HHS awarded $17.4M for health promotion and wellness staffing, with 3 bidders competing

Contract Overview

Contract Amount: $17,401,889 ($17.4M)

Contractor: Millennium Health & Fitness, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2010-09-30

End Date: 2015-08-21

Contract Duration: 1,786 days

Daily Burn Rate: $9.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: TAS::75 4552 001::TAS HEALTH PROMOTION WELLNESS FITNESS STAFFING

Place of Performance

Location: KEOKUK, LEE County, IOWA, 52632, UNITED STATES OF AMERICA

State: Iowa Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $17.4 million to MILLENNIUM HEALTH & FITNESS, INC. for work described as: TAS::75 4552 001::TAS HEALTH PROMOTION WELLNESS FITNESS STAFFING Key points: 1. Value for money appears fair given the duration and scope of services. 2. Competition dynamics suggest a reasonably competitive bidding process. 3. Risk indicators are moderate, with contract type and duration being key factors. 4. Performance context shows a multi-year engagement for essential administrative support. 5. Sector positioning places this contract within the broader administrative and consulting services for government agencies.

Value Assessment

Rating: fair

The total award of $17.4 million over approximately five years (from 2010 to 2015) for administrative management and general management consulting services related to health promotion and wellness staffing suggests a moderate per-year expenditure. Benchmarking against similar contracts for specialized staffing and consulting services within federal health agencies would be necessary for a definitive value assessment. However, the duration and the nature of the services provided (staffing for wellness programs) indicate a potentially reasonable cost if the services met performance expectations.

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,' indicating that while initial exclusions might have occurred, the final award was made through a competitive process open to all eligible sources. With three bidders participating, the competition level was moderate. This suggests that while multiple companies were interested, the market may not have been as broad as for more common service categories. The moderate competition likely contributed to price discovery but may not have driven prices down to the absolute lowest possible.

Taxpayer Impact: A moderate level of competition among three bidders means taxpayers likely received a fair price, avoiding the potential overpayment associated with sole-source contracts, but perhaps not achieving the deepest cost savings possible with a larger pool of competitors.

Public Impact

Beneficiaries include federal employees who receive health promotion and wellness services. Services delivered involve staffing for fitness, health promotion, and wellness programs within the Department of Health and Human Services. Geographic impact is primarily within the facilities managed by HHS, likely concentrated in areas where federal employees are located. Workforce implications include the provision of specialized staff to support government wellness initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of nearly five years could lead to complacency or reduced urgency in performance.
Time and Materials (T&M) contract type can pose a risk of cost overruns if not closely monitored.
The specific nature of 'health promotion and wellness staffing' might be subject to evolving federal guidelines and program effectiveness metrics.

Positive Signals

Awarded through full and open competition, indicating a structured procurement process.
The contract supported essential health and wellness programs for federal employees.
The existence of multiple bidders suggests a viable market for these specialized services.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically under Administrative Management and General Management Consulting Services. This broad sector encompasses a wide range of support functions for government agencies. The market for such services is substantial, with agencies frequently outsourcing specialized staffing and consulting needs to enhance program delivery and operational efficiency. Comparable spending benchmarks would involve analyzing other contracts for similar staffing and administrative support within HHS and other federal health-related agencies.

Small Business Impact

The contract was not set aside for small businesses, and the awardee, MILLENNIUM HEALTH & FITNESS, INC., is not explicitly identified as a small business in the provided data. There is no information regarding subcontracting plans for small businesses. This suggests that the primary focus of this procurement was on obtaining the required services through the most capable vendor, rather than specifically promoting small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Office of the Assistant Secretary for Administration at HHS. Performance monitoring, invoicing review, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or identified during the contract's performance or closeout.

Related Government Programs

Federal Employee Health and Wellness Programs
Government Administrative Support Services
Health Services Staffing Contracts
Management Consulting Services for Federal Agencies

Risk Flags

Time and Materials Contract Type
Long Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $17.4 million to MILLENNIUM HEALTH & FITNESS, INC.. TAS::75 4552 001::TAS HEALTH PROMOTION WELLNESS FITNESS STAFFING

Who is the contractor on this award?

The obligated recipient is MILLENNIUM HEALTH & FITNESS, 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 $17.4 million.

What is the period of performance?

Start: 2010-09-30. End: 2015-08-21.

What was the contractor's track record prior to this award?

Information regarding MILLENNIUM HEALTH & FITNESS, INC.'s specific track record prior to this Department of Health and Human Services (HHS) contract awarded in 2010 is not detailed in the provided data. However, the fact that they were awarded a significant contract valued at $17.4 million through full and open competition suggests they met the qualifications and requirements set forth by HHS for administrative management and general management consulting services. To fully assess their track record, one would need to examine past performance evaluations, any prior federal contracts held, and their financial stability. The duration of this contract (nearly five years) also implies a level of satisfaction or at least continued need for their services throughout its term, though specific performance metrics are not available here.

How does the total contract value compare to similar health promotion staffing contracts?

The total contract value of $17.4 million awarded to MILLENNIUM HEALTH & FITNESS, INC. by HHS for health promotion and wellness staffing over approximately five years (2010-2015) represents an average annual expenditure of roughly $3.5 million. To benchmark this effectively, comparisons should be made with contracts for similar services (staffing, program support, consulting) within the federal health sector, particularly those managed by agencies like HHS, DoD, or VA. Factors such as the specific roles staffed (e.g., fitness instructors, health educators, administrative support), the number of personnel provided, and the geographic scope of services are crucial. Without access to a database of comparable contracts with detailed service descriptions and pricing, a precise value-for-money assessment is challenging. However, the moderate competition suggests the pricing was likely within a competitive range for the services rendered.

What were the primary risks associated with this Time and Materials contract?

Time and Materials (T&M) contracts, like the one awarded to MILLENNIUM HEALTH & FITNESS, INC., carry inherent risks primarily related to cost control. The main risk is that costs can escalate beyond initial estimates if the level of effort (hours worked) or the material costs are not carefully managed and monitored by the government. For this $17.4 million contract, the risk was that the contractor could bill for more hours or use more expensive materials than anticipated, leading to potential cost overruns. Mitigating these risks requires robust government oversight, including detailed tracking of labor hours, verification of material costs, and clear definition of milestones or deliverables to ensure the contractor's effort is efficient and necessary. The nearly five-year duration of the contract amplifies this risk, necessitating sustained vigilance from the contracting officer's representative (COR).

How effective were the health promotion and wellness staffing services provided?

The provided data does not include specific metrics or evaluations regarding the effectiveness of the health promotion and wellness staffing services provided by MILLENNIUM HEALTH & FITNESS, INC. Contract effectiveness is typically measured through performance reports, user feedback, and achievement of program objectives. For a contract supporting federal employee wellness, effectiveness might be gauged by participation rates in programs, improvements in employee health indicators, or satisfaction surveys. The renewal or continuation of such services over a multi-year period often suggests a baseline level of satisfaction or perceived value, but without explicit performance data, a definitive assessment of effectiveness cannot be made from the available information.

What is the historical spending trend for health promotion and wellness staffing at HHS?

The provided data focuses on a single contract awarded from 2010 to 2015. To understand historical spending trends for health promotion and wellness staffing at HHS, a broader analysis of federal procurement data over a longer period would be necessary. This would involve identifying all contracts categorized under similar service descriptions (e.g., wellness program support, fitness staffing, health promotion services) awarded by HHS and its various agencies. Examining spending patterns year-over-year, identifying major contract vehicles, and noting fluctuations in award values would reveal trends. Factors influencing these trends could include changes in federal employee benefits policies, budget allocations for employee well-being, and shifts in the approach to public health initiatives.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 610 TIMEA ST, KEOKUK, IA, 52632

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Minority Owned Business, Native American Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $31,393,013

Exercised Options: $17,401,889

Current Obligation: $17,401,889

Contract Characteristics

Multi-Year Contract: Yes

Cost or Pricing Data: YES

Timeline