HHS's $22.6M Early Head Start survey contract awarded to Mathematica Inc. shows extended performance

Contract Overview

Contract Amount: $22,600,626 ($22.6M)

Contractor: Mathematica Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2015-09-30

End Date: 2023-03-29

Contract Duration: 2,737 days

Daily Burn Rate: $8.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF EARLY HEAD START FAMILY AND CHILD EXPERIENCES SURVEY

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $22.6 million to MATHEMATICA INC. for work described as: IGF::OT::IGF EARLY HEAD START FAMILY AND CHILD EXPERIENCES SURVEY Key points: 1. Contract duration significantly exceeds typical project timelines, raising questions about efficiency. 2. The administrative management and general management consulting services sector is broad, making direct comparisons challenging. 3. A single award for a large sum suggests potential for concentrated risk with the prime contractor. 4. Performance context is limited without specific deliverables and outcomes detailed. 5. This contract falls within the administrative support services category for health and human services. 6. The contract's extended period may indicate evolving project needs or scope creep.

Value Assessment

Rating: fair

The contract's total value of $22.6 million over nearly 7.5 years suggests an average annual spend of approximately $3 million. Without specific performance metrics or deliverables, it is difficult to benchmark the value for money. Comparing this to similar large-scale survey and data collection contracts within HHS or other agencies would provide better context. The cost-plus-fixed-fee (CPFF) contract type can sometimes lead to higher costs if not managed tightly, but it also allows for flexibility in scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. However, the data only shows two delivery orders, which might suggest a limited number of active participants or a focus on a specific task order structure. The level of competition at the initial award stage is positive for price discovery, but the subsequent task order activity needs further examination to understand ongoing competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve service quality.

Public Impact

The primary beneficiaries are likely the Office of the Assistant Secretary for Administration within HHS, receiving administrative support services. The services delivered are related to data collection and analysis for the Early Head Start program, impacting program evaluation and policy development. The geographic impact is primarily within the District of Columbia, where the contractor is located. Workforce implications include employment for researchers, data analysts, and administrative staff at Mathematica Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Extended contract duration raises concerns about potential inefficiencies and cost overruns.
Lack of detailed performance metrics makes it difficult to assess the true value delivered.
The CPFF contract type requires diligent oversight to ensure costs remain reasonable.
Limited information on task order competition could mask potential issues with price negotiation.

Positive Signals

Awarded through full and open competition, suggesting a competitive initial bidding process.
The contract supports a critical program (Early Head Start) focused on child development.
Mathematica Inc. is a well-established research firm with experience in government contracts.

Sector Analysis

This contract falls within the Administrative Management and General Management Consulting Services sector, specifically supporting research and data analysis for a social program. The market for such services is competitive, with numerous firms capable of performing large-scale data collection and analysis. Benchmarking would involve comparing the annual spend against similar contracts for program evaluation and survey administration within federal agencies, particularly those focused on social services and child development.

Small Business Impact

The contract data indicates that small business participation was not a primary focus, as the prime contractor is Mathematica Inc., a large business, and there is no explicit mention of small business set-asides or subcontracting goals. Further investigation into subcontracting plans would be necessary to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Office of the Assistant Secretary for Administration at HHS. The contract type (CPFF) necessitates robust financial oversight to ensure costs are reasonable and allocable. Transparency could be enhanced by making detailed performance reports and deliverables publicly accessible. Inspector General jurisdiction would apply to any potential fraud, waste, or abuse.

Related Government Programs

Head Start Program
Child Care and Development Fund
National Survey of Early Care and Education
Department of Health and Human Services Research and Development Contracts

Risk Flags

Extended contract duration
Lack of detailed performance metrics
Cost Plus Fixed Fee contract type requires diligent oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $22.6 million to MATHEMATICA INC.. IGF::OT::IGF EARLY HEAD START FAMILY AND CHILD EXPERIENCES SURVEY

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 $22.6 million.

What is the period of performance?

Start: 2015-09-30. End: 2023-03-29.

What specific deliverables were expected under this contract, and how was their quality assessed?

The provided data does not detail the specific deliverables for the IGF::OT::IGF EARLY HEAD START FAMILY AND CHILD EXPERIENCES SURVEY contract. Typically, such contracts would involve data collection instruments, survey administration protocols, data cleaning and validation reports, and final analytical reports. Quality assessment would likely be based on adherence to methodological standards, data accuracy, completeness of responses, and timeliness of delivery, as outlined in the contract's statement of work and performance standards. Without access to these documents or performance evaluations, a definitive assessment of quality is not possible.

How does the total contract value of $22.6 million compare to similar large-scale federal survey contracts?

The total contract value of $22.6 million over approximately 7.5 years averages to about $3 million annually. This figure is substantial but falls within the range of large-scale federal survey and data collection contracts, especially those involving complex methodologies, extensive participant outreach, and rigorous analysis, such as those conducted by agencies like the National Center for Education Statistics (NCES) or the Census Bureau. However, without knowing the scope, sample size, and duration of comparable contracts, a precise benchmark is difficult. The value is indicative of a significant undertaking in program evaluation or research.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?

The primary risk with a CPFF contract of this size and duration is the potential for cost overruns if the contractor's actual costs exceed estimates significantly, although the fixed fee provides a ceiling for the contractor's profit. There's also a risk of reduced incentive for cost efficiency, as the contractor is reimbursed for allowable costs. For the government, effective oversight is crucial to ensure costs are reasonable, allocable, and allowable. The extended duration increases the potential for scope creep or evolving requirements, which, if not managed properly, can lead to increased costs and delays.

What is Mathematica Inc.'s track record with federal contracts, particularly in research and survey administration?

Mathematica Inc. has a well-established track record as a government contractor, particularly in conducting research, evaluations, and surveys for federal agencies, including HHS. They are known for their expertise in areas such as health policy, education, and social welfare programs. Their history includes numerous large-scale contracts involving data collection, analysis, and reporting. While specific performance details for past contracts are not provided here, their continued success in securing significant federal awards suggests a generally positive performance history and capability in managing complex research projects.

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

Spending on administrative management and general management consulting services within HHS has generally been substantial, reflecting the agency's vast operational scope and the need for specialized expertise in areas like program evaluation, data analysis, strategic planning, and administrative efficiency. While specific historical spending trends for this exact contract category are not detailed here, federal agencies frequently utilize external consultants to supplement internal capabilities, address complex challenges, and implement new initiatives. Factors influencing this spending include budget allocations, policy priorities, and the complexity of programs managed by HHS.

What does the limited number of delivery orders (2) suggest about the execution of this contract?

The fact that there are only two delivery orders issued against this contract, despite its long duration (2737 days), could suggest several possibilities. It might indicate that the primary scope of work was largely contained within those two orders, or that the contract was structured to allow for significant flexibility in tasking, with subsequent needs potentially addressed through modifications or new contracts. Alternatively, it could imply that the project's execution was slower than anticipated, or that the need for further tasking diminished over time. Without more context on the nature of these delivery orders, it's difficult to draw firm conclusions.

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: 15233SOL00163

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mathematica Inc

Address: 600 ALEXANDER PARK, PRINCETON, NJ, 08540

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

Financial Breakdown

Contract Ceiling: $23,133,728

Exercised Options: $22,600,626

Current Obligation: $22,600,626

Actual Outlays: $7,938,700

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSP233201500035I

IDV Type: IDC

Timeline