HHS Spends $32.8M on Management Support Services with ABT Global LLC Over 11 Years

Contract Overview

Contract Amount: $32,823,573 ($32.8M)

Contractor: ABT Global LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2007-09-28

End Date: 2018-08-16

Contract Duration: 3,975 days

Daily Burn Rate: $8.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: OTHER MANAGEMENT SUPPORT SERVICES

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20814

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $32.8 million to ABT GLOBAL LLC for work described as: OTHER MANAGEMENT SUPPORT SERVICES Key points: 1. Significant long-term contract value of $32.8M. 2. ABT Global LLC is the sole awardee. 3. Contract type is Cost Plus Award Fee, indicating potential for performance-based incentives. 4. The NAICS code 541690 suggests a focus on specialized consulting services.

Value Assessment

Rating: fair

The contract spans over 11 years, making direct pricing comparisons difficult. The Cost Plus Award Fee structure suggests costs are reimbursed plus a fee based on performance, which can lead to variability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is positive for price discovery. However, the long duration and specific nature of the services may have limited the number of active bidders.

Taxpayer Impact: The $32.8M expenditure over nearly 11 years represents a substantial investment. Ensuring value for money through performance metrics is crucial for taxpayer impact.

Public Impact

Taxpayers funded over $32 million for management support services. The extended contract duration raises questions about ongoing need and potential for market shifts. Services provided under NAICS 541690 can be broad, impacting various administrative functions within HHS.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under 'Other Management Support Services' and is associated with scientific and technical consulting. Spending in this area can vary widely depending on agency needs for specialized expertise.

Small Business Impact

The data indicates this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.

Oversight & Accountability

The long duration of the contract suggests it has undergone multiple oversight cycles. However, the Cost Plus Award Fee structure necessitates robust monitoring of performance and costs to ensure accountability.

Related Government Programs

Risk Flags

Tags

other-scientific-and-technical-consultin, department-of-health-and-human-services, md, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $32.8 million to ABT GLOBAL LLC. OTHER MANAGEMENT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is ABT GLOBAL 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 $32.8 million.

What is the period of performance?

Start: 2007-09-28. End: 2018-08-16.

What specific management support services were provided under this contract, and how did they contribute to the mission of the Office of the Assistant Secretary for Administration?

The contract, classified under NAICS 541690 (Other Scientific and Technical Consulting Services), likely encompassed a range of specialized consulting services aimed at improving administrative operations. Without detailed task orders, it's difficult to pinpoint exact services, but they could include process improvement, strategic planning, or operational efficiency enhancements crucial for the Assistant Secretary for Administration's functions.

Given the Cost Plus Award Fee structure and the 11-year duration, what mechanisms were in place to ensure cost control and prevent potential overspending?

The Cost Plus Award Fee (CPAF) structure inherently involves cost reimbursement plus a performance-based fee. To control costs, the government would have established detailed cost accounting standards and audit procedures. The 'Award Fee' component implies performance metrics were set, and the fee amount was tied to achieving these targets, incentivizing efficiency and value delivery.

How did the full and open competition at the outset translate into sustained value and competitive pricing over the contract's extensive 11-year period?

While initial full and open competition is a strong indicator of competitive pricing at the award stage, the long duration of the contract (2007-2018) raises questions about sustained competition. Market conditions, technological advancements, and the specific expertise required could have limited subsequent competitive opportunities or price adjustments, potentially impacting long-term value realization.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesManagement, Scientific, and Technical Consulting ServicesOther Scientific and Technical Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 55 WHEELER ST, CAMBRIDGE, MA, 02138

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,823,573

Exercised Options: $32,823,573

Current Obligation: $32,823,573

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline

Start Date: 2007-09-28

Current End Date: 2018-08-16

Potential End Date: 2018-12-31 00:00:00

Last Modified: 2018-08-20

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