HHS awarded STG International $29.1M for regional training and technical assistance over five years

Contract Overview

Contract Amount: $29,144,089 ($29.1M)

Contractor: STG International, Inc.

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: $16.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF OHS REGIONAL TRAINING AND TECHNICAL ASSISTANCE NETWORK - REGION V

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $29.1 million to STG INTERNATIONAL, INC. for work described as: IGF::OT::IGF OHS REGIONAL TRAINING AND TECHNICAL ASSISTANCE NETWORK - REGION V Key points: 1. Contract awarded via full and open competition, suggesting a robust market for these services. 2. The contract's duration of five years indicates a long-term need for administrative management consulting. 3. The cost-plus-fixed-fee pricing structure may incentivize cost control by the contractor. 4. Performance was rated as satisfactory, aligning with expectations for administrative support services. 5. The contract falls under administrative management and general management consulting services, a common government need. 6. The award was made to a single contractor, STG International, Inc.

Value Assessment

Rating: good

The contract's total value of $29.1 million over five years averages approximately $5.8 million annually. Benchmarking against similar contracts for administrative management and general management consulting services is challenging without more specific service details. However, the annual value appears reasonable for a large-scale regional training and technical assistance network. The cost-plus-fixed-fee structure allows for flexibility but requires careful monitoring to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition process, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive environment that should theoretically lead to fair pricing and selection of the best value offer. This approach is generally preferred for ensuring market responsiveness and preventing potential price inflation.

Taxpayer Impact: A full and open competition process maximizes the potential for competitive pricing, which benefits taxpayers by ensuring the government receives services at a fair market rate. It also promotes transparency and accountability in the procurement process.

Public Impact

Beneficiaries include regional health and human services entities requiring training and technical assistance. Services delivered encompass administrative management and general management consulting. Geographic impact is focused on Region V, likely covering a specific set of states or territories. Workforce implications include the potential for job creation within STG International and its subcontractors, as well as enhanced skills for individuals receiving training.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost-Plus-Fixed-Fee contracts if not closely managed.
Dependence on a single contractor for critical regional training and technical assistance.
Scope creep could increase costs beyond initial projections without adequate oversight.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Contract performance rated as satisfactory, suggesting the contractor met its obligations.
Long-term contract (5 years) provides stability for service delivery and planning.

Sector Analysis

The administrative management and general management consulting services sector is a significant area of government spending. This contract fits within the broader category of professional services procured by federal agencies to support operations, policy implementation, and program management. Comparable spending benchmarks would typically involve analyzing the average cost of similar consulting contracts across various agencies, considering factors like contract duration, scope, and geographic reach.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically tied to small business set-asides for this particular award. The primary focus was on full and open competition among all eligible offerors, regardless of size.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Health and Human Services. Accountability measures are embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through the federal procurement data system where contract awards are reported. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Training and Technical Assistance Programs
Administrative Management Consulting Services
Regional Support Networks
Department of Health and Human Services Contracts

Risk Flags

Cost-Plus-Fixed-Fee contract type requires diligent oversight to manage costs.
Satisfactory performance rating indicates room for improvement and potential risks if issues are not addressed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $29.1 million to STG INTERNATIONAL, INC.. IGF::OT::IGF OHS REGIONAL TRAINING AND TECHNICAL ASSISTANCE NETWORK - REGION V

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 $29.1 million.

What is the period of performance?

Start: 2015-07-01. End: 2020-06-30.

What was the specific performance rating of STG International, Inc. on this contract?

The contract data indicates that the performance was rated as 'Satisfactory' (st: VA). This rating suggests that the contractor met the essential requirements of the contract, but there may have been minor deficiencies or areas for improvement. A satisfactory rating is generally considered acceptable but does not represent exceptional performance. It implies that the government received the services as agreed upon, without significant issues that would warrant a lower rating or termination, but also without exceeding expectations in a way that would merit a higher commendation.

How does the annual value of this contract compare to similar administrative management consulting contracts?

The annual value of this contract averages approximately $5.8 million ($29.1M / 5 years). Benchmarking this against similar contracts requires detailed analysis of the scope, duration, and specific services provided. However, for a regional training and technical assistance network managed by a single entity over five years, this annual figure appears within a reasonable range for federal contracts of this nature. Contracts for broader management consulting or those with a national scope could be significantly higher, while smaller, more localized contracts would be lower. The 'Satisfactory' performance rating suggests the value received was commensurate with the cost.

What are the primary risks associated with a Cost-Plus-Fixed-Fee (CPFF) contract like this one?

The primary risk associated with a Cost-Plus-Fixed-Fee (CPFF) contract is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the fixed fee provides a guaranteed profit margin regardless of the final cost. This can reduce the contractor's incentive to control costs rigorously, as they are assured their fee. The government bears the risk of cost increases. Effective oversight, detailed cost tracking, and clear definition of allowable costs are crucial to mitigate this risk and ensure the government receives good value for its money. The satisfactory performance rating suggests that, in this instance, cost control was managed adequately.

What is the significance of the contract being awarded to a single entity, STG International, Inc.?

The award to a single entity, STG International, Inc., means that all the services under this contract are consolidated with one provider. This can streamline communication and management for the contracting agency, as there is a single point of contact and accountability. However, it also concentrates risk; if STG International underperforms or faces challenges, the entire service delivery could be impacted. The fact that it was awarded through full and open competition suggests that, at the time of award, STG International was deemed the best value offer among multiple bidders for this specific scope of work.

What does the NAICS code '541611' indicate about the services provided under this contract?

The North American Industry Classification System (NAICS) code 541611 signifies 'Administrative Management and General Management Consulting Services.' This indicates that the contract's primary purpose was to procure expert advice and assistance to government agencies on administrative and general management issues. This could encompass a wide range of services, including organizational planning, process improvement, strategic planning, and the development of management systems. The 'Regional Training and Technical Assistance Network' aspect suggests these consulting services were likely focused on enhancing the operational efficiency and effectiveness of health and human services programs within a specific geographic region.

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: 1

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, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $29,144,089

Exercised Options: $29,144,089

Current Obligation: $29,144,089

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline