HHS awarded $32.6M to ICF for regional training and technical assistance, raising value-for-money questions
Contract Overview
Contract Amount: $32,570,794 ($32.6M)
Contractor: ICF Incorporated, L.L.C.
Awarding Agency: Department of Health and Human Services
Start Date: 2015-07-01
End Date: 2020-06-30
Contract Duration: 1,826 days
Daily Burn Rate: $17.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IGF::OT::IGF OHS REGIONAL TRAINING AND TECHNICAL ASSISTANCE NETWORK - REGION IV
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22031
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $32.6 million to ICF INCORPORATED, L.L.C. for work described as: IGF::OT::IGF OHS REGIONAL TRAINING AND TECHNICAL ASSISTANCE NETWORK - REGION IV Key points: 1. The contract's value-for-money is fair, given the long duration and cost-plus-fixed-fee structure. 2. Competition dynamics were full and open, indicating a healthy bidding environment. 3. Risk indicators are moderate, with a cost-plus-fixed-fee contract type potentially leading to cost overruns. 4. Performance context shows a multi-year engagement for administrative management consulting. 5. Sector positioning is within management consulting services for a federal agency.
Value Assessment
Rating: fair
The contract's total value of $32.6 million over five years suggests a fair price point for comprehensive administrative management and general management consulting services. However, the Cost Plus Fixed Fee (CPFF) contract type warrants scrutiny, as it can incentivize contractors to increase costs to maximize profit, potentially impacting overall value. Benchmarking against similar large-scale federal consulting contracts would provide a clearer picture of whether this represents a competitive price for the services rendered.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, with three bidders participating. This level of competition is generally positive, suggesting that multiple firms were interested and capable of performing the required services. The presence of multiple bidders typically leads to more competitive pricing and a wider range of innovative solutions. The agency's ability to attract three qualified bidders indicates a well-defined scope of work and a market receptive to the opportunity.
Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which is expected to drive down costs and ensure the government receives the best possible value for its investment in administrative management and consulting services.
Public Impact
The primary beneficiaries are the Department of Health and Human Services (HHS) and its various programs, which receive enhanced administrative management and technical assistance. Services delivered include general management consulting, supporting the efficiency and effectiveness of HHS operations. The geographic impact is likely national, given the 'Regional Training and Technical Assistance Network' designation, although specific regional focus may vary. Workforce implications include potential support for federal employees through improved administrative processes and training.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee structure may lead to cost inefficiencies.
- Long contract duration could reduce flexibility in adapting to changing needs.
- Reliance on a single contractor for a broad scope of services might limit specialized expertise.
Positive Signals
- Awarded through full and open competition, ensuring a competitive process.
- Contractor has a track record with the government, suggesting familiarity with federal requirements.
- The contract aims to provide essential training and technical assistance, supporting agency functions.
Sector Analysis
This contract falls within the Management and General Management Consulting Services sector, a significant area of federal spending. This sector encompasses a wide range of advisory and assistance services aimed at improving organizational efficiency, strategic planning, and operational effectiveness. Federal agencies frequently contract for these services to leverage external expertise for complex challenges. Comparable spending benchmarks in this sector vary widely based on scope and duration, but multi-million dollar, multi-year contracts are common for large-scale support.
Small Business Impact
The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large business, and the impact on the small business ecosystem would depend on whether ICF, L.L.C. engages small businesses as subcontractors. Without specific subcontracting plans, the direct benefit to the small business sector from this particular award is likely limited.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program officials within the Department of Health and Human Services. Accountability measures are embedded in the contract's performance work statement and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.
Related Government Programs
- Federal Management Consulting Services
- Government Training and Technical Assistance Programs
- Health and Human Services Agency Support Contracts
- Administrative Management Services
Risk Flags
- Cost-Plus-Fixed-Fee contract type
- Long contract duration (5 years)
- Potential for cost escalation
Tags
health-and-human-services, administrative-management-consulting, training-and-technical-assistance, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, large-business, management-consulting, federal-agency, multi-year-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $32.6 million to ICF INCORPORATED, L.L.C.. IGF::OT::IGF OHS REGIONAL TRAINING AND TECHNICAL ASSISTANCE NETWORK - REGION IV
Who is the contractor on this award?
The obligated recipient is ICF INCORPORATED, L.L.C..
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 $32.6 million.
What is the period of performance?
Start: 2015-07-01. End: 2020-06-30.
What is ICF Incorporated, L.L.C.'s track record with federal contracts, particularly within HHS?
ICF Incorporated, L.L.C. has a substantial history of federal contracting, including numerous awards from the Department of Health and Human Services (HHS). Their portfolio often includes work related to public health, environmental programs, and management consulting. Analyzing their past performance on similar-sized contracts within HHS would reveal their ability to meet performance expectations, manage costs, and adhere to federal regulations. A review of past performance evaluations and any documented issues or successes would provide critical context for assessing their suitability for this specific regional training and technical assistance network contract.
How does the $32.6 million contract value compare to similar regional training and technical assistance contracts awarded by HHS?
To assess the value-for-money, the $32.6 million contract awarded to ICF Incorporated, L.L.C. for regional training and technical assistance needs to be benchmarked against comparable contracts. This involves identifying other HHS contracts with similar scopes of work, durations (five years in this case), and service types (training and technical assistance). Factors such as the number of regions covered, the specific technical expertise required, and the contract type (Cost Plus Fixed Fee) should be considered. If similar contracts were awarded at a lower total value or for a greater scope of services, it might indicate that this particular award represents a fair or potentially high price. Conversely, if the scope is particularly complex or the market for such specialized services is limited, the price might be justified.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for this type of service?
The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to ICF Incorporated, L.L.C., is the potential for cost overruns and reduced incentive for efficiency. In a CPFF structure, the contractor is reimbursed for all allowable costs plus a predetermined fixed fee representing profit. While the fee is fixed, the contractor has less incentive to control costs compared to fixed-price contracts, as higher costs do not reduce their profit margin (and may even increase it if the fee is a percentage of costs, though this is less common with 'fixed fee'). This can lead to the government paying more than anticipated if costs escalate. Effective oversight, detailed cost tracking, and robust negotiation are crucial to mitigate these risks.
What is the expected impact of this contract on the efficiency and effectiveness of HHS programs?
This contract is designed to enhance the efficiency and effectiveness of HHS programs by providing crucial regional training and technical assistance. The expected impact includes improved administrative processes, better implementation of program guidelines, and enhanced capacity building for staff across various HHS operating divisions. By offering expert advice and support, ICF Incorporated, L.L.C. is intended to help HHS achieve its strategic goals more effectively, ensure compliance, and ultimately improve the delivery of services to the public. The success of this impact hinges on the quality of the training and technical assistance provided and its alignment with HHS's evolving needs.
How has HHS spending on administrative management and general management consulting services trended over the past five years?
Analyzing HHS spending trends on administrative management and general management consulting services over the past five years would provide valuable context for this $32.6 million award. This trend analysis would reveal whether this contract represents an increase, decrease, or stable level of investment in such services. Factors influencing these trends could include shifts in agency priorities, budget allocations, specific program needs, or a greater reliance on external expertise. Understanding historical spending patterns helps in assessing whether the current contract is an anomaly or part of a consistent strategy for leveraging consulting services to support HHS operations and program delivery.
What does the 'Administrative Management and General Management Consulting Services' NAICS code (541611) typically encompass in federal contracting?
The North American Industry Classification System (NAICS) code 541611, 'Administrative Management and General Management Consulting Services,' encompasses a broad range of professional services provided to help organizations improve their efficiency and effectiveness. This includes strategic and organizational planning, business process re-engineering, information technology (IT) strategy, human resources management, and change management. Federal agencies utilize these services to address complex management challenges, optimize operations, develop strategic plans, and implement new policies or technologies. Contracts under this code can vary significantly in scope, from specific project-based consulting to comprehensive, long-term support networks like the one awarded to ICF.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 15233SOL00019
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: ICF International, Inc. (UEI: 139001544)
Address: 9300 LEE HWY, FAIRFAX, VA, 22031
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $32,570,794
Exercised Options: $32,570,794
Current Obligation: $32,570,794
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-07-01
Current End Date: 2020-06-30
Potential End Date: 2020-07-31 00:00:00
Last Modified: 2020-08-17
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