared to hiring permanent staff for short-term needs.

Sector Analysis

The temporary help services sector is a significant component of the broader professional, scientific, and technical services industry. Federal agencies frequently utilize these services to manage fluctuating workforce demands, access specialized skills, and control costs associated with permanent hiring. This contract fits within the government's strategy to maintain workforce agility, particularly within research institutions like NIH that may experience project-based staffing needs.

Small Business Impact

The data indicates this contract was not set aside for small businesses and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for subcontracting. Further analysis would be needed to determine if small businesses were indirectly involved or if there were opportunities missed for small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting officer and program managers within the National Institutes of Health. The firm-fixed-price contract type provides a degree of accountability by fixing the price regardless of the contractor's costs. Transparency is generally maintained through contract award databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Workforce Support Services
Temporary Staffing Contracts
Administrative Support Services
Healthcare Research Support

Risk Flags

Contract Duration
Fixed-Price Contract Risk
Staffing Quality Assurance

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $20.4 million to KELLY SERVICES, INC.. IGF::OT::IGF:: OTHER FUNCTIONS - PROGRAM MANAGEMENT/SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is KELLY SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $20.4 million.

What is the period of performance?

Start: 2012-03-21. End: 2014-03-14.

What is the historical spending trend for temporary staffing services at NIH?

Analyzing historical spending for temporary staffing at NIH requires access to detailed procurement data over multiple fiscal years. Generally, federal agencies like NIH utilize temporary staffing to manage fluctuating workloads, special projects, or to fill immediate personnel needs. Spending in this category can vary significantly year-to-year based on agency priorities, budget allocations, and specific research initiatives. Without specific historical data for this contract vehicle or similar ones, it's difficult to establish a precise trend. However, it is common for large research institutions to maintain a consistent, albeit variable, expenditure on temporary staffing to ensure operational continuity and research progress.

How does the per-hour rate for temporary staff under this contract compare to market rates?

Determining the precise per-hour rate requires access to the detailed pricing structure of the contract, which is not fully provided in the summary data. However, the contract type is 'FIRM FIXED PRICE' (FFP), which means the total price is fixed regardless of the contractor's actual costs. This implies that the rates were negotiated upfront. To compare these rates to market benchmarks, one would need to identify the specific labor categories provided (e.g., administrative assistants, research technicians) and compare the negotiated FFP rates against prevailing wage data and industry benchmarks for similar services in the relevant geographic location. The number of bidders (6) suggests some level of competitive pressure that should have driven rates towards market norms.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance?

Specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided summary. However, for temporary staffing contracts, typical KPIs often include metrics such as timeliness of staffing fulfillment, quality of candidates provided (e.g., retention rates, supervisor satisfaction), adherence to reporting requirements, and compliance with labor laws and contract terms. The contracting officer and program managers at NIH would be responsible for monitoring these KPIs throughout the contract period. Performance evaluations would likely inform future procurement decisions and contractor past performance ratings.

What is the typical duration and value of similar temporary staffing contracts awarded by NIH?

The duration of this contract was 723 days (approximately 2 years), with an award value of $20.4 million. Temporary staffing contracts awarded by NIH can vary widely in duration and value depending on the scope and duration of the need. Some contracts might be for shorter periods, covering specific project timelines, while others could be longer-term indefinite-delivery/indefinite-quantity (IDIQ) vehicles. The value can range from tens of thousands to millions of dollars. This particular contract appears to be of moderate to significant size and duration for temporary staffing services, suggesting a substantial and ongoing need for personnel support within the NIH.

Were there any specific challenges or risks identified during the solicitation or award process?

The provided data does not explicitly detail specific challenges or risks encountered during the solicitation or award process for this contract. However, common challenges in procuring temporary staffing services include defining clear requirements, ensuring fair and competitive pricing, vetting candidate qualifications, and managing contractor performance. The fact that it was awarded under 'FULL AND OPEN COMPETITION' with 6 bidders suggests that the solicitation process was likely well-structured and attracted adequate interest, potentially mitigating some common procurement risks. Risks associated with contract performance, such as staff turnover or skill gaps, would be managed during the execution phase.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Employment Services › Temporary Help Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 999 W BIG BEAVER RD, TROY, MI, 48084

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

Financial Breakdown

Contract Ceiling: $20,403,059

Exercised Options: $20,403,059

Current Obligation: $20,403,059

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSN271201000005I

IDV Type: IDC

Timeline