HHS awarded $161M for national support services to Ingenesis Inc. over 8 years

Contract Overview

Contract Amount: $161,167,744 ($161.2M)

Contractor: Ingenesis Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2011-04-04

End Date: 2019-12-31

Contract Duration: 3,193 days

Daily Burn Rate: $50.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 12

Pricing Type: LABOR HOURS

Sector: Healthcare

Official Description: NATIONAL SUPPORT SERVICES

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78216

State: Texas Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $161.2 million to INGENESIS INC for work described as: NATIONAL SUPPORT SERVICES Key points: 1. The contract value of $161.17 million over nearly 9 years suggests a significant investment in support services. 2. Ingenesis Inc. was the sole awardee under a full and open competition after exclusion of sources, indicating a specific justification for the procurement approach. 3. The contract's duration of 3193 days (approximately 8.7 years) points to a long-term need for these services. 4. The purchase order award type suggests a streamlined acquisition process for these services. 5. The contract was awarded in Texas, potentially indicating a concentration of service delivery or administrative functions in that state. 6. The broad nature of the service category 'All Other Miscellaneous Ambulatory Health Care Services' warrants further clarity on specific deliverables.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the services provided. The total award of over $161 million spread across nearly nine years averages to approximately $18.5 million annually. This figure needs to be compared against the scope and complexity of the support services rendered. Given the 'All Other Miscellaneous Ambulatory Health Care Services' NAICS code, the pricing could vary significantly depending on the specific nature of the support. Without more granular data on performance metrics and service delivery, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This procurement method implies that while the competition was intended to be open, certain sources were excluded, likely due to specific requirements or justifications. The number of bidders is not explicitly stated, but the exclusion of sources suggests a more tailored competition than a truly unrestricted full and open process. This approach can sometimes lead to less competitive pricing if the exclusion criteria are overly restrictive.

Taxpayer Impact: Taxpayers may not have received the full benefit of broad market competition. The exclusion of certain sources could have limited the number of potential offerors, potentially impacting price discovery and leading to a higher-than-necessary cost for the services.

Public Impact

The primary beneficiaries are likely the Department of Health and Human Services (HHS) and its various operating divisions, which receive the support services. The services delivered are broadly categorized under 'All Other Miscellaneous Ambulatory Health Care Services,' suggesting a range of administrative, operational, or potentially clinical support functions. The contract was awarded in Texas, indicating a potential geographic focus for service delivery or administrative operations. The contract likely supports the federal workforce within HHS by ensuring the availability of necessary operational and administrative functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The broad NAICS code 'All Other Miscellaneous Ambulatory Health Care Services' lacks specificity, making it difficult to ascertain the exact nature and value of the services procured.
The procurement method 'Full and Open Competition After Exclusion of Sources' raises questions about the extent of competition and potential limitations on price discovery.
The long contract duration of nearly nine years could lead to potential cost inefficiencies if market conditions or service needs change significantly over time.
Lack of detailed performance metrics or outcome data makes it difficult to assess the effectiveness and efficiency of the services provided by Ingenesis Inc.

Positive Signals

The award to a single contractor, Ingenesis Inc., suggests a potentially strong relationship and established performance history, though this needs verification.
The use of a Purchase Order indicates a potentially efficient and streamlined acquisition process for these support services.
The contract was awarded under a full and open competition framework, even with exclusions, suggesting an attempt to engage the market.
The significant contract value indicates a substantial commitment by HHS to securing these essential support services.

Sector Analysis

The contract falls within the broader professional, scientific, and technical services sector, specifically related to healthcare support. The NAICS code 621999, 'All Other Miscellaneous Ambulatory Health Care Services,' is quite general and can encompass a wide array of support functions for healthcare providers. The market for such services is substantial, driven by the continuous need for operational efficiency and specialized support within the healthcare industry, both public and private. Benchmarking this contract's value against similar long-term support service contracts within federal agencies or large healthcare organizations would provide further context on its relative cost-effectiveness.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this contract. There is no explicit mention of small business subcontracting goals or achievements. This suggests that the primary focus was on securing the required services through a competitive process, rather than specifically targeting small business engagement. The impact on the small business ecosystem is likely minimal unless Ingenesis Inc. has its own robust small business subcontracting program that is not detailed here.

Oversight & Accountability

Oversight for this contract would primarily reside within the Department of Health and Human Services (HHS), specifically the Office of the Assistant Secretary for Administration (ASA), which awarded the contract. As a Purchase Order, oversight might be managed through contract officers and program managers responsible for monitoring performance and ensuring compliance with the terms. Transparency is limited by the public availability of detailed performance reports or audits. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or identified within the contract's execution.

Related Government Programs

HHS Administrative Support Contracts
Federal Healthcare Support Services
Ambulatory Health Care Services Procurement
Long-Term Service Contracts
Purchase Order Acquisitions

Risk Flags

Lack of specific service details
Ambiguous competition justification
Limited performance data availability

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $161.2 million to INGENESIS INC. NATIONAL SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is INGENESIS 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 $161.2 million.

What is the period of performance?

Start: 2011-04-04. End: 2019-12-31.

What specific services were provided under the NAICS code 621999 for 'All Other Miscellaneous Ambulatory Health Care Services'?

The NAICS code 621999 is a broad category that encompasses establishments primarily engaged in providing health care services, not elsewhere classified, that are generally delivered on an outpatient basis. This can include a wide range of services such as outpatient mental health and substance abuse centers, kidney dialysis centers, and other miscellaneous ambulatory health care services. Without specific details from the contract's statement of work, it is difficult to pinpoint the exact services Ingenesis Inc. provided to HHS. These could range from administrative support, patient scheduling, medical records management, to specialized clinical support functions, depending on the agency's specific needs at the time of award.

How does the $161 million contract value compare to similar long-term support service contracts within HHS or other federal agencies?

Comparing the $161.17 million contract value requires context regarding the duration and scope of services. Averaging approximately $18.5 million annually over nearly nine years, this figure is substantial but not extraordinary for large-scale federal support contracts, especially those involving healthcare-related services. For instance, HHS often awards multi-year contracts for IT support, facilities management, and program administration that can reach similar or higher total values. To provide a precise comparison, one would need to identify contracts with similar NAICS codes, service types (e.g., administrative, operational, clinical support), and contract lengths within HHS or agencies like the Department of Veterans Affairs (VA) or the Defense Health Agency (DHA).

What were the key performance indicators (KPIs) and how did Ingenesis Inc. perform against them throughout the contract lifecycle?

The provided data does not include specific Key Performance Indicators (KPIs) or performance evaluation reports for this contract. Typically, federal contracts include detailed performance standards and metrics that the contractor must meet to ensure successful service delivery. These might include response times, quality of service, adherence to schedules, and client satisfaction. Without access to the contract's statement of work and subsequent performance reviews, it is impossible to assess Ingenesis Inc.'s performance against established benchmarks. This lack of transparency regarding performance metrics makes a thorough evaluation of the contract's effectiveness challenging.

What is the rationale behind the 'Full and Open Competition After Exclusion of Sources' procurement method used for this contract?

The 'Full and Open Competition After Exclusion of Sources' (F&O CAES) method, as indicated in the contract data, suggests a specific justification was made to exclude certain potential offerors from a competition that was otherwise intended to be open. This could occur if, for example, only a limited number of contractors possessed the necessary specialized capabilities, security clearances, or were located in a specific geographic area required for performance. The agency would have had to document the reasons for exclusion, such as unique capabilities, urgent needs, or specific technical requirements that only a subset of the market could meet. This method aims to balance competition with the need to acquire specialized services efficiently.

What has been the historical spending trend for similar national support services within HHS over the past decade?

Analyzing historical spending trends for 'national support services' within HHS requires a broader dataset than provided. The specific contract awarded to Ingenesis Inc. for $161 million represents a significant portion of spending in its category over its 8-year period. However, to understand the overall trend, one would need to aggregate spending data across multiple contracts, potentially using broader NAICS codes or service descriptions related to administrative, operational, and healthcare support. Factors influencing historical spending include agency budget allocations, shifts in healthcare policy, outsourcing trends, and the specific needs of HHS programs. A decade-long view would likely reveal fluctuations based on these broader economic and policy drivers.

Industry Classification

NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › All Other Miscellaneous Ambulatory Health Care Services

Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 12

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 6609 BLANCO RD. STE # 300, SAN ANTONIO, TX, 78216

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $169,476,923

Exercised Options: $161,167,744

Current Obligation: $161,167,744

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $36,443,418

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Timeline