HHS awarded $42.2M for legal services to Vera Institute of Justice, Inc. under full and open competition

Contract Overview

Contract Amount: $42,253,153 ($42.3M)

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: $21.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

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

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 $42.3 million to VERA INSTITUTE OF JUSTICE, INC. for work described as: IGF::OT::IGF LEGAL SERVICE PROVIDERS REGION F Key points: 1. The contract value of $42.2 million over approximately 5.5 years suggests a significant investment in legal support services. 2. Full and open competition was utilized, indicating a broad market solicitation for these services. 3. The contract type is a firm fixed price, which typically transfers risk to the contractor and provides cost certainty. 4. The duration of the contract, nearly 6 years, suggests a long-term need for these legal services. 5. The North American Industry Classification System (NAICS) code 541199 covers 'All Other Legal Services,' implying a broad scope beyond specialized areas. 6. The awardee, Vera Institute of Justice, Inc., is a non-profit organization, which may influence the service delivery approach and cost structure. 7. The contract was awarded by the Department of Health and Human Services (HHS), indicating a focus on legal matters relevant to health and human services. 8. The contract was awarded as a definitive contract, often used for services that are not easily defined in advance.

Value Assessment

Rating: fair

The total award of $42.2 million over nearly six years averages to approximately $7.2 million per year. Without specific details on the volume or complexity of legal services required, it is difficult to benchmark this against similar contracts. However, the firm fixed-price nature suggests that the government sought cost certainty. The Vera Institute of Justice, Inc. is a non-profit, which may have different cost structures than for-profit legal service providers. Further analysis would require understanding the specific legal services rendered and comparing them to market rates for similar organizations and services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning that all responsible sources were permitted to submit a bid. The data indicates two bids were received. While two bidders participated, the level of competition might be considered low for a contract of this magnitude and duration. A higher number of bidders typically leads to more competitive pricing and a wider range of solutions. The limited number of bids could suggest potential barriers to entry for other firms or a specialized niche for these legal services.

Taxpayer Impact: A low number of bids in a full and open competition may mean that taxpayers did not benefit from the most competitive pricing possible, potentially leading to higher costs than if more firms had vied for the contract.

Public Impact

The primary beneficiaries are the Department of Health and Human Services (HHS) and its various administrations, which receive essential legal counsel and support. The services delivered encompass a broad range of legal assistance, as indicated by the 'All Other Legal Services' NAICS code. The geographic impact is primarily within New York, where the contractor is located, but the services likely support HHS operations nationwide. The contract supports the operational capacity of HHS by ensuring legal compliance and risk management, indirectly benefiting the public through the effective delivery of health and human services programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition with only two bids received could indicate potential for higher costs.
The broad 'All Other Legal Services' category might obscure specific areas of expertise or potential risks.
The long contract duration could lead to vendor lock-in if not managed carefully.
Lack of specific performance metrics makes it difficult to assess the quality and effectiveness of services rendered.

Positive Signals

Awarded under full and open competition, allowing for broad market participation.
Firm fixed-price contract provides cost certainty for the government.
The awardee is a non-profit organization, potentially aligning with public service goals.
The contract duration suggests a stable and ongoing need for legal services, indicating a recognized requirement.

Sector Analysis

The legal services sector for the federal government is substantial, encompassing a wide array of support functions across all agencies. Contracts for legal services can range from specialized litigation support to general counsel advice. The NAICS code 541199, 'All Other Legal Services,' suggests this contract covers a broad spectrum of legal needs not fitting into more specific categories like patent law or environmental law. Benchmarking this contract's value would require comparing the annual spend against average annual legal service contract values within HHS or across similar federal agencies, considering the scope and complexity of services provided.

Small Business Impact

There is no indication from the provided data that this contract included small business set-asides or subcontracting requirements. The award was made to the Vera Institute of Justice, Inc., a non-profit organization. Further investigation would be needed to determine if any small businesses were involved as subcontractors or if the contract's scope could have been structured to include small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services (HHS) contracting officers and program managers. The firm fixed-price nature provides some level of financial oversight by fixing the cost. Transparency would be enhanced by public contract databases like FPDS.gov. Specific accountability measures would be detailed in the contract's statement of work and performance standards. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

HHS Office of General Counsel
Federal Legal Services Contracts
Department of Justice Legal Services
Government Contract Law Support

Risk Flags

Limited Competition
Vague Scope of Services (NAICS 541199)
Long Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $42.3 million to VERA INSTITUTE OF JUSTICE, INC.. IGF::OT::IGF LEGAL SERVICE PROVIDERS REGION F

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 $42.3 million.

What is the period of performance?

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

What specific types of legal services were provided under this contract?

The provided data indicates the contract falls under NAICS code 541199, 'All Other Legal Services.' This broad classification suggests the services could encompass a wide range of legal support, potentially including advice on regulatory compliance, contract review, policy development, administrative law matters, and possibly litigation support, but not limited to highly specialized areas like intellectual property or criminal prosecution. Without access to the contract's statement of work, the precise nature and scope of the legal services rendered remain unspecified. This lack of detail makes it challenging to fully assess the value and appropriateness of the services provided relative to the $42.2 million expenditure over nearly six years.

How does the cost per year of this contract compare to similar legal service contracts within HHS or other federal agencies?

The contract's total value of $42.2 million over approximately 2007 days (roughly 5.5 years) equates to an average annual cost of approximately $7.67 million. Benchmarking this figure requires comparing it to contracts with similar scopes of work and complexity within HHS or other agencies. Given the broad 'All Other Legal Services' classification, direct comparisons are difficult without knowing the specific legal issues addressed. However, for context, large federal agencies often spend tens to hundreds of millions annually on legal services, encompassing both in-house counsel and external support. The Vera Institute of Justice, Inc. being a non-profit may also influence its cost structure compared to traditional law firms. A detailed comparison would necessitate analyzing the volume and type of legal work performed against industry standards and rates for comparable organizations.

What is the track record of Vera Institute of Justice, Inc. in performing federal contracts, particularly for legal services?

The provided data indicates Vera Institute of Justice, Inc. was the sole awardee for this specific contract. To assess their track record, one would need to examine their past performance on other federal contracts, if any. Information on their history with government contracts, including performance reviews, past issues, and successful completions, would be crucial. As a non-profit organization, their experience might differ from traditional for-profit law firms. A review of their contract history, potentially through resources like the Federal Procurement Data System (FPDS), would reveal their reliability, efficiency, and overall success in fulfilling government obligations, especially concerning legal services.

What are the potential risks associated with a long-term contract for 'All Other Legal Services'?

A significant risk associated with a long-term contract for broad legal services is the potential for scope creep and cost overruns if the statement of work is not precisely defined and managed. The 'All Other Legal Services' category is inherently vague, increasing the risk that the contractor may provide services beyond the original intent or that the government's needs evolve without a mechanism for adjustment. Furthermore, a long duration (nearly six years) can lead to vendor lock-in, making it difficult to switch providers even if performance is suboptimal or market alternatives become more cost-effective. Ensuring robust oversight, clear performance metrics, and regular reviews is critical to mitigate these risks and ensure continued value for taxpayer money.

How does the limited number of bidders (2) impact the government's ability to secure competitive pricing for these legal services?

A limited number of bidders, such as the two received for this contract, generally reduces the intensity of competition. In a market with numerous potential providers, multiple bids typically drive down prices as contractors vie for the award. With only two bidders, the government may not achieve the most favorable pricing possible, as the winning contractor faces less pressure to offer the lowest possible cost. This situation could potentially lead to higher expenditures for taxpayers compared to a scenario with more robust competition. It also raises questions about whether the solicitation reached a sufficiently wide audience or if barriers to entry prevented more firms from participating.

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: FIRM FIXED PRICE (J)

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: $42,253,153

Exercised Options: $42,253,153

Current Obligation: $42,253,153

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $5,551,636

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline