HHS awarded $41.8M to ICF Incorporated for administrative management consulting services over five years

Contract Overview

Contract Amount: $41,792,651 ($41.8M)

Contractor: ICF Incorporated, L.L.C.

Awarding Agency: Department of Health and Human Services

Start Date: 2015-09-30

End Date: 2020-09-29

Contract Duration: 1,826 days

Daily Burn Rate: $22.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF OCC STATE CAPACITY BUILDING CENTER

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22031

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $41.8 million to ICF INCORPORATED, L.L.C. for work described as: IGF::OT::IGF OCC STATE CAPACITY BUILDING CENTER Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1826 days (5 years) indicates a long-term need for these services. 3. Services fall under Administrative Management and General Management Consulting, a broad category. 4. The award amount of $41.8M over five years averages to approximately $8.36M annually. 5. The contract type is Time and Materials, which can pose cost control challenges. 6. The base contract value is $22.89M, with potential for growth through delivery orders.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables. However, the average annual spend of approximately $8.36M for administrative management consulting services appears substantial. The Time and Materials pricing structure, while flexible, can lead to cost overruns if not closely managed. Comparing this to similar large-scale consulting contracts within HHS or other agencies would provide better context on whether the pricing is competitive for the scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The fact that it was competed suggests that multiple firms likely vied for the opportunity. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through a competitive bidding process, leading to potentially better value for the funds expended.

Public Impact

The Department of Health and Human Services (HHS) benefits from enhanced administrative management and general management consulting services. These services likely support the operational efficiency and effectiveness of various HHS programs and administrative functions. The geographic impact is primarily within Virginia, where the contractor is located, but the services support federal operations nationwide. The contract supports the workforce of ICF Incorporated, L.L.C., contributing to employment in the consulting sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the professional services sector, specifically management and administrative consulting. The market for these services is large and competitive, with numerous firms offering expertise to government agencies. HHS, like many large federal departments, relies on external consultants for specialized support in areas like operational efficiency, strategic planning, and program management. Benchmarking this contract's value would involve comparing its total value and annual spend against similar large-scale consulting engagements within the federal government.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, ICF Incorporated, L.L.C., may engage small businesses as subcontractors depending on their own subcontracting plans and the specific needs of the services provided under this contract.

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. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

Risk Flags

Tags

administrative-management, general-management-consulting, icf-incorporated, department-of-health-and-human-services, office-of-the-assistant-secretary-for-administration, full-and-open-competition, time-and-materials, delivery-order, virginia, professional-services, consulting-services, hhs

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $41.8 million to ICF INCORPORATED, L.L.C.. IGF::OT::IGF OCC STATE CAPACITY BUILDING CENTER

Who is the contractor on this award?

The obligated recipient is ICF INCORPORATED, L.L.C..

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 $41.8 million.

What is the period of performance?

Start: 2015-09-30. End: 2020-09-29.

What specific services were delivered under this contract, and how were they measured for success?

The contract covers 'Administrative Management and General Management Consulting Services' (NAICS code 541611). This broad category can encompass a wide range of activities, such as organizational structure analysis, process improvement, strategic planning, human capital management, and financial management consulting. Without access to the specific statement of work (SOW) and performance reports, it is impossible to detail the exact services delivered or the metrics used to evaluate their success. The Time and Materials (T&M) pricing structure suggests that the scope might have been flexible or evolved over time, with payment based on labor hours and direct costs incurred. Success would likely be measured against defined objectives within the SOW, such as improved efficiency, cost savings, or successful implementation of new management strategies.

How does the total contract value of $41.8 million compare to similar consulting contracts awarded by HHS or other large federal agencies?

The total contract value of $41.8 million over five years, averaging approximately $8.36 million annually, places this contract in the mid-to-large size category for federal consulting engagements. Many large federal agencies, including the Department of Defense, Department of Homeland Security, and other HHS divisions, award contracts in the tens or hundreds of millions for comprehensive management consulting services. To provide a precise comparison, one would need to analyze contracts with similar NAICS codes (e.g., 541611, 541612, 541613) awarded over comparable timeframes. Factors like the specific expertise required, the complexity of the agency's needs, and the level of competition can significantly influence contract values, making direct comparisons challenging without detailed context.

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

Time and Materials contracts, while offering flexibility, carry inherent risks, particularly for large-value, long-duration awards like this one. The primary risk is cost escalation, as the government pays for the actual labor hours and costs incurred by the contractor, plus a fixed fee or fixed hourly rates. Without robust oversight and clearly defined task orders, contractors may not be incentivized to control costs as effectively as they would under a firm-fixed-price contract. This can lead to the total expenditure significantly exceeding initial estimates. For this $41.8 million contract, effective project management, detailed tracking of hours and expenses, and strong government oversight are crucial to mitigate the risk of cost overruns and ensure value for taxpayer money.

What is ICF Incorporated, L.L.C.'s track record with federal contracts, particularly with HHS?

ICF Incorporated, L.L.C. is a well-established government contractor with a significant history of performing work across various federal agencies, including HHS. Publicly available contract data indicates that ICF has been awarded numerous contracts over the years, spanning areas such as health and human services, energy, environment, and defense. Their experience often includes program management, research, data analytics, and IT services, aligning with the broad scope of management consulting. While specific performance ratings for individual contracts are not always public, their continued success in winning federal awards suggests a generally positive track record. Further due diligence would involve reviewing past performance evaluations if accessible through government portals or agency records.

How has federal spending on administrative management and general management consulting services evolved over the past decade?

Federal spending on administrative management and general management consulting services (NAICS 541611) has generally seen fluctuations but has remained a significant expenditure category over the past decade. Agencies consistently require external expertise to improve efficiency, implement new technologies, manage complex programs, and navigate evolving policy landscapes. Factors influencing spending include budget appropriations, administration priorities, and the perceived need for specialized skills not available in-house. While specific figures vary year-to-year, the overall trend indicates a sustained reliance on these services across the federal government. Analyzing historical spending data from sources like the USASpending.gov or FPDS can reveal trends, peak spending periods, and shifts in agency focus within this sector.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesManagement, Scientific, and Technical Consulting ServicesAdministrative 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

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: ICF International, Inc. (UEI: 139001544)

Address: 9300 LEE HWY, FAIRFAX, VA, 22031

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

Financial Breakdown

Contract Ceiling: $45,399,996

Exercised Options: $41,792,651

Current Obligation: $41,792,651

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $4,497,879

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSP233201500071I

IDV Type: IDC

Timeline

Start Date: 2015-09-30

Current End Date: 2020-09-29

Potential End Date: 2021-03-31 00:00:00

Last Modified: 2019-09-29

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