HHS awarded $18.6M for Head Start training, with STG International Inc. as prime contractor

Contract Overview

Contract Amount: $18,580,165 ($18.6M)

Contractor: STG International, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2010-08-18

End Date: 2015-06-30

Contract Duration: 1,777 days

Daily Burn Rate: $10.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TAS::75 1536::TAS HEAD START TRAINING AND TECHNICAL ASSISTANCE CENTERS REGION II

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10006, UNITED STATES OF AMERICA

State: New York Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $18.6 million to STG INTERNATIONAL, INC. for work described as: TAS::75 1536::TAS HEAD START TRAINING AND TECHNICAL ASSISTANCE CENTERS REGION II Key points: 1. Contract value represents a significant investment in early childhood education support services. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The duration of the contract (over 1700 days) indicates a long-term need for these services. 4. The award was made by the Office of the Assistant Secretary for Administration, highlighting administrative support functions. 5. The services provided fall under Educational Support Services, crucial for program development and delivery. 6. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed carefully.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without comparable data for Head Start training and technical assistance centers. The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility, can sometimes lead to higher costs compared to fixed-price contracts if costs are not tightly controlled. The total award amount of $18.6 million over approximately 4.8 years suggests an average annual value of around $3.8 million, which needs to be assessed against the scope and deliverables to determine true value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of two bidders suggests a moderate level of competition for this specific requirement. While competition is generally positive, the exact number of bidders does not always correlate directly with the best price or value without further analysis of the proposals and the specific market dynamics for these specialized services.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to vie for the contract, potentially driving down costs and improving service quality through competitive pressures.

Public Impact

Children and families participating in Head Start programs benefit from improved training and technical assistance for program staff. Head Start program administrators and staff receive crucial support to enhance service delivery and operational efficiency. The geographic impact is primarily focused on Region II (New York), supporting early childhood education initiatives in that area. The contract supports a workforce of trainers, technical assistance providers, and administrative staff involved in early childhood education.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type may incentivize higher costs if not rigorously managed.
Limited competition (2 bidders) might not have yielded the absolute lowest price.
The specific performance metrics and quality assurance mechanisms are not detailed, posing a potential risk to service effectiveness.

Positive Signals

Awarded through full and open competition, ensuring a broad range of potential contractors could participate.
The contract addresses a critical need for training and technical assistance within the Head Start program.
Long contract duration suggests a stable and reliable partnership for essential services.

Sector Analysis

The Head Start program is a vital component of the U.S. Department of Health and Human Services' efforts to provide comprehensive early childhood education, health, nutrition, and parent involvement services to low-income children and their families. This contract for training and technical assistance falls within the broader educational support services sector. The market for such specialized services can be niche, often involving organizations with deep expertise in early childhood development and federal program administration. Comparable spending benchmarks would typically be found within federal and state budgets allocated to early childhood education initiatives and their associated support structures.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. There is no explicit information provided regarding subcontracting plans or their impact on the small business ecosystem. Further investigation would be needed to determine if STG International, Inc. has a history of subcontracting with small businesses for services related to this contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services' Office of the Assistant Secretary for Administration, which awarded the contract. Accountability measures would be defined within the contract's statement of work, performance standards, and reporting requirements. Transparency is generally facilitated through contract award databases like FPDS-NG, though detailed performance data may not always be publicly accessible. The Inspector General for HHS would have jurisdiction over potential fraud, waste, or abuse related to this contract.

Related Government Programs

Head Start Program
Early Childhood Education Initiatives
Federal Training and Technical Assistance Programs
Department of Health and Human Services Grants and Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring to prevent cost overruns.
Limited number of bidders may indicate potential market concentration or specialized service requirements.
Performance metrics and quality assurance details are not readily available, posing a risk to assessing service effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $18.6 million to STG INTERNATIONAL, INC.. TAS::75 1536::TAS HEAD START TRAINING AND TECHNICAL ASSISTANCE CENTERS REGION II

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 $18.6 million.

What is the period of performance?

Start: 2010-08-18. End: 2015-06-30.

What is the track record of STG International, Inc. in performing similar federal contracts, particularly those related to training and technical assistance for social programs?

STG International, Inc. has a history of performing federal contracts, including those involving training and technical assistance. A review of federal procurement data indicates they have been awarded numerous contracts across various agencies, often focusing on areas such as education, workforce development, and human services. Their experience with programs similar to Head Start suggests a foundational understanding of the requirements. However, a detailed analysis of past performance on specific, comparable contracts, including client feedback and any documented performance issues or successes, would be necessary to fully assess their capabilities and reliability for this particular engagement.

How does the awarded amount of $18.6 million compare to the typical cost of similar Head Start training and technical assistance contracts?

Directly comparing the $18.6 million award to 'typical' costs for similar Head Start training and technical assistance contracts is challenging without access to a comprehensive database of historical awards for this specific service category and region. Factors such as the scope of work, duration, number of anticipated trainees, and specific technical requirements can cause significant cost variations. However, given the contract's duration of approximately 4.8 years, the average annual value is around $3.8 million. This figure needs to be evaluated against the specific deliverables and the complexity of the services provided to determine if it represents a reasonable market rate or if it falls outside expected ranges.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type for this service, and how are they mitigated?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor may have less incentive to control costs compared to fixed-price contracts, as the government agrees to cover all allowable costs plus a predetermined fixed fee. This can lead to cost overruns if not managed diligently. Mitigation strategies typically involve robust government oversight, detailed cost accounting standards, regular audits of contractor expenses, and clear definitions of allowable costs within the contract. The fixed fee itself provides some incentive for the contractor to complete the work efficiently to maximize their profit margin on that fee, but the government must remain vigilant in monitoring expenditures.

What is the anticipated impact of this contract on the effectiveness of Head Start programs in Region II?

This contract is intended to enhance the effectiveness of Head Start programs in Region II by providing essential training and technical assistance to program staff and administrators. Improved training can lead to better implementation of curriculum, more effective child development strategies, enhanced parent engagement, and stronger program management. The technical assistance component aims to help programs overcome operational challenges, comply with regulations, and adopt best practices. Ultimately, the goal is to improve the quality of services delivered to children and families, contributing to better educational and developmental outcomes.

How has federal spending on Head Start training and technical assistance evolved over the past five years, and does this contract align with historical trends?

Analyzing federal spending trends for Head Start training and technical assistance requires access to historical budget data and contract awards specifically for this category. Without that granular data, it's difficult to definitively state how this $18.6 million award aligns with past trends. However, Head Start is a consistently funded federal program, and investments in training and technical assistance are crucial for maintaining program quality and adapting to evolving needs. It is reasonable to assume that spending in this area fluctuates based on program needs, policy changes, and overall budget allocations. This contract's value should be assessed in the context of the specific needs and priorities of Head Start in Region II during its performance period.

Industry Classification

NAICS: Educational Services › Educational Support Services › Educational Support 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: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 99 CANAL CENTER PLZ STE 500, ALEXANDRIA, VA, 22314

Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Not Designated a Small Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $18,580,165

Exercised Options: $18,580,165

Current Obligation: $18,580,165

Contract Characteristics

Cost or Pricing Data: NO

Timeline