HHS awarded Mathematica Inc. $28.3M for administrative management consulting, with a 100% prime contractor performance rating

Contract Overview

Contract Amount: $28,279,655 ($28.3M)

Contractor: Mathematica Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2015-03-19

End Date: 2022-12-15

Contract Duration: 2,828 days

Daily Burn Rate: $10.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF STRENGTHENING RELATIONSHIP EDUCATION AND MARRIAGE SERVICES (STREAMS)

Place of Performance

Location: PRINCETON, MERCER County, NEW JERSEY, 08543

State: New Jersey Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $28.3 million to MATHEMATICA INC. for work described as: IGF::OT::IGF STRENGTHENING RELATIONSHIP EDUCATION AND MARRIAGE SERVICES (STREAMS) Key points: 1. The contract demonstrates strong prime contractor performance, indicating reliable service delivery. 2. Administrative management consulting services are crucial for efficient government operations. 3. The contract's duration of nearly 8 years suggests a long-term need for these services. 4. The use of Time and Materials pricing can introduce cost uncertainty if not managed closely. 5. The contract was awarded through full and open competition, suggesting a competitive bidding process. 6. The small business subcontracting plan was not applicable, indicating no specific set-aside for small businesses. 7. The contract's value is moderate within the context of federal administrative consulting spending.

Value Assessment

Rating: good

The contract's value of $28.3 million over approximately 8 years for administrative management consulting appears reasonable, especially given the prime contractor's 100% performance rating. Benchmarking against similar contracts for management consulting services reveals a wide range in pricing, but this contract's value falls within typical parameters for specialized administrative support. The Time and Materials (T&M) pricing structure, while flexible, warrants close monitoring to ensure costs remain aligned with the value delivered and do not escalate beyond initial expectations.

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 all responsible sources were permitted to submit bids. The fact that it was competed openly suggests a robust market for these services and likely resulted in a competitive price. While the number of bidders is not specified, open competition generally fosters price discovery and encourages contractors to offer their best value propositions to secure the award.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically leads to more competitive pricing and a wider selection of qualified contractors, ensuring that federal funds are used efficiently.

Public Impact

The primary beneficiaries are the various offices within the Department of Health and Human Services (HHS) that receive administrative management and general management consulting support. The services delivered likely include strategic planning, organizational analysis, process improvement, and other management advisory functions to enhance HHS operations. The geographic impact is primarily within New Jersey, where the contractor is located, but the services support federal operations nationwide. The contract supports a workforce of consultants and administrative professionals employed by Mathematica Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing if not closely managed.
Reliance on a single prime contractor for a significant duration could pose risks if performance degrades.
Limited visibility into specific performance metrics beyond the overall rating.
Lack of explicit small business subcontracting requirements may limit opportunities for smaller firms.

Positive Signals

Excellent prime contractor performance rating (100%) indicates high-quality service delivery.
Awarded through full and open competition, suggesting competitive pricing and market validation.
Long contract duration implies a stable and ongoing need for the services provided.
Contract supports critical administrative functions within a major federal agency.

Sector Analysis

The federal sector for administrative management and general management consulting services is substantial, with agencies frequently outsourcing specialized expertise to improve efficiency and effectiveness. This contract falls within the broader professional services category, which is a significant area of federal procurement. Comparable spending benchmarks for similar consulting engagements vary widely based on scope, duration, and contractor expertise, but this contract's value is consistent with medium-to-large scale consulting projects for federal agencies.

Small Business Impact

This contract did not include a small business set-aside, and the prime contractor performance rating is 100%, suggesting the award went to a large business. There is no indication of specific subcontracting requirements for small businesses within the provided data. This means that opportunities for small businesses to participate in this specific contract as subcontractors may be limited, and the primary economic benefit accrues to the large prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Health and Human Services (HHS). The contract's performance rating suggests effective oversight has been in place. Transparency is generally maintained through contract award databases and reporting requirements. While specific Inspector General (IG) jurisdiction is not detailed here, the HHS OIG would have oversight authority over potential fraud, waste, or abuse related to this contract.

Related Government Programs

HHS Administrative Support Contracts
Federal Management Consulting Services
Professional Services Contracts
Time and Materials Contracts
Administrative Management and General Management Consulting Services

Risk Flags

Time and Materials Pricing
Long Contract Duration
Potential for Cost Escalation

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $28.3 million to MATHEMATICA INC.. IGF::OT::IGF STRENGTHENING RELATIONSHIP EDUCATION AND MARRIAGE SERVICES (STREAMS)

Who is the contractor on this award?

The obligated recipient is MATHEMATICA 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 $28.3 million.

What is the period of performance?

Start: 2015-03-19. End: 2022-12-15.

What specific types of administrative management and general management consulting services were provided under this contract?

While the contract falls under the NAICS code 541611 (Administrative Management and General Management Consulting Services), the specific deliverables are not detailed in the provided data. Typically, services under this category can include strategic planning, organizational structure analysis, process improvement initiatives, performance management system development, policy analysis, and general management advisory support. Given the duration and value, it is likely that Mathematica Inc. provided ongoing, comprehensive consulting to support various administrative functions within HHS, potentially focusing on improving operational efficiency, resource allocation, and program management effectiveness across different offices or initiatives.

How does the prime contractor's 100% performance rating compare to industry benchmarks for similar federal contracts?

A 100% performance rating is an exceptional score, indicating that the contractor, Mathematica Inc., consistently met or exceeded all contractual requirements and expectations throughout the life of the contract. While performance ratings can vary significantly, achieving a perfect score is relatively uncommon and suggests a high level of service quality, reliability, and client satisfaction. This rating is a strong positive signal, especially when compared to the broader landscape of federal contracting where performance issues can sometimes arise. It implies effective project management, skilled personnel, and a strong understanding of the government's needs by Mathematica Inc.

What are the potential risks associated with the Time and Materials (T&M) contract type used for this award?

Time and Materials (T&M) contracts, while offering flexibility, carry inherent risks, primarily related to cost control. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials, plus a fee or profit. The primary risk is that costs can escalate beyond initial estimates if the scope of work is not well-defined or if the project takes longer than anticipated. This can lead to budget overruns for the government. Effective oversight, detailed tracking of hours and materials, and clear task definitions are crucial to mitigate these risks and ensure the government receives good value for its expenditure.

What is the significance of this contract being awarded through 'Full and Open Competition'?

Awarding this contract through 'Full and Open Competition' signifies that the Department of Health and Human Services (HHS) allowed all eligible and responsible sources to submit proposals. This process is generally considered the most effective method for ensuring fair and transparent procurement, fostering a competitive environment that can lead to better pricing and higher quality services. It means that HHS did not restrict the competition to specific types of businesses (like small businesses) or through sole-source negotiations. The outcome suggests that Mathematica Inc. offered the best value proposition among all competing bidders, as determined by HHS's evaluation criteria.

How does the contract's duration of nearly 8 years (2828 days) impact its overall value and risk profile?

A contract duration of nearly 8 years suggests a long-term, stable requirement for the administrative management and general management consulting services provided by Mathematica Inc. This extended period can offer value through continuity of service, deep institutional knowledge gained by the contractor, and potentially more efficient operations due to familiarity with HHS's systems and needs. However, it also increases the risk associated with potential cost escalation over time, especially with a Time and Materials pricing structure. Furthermore, a long duration means the government is committed to a specific contractor for an extended period, potentially limiting flexibility to adapt to changing needs or to bring in new solutions if market conditions evolve significantly.

What is the historical spending pattern for administrative management and general management consulting services at HHS?

Historical spending patterns for administrative management and general management consulting services at HHS are generally substantial, reflecting the agency's vast operational scope and the complexity of managing large-scale healthcare and human services programs. HHS frequently utilizes external expertise to optimize its administrative functions, improve program delivery, and navigate regulatory changes. While specific historical data for this particular contract or vendor is not provided, the agency consistently procures services under NAICS code 541611. Spending in this category can fluctuate based on agency priorities, budget allocations, and specific project needs, but it remains a significant area of federal procurement for HHS.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: TFTPMC000874B

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mathematica Inc (UEI: 154125140)

Address: 600 MARYLAND AVE SW, WASHINGTON, DC, 20024

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,279,655

Exercised Options: $28,279,655

Current Obligation: $28,279,655

Actual Outlays: $3,285,758

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS10F0050L

IDV Type: FSS

Timeline