HHS awarded $131.4M for logistics support, with DANYA INTERNATIONAL LLC managing services over 3 years

Contract Overview

Contract Amount: $131,448,746 ($131.4M)

Contractor: Danya International LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2007-04-14

End Date: 2010-04-30

Contract Duration: 1,112 days

Daily Burn Rate: $118.2K/day

Competition Type: NON-COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: LOGISTICS SUPPORT SERVICES

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $131.4 million to DANYA INTERNATIONAL LLC for work described as: LOGISTICS SUPPORT SERVICES Key points: 1. Value for money appears fair given the duration and scope of services. 2. Competition dynamics indicate a sole-source award, potentially limiting price discovery. 3. Risk indicators are moderate, with contract duration and sole-source nature being key factors. 4. Performance context suggests a need for ongoing logistics support within HHS. 5. Sector positioning places this contract within administrative and management consulting services.

Value Assessment

Rating: fair

The total award of $131.4 million over approximately three years for logistics support services represents a significant investment. Benchmarking this against similar large-scale logistics contracts is challenging without more granular data on service specifics and performance metrics. However, the per-unit cost, while not explicitly provided, would need to be evaluated against industry standards for comprehensive logistics management to ensure optimal value. The duration suggests a long-term need, which can sometimes lead to better pricing through economies of scale, but also carries risks if performance falters.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a non-competitive basis, specifically as a non-competitive delivery order. This means that only one vendor, DANYA INTERNATIONAL LLC, was solicited and awarded the contract. The lack of competition means that the government did not benefit from a bidding process where multiple companies could offer their services and pricing. This can lead to higher costs than if the contract had been competed.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without alternative offers, it's difficult to ascertain if the pricing reflects the best possible value for the services rendered.

Public Impact

The primary beneficiaries are the various offices and departments within the Department of Health and Human Services (HHS) that rely on efficient logistics support. Services delivered likely encompass a broad range of logistics functions, including supply chain management, warehousing, transportation, and inventory control. The geographic impact is likely concentrated within the operational areas of HHS facilities, potentially nationwide. Workforce implications could include the direct employment of personnel by DANYA INTERNATIONAL LLC and the indirect impact on HHS staff who depend on these logistics services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially leads to higher costs.
Contract duration of over three years increases the risk of cost overruns or performance degradation without adequate oversight.
Lack of detailed performance metrics in the provided data makes it difficult to assess the quality and efficiency of services.
The broad nature of 'logistics support services' could mask inefficiencies if not tightly managed.

Positive Signals

The contract addresses a critical need for logistics support within a major federal agency.
A single, long-term contract can foster a strong working relationship and specialized expertise.
The award to DANYA INTERNATIONAL LLC suggests a level of trust and past performance, though not detailed here.

Sector Analysis

This contract falls within the administrative management and general management consulting services sector, specifically focusing on logistics. This sector is crucial for government operations, enabling efficient delivery of goods and services. The market for logistics support services is highly competitive, with numerous large and small firms offering specialized capabilities. Federal spending in this area is substantial, supporting everything from supply chain management for agencies like HHS to the movement of equipment and personnel for defense and other critical functions. Benchmarks for similar contracts would typically consider the scope of services, geographic reach, and duration.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal based on this information. Without specific subcontracting plans or goals, it's difficult to assess the extent to which small businesses might have benefited indirectly from this award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the HHS Office of the Assistant Secretary for Administration. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is often enhanced through contract award databases, but detailed performance reviews and audits are internal processes. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

HHS Logistics Management
Federal Supply Chain Management
Administrative Support Services
Management and Consulting Services
Government Logistics Contracts

Risk Flags

Sole-source award
Lack of competition
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $131.4 million to DANYA INTERNATIONAL LLC. LOGISTICS SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is DANYA INTERNATIONAL LLC.

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 $131.4 million.

What is the period of performance?

Start: 2007-04-14. End: 2010-04-30.

What specific logistics services were included in this $131.4 million contract?

The provided data categorizes this contract under 'LOGISTICS SUPPORT SERVICES' and assigns it the North American Industry Classification System (NAICS) code 541611 for 'Administrative Management and General Management Consulting Services.' While the specific details of the services are not enumerated in the abbreviated data, this classification suggests a broad scope. Typically, such contracts encompass functions like supply chain management, inventory control, warehousing, transportation coordination, mail services, fleet management, and potentially procurement support for logistics-related items. The 'Administrative Management' aspect implies that the contractor likely provided expertise and operational support to manage and optimize HHS's internal logistics functions, rather than solely providing physical movement of goods.

How does the $131.4 million total award compare to similar logistics support contracts within HHS or other large federal agencies?

Direct comparison of the $131.4 million total award for logistics support services is challenging without more granular data on the specific services rendered, performance metrics, and contract duration. However, for a contract spanning approximately three years (from April 2007 to April 2010), this figure represents a substantial investment. Large federal agencies often award multi-million dollar contracts for comprehensive logistics support. For instance, the Department of Defense frequently awards contracts in the hundreds of millions or even billions for global logistics. Within HHS, the scale of this award suggests it covered a significant portion of the agency's logistical needs, potentially across multiple operating divisions or geographic locations. A fair-value assessment would require benchmarking against contracts with similar scope, complexity, and service levels.

What are the primary risks associated with a sole-source, non-competitive delivery order of this magnitude?

The primary risk associated with a sole-source, non-competitive delivery order of this magnitude is the potential for inflated costs due to a lack of price competition. When only one vendor is considered, the government loses the benefit of market forces driving down prices. This can lead to the contractor charging more than they might if they had to compete against other bidders. Additionally, sole-source awards can sometimes indicate a lack of market research or a failure to identify potential competitors, which could be a systemic issue. There's also a risk that the contractor may become complacent without the pressure of competition, potentially impacting service quality or innovation over the contract's life. Robust oversight and performance management become even more critical in sole-source situations to mitigate these risks.

What was the historical spending pattern for logistics support services by HHS prior to this contract?

The provided data does not include historical spending patterns for HHS logistics support services prior to this specific contract (awarded April 2007). To analyze historical trends, one would need to access federal procurement databases (like USASpending.gov or FPDS) and query spending on relevant NAICS codes (like 541611 or others related to logistics and supply chain management) for HHS over several preceding fiscal years. This would reveal whether spending on such services has been consistent, increasing, or decreasing, and whether DANYA INTERNATIONAL LLC or other contractors were previously awarded similar contracts. Understanding past spending helps contextualize the $131.4 million award and assess if it represents a significant shift or a continuation of established patterns.

What is DANYA INTERNATIONAL LLC's track record with federal logistics support contracts, particularly with HHS?

The provided data indicates that DANYA INTERNATIONAL LLC was awarded this specific $131.4 million contract for logistics support services by the Department of Health and Human Services (HHS). This suggests they have a track record, at least with this agency, for providing such services. To fully assess their track record, further investigation into their past performance on this and other federal contracts would be necessary. This would involve reviewing past performance evaluations, checking for any contract disputes or terminations, and examining the types and values of other contracts they have held. A positive performance history on similar contracts would increase confidence in their ability to deliver effectively on this award, while a history of issues would raise concerns.

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: NON-COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 8737 COLESVILLE RD, SILVER SPRING, MD, 20910

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $194,657,343

Exercised Options: $131,448,746

Current Obligation: $131,448,746

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS10F0484N

IDV Type: FSS

Timeline