HHS awarded $20.8M for recruiting services, with STG International Inc. securing the contract

Contract Overview

Contract Amount: $20,836,283 ($20.8M)

Contractor: STG International, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2006-09-26

End Date: 2011-09-28

Contract Duration: 1,828 days

Daily Burn Rate: $11.4K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: RECRUITING SERVICES

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA (CITY) County, VIRGINIA, 22314, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $20.8 million to STG INTERNATIONAL, INC. for work described as: RECRUITING SERVICES Key points: 1. The contract's value of $20.8 million over five years suggests a significant need for recruiting support. 2. The use of a Time and Materials contract type may lead to cost overruns if not closely managed. 3. The single award for this contract raises questions about the extent of competition and potential for better pricing. 4. The contract duration of 1828 days indicates a long-term need for these services. 5. The North American Industry Classification System (NAICS) code 541611 points to management consulting services, a broad category. 6. The contract was awarded in Virginia, a state with a significant federal presence.

Value Assessment

Rating: fair

The total award of $20.8 million for recruiting services over approximately five years appears substantial. Without specific benchmarks for similar recruiting contracts within the federal government or private sector for comparable services, it is difficult to definitively assess value for money. The Time and Materials (T&M) contract type, while flexible, can present risks for cost control if not meticulously managed and monitored for efficiency. The absence of detailed performance metrics or cost breakdowns makes a precise value assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that it was competed under a broader contract vehicle. However, the data provided does not specify the number of bids received or the details of the competition. A full and open competition generally implies a robust process, but the specifics of this delivery order's competition are not detailed. The level of competition is crucial for ensuring fair pricing and identifying the most capable contractor.

Taxpayer Impact: A competitive award process, even at the delivery order level, is generally beneficial for taxpayers as it encourages multiple vendors to offer their best pricing and services, potentially leading to cost savings compared to sole-source awards.

Public Impact

The primary beneficiaries of this contract are the Department of Health and Human Services (HHS), specifically the Office of Assistant Secretary for Preparedness and Response (ASPR), which receives support in its recruitment efforts. The services delivered include administrative management and general management consulting, likely focused on identifying, vetting, and onboarding personnel. The geographic impact is primarily within Virginia, where the contract is administered, but the recruitment efforts could extend nationally to fill HHS positions. Workforce implications include the potential for STG INTERNATIONAL, INC. to expand its workforce to meet the contract demands, and the successful recruitment of personnel for HHS.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials contract type carries inherent risks of cost escalation if not managed with strict oversight and clear performance metrics.
Limited information on the competitive landscape for this specific delivery order makes it difficult to ascertain if the best possible pricing was achieved.
The broad nature of 'Administrative Management and General Management Consulting Services' could lead to scope creep if not clearly defined and monitored.

Positive Signals

The contract was awarded through a competitive process, suggesting that multiple vendors had the opportunity to bid.
The award to STG INTERNATIONAL, INC. indicates they met the government's requirements for this service.
The long duration of the contract (over 5 years) suggests a stable, ongoing need for these recruiting services, providing continuity for the agency.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. The federal market for these services is substantial, with agencies frequently outsourcing recruitment and human capital management functions. Comparable spending benchmarks would typically involve analyzing other federal contracts for recruiting and staffing services, particularly those awarded to agencies with similar needs to HHS's ASPR. The $20.8 million award over five years places it as a mid-to-large-sized contract within this service category.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, STG INTERNATIONAL, INC., is not identified as a small business in this data.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services (HHS), specifically the contracting officers and program managers within the Office of Assistant Secretary for Preparedness and Response (ASPR). Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through federal contract databases where such awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

HHS Recruitment Services
Federal Staff Augmentation Contracts
Management and Consulting Services
ASPR Support Contracts
Professional Services Contracts

Risk Flags

Potential for cost overruns due to T&M contract type
Limited transparency on specific competition details
Need for robust government oversight to ensure efficiency

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $20.8 million to STG INTERNATIONAL, INC.. RECRUITING SERVICES

Who is the contractor on this award?

The obligated recipient is STG INTERNATIONAL, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of Assistant Secretary for Preparedness and Response).

What is the total obligated amount?

The obligated amount is $20.8 million.

What is the period of performance?

Start: 2006-09-26. End: 2011-09-28.

What is the track record of STG INTERNATIONAL, INC. in performing similar federal contracts, particularly for recruiting and administrative management services?

Assessing the track record of STG INTERNATIONAL, INC. requires a review of their past performance on federal contracts. This would involve examining contract databases for previous awards, their values, durations, and agencies served. Specifically, looking for contracts with similar scope, such as recruitment, staffing, human resources support, or administrative consulting, would be crucial. Performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) would provide insights into their past performance quality, timeliness, and overall customer satisfaction. A history of successful contract completions and positive performance reviews would indicate a lower risk for this current contract. Conversely, a history of performance issues, disputes, or terminations could signal higher risk.

How does the awarded price of $20.8 million compare to market rates for similar recruiting services provided to federal agencies?

To compare the awarded price of $20.8 million to market rates, one would need to benchmark it against similar federal contracts for recruiting and administrative management services. This involves analyzing the average cost per hour or per full-time equivalent (FTE) placed across comparable contracts awarded by agencies like HHS or other large federal departments. Factors such as the complexity of the roles being recruited, the geographic scope of recruitment, and the specific services included (e.g., background checks, onboarding assistance) would need to be considered. Additionally, comparing the contract's total value against the estimated number of hires or the duration of the contract can provide a sense of the cost-effectiveness. Without access to detailed pricing data from comparable contracts or market surveys, a precise benchmark is difficult, but the $20.8 million over approximately five years suggests a significant investment in talent acquisition.

What are the primary risks associated with the Time and Materials (T&M) contract type used for this award, and how are they mitigated?

The primary risk associated with a Time and Materials (T&M) contract is the potential for cost overruns, as the government pays for the labor hours and materials used, rather than a fixed price. This can lead to higher-than-anticipated costs if the contractor's efficiency is low or if the scope of work expands without proper controls. Mitigation strategies typically include establishing ceiling prices, requiring detailed labor hour reporting, implementing robust oversight by government personnel to monitor progress and efficiency, and defining clear deliverables and performance standards. Regular reviews and audits of contractor invoices and timesheets are essential to ensure accuracy and prevent fraudulent charges. The government must actively manage the contractor's performance to ensure value for money.

What is the expected effectiveness of STG INTERNATIONAL, INC. in fulfilling HHS's recruitment needs, given the contract's scope and duration?

The expected effectiveness hinges on STG INTERNATIONAL, INC.'s demonstrated capabilities and the clarity of the contract's objectives. The $20.8 million award over approximately five years suggests a significant and ongoing need for recruitment support within HHS's Office of Assistant Secretary for Preparedness and Response (ASPR). If STG INTERNATIONAL, INC. has a strong track record in federal recruiting, possesses efficient recruitment methodologies, and maintains strong communication with HHS, the effectiveness is likely to be high. The contract's success will also depend on the government's ability to clearly define its staffing requirements, provide timely feedback, and actively manage the contractor's performance. The long duration allows for building a strong working relationship and understanding of HHS's specific needs.

How has federal spending on recruiting and administrative management consulting services evolved over the past five years, and where does this contract fit?

Federal spending on recruiting and administrative management consulting services has generally seen a steady demand, particularly in recent years, driven by agency needs for specialized expertise and workforce augmentation. Agencies often rely on external support for recruitment to fill critical positions efficiently and access broader talent pools. This $20.8 million contract for HHS fits within this trend, representing a significant investment by a major federal agency in securing essential personnel. Analyzing historical spending data from agencies like HHS, as well as overall government-wide spending on NAICS code 541611 (Administrative Management and General Management Consulting Services), would reveal patterns of growth or fluctuation. This specific award appears to be a substantial, long-term commitment, indicating a strategic approach by HHS to manage its talent acquisition.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRAVEL, LODGING, RECRUITMENT SVCS

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: RFQ#OPHEMCDDA0609

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 99 CANAL CENTER PLZ STE 500, ALEXANDRIA, VA, 22314

Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Not Designated a Small Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, Woman Owned Business

Financial Breakdown

Contract Ceiling: $20,836,283

Exercised Options: $20,836,283

Current Obligation: $20,836,283

Parent Contract

Parent Award PIID: GS02F0040P

IDV Type: FSS

Timeline