HHS awards $30.7M for employment demonstration and evaluation services over 10 years
Contract Overview
Contract Amount: $30,753,718 ($30.8M)
Contractor: Mdrc
Awarding Agency: Department of Health and Human Services
Start Date: 2010-09-30
End Date: 2020-09-29
Contract Duration: 3,652 days
Daily Burn Rate: $8.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: SUBSIDIZED AND TRANSITIONAL EMPLOYMENT DEMONSTRATION AND EVALUATIONTAS::75 1553::TAS
Place of Performance
Location: NEW YORK, NEW YORK County, NEW YORK, 10016
State: New York Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $30.8 million to MDRC for work described as: SUBSIDIZED AND TRANSITIONAL EMPLOYMENT DEMONSTRATION AND EVALUATIONTAS::75 1553::TAS Key points: 1. The contract spans a decade, indicating a long-term need for these services. 2. The awardee, MDRC, is a research organization specializing in social policy. 3. The service category 'All Other Professional, Scientific, and Technical Services' is broad. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee structure requires close monitoring to ensure costs remain reasonable. Without a clear benchmark for 'All Other Professional, Scientific, and Technical Services' in this specific context, assessing value is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, suggesting a competitive bidding process. However, the broad service category might limit the pool of highly specialized bidders.
Taxpayer Impact: Taxpayer funds are used for a demonstration and evaluation project, the ultimate impact of which will determine the long-term value.
Public Impact
Supports research into subsidized and transitional employment programs. Aims to evaluate the effectiveness of employment initiatives. Potential to inform future workforce development policies. Funds are allocated to a research organization for program analysis.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Broad service category
- Cost Plus Fixed Fee contract type
- Long contract duration
Positive Signals
- Full and open competition
- Award to a specialized research organization
Sector Analysis
The contract falls under 'All Other Professional, Scientific, and Technical Services,' a broad category. Benchmarking is difficult without more specific service details, but government spending in this area often supports research, analysis, and consulting.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine if opportunities were missed.
Oversight & Accountability
The long duration of the contract necessitates robust oversight to ensure milestones are met and funds are used efficiently. The Department of Health and Human Services' Office of the Assistant Secretary for Administration is responsible for oversight.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Health and Human Services Contracting
- Office of the Assistant Secretary for Administration Programs
Risk Flags
- Lack of specific performance metrics
- Potential for cost overruns
- Limited visibility into subcontractor utilization
- Broad service category makes benchmarking difficult
- Long contract duration may lead to outdated approaches
Tags
all-other-professional-scientific-and-te, department-of-health-and-human-services, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $30.8 million to MDRC. SUBSIDIZED AND TRANSITIONAL EMPLOYMENT DEMONSTRATION AND EVALUATIONTAS::75 1553::TAS
Who is the contractor on this award?
The obligated recipient is MDRC.
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 $30.8 million.
What is the period of performance?
Start: 2010-09-30. End: 2020-09-29.
What specific metrics will be used to evaluate the success of the subsidized and transitional employment programs?
The success metrics for the subsidized and transitional employment programs are not detailed in the provided data. A thorough evaluation would require clearly defined key performance indicators (KPIs) related to employment retention, wage progression, and participant well-being. Without these, assessing the true value and effectiveness of the demonstration project becomes difficult.
What are the potential risks associated with a 10-year Cost Plus Fixed Fee contract for technical services?
A 10-year Cost Plus Fixed Fee contract carries risks of cost escalation if the fixed fee is not adequately justified or if project scope creeps over time. There's also a risk of reduced contractor incentive to control costs, as the government bears the majority of the expense. Long durations can also lead to outdated methodologies or technologies if not actively managed.
How will the findings from this demonstration and evaluation be disseminated and utilized to improve future government programs?
The dissemination and utilization plan for the findings are not specified. Effective use requires a clear strategy for sharing results with relevant agencies and policymakers, potentially through reports, presentations, and policy briefs. The goal should be to translate evaluation outcomes into actionable insights for improving future employment initiatives and workforce development strategies.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL 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: 16 E 34TH ST FL 19, NEW YORK, NY, 10016
Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $40,329,738
Exercised Options: $30,753,718
Current Obligation: $30,753,718
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2010-09-30
Current End Date: 2020-09-29
Potential End Date: 2021-06-30 00:00:00
Last Modified: 2020-05-18
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