NIH awarded $21.77M for temporary staffing, with Kelly Services Inc. securing the contract

Contract Overview

Contract Amount: $21,769,637 ($21.8M)

Contractor: Kelly Services, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2014-09-26

End Date: 2015-09-14

Contract Duration: 353 days

Daily Burn Rate: $61.7K/day

Competition Type: FULL AND OPEN COMPETITION

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

State: Michigan Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $21.8 million to KELLY SERVICES, INC. for work described as: IGF::OT::IGF - OTHER FUNCTIONS - PROGRAM MANAGEMENT/SUPPORT SERVICES Key points: 1. The contract value represents a significant investment in program management and support services. 2. Competition dynamics for this contract are crucial for ensuring fair pricing and service quality. 3. Risk indicators include potential over-reliance on temporary staff and ensuring consistent service delivery. 4. Performance context suggests a need for agile staffing solutions within NIH's operational framework. 5. This contract positions Kelly Services within the broader federal IT and administrative support sector.

Value Assessment

Rating: fair

The awarded amount of $21.77 million for temporary staffing services appears substantial. Benchmarking against similar contracts for program management and support services within federal agencies is necessary to determine true value for money. Without specific per-unit cost data or comparisons to market rates for similar roles, a definitive assessment of pricing efficiency is challenging. However, the duration and scope suggest a significant operational need being met.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This competitive process is generally expected to drive better pricing and service offerings. The number of bidders and the specific evaluation criteria would provide further insight into the intensity of the competition and its impact on the final award.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it encourages a wider pool of vendors, potentially leading to more cost-effective solutions and preventing price gouging.

Public Impact

Benefits the National Institutes of Health (NIH) by providing essential temporary staffing for program management and support. Ensures continuity of operations and specialized skills are available as needed. Supports various research and administrative functions within NIH. Impacts the workforce by creating opportunities for temporary employment through Kelly Services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for inconsistent service quality due to the nature of temporary staffing.
Risk of knowledge loss when temporary staff depart.
Ensuring compliance with federal employment regulations for temporary workers.

Positive Signals

Flexibility to scale staffing up or down based on NIH's evolving needs.
Access to specialized skills that may not be readily available internally.
Competitive bidding process likely secured favorable terms.

Sector Analysis

This contract falls within the professional and administrative support services sector, specifically focusing on temporary staffing solutions. The federal government is a major consumer of such services to manage fluctuating workloads and specialized skill requirements across various agencies. Comparable spending benchmarks would involve analyzing other large federal contracts for temporary staffing, particularly within health and research-focused agencies like NIH.

Small Business Impact

While the contract was awarded to Kelly Services, Inc., a large provider, the analysis does not indicate specific small business set-asides or subcontracting requirements within this particular award. Further investigation into the subcontracting plan would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight would typically be managed by the contracting officer's representative (COR) at NIH, responsible for monitoring performance and ensuring compliance with the contract terms. Transparency is facilitated through federal contract databases, but detailed performance metrics and specific oversight activities are not publicly detailed in this summary.

Related Government Programs

Federal Workforce Management Services
Professional and Management Support Services
Temporary Staffing Contracts
NIH Administrative Support

Risk Flags

Potential for inconsistent service quality
Risk of knowledge loss
Complexity in ensuring regulatory compliance for temporary staff

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $21.8 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 $21.8 million.

What is the period of performance?

Start: 2014-09-26. End: 2015-09-14.

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

Analyzing historical spending patterns for temporary staffing at NIH would provide crucial context for the $21.77 million award. This involves examining contract data over several fiscal years to identify trends in contract values, durations, and the primary contractors utilized. Understanding if this award represents an increase, decrease, or stable level of spending can indicate shifts in NIH's staffing strategy or operational demands. For instance, a significant increase might suggest a new initiative or a response to unforeseen circumstances, while a consistent pattern could point to a long-term reliance on external staffing for specific functions. Without specific historical data, it's difficult to ascertain if this contract is an anomaly or part of a sustained investment in temporary support.

How does the pricing of this contract compare to similar temporary staffing contracts awarded by other federal agencies?

Comparing the pricing of this $21.77 million contract to similar temporary staffing contracts awarded by other federal agencies is essential for a value-for-money assessment. This would involve identifying contracts with comparable scope, duration, and service types (e.g., program management support, administrative roles) across agencies like HHS, DOD, or GSA. Key metrics for comparison include average hourly rates for different skill levels, overhead rates, and profit margins. If this contract's rates are significantly higher than benchmarks, it could indicate less competitive pricing or unique service requirements. Conversely, if rates are in line or lower, it suggests effective price negotiation and competitive market dynamics.

What are the specific risks associated with relying heavily on temporary staffing for program management and support?

Relying heavily on temporary staffing for program management and support services, as indicated by this contract, presents several risks. A primary concern is the potential for inconsistent service quality and a lack of institutional knowledge, as temporary staff may have shorter tenures and less familiarity with agency-specific processes and long-term project goals. There's also a risk of knowledge drain when experienced temporary personnel depart. Furthermore, ensuring consistent compliance with federal employment regulations, security clearances, and data handling protocols for a rotating workforce can be complex and resource-intensive. Finally, over-reliance might hinder the development of a stable, core in-house expertise, potentially impacting long-term strategic planning and execution.

What performance metrics are typically used to evaluate temporary staffing contracts of this nature?

Evaluating the performance of temporary staffing contracts like this one typically involves a range of metrics focused on efficiency, quality, and compliance. Key performance indicators (KPIs) often include fill rates (the percentage of requested positions filled within a specified timeframe), timeliness of replacements, and staff retention rates. Quality is assessed through supervisor feedback, client satisfaction surveys, and the accuracy and completeness of work performed. Compliance metrics focus on adherence to labor laws, security requirements, and contractual terms. For program management support, metrics might also extend to project milestone achievement and budget adherence, depending on the specific roles filled by temporary staff.

What is Kelly Services, Inc.'s track record with federal government contracts, particularly in staffing services?

Kelly Services, Inc. has a significant track record of securing and performing federal government contracts, including those for staffing and workforce solutions. A review of federal procurement data would reveal the extent of their awards across various agencies and contract types. Their experience likely encompasses providing a wide array of personnel, from administrative and clerical support to specialized technical and professional roles. Assessing their past performance ratings, any past performance issues or disputes, and their success in fulfilling contract requirements provides insight into their capability and reliability as a federal contractor. Their longevity in the staffing industry suggests a robust operational framework capable of meeting government demands.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ingenesis Inc (UEI: 019992424)

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: $21,769,637

Exercised Options: $21,769,637

Current Obligation: $21,769,637

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSN271201000005I

IDV Type: IDC

Timeline