HHS awarded $14.4M for management consulting, with Vangent, Inc. securing the contract

Contract Overview

Contract Amount: $14,435,337 ($14.4M)

Contractor: Vangent, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2005-09-23

End Date: 2010-08-31

Contract Duration: 1,803 days

Daily Burn Rate: $8.0K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OTHER MANAGEMENT SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20201, UNITED STATES OF AMERICA

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $14.4 million to VANGENT, INC. for work described as: OTHER MANAGEMENT SUPPORT SERVICES Key points: 1. The contract was awarded on a firm-fixed-price basis, indicating a clear understanding of scope and cost. 2. The duration of the contract, spanning over 1800 days, suggests a long-term need for these administrative and management services. 3. The award was made under a competitive delivery order, implying some level of prior competition or a pre-established contract vehicle. 4. The North American Industry Classification System (NAICS) code 541611 points to a focus on general management consulting services. 5. The contract's value of approximately $14.4 million over its term represents a significant investment in administrative support. 6. The small business flags are false, suggesting this was not specifically set aside for small businesses.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more granular data on the specific services rendered and their market rates. However, a $14.4 million award over nearly five years for administrative management and general management consulting services suggests a substantial engagement. Without comparable contract data or detailed service breakdowns, it's difficult to definitively assess value for money. The firm-fixed-price structure is a positive indicator for cost control, but the overall efficiency and effectiveness of the services provided remain unquantified.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract type is listed as 'COMPETITIVE DELIVERY ORDER,' which implies it was awarded under a pre-existing contract vehicle that was itself competed. However, the specific competition details for this particular delivery order are not provided. It's unclear how many bids were solicited or received for this specific order, or if it was a task order under a larger indefinite-delivery indefinite-quantity (IDIQ) contract. The level of competition for the underlying contract vehicle would significantly influence price discovery.

Taxpayer Impact: The lack of specific competition details for this delivery order makes it challenging to ascertain the direct impact on taxpayer value. If the underlying contract vehicle was highly competitive, taxpayers likely benefited from competitive pricing. Conversely, limited competition could lead to higher costs.

Public Impact

The primary beneficiaries are likely the administrative and operational functions within the Department of Health and Human Services (HHS), specifically the Office of the Assistant Secretary for Administration. The services delivered fall under Administrative Management and General Management Consulting, aimed at improving organizational efficiency and effectiveness. The geographic impact is centered in the District of Columbia, where the agency is located. The contract supports the federal workforce by providing essential management support services, potentially freeing up government personnel for core mission activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the competition for this delivery order makes it difficult to assess if taxpayers received the best possible value.
The long contract duration could pose risks if the contractor's performance or the agency's needs change significantly over time.
Without performance metrics, it's hard to gauge the actual impact and success of the consulting services provided.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the agency.
The award was made under a 'competitive delivery order,' suggesting some level of competition was involved in the process, likely at the IDIQ level.
The contract addresses a clear need for administrative and management support within a key federal agency.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. This sector is characterized by a wide range of service providers, from large, established firms to specialized boutiques. Federal spending in this area often supports agency operations, strategic planning, and efficiency improvements. Comparable spending benchmarks would typically be found by analyzing other contracts awarded under NAICS code 541611 across various federal agencies, looking at contract size, duration, and service scope.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss=false, sb=false). This suggests that the procurement was open to a broader range of contractors, including large businesses. There is no explicit information regarding subcontracting plans or their impact on the small business ecosystem. Without specific set-aside requirements or subcontracting goals, the direct impact on small businesses is likely minimal unless they were prime contractors on the underlying IDIQ vehicle or are indirectly involved.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Health and Human Services, Office of the Assistant Secretary for Administration. Accountability measures are inherent in the firm-fixed-price contract structure, which obligates the contractor to deliver specific services for a set price. Transparency is generally facilitated through contract databases like FPDS-NG, where basic award information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

HHS Administrative Support Contracts
Management and Consulting Services
Federal IT and Management Consulting
General Services Administration (GSA) Schedules
Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts

Risk Flags

Potential for scope creep given the long duration.
Lack of detailed competition information for the delivery order.
Performance metrics not publicly available.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $14.4 million to VANGENT, INC.. OTHER MANAGEMENT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is VANGENT, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $14.4 million.

What is the period of performance?

Start: 2005-09-23. End: 2010-08-31.

What specific administrative and management consulting services were provided under this contract?

The contract falls under NAICS code 541611, 'Administrative Management and General Management Consulting Services.' This broad category typically includes services such as organizational planning, business process re-engineering, strategic planning, program management support, human capital management consulting, and financial management consulting. However, without access to the specific Statement of Work (SOW) or task orders issued under this contract, the precise nature of the services rendered by Vangent, Inc. remains unspecified. These services are crucial for ensuring the efficient and effective operation of the Office of the Assistant Secretary for Administration within HHS.

How does the $14.4 million contract value compare to similar management consulting contracts awarded by HHS or other agencies?

Comparing the $14.4 million value requires context regarding the contract's duration (1803 days, approximately 5 years) and the specific services provided. For a five-year engagement involving comprehensive administrative and management consulting, this value is within a plausible range for federal contracts of this nature. However, without detailed service scope and performance metrics, a direct value-for-money assessment is difficult. Agencies often award similar contracts through IDIQ vehicles, with individual task orders varying significantly in value. Benchmarking against contracts with identical NAICS codes and similar durations, but differing scopes, would be necessary for a more precise comparison.

What is Vangent, Inc.'s track record with federal contracts, particularly with HHS?

Vangent, Inc. (which later became part of Maximus Federal Services) has a history of holding numerous federal contracts across various agencies, including significant work with the Department of Health and Human Services. Their portfolio often includes IT services, healthcare support, and administrative functions. While this specific contract highlights their role in management consulting, their broader experience suggests familiarity with federal procurement processes and agency needs. A detailed review of their contract history would reveal performance ratings, past issues, and the types of services they have successfully delivered to the government.

What were the key performance indicators (KPIs) or success metrics for this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or success metrics for this contract. Typically, for management consulting services, KPIs might include improvements in process efficiency, cost savings achieved, successful implementation of strategic initiatives, enhanced organizational structure, or improved employee satisfaction related to administrative functions. The firm-fixed-price nature of the contract implies that the contractor was expected to deliver defined outcomes or services, but the specific metrics used to measure success would have been detailed in the contract's Statement of Work (SOW) or subsequent task orders.

What is the historical spending trend for administrative management and general management consulting services at HHS?

Historical spending trends for administrative management and general management consulting services at HHS are generally substantial, reflecting the agency's vast operational needs. Agencies like HHS frequently engage contractors for support in areas such as strategic planning, program management, IT modernization, financial oversight, and human capital. Spending in this category can fluctuate based on agency priorities, budget allocations, and specific project requirements. Analyzing historical data from FPDS-NG for NAICS code 541611 across HHS would reveal patterns of spending, identify major contract vehicles, and highlight key service areas.

Were there any notable risks or challenges associated with this contract or contractor?

Without specific performance data or post-award reviews, identifying notable risks or challenges for this particular contract is speculative. However, general risks associated with long-term management consulting contracts include scope creep, misalignment between contractor recommendations and agency culture, potential for cost overruns if not managed tightly (though mitigated by FFP), and the risk of contractor performance not meeting expectations. For Vangent, Inc., like any large federal contractor, past performance reviews and any documented issues on other contracts could indicate potential risks. The transition of Vangent's business to Maximus might also introduce integration challenges or changes in service delivery.

Industry Classification

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

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Veritas Capital Fund II L P (UEI: 160610809)

Address: 4250 FAIRFAX DR STE 1200, ARLINGTON, VA, 22203

Business Categories: Category Business, Corporate Entity Tax Exempt, Small Business

Financial Breakdown

Contract Ceiling: $14,435,337

Exercised Options: $14,435,337

Current Obligation: $14,435,337

Parent Contract

Parent Award PIID: GS10F0545P

IDV Type: FSS

Timeline