HHS awarded $207.6M for OHS Monitoring System, with DANYA INTERNATIONAL LLC as prime

Contract Overview

Contract Amount: $207,597,533 ($207.6M)

Contractor: Danya International LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2015-05-01

End Date: 2020-04-30

Contract Duration: 1,826 days

Daily Burn Rate: $113.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::CT::IGF OFFICE OF HEAD START (OHS) MONITORING SYSTEM

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $207.6 million to DANYA INTERNATIONAL LLC for work described as: IGF::CT::IGF OFFICE OF HEAD START (OHS) MONITORING SYSTEM Key points: 1. Value for money appears fair given the contract duration and scope. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a long contract duration and time-and-materials pricing. 4. Performance context involves ongoing administrative management and consulting services. 5. Sector positioning is within administrative support services for federal programs.

Value Assessment

Rating: fair

The total award of $207.6 million over five years for administrative management and general management consulting services suggests a significant investment. Benchmarking this against similar large-scale IT and management support contracts is challenging without more granular data on specific deliverables and labor categories. However, the duration and scale imply a substantial need for these services. The time-and-materials pricing structure, while flexible, can sometimes lead to higher costs if not closely managed and monitored for efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The agency sought proposals from all responsible sources, suggesting a robust evaluation process.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for cost savings through competitive bidding and encourages a wider range of innovative solutions.

Public Impact

The Office of Head Start (OHS) benefits from this contract through enhanced monitoring and management systems. Services delivered include administrative management and general management consulting. The geographic impact is national, supporting the OHS program across the United States. Workforce implications are primarily for the contractor's employees and potentially for OHS staff interacting with the system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and materials contract type can lead to cost overruns if not managed effectively.
Long contract duration (5 years) may reduce flexibility to adapt to changing needs or market innovations.
Lack of specific performance metrics or outcomes makes it difficult to assess true value for money.

Positive Signals

Awarded under full and open competition, suggesting a competitive process.
Contractor has a significant award amount, indicating a level of established performance.
Services are critical for the functioning of the Office of Head Start.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on administrative management and general management consulting. This sector is a significant component of federal spending, supporting a wide array of government functions. Comparable spending benchmarks would involve looking at other large-scale IT and management support contracts awarded by agencies like HHS or other departments managing large social programs.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary focus would be on the prime contractor's performance. There is no explicit information on subcontracting plans or their impact on the small business ecosystem from the provided data.

Oversight & Accountability

Oversight mechanisms would typically involve the contracting officer's representative (COR) and program managers within the Department of Health and Human Services. Accountability measures are tied to the contract's performance requirements and delivery schedules. Transparency is generally facilitated through contract award databases, though detailed performance reports may not always be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Office of Head Start Program Management
Federal IT Consulting Services
Administrative Support Services
Management Consulting Contracts

Risk Flags

Long contract duration
Time and Materials pricing
Potential for cost overruns
Need for strong government oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $207.6 million to DANYA INTERNATIONAL LLC. IGF::CT::IGF OFFICE OF HEAD START (OHS) MONITORING SYSTEM

Who is the contractor on this award?

The obligated recipient is DANYA INTERNATIONAL LLC.

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 $207.6 million.

What is the period of performance?

Start: 2015-05-01. End: 2020-04-30.

What is the specific nature of the 'OHS Monitoring System' and its key functionalities?

The 'OHS Monitoring System' likely refers to a suite of tools and processes designed to track, evaluate, and manage the performance and compliance of Head Start programs nationwide. Key functionalities would typically include data collection on program operations, participant demographics, financial expenditures, and adherence to federal regulations. It may also involve reporting capabilities for both internal HHS use and external stakeholders, as well as features for identifying areas of success and areas needing improvement within the Head Start network. The administrative management and general management consulting services procured would support the development, maintenance, and utilization of this system.

How does the $207.6 million award compare to historical spending on similar monitoring systems or services for the Office of Head Start?

Without historical spending data specifically for the OHS Monitoring System or comparable services, a direct comparison is difficult. However, $207.6 million over five years averages to approximately $41.5 million per year. This figure represents a substantial annual investment, suggesting the system is comprehensive and critical to OHS operations. To provide a robust comparison, one would need to analyze prior contracts for similar functions, accounting for inflation, scope changes, and the evolution of technology and program requirements over time. It is also important to consider if this award represents a consolidation of previous contracts or a new initiative.

What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude and duration?

The primary risks associated with a T&M contract of this magnitude ($207.6M over 5 years) include potential cost overruns and a lack of defined scope leading to inefficiencies. Since the government pays for the labor hours and materials used, there is less incentive for the contractor to control costs or optimize processes compared to a fixed-price contract. This necessitates rigorous oversight from the government to ensure that hours billed are reasonable and necessary, and that materials are procured at fair market prices. The long duration further amplifies these risks, as market conditions and program needs can change significantly over five years, potentially leading to outdated services or escalating costs if not managed proactively.

What is DANYA INTERNATIONAL LLC's track record with large federal contracts, particularly within HHS?

DANYA INTERNATIONAL LLC has a history of securing and performing on federal contracts, including those with the Department of Health and Human Services. The award of $207.6 million for the OHS Monitoring System indicates a significant level of trust and capability recognized by HHS. Analyzing their past performance on similar-sized contracts, especially those involving complex IT systems, data management, and administrative consulting, would provide further insight into their reliability and expertise. A review of contract performance reports and any past performance evaluations would be crucial to fully assess their track record.

How does the 'Administrative Management and General Management Consulting Services' NAICS code (541611) typically translate into specific deliverables for a system like OHS Monitoring?

The NAICS code 541611, 'Administrative Management and General Management Consulting Services,' encompasses a broad range of activities. For the OHS Monitoring System, this likely translates into services such as strategic planning for system improvements, organizational analysis to streamline monitoring processes, business process re-engineering, project management for system upgrades or implementations, and advice on best practices for program oversight. It could also include developing performance metrics, advising on regulatory compliance, and providing expertise on data analysis and reporting to enhance the effectiveness and efficiency of the Head Start program's monitoring efforts.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FCO00CORP0000C

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: DLH Holdings Corp (UEI: 068678788)

Address: 8737 COLESVILLE RD STE 1100, SILVER SPRING, MD, 20910

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

Financial Breakdown

Contract Ceiling: $207,597,533

Exercised Options: $207,597,533

Current Obligation: $207,597,533

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS00F062CA

IDV Type: FSS

Timeline