HHS awarded STG International $90.6M for occupational health staffing over 9 years

Contract Overview

Contract Amount: $90,592,911 ($90.6M)

Contractor: STG International, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2004-12-15

End Date: 2013-09-30

Contract Duration: 3,211 days

Daily Burn Rate: $28.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: LABOR HOURS

Sector: Healthcare

Official Description: TAS::75 4552 001::TAS OCCUPATIONAL HEALTH OPERATIONAL STAFFING SUPPORT SERVICES

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA (CITY) County, VIRGINIA, 22311, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $90.6 million to STG INTERNATIONAL, INC. for work described as: TAS::75 4552 001::TAS OCCUPATIONAL HEALTH OPERATIONAL STAFFING SUPPORT SERVICES Key points: 1. Contract value represents significant investment in essential health support services. 2. Long duration suggests a stable, ongoing need for these specialized services. 3. Full and open competition indicates a potentially competitive bidding process. 4. Contract awarded to STG International, Inc., a known entity in government contracting. 5. Services fall under 'All Other Miscellaneous Ambulatory Health Care Services,' a broad category. 6. Performance period spanned nearly a decade, from late 2004 to late 2013.

Value Assessment

Rating: fair

The total award of $90.6 million over approximately nine years averages to about $10 million annually. Benchmarking this against similar contracts for occupational health staffing support is challenging without more specific service details and market data. However, the duration and scale suggest a substantial commitment. The pricing structure, likely based on labor hours, would need detailed analysis to assess value for money against prevailing market rates for comparable professional services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was broad, certain sources were initially excluded before the final award. This suggests a potentially complex procurement process. The number of bidders is not specified, but the 'full and open' nature generally aims to maximize competition, which can lead to better price discovery and potentially lower costs for the government.

Taxpayer Impact: A competitive bidding process, even with initial exclusions, is generally favorable for taxpayers as it encourages multiple vendors to offer their best pricing and service terms.

Public Impact

Federal employees and potentially beneficiaries of HHS programs likely received essential occupational health services. The services provided supported the operational readiness and health of the HHS workforce. Geographic impact is likely concentrated around HHS facilities, primarily in Virginia where the contractor is based. Workforce implications include the employment of health professionals and support staff by STG International to fulfill the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the quality and effectiveness of services delivered.
The long contract duration could potentially lead to complacency or reduced incentive for innovation if not managed tightly.
The broad service category ('All Other Miscellaneous Ambulatory Health Care Services') may obscure the specific value and cost drivers.

Positive Signals

Awarded through full and open competition, suggesting a robust vetting of potential providers.
Contract duration indicates a sustained need and successful delivery of services over an extended period.
STG International, Inc. has a history of performing government contracts, implying established processes and experience.

Sector Analysis

This contract falls within the broader healthcare services sector, specifically focusing on occupational health and staffing support. The market for such services is competitive, with numerous firms offering specialized staffing and administrative support to government agencies. Spending in this area is driven by the need to maintain workforce health, safety, and operational efficiency within federal agencies. Comparable spending benchmarks would depend on the exact nature of the occupational health services provided, such as medical surveillance, health screenings, or wellness programs.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, STG International, Inc., is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this award. The absence of a small business set-aside suggests that the scope and nature of the services were deemed more suitable for larger, established contractors or that competition was opened broadly.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of Health and Human Services (HHS), specifically the Office of the Assistant Secretary for Administration. Accountability measures would typically involve performance reviews, adherence to contract terms, and financial audits. Transparency is facilitated through contract databases like FPDS, which provide basic award information. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

HHS Occupational Health Services
Federal Employee Health and Wellness Programs
Ambulatory Health Care Services Contracts
Government Staffing Support Services
Public Health Administration Support

Risk Flags

Lack of specific performance metrics.
Broad service category obscures detailed cost analysis.
Potential for increased costs over long contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $90.6 million to STG INTERNATIONAL, INC.. TAS::75 4552 001::TAS OCCUPATIONAL HEALTH OPERATIONAL STAFFING SUPPORT 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 the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $90.6 million.

What is the period of performance?

Start: 2004-12-15. End: 2013-09-30.

What specific occupational health services were provided under this contract?

The contract falls under the PSC code 621999, which is 'All Other Miscellaneous Ambulatory Health Care Services.' This broad categorization suggests a range of potential services, likely including but not limited to medical examinations, health screenings, wellness programs, injury prevention, and potentially on-site medical support for HHS personnel. Without more granular data on the task orders issued under this contract, the precise nature and scope of the 'occupational health operational staffing support services' remain generalized. These services are critical for maintaining the health and safety of federal employees, ensuring compliance with health regulations, and supporting overall workforce productivity within the agency.

How does the $90.6 million award compare to other federal spending on similar occupational health services?

Comparing the $90.6 million award to other federal spending on similar occupational health services requires access to detailed spending data across multiple agencies and contract types. However, over a duration of nearly nine years (late 2004 to late 2013), this averages to approximately $10 million annually. This figure suggests a significant, long-term commitment by HHS to outsourced occupational health support. Larger agencies with substantial workforces, like HHS, often have multi-million dollar annual budgets for such services. The value is substantial but needs to be contextualized against the size of the HHS workforce and the specific services procured, which are not fully detailed in the provided data.

What is STG International, Inc.'s track record with federal contracts, particularly in healthcare staffing?

STG International, Inc. has a notable track record as a government contractor, frequently securing awards across various federal agencies, including HHS, Department of Defense, and others. Their portfolio often includes staffing, healthcare services, and administrative support. The $90.6 million award from HHS for occupational health staffing is a significant contract in their history, demonstrating their capacity to handle large-scale, long-term service agreements. Their experience in this domain suggests familiarity with federal procurement regulations, performance standards, and the specific needs of government clients requiring specialized health and operational support personnel.

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

The provided data does not specify the key performance indicators (KPIs) or success metrics established for this particular contract. Typically, for occupational health staffing contracts, KPIs would focus on aspects such as timeliness of service delivery, availability of qualified personnel, adherence to health and safety protocols, client satisfaction, and compliance with relevant regulations. The absence of this information makes it difficult to quantitatively assess the contractor's performance and the overall effectiveness of the services provided beyond the fact that the contract was extended over a long period.

Were there any notable risks or challenges associated with this contract during its performance period?

Potential risks associated with a contract of this nature and duration could include challenges in recruiting and retaining qualified healthcare professionals, ensuring consistent service quality across different locations or time periods, managing evolving healthcare regulations, and potential cost overruns if labor rates or service demands increase unexpectedly. Given the 'Full and Open Competition After Exclusion of Sources' award type, there might have been initial procurement challenges or protests. However, the contract's successful completion over nearly nine years suggests that STG International, Inc. and HHS effectively managed or mitigated most significant risks.

How did the 'Full and Open Competition After Exclusion of Sources' impact the bidding and final award?

The 'Full and Open Competition After Exclusion of Sources' (FOUC-ES) indicates that the procurement process began with a broad solicitation, but certain potential offerors were excluded at some stage before the final award. This could happen for various reasons, such as failure to meet minimum qualifications, past performance issues, or specific agency requirements. While aiming for broad competition, the exclusion clause means the final competition pool was narrower than a pure 'full and open' process. This might influence the number of bids received and potentially the final pricing, though it can also be used to ensure only qualified and capable vendors participate, potentially leading to a more stable outcome.

Industry Classification

NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › All Other Miscellaneous Ambulatory Health Care Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 05D000100

Offers Received: 4

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 4900 SEMINARY ROAD, STE 1100, ALEXANDRIA, VA, 22311

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $106,878,867

Exercised Options: $92,199,939

Current Obligation: $90,592,911

Contract Characteristics

Cost or Pricing Data: NO

Timeline