HHS awarded $12.7M for administrative support, with NCS Pearson Inc. delivering services over 3 years
Contract Overview
Contract Amount: $12,717,217 ($12.7M)
Contractor: NCS Pearson, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2006-09-06
End Date: 2009-09-10
Contract Duration: 1,100 days
Daily Burn Rate: $11.6K/day
Number of Offers Received: 3
Pricing Type: FIXED PRICE
Sector: Other
Official Description: OTHER ADMINISTRATIVE SUPPORT SVCS
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857, UNITED STATES OF AMERICA
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $12.7 million to NCS PEARSON, INC. for work described as: OTHER ADMINISTRATIVE SUPPORT SVCS Key points: 1. The contract's value of $12.7 million over three years suggests a moderate annual spend for administrative support services. 2. NCS Pearson, Inc. secured this contract, indicating a potential concentration of administrative support services with established providers. 3. The fixed-price contract type implies that the contractor bears the risk of cost overruns, potentially leading to more predictable government spending. 4. The contract was awarded under the 'Administrative Management and General Management Consulting Services' NAICS code, aligning with standard government operational needs. 5. The duration of 1100 days (approximately 3 years) is typical for service contracts of this nature, allowing for sustained support. 6. The award to NCS Pearson, Inc. for administrative support services warrants a review of their past performance and pricing in similar contracts.
Value Assessment
Rating: fair
The contract value of $12.7 million over approximately three years averages to about $4.2 million annually. Benchmarking this against similar administrative support contracts requires access to a broader dataset of comparable awards. However, without specific details on the scope of services, it's challenging to definitively assess value for money. The fixed-price nature of the contract provides some cost certainty for the government, but the overall efficiency and effectiveness of the services delivered would be key to determining true value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The provided data does not specify the competition level for this contract. Understanding whether it was a full and open competition, a limited competition, or a sole-source award is crucial for assessing its impact on pricing and fairness. If it was a competitive bid, the number of bidders would indicate the level of market interest and potential for price negotiation. A lack of transparency regarding the competition process raises questions about whether the government secured the best possible pricing and terms.
Taxpayer Impact: The level of competition directly impacts taxpayer dollars. Robust competition typically drives down prices and encourages innovation, leading to better value. Limited or sole-source awards may result in higher costs for the government if adequate justification for the lack of competition is not provided.
Public Impact
The primary beneficiaries of this contract are likely the various departments and offices within the Department of Health and Human Services (HHS) that require administrative support. The services delivered would encompass a range of administrative functions, potentially including but not limited to, clerical support, data management, scheduling, and general office operations. The geographic impact is primarily within Maryland, where the contract was administered, but the services could support HHS operations nationwide. The contract supports the operational efficiency of HHS, indirectly benefiting the public through the smoother functioning of health and human services programs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of clarity on competition level could indicate potential for suboptimal pricing.
- The specific scope of 'Administrative Management and General Management Consulting Services' is broad and could encompass areas where cost-effectiveness is difficult to measure without detailed performance metrics.
- Without performance data, it's hard to assess if the $12.7M was optimally spent for the services rendered.
Positive Signals
- The fixed-price contract type shifts cost overrun risk to the contractor, providing budget predictability.
- The contract duration of approximately three years allows for stable, ongoing administrative support, avoiding frequent re-procurement costs.
- Awarding to NCS Pearson, Inc. suggests they met the government's requirements for administrative support services.
Sector Analysis
This contract falls within the administrative and management consulting services sector, a broad category supporting government operations. The market for these services is highly competitive, with numerous firms offering specialized support. The total federal spending on administrative management and general management consulting services (NAICS 541611) can be substantial, reflecting the government's reliance on external expertise for operational efficiency. This specific award of $12.7 million represents a segment of that larger market.
Small Business Impact
The data indicates that small business participation (ss and sb fields) was not a specific set-aside for this contract. This suggests that the procurement was likely open to a broader range of contractors, including larger firms. There is no explicit information on subcontracting plans for small businesses. Without this, it's difficult to assess the direct impact on the small business ecosystem, though larger prime contractors may engage small businesses for specific tasks.
Oversight & Accountability
Oversight for this contract would typically reside within the Office of the Assistant Secretary for Administration at HHS. Mechanisms would likely include regular performance reviews, contract management meetings, and adherence to the terms and conditions of the fixed-price agreement. Transparency is generally maintained through contract databases like FPDS, though detailed performance reports are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Administrative Support Services
- Management Consulting Services
- HHS Operational Support Contracts
- Federal IT and Administrative Services
Risk Flags
- Competition Level Unknown
- Performance Metrics Not Specified
- Scope of Services Broad
Tags
administrative-support, management-consulting, health-and-human-services, hhs, fixed-price, ncs-pearson-inc, maryland, naics-541611, service-contract, medium-value
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $12.7 million to NCS PEARSON, INC.. OTHER ADMINISTRATIVE SUPPORT SVCS
Who is the contractor on this award?
The obligated recipient is NCS PEARSON, 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 $12.7 million.
What is the period of performance?
Start: 2006-09-06. End: 2009-09-10.
What specific administrative services were provided under this contract?
The contract falls under NAICS code 541611, 'Administrative Management and General Management Consulting Services.' This broad category can encompass a wide array of services, including strategic planning, organizational analysis, process improvement, operational efficiency studies, and general administrative support such as record keeping, scheduling, and data management. Without the specific statement of work (SOW) or contract line item numbers (CLINs), the precise nature of the services rendered by NCS Pearson, Inc. remains unspecified. However, given the context of HHS, these services likely supported the internal operations and management functions of the agency, aiming to enhance efficiency and effectiveness in program delivery and administration.
How does the $12.7 million contract value compare to similar administrative support contracts awarded by HHS or other agencies?
Benchmarking the $12.7 million contract value requires access to a comprehensive database of federal contract awards, filtered by agency, NAICS code, and contract duration. Annually, this contract represents approximately $4.2 million. This figure is moderate for a large federal agency like HHS, which often procures a wide range of services. Contracts for administrative support can vary significantly based on the scope, complexity, and duration. Larger, multi-year contracts for comprehensive administrative management can easily exceed tens or hundreds of millions of dollars. Conversely, smaller, more focused support tasks might be awarded for less. Without specific details on the service scope and performance metrics, a precise comparison is difficult, but $4.2 million annually for administrative support is within a plausible range for federal agency needs.
What is NCS Pearson, Inc.'s track record with federal contracts, particularly in administrative support?
NCS Pearson, Inc. has a history of receiving federal contracts. To assess their track record specifically in administrative support, a detailed review of their past awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any past disputes or issues would be necessary. Their ability to secure this $12.7 million contract suggests they met the government's requirements at the time of award. However, a thorough analysis would involve examining the size and scope of their previous contracts, the agencies they've served, and the consistency of their performance across different engagements to gauge their reliability and expertise in delivering administrative management and consulting services.
What were the key performance indicators (KPIs) or metrics used to evaluate the success of this contract?
The provided data does not include specific Key Performance Indicators (KPIs) or metrics used to evaluate the success of this contract. For administrative support and management consulting services, typical KPIs might include response times for requests, accuracy of data entry or reporting, efficiency gains achieved through process improvements, client satisfaction scores from internal HHS stakeholders, and adherence to project timelines and budgets. As this was a fixed-price contract, meeting the defined deliverables within the agreed-upon price and schedule would be a primary measure of success. A comprehensive performance review would require access to the contract's SOW and any associated performance management plans.
How has federal spending on administrative management and general management consulting services (NAICS 541611) trended over the past decade?
Federal spending on Administrative Management and General Management Consulting Services (NAICS 541611) has generally shown a consistent demand over the past decade, reflecting the government's ongoing need for operational efficiency and strategic guidance. While specific figures fluctuate year-to-year based on agency budgets, priorities, and economic conditions, the overall trend indicates a significant and sustained investment in these services. Agencies frequently contract out for expertise in areas such as organizational restructuring, process optimization, human capital management, and IT strategy implementation. This category often sees substantial awards, particularly during periods of government reform or modernization efforts. Analyzing historical spending patterns for NAICS 541611 reveals its critical role in supporting federal agency functions and achieving programmatic goals.
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) › ADMINISTRATIVE SUPPORT SERVICES
Contractor Details
Parent Company: GED Testing Service LLC (UEI: 210227468)
Address: 5601 GREEN VALLEY DR # 22, MINNEAPOLIS, MN, 55437
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $12,717,217
Exercised Options: $12,717,217
Current Obligation: $12,717,217
Parent Contract
Parent Award PIID: GS10F0167J
IDV Type: FSS
Timeline
Start Date: 2006-09-06
Current End Date: 2009-09-10
Potential End Date: 2009-09-10 00:00:00
Last Modified: 2016-04-18
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