Head Start National Interim Management Contract Awarded for Over $62 Million to Community Development Institute

Contract Overview

Contract Amount: $62,110,935 ($62.1M)

Contractor: Community Development Institute

Awarding Agency: Department of Health and Human Services

Start Date: 2012-07-12

End Date: 2017-09-21

Contract Duration: 1,897 days

Daily Burn Rate: $32.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::CL::IGF CLOSELY ASSOCIATED HEAD START NATIONAL INTERIM MANAGEMENT CONTRACT

Place of Performance

Location: DENVER, DENVER County, COLORADO, 80231

State: Colorado Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $62.1 million to COMMUNITY DEVELOPMENT INSTITUTE for work described as: IGF::CL::IGF CLOSELY ASSOCIATED HEAD START NATIONAL INTERIM MANAGEMENT CONTRACT Key points: 1. The contract represents a significant investment in administrative management and general management consulting services for the Head Start program. 2. Awarded through full and open competition, suggesting a robust bidding process. 3. The duration of the contract (1897 days) indicates a long-term need for these services. 4. The contract type is 'Delivery Order', implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or a similar framework. 5. The use of 'Time and Materials' pricing can introduce cost variability if not closely managed. 6. The contractor, Community Development Institute, is responsible for interim management, highlighting a critical support role.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable interim management contracts. The total award amount of over $62 million over approximately five years suggests a substantial operational cost. The 'Time and Materials' pricing structure, while flexible, carries inherent risks of cost escalation if not meticulously monitored. Further analysis would require understanding the scope of services delivered and comparing the effective hourly rates to industry standards for similar management consulting services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit a bid. This suggests a competitive environment where multiple entities likely vied for the contract. The presence of a single award (no: 1) means that one contractor was selected from the pool of bidders. The level of competition is generally positive for price discovery, but the specific number of bidders is not provided, which would offer a clearer picture of the competitive intensity.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and better service quality. It ensures that the government explores a wide range of options before selecting a contractor.

Public Impact

Beneficiaries include Head Start programs nationwide, which receive essential interim management support. Services delivered encompass administrative management and general management consulting, crucial for program continuity and effectiveness. The geographic impact is national, supporting Head Start operations across various regions. Workforce implications include the potential for employment within the contractor organization and indirectly supporting the Head Start workforce through effective management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing structure if not rigorously managed.
Dependence on a single contractor for critical interim management functions could pose a risk if performance falters.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's effectiveness comprehensively.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent selection process.
The contract duration indicates a stable, long-term engagement, potentially leading to greater efficiency and expertise development.
The contractor, Community Development Institute, is tasked with a vital role in supporting Head Start operations.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative and management consulting. The market for such services is vast, with numerous firms offering expertise in program management and government contracting. The Head Start program's national scope and critical mission necessitate specialized management support, making this a significant contract within its niche. Comparable spending benchmarks would typically involve analyzing other large-scale federal contracts for program management and administrative support across various agencies.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract (sb: false). Furthermore, there is no explicit mention of subcontracting goals or performance related to small businesses. Therefore, the direct impact on the small business ecosystem from this specific contract award appears limited, though the prime contractor may engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services (HHS), specifically the Office of the Assistant Secretary for Administration (OAS). The contract's 'Delivery Order' nature suggests it might be managed under a broader IDIQ contract with its own oversight framework. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply to any potential fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Head Start Program Administration
Federal Grant Management
Child Care and Development Fund
Department of Health and Human Services Contracts
Administrative Management Consulting Services

Risk Flags

Potential for cost escalation due to Time and Materials pricing.
Contract duration is substantial, requiring ongoing performance monitoring.
Scope of 'interim management' needs clear definition to manage expectations and performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $62.1 million to COMMUNITY DEVELOPMENT INSTITUTE. IGF::CL::IGF CLOSELY ASSOCIATED HEAD START NATIONAL INTERIM MANAGEMENT CONTRACT

Who is the contractor on this award?

The obligated recipient is COMMUNITY DEVELOPMENT INSTITUTE.

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 $62.1 million.

What is the period of performance?

Start: 2012-07-12. End: 2017-09-21.

What is the track record of Community Development Institute in managing federal contracts, particularly those related to social services or program management?

Information regarding the specific track record of Community Development Institute (CDI) in managing federal contracts, especially those analogous to the Head Start National Interim Management Contract, is not detailed in the provided data. A comprehensive assessment would require reviewing CDI's past performance evaluations, contract history with federal agencies, and any documented successes or challenges in similar program management roles. Federal procurement databases and agency performance reports would be key resources for this analysis. Without this specific data, it's difficult to definitively gauge CDI's suitability and past effectiveness in fulfilling such a critical and large-scale contract.

How does the $62 million award compare to historical spending on similar interim management services for the Head Start program?

The provided data indicates a single award of $62,110,934.93 for the Head Start National Interim Management Contract spanning from July 2012 to September 2017 (1897 days). To compare this to historical spending, one would need to access historical budget and contract award data for the Head Start program specifically for interim management or similar administrative support services. This would involve searching federal procurement databases (like FPDS or USASpending) for previous contracts with similar scopes of work, durations, and award amounts. Without access to that historical data, a direct comparison of the $62 million figure to past expenditures for comparable services cannot be made. It's possible this represents a significant portion of the program's administrative support budget for that period.

What are the primary risks associated with the 'Time and Materials' (T&M) contract type for this specific service, and how are they mitigated?

The primary risk associated with a 'Time and Materials' (T&M) contract type, such as the one used here (pt: TIME AND MATERIALS), is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This can lead to unpredictable total costs if the scope of work expands, inefficiencies arise, or if labor hours are not diligently tracked and managed. For this Head Start contract, potential risks include extended project timelines leading to higher labor costs or unforeseen material needs increasing expenses. Mitigation strategies typically involve robust government oversight, detailed tracking of labor hours and material costs, clear definition of 'materials,' and potentially incorporating cost ceilings or incentive structures within the T&M framework to encourage efficiency.

What specific performance metrics or deliverables were likely included in this contract to ensure the effectiveness of the interim management services?

The provided data does not specify the performance metrics or deliverables for the Head Start National Interim Management Contract. However, for a contract focused on administrative and general management consulting services for a program like Head Start, typical performance metrics would likely include: timeliness of service delivery, quality of reports and recommendations, adherence to program guidelines and regulations, effectiveness in resolving management issues, stakeholder satisfaction (e.g., program grantees, federal officials), and potentially metrics related to program stability or improvement during the interim management period. Deliverables could include management plans, operational assessments, financial reviews, and transition strategies. Robust oversight by the contracting agency (HHS) would be crucial to monitor these aspects.

Given the national scope, what are the potential challenges in ensuring consistent quality of interim management services across different regions or grantees?

Ensuring consistent quality of interim management services across diverse geographic regions and numerous Head Start grantees presents several challenges. These include: adapting management approaches to local contexts and needs, maintaining uniform standards despite varying state and local regulations, effectively communicating and coordinating with geographically dispersed teams and stakeholders, and addressing unique operational or financial issues specific to different grantees. The contractor must possess strong logistical capabilities and a standardized yet flexible operational framework. The contracting agency, HHS, would need to implement clear performance standards, regular reporting requirements, and potentially site visits or audits to monitor and enforce consistent quality across all supported locations.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 10065 E HARVARD AVE STE 700, DENVER, CO, 80231

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $62,110,935

Exercised Options: $62,110,935

Current Obligation: $62,110,935

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS10F0183R

IDV Type: FSS

Timeline