HHS awarded $196M for legal services, with VERA INSTITUTE OF JUSTICE, INC. as the primary contractor

Contract Overview

Contract Amount: $196,266,548 ($196.3M)

Contractor: Vera Institute of Justice, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2015-09-30

End Date: 2021-03-29

Contract Duration: 2,007 days

Daily Burn Rate: $97.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF LEGAL SERVICE PROVIDERS REGION A

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10279

State: New York Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $196.3 million to VERA INSTITUTE OF JUSTICE, INC. for work described as: IGF::OT::IGF LEGAL SERVICE PROVIDERS REGION A Key points: 1. The contract's value of $196M over its period of performance suggests a significant need for legal support within the agency. 2. The use of 'Full and Open Competition' indicates a broad solicitation process, potentially leading to competitive pricing. 3. The contract's duration of approximately 2007 days (around 5.5 years) points to a long-term need for these services. 4. The 'Time and Materials' contract type can pose cost control challenges if not managed diligently. 5. The award to VERA INSTITUTE OF JUSTICE, INC. represents a substantial portion of the total contract value. 6. The 'All Other Legal Services' NAICS code suggests a broad scope of legal support beyond specialized areas.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details. However, a $196M award for legal services over 5.5 years indicates a substantial investment by HHS. The 'Time and Materials' pricing structure, while flexible, can lead to higher costs if not closely monitored compared to fixed-price contracts. The relatively low number of bids (2) might suggest limited competition or a highly specialized service area.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' suggesting that all responsible sources were permitted to submit a bid. However, only two bids were received, which is a relatively low number for a contract of this magnitude. This could indicate a niche service area, high barriers to entry for potential bidders, or perhaps a less effective solicitation strategy.

Taxpayer Impact: A competitive process is generally beneficial for taxpayers, as it encourages multiple vendors to offer their best pricing and services. However, with only two bidders, the potential for significant cost savings may have been limited.

Public Impact

The Department of Health and Human Services (HHS) benefits from consistent legal counsel to navigate complex regulations and operations. The services delivered likely encompass a wide range of legal support, including policy review, litigation support, and compliance advice. The geographic impact is likely national, given HHS's broad mandate, though specific service delivery locations are not detailed. The workforce implications are primarily for the contractor's legal professionals, supporting federal agency operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Time and Materials' contract type can lead to cost overruns if not carefully managed and monitored.
A low number of bidders (2) for a large contract may indicate insufficient market research or limited competition, potentially impacting price.
The broad NAICS code 'All Other Legal Services' makes it difficult to assess the specific value and necessity of all services rendered.

Positive Signals

The contract was awarded through 'Full and Open Competition,' indicating an effort to ensure a fair and accessible bidding process.
The long contract duration suggests a stable and ongoing need for these legal services, providing continuity for the agency.
The award to a single entity, VERA INSTITUTE OF JUSTICE, INC., implies a level of trust and established capability in providing these services.

Sector Analysis

The legal services sector for government contracts is substantial, with agencies like HHS requiring continuous support for regulatory compliance, policy development, and litigation. This contract fits within the broader professional services category, specifically legal support. Comparable spending benchmarks would typically be assessed against other large-scale legal support contracts awarded to federal agencies, considering the complexity and scope of services required.

Small Business Impact

There is no indication that this contract included small business set-asides, as the 'sb' field is false. The primary contractor, VERA INSTITUTE OF JUSTICE, INC., is likely a larger organization. Subcontracting opportunities for small businesses are not explicitly detailed but could exist if the prime contractor engages them for specialized tasks within the broad scope of legal services.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services' Office of the Assistant Secretary for Administration, which awarded the contract. Accountability measures would be embedded in the contract terms, performance metrics, and regular reporting requirements. Transparency is facilitated through contract databases like FPDS, though detailed service delivery reports are often internal.

Related Government Programs

Legal Services Contracts
Professional Services Contracts
Department of Health and Human Services Contracts
Time and Materials Contracts
Definitive Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Limited competition indicated by a low number of bidders.
Broad scope of services under 'All Other Legal Services' NAICS code may obscure specific value.
Contract duration of over 5 years requires ongoing performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $196.3 million to VERA INSTITUTE OF JUSTICE, INC.. IGF::OT::IGF LEGAL SERVICE PROVIDERS REGION A

Who is the contractor on this award?

The obligated recipient is VERA INSTITUTE OF JUSTICE, 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 $196.3 million.

What is the period of performance?

Start: 2015-09-30. End: 2021-03-29.

What is the track record of VERA INSTITUTE OF JUSTICE, INC. in performing similar government contracts?

VERA INSTITUTE OF JUSTICE, INC. has a history of receiving government contracts, primarily focused on criminal justice, social services, and research. Analyzing their past performance on similar large-scale legal service contracts would involve reviewing contract databases for awards, performance ratings, and any documented issues or successes. Their experience with federal agencies, particularly in areas requiring policy analysis and program evaluation, would be key indicators of their capability to fulfill the requirements of this HHS contract. A deeper dive would examine the scope and value of previous contracts to ensure alignment with the $196M award.

How does the awarded amount compare to typical spending on legal services by agencies of similar size and scope to HHS?

Comparing the $196M award to HHS's legal spending requires context. HHS is one of the largest federal departments, with a vast and complex mission encompassing healthcare, human services, and scientific research. Therefore, its legal needs are likely more extensive than smaller agencies. Benchmarking against other large departments like Defense or Justice for their legal support contracts would provide a more relevant comparison. The 'Time and Materials' nature of this contract also means the final cost could vary, making direct comparisons to fixed-price contracts less precise. However, the scale of the award suggests it is within the expected range for a department of HHS's size and operational complexity.

What are the primary risks associated with a 'Time and Materials' contract of this magnitude?

The primary risk with a 'Time and Materials' (T&M) contract of this $196M magnitude is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements do not have a ceiling on the total cost, as payment is based on the actual labor hours and material costs incurred. This can lead to the government paying more than anticipated if the contractor's efficiency is low, scope creep occurs without proper controls, or if the initial estimates of effort were inaccurate. Effective oversight, detailed tracking of hours and expenses, and strong contract management are crucial to mitigate these risks and ensure value for taxpayer money.

What specific legal services are included under the 'All Other Legal Services' NAICS code for this contract?

The NAICS code 541199, 'All Other Legal Services,' is a broad category that encompasses legal services not elsewhere classified. For this HHS contract, it could include a wide array of support such as general legal advice, policy analysis, regulatory interpretation, contract review, compliance assistance, and potentially support for administrative proceedings or litigation. Without more specific contract details or statements of work, it's difficult to pinpoint the exact services. However, given HHS's extensive regulatory and programmatic responsibilities, these services likely support the agency's core functions in healthcare, public health, and human services.

What does the low number of bidders (2) suggest about the competition for this significant legal services contract?

A low number of bidders, such as two for a $196M contract, can suggest several possibilities. It might indicate that the market for these specific legal services is limited, requiring highly specialized expertise or clearances that only a few firms possess. Alternatively, it could imply that the solicitation process, contract requirements, or anticipated contract value did not attract a wider range of competitors. This limited competition could potentially lead to less competitive pricing than if more bidders had participated, although the 'Full and Open Competition' designation means the process was intended to be broad. Further analysis of the solicitation and market conditions would be needed to fully understand the implications.

How has HHS historically spent funds on external legal services, and does this contract represent a significant increase or decrease?

Analyzing HHS's historical spending on external legal services requires accessing historical contract data. This $196M contract, awarded over approximately 5.5 years, represents a substantial annual average expenditure. To determine if this is a significant increase or decrease, one would need to compare this contract's total value and annual average to previous years' spending on similar legal services by HHS. Factors such as changes in agency size, regulatory environment, litigation volume, and policy priorities can influence historical spending patterns. Without that historical data, it's difficult to definitively state whether this contract represents a significant shift.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Legal Services › All Other Legal Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 15233SOL00264

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 233 BROADWAY FL 12, NEW YORK, NY, 10279

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: $196,266,548

Exercised Options: $196,266,548

Current Obligation: $196,266,548

Subaward Activity

Number of Subawards: 23

Total Subaward Amount: $112,969,271

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline