HHS awards $19.9M for legal services, with Vera Institute of Justice as primary contractor

Contract Overview

Contract Amount: $19,909,844 ($19.9M)

Contractor: Vera Institute of Justice, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2015-09-30

End Date: 2025-07-17

Contract Duration: 3,578 days

Daily Burn Rate: $5.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

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

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 $19.9 million to VERA INSTITUTE OF JUSTICE, INC. for work described as: IGF::OT::IGF LEGAL SERVICE PROVIDERS REGION C Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Time and Materials, which can pose cost control risks if not managed carefully. 3. The duration of the contract is substantial, spanning over 9 years, indicating a long-term need for these services. 4. The award to Vera Institute of Justice, Inc. represents a significant portion of the total contract value. 5. The North American Industry Classification System (NAICS) code 541199 indicates a broad category of 'All Other Legal Services'. 6. The contract is managed by the Office of the Assistant Secretary for Administration within HHS. 7. The contract has a significant period of performance, extending into mid-2025.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the legal services required. However, the award of $19.9 million over nearly a decade suggests a substantial need. The Time and Materials pricing structure warrants careful monitoring to ensure cost-effectiveness compared to fixed-price alternatives or other service providers. Without comparative data on similar legal service contracts within HHS or other agencies, a definitive value assessment is difficult.

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 robust bidding process where multiple entities likely vied for the contract. The level of competition, while not explicitly stated in terms of the number of bidders, is generally expected to drive more competitive pricing and potentially better service offerings.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it aims to secure the best value through market forces. It increases the likelihood of obtaining services at competitive rates by allowing a wide range of qualified vendors to participate.

Public Impact

The primary beneficiary is the Department of Health and Human Services (HHS), which receives essential legal services. These services likely support various administrative, regulatory, and operational functions within HHS. The geographic impact is primarily within New York, where the contractor is located, but the services likely support national HHS operations. The contract supports the legal services sector workforce, potentially including attorneys, paralegals, and administrative staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The legal services sector is a critical component of government operations, providing essential support for compliance, litigation, and advisory functions. This contract falls under professional, scientific, and technical services. Government spending on legal services is substantial, with agencies like HHS requiring ongoing support for complex regulatory environments and administrative law. Benchmarks for legal services can vary widely based on specialization, but government contracts often aim for competitive rates compared to private sector billing.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). Therefore, the primary contractor, Vera Institute of Justice, Inc., is likely a larger entity. There is no explicit information regarding subcontracting plans for small businesses. This means that the direct economic benefit to the small business ecosystem from this specific contract may be limited unless the prime contractor voluntarily engages small businesses for support.

Oversight & Accountability

Oversight for this contract would typically reside within the Department of Health and Human Services, specifically the Office of the Assistant Secretary for Administration, which awarded the contract. Accountability measures would be defined by the contract terms, including performance standards and reporting requirements. Transparency is facilitated by the contract award notice, but detailed performance data and specific service delivery reports may not be publicly available. The Inspector General's office for HHS would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Risk Flags

Tags

hhs, legal-services, definitive-contract, time-and-materials, full-and-open-competition, new-york, administrative-support, professional-services, health-and-human-services, vera-institute-of-justice

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $19.9 million to VERA INSTITUTE OF JUSTICE, INC.. IGF::OT::IGF LEGAL SERVICE PROVIDERS REGION C

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 $19.9 million.

What is the period of performance?

Start: 2015-09-30. End: 2025-07-17.

What specific types of legal services are being procured under NAICS code 541199 for HHS?

The NAICS code 541199, 'All Other Legal Services,' is very broad and encompasses a wide range of legal activities not classified elsewhere. For HHS, this could include services such as contract law advice, regulatory compliance support, administrative litigation, policy development review, and general legal counsel related to health and human services programs. Without more specific contract line item details or a statement of work, it's difficult to pinpoint the exact nature of the services. However, given the awarding office (Office of the Assistant Secretary for Administration), the services likely support the administrative and operational functions of the department rather than direct program litigation.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar legal services?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change, allowing flexibility. However, they carry a higher risk of cost overruns compared to fixed-price contracts, as the government pays for the actual labor hours and materials used. For well-defined legal services, fixed-price contracts are generally preferred for better cost predictability. Agencies often use T&M for smaller, less critical tasks or when the nature of the work is inherently unpredictable. The government typically includes contract clauses to cap costs or require detailed justification for hours billed to mitigate risks associated with T&M.

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 working with government agencies, often focusing on criminal justice reform, public safety, and social services. While this specific contract is for broader legal services within HHS, their experience in research, policy analysis, and program evaluation for government entities suggests a capacity to manage complex projects. A deeper dive into their contract performance history, including past performance evaluations and any reported issues on federal contracts, would be necessary for a comprehensive assessment. However, being awarded a contract of this magnitude by HHS indicates they met initial vetting requirements for capability and responsibility.

What are the potential risks associated with a contract duration of over 9 years?

A contract duration of over 9 years presents several potential risks. Firstly, it can lead to a lack of flexibility for the agency to adapt to evolving needs, new technologies, or changes in policy and law. Secondly, long-term contracts may reduce the incentive for the contractor to innovate or improve efficiency over time, as they have a guaranteed revenue stream. Thirdly, it can create vendor lock-in, making it difficult and costly to switch providers even if performance is suboptimal. Finally, market rates for services can change significantly over such a long period, potentially leading to the government paying above-market prices if the contract terms do not include mechanisms for periodic rate adjustments or re-competition.

How does spending on 'All Other Legal Services' (NAICS 541199) compare across different federal agencies?

Spending on NAICS 541199, 'All Other Legal Services,' can vary significantly across federal agencies depending on their specific missions and legal needs. Agencies with extensive regulatory functions, complex litigation dockets, or large administrative operations, such as the Department of Justice, Department of Defense, or HHS, are likely to have higher expenditures in this category. Smaller agencies or those with more specialized legal needs might contract for specific types of legal services under different NAICS codes or rely more heavily on in-house counsel. A comprehensive analysis would require aggregating spending data across agencies for this NAICS code and comparing it against agency size, budget, and mission complexity.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesLegal ServicesAll 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: 1

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: $19,909,844

Exercised Options: $19,909,844

Current Obligation: $19,909,844

Actual Outlays: $223,506

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $2,862,947

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline

Start Date: 2015-09-30

Current End Date: 2025-07-17

Potential End Date: 2025-07-17 00:00:00

Last Modified: 2025-07-31

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