HHS awards $26.9M for temporary staffing services to Kelly Services, Inc
Contract Overview
Contract Amount: $26,917,137 ($26.9M)
Contractor: Kelly Services, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2012-09-18
End Date: 2014-03-14
Contract Duration: 542 days
Daily Burn Rate: $49.7K/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/SUPPORTS
Place of Performance
Location: TROY, OAKLAND County, MICHIGAN, 48084
State: Michigan Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $26.9 million to KELLY SERVICES, INC. for work described as: IGF::OT::IGF OTHER FUNCTIONS - PROGRAM MANAGEMENT/SUPPORTS Key points: 1. Significant contract value for temporary staffing services. 2. Competition method was full and open, suggesting potential for competitive pricing. 3. Contract duration of 542 days indicates a substantial, ongoing need. 4. The sector is professional services, specifically temporary staffing.
Value Assessment
Rating: fair
The contract value of $26.9M over approximately 1.5 years for temporary staffing services appears within a reasonable range for large-scale federal needs. Benchmarking against similar contracts for large federal agencies would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. The existence of multiple bids (6) further supports the likelihood of a fair market price being established.
Taxpayer Impact: Taxpayer funds are being used to procure essential temporary staffing services, with competition aiming to ensure value for money.
Public Impact
Ensures operational continuity for NIH by providing necessary personnel. Supports various government functions through flexible staffing solutions. Potential for job creation and economic activity through temporary employment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if labor rates are not closely managed.
- Reliance on a single vendor for critical staffing needs.
Positive Signals
- Full and open competition likely secured competitive pricing.
- Contract addresses a clear need for flexible workforce support.
Sector Analysis
The professional services sector, particularly temporary staffing, is crucial for federal agencies to manage fluctuating workforce demands. Spending benchmarks for this category can vary widely based on skill sets and duration.
Small Business Impact
This contract was awarded to Kelly Services, Inc., a large business. There is no indication of specific provisions or set-asides for small businesses within this award.
Oversight & Accountability
The contract was awarded via a delivery order under a larger contract vehicle. Oversight would typically involve contract officers and program managers ensuring performance and adherence to terms.
Related Government Programs
- Temporary Help Services
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Contract duration is substantial.
- Potential for vendor lock-in.
- Lack of small business participation.
- Need for ongoing performance monitoring.
Tags
temporary-help-services, department-of-health-and-human-services, mi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $26.9 million to KELLY SERVICES, INC.. IGF::OT::IGF OTHER FUNCTIONS - PROGRAM MANAGEMENT/SUPPORTS
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 $26.9 million.
What is the period of performance?
Start: 2012-09-18. End: 2014-03-14.
What was the average hourly rate paid to temporary staff under this contract, and how does it compare to market rates for similar positions?
The provided data does not include the average hourly rate. To assess value, a detailed analysis of the specific roles filled, their required qualifications, and prevailing market wages for those positions in the relevant geographic area would be necessary. Comparing this to the total contract value and duration can help determine if the pricing was competitive.
What are the risks associated with relying on a single vendor for temporary staffing services, especially for critical NIH functions?
Reliance on a single vendor can create risks such as service disruptions if the vendor faces operational issues, potential for price increases in future renewals, and reduced flexibility if the agency's needs evolve beyond the vendor's capabilities. For critical functions, this could impact research continuity or administrative processes.
How effectively did the full and open competition process ensure that the selected vendor, Kelly Services, Inc., offered the best value to the government?
The full and open competition, with six bids received, suggests a robust process for price discovery and vendor selection. The government likely evaluated proposals based on a combination of price and technical factors. The effectiveness is best measured by the quality of services rendered and whether the final cost was indeed competitive compared to other potential offers.
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: $26,917,137
Exercised Options: $26,917,137
Current Obligation: $26,917,137
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HHSN271201000005I
IDV Type: IDC
Timeline
Start Date: 2012-09-18
Current End Date: 2014-03-14
Potential End Date: 2014-03-14 00:00:00
Last Modified: 2017-07-27
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