HHS awards $41.6M contract for ECE program and workforce study, highlighting administrative consulting needs

Contract Overview

Contract Amount: $41,578,654 ($41.6M)

Contractor: National Opinion Research Center

Awarding Agency: Department of Health and Human Services

Start Date: 2017-09-26

End Date: 2022-11-15

Contract Duration: 1,876 days

Daily Burn Rate: $22.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF FY17 - ACF-OPRE - NSECE-ECE PROGRAM AND WORKFORCE STUDY - NEW AWARD

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60637

State: Illinois Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $41.6 million to NATIONAL OPINION RESEARCH CENTER for work described as: IGF::OT::IGF FY17 - ACF-OPRE - NSECE-ECE PROGRAM AND WORKFORCE STUDY - NEW AWARD Key points: 1. Contract focuses on administrative management and general consulting services, indicating a need for specialized expertise. 2. The full and open competition suggests a robust market for these services, potentially leading to competitive pricing. 3. A long performance period of 1876 days (over 5 years) suggests a complex, multi-phase project. 4. The contract type is Cost Plus Fixed Fee, which can incentivize cost control while ensuring contractor profit. 5. This award falls under administrative management consulting, a broad category with diverse applications. 6. The geographic focus is Illinois, suggesting a localized study or implementation.

Value Assessment

Rating: good

The contract value of $41.6 million over more than five years for a program and workforce study appears reasonable given the scope. Benchmarking against similar large-scale research and consulting contracts for federal agencies suggests this is within a typical range. The Cost Plus Fixed Fee structure, while not ideal for strict cost control, is common for research and development or complex service contracts where exact costs are difficult to predict upfront. Further analysis would require comparing specific deliverables and research methodologies to similar studies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This suggests a healthy competitive environment for administrative management and general consulting services. The presence of multiple bidders typically drives down prices and encourages innovation. The specific number of bidders is not provided, but the 'full and open' designation implies a significant number participated.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and higher quality services due to vendor rivalry. This process ensures that federal funds are used efficiently by selecting the most capable and cost-effective provider.

Public Impact

The primary beneficiaries are the Department of Health and Human Services (HHS) and potentially the early childhood education (ECE) sector, which will receive insights from the study. The contract will deliver a study on the ECE program and workforce, providing valuable data and analysis. The geographic impact is specified as Illinois, suggesting the study's primary focus or data collection will be concentrated there. Workforce implications could include recommendations for training, development, or policy changes within the ECE workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently.
The long duration of the contract requires sustained oversight to ensure progress and adherence to objectives.
The specific focus on Illinois might limit the broader applicability of findings without further research.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded good value.
The contract addresses a critical area (ECE program and workforce), indicating a focus on important social services.
The long performance period allows for in-depth research and comprehensive analysis.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This is a significant sector for government contracting, encompassing a wide range of advisory and analytical services. The market size for federal consulting services is substantial, with agencies frequently outsourcing complex studies and management support. This award represents a portion of HHS's spending on such services to inform policy and program development in early childhood education.

Small Business Impact

The data indicates that small business participation was not a specific set-aside (ss: false) and there is no indication of small business subcontracting goals (sb: false). This suggests the primary awardee is likely a large business, and there may be limited direct benefit to the small business ecosystem through this specific contract, unless the prime contractor actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and program officials within the Department of Health and Human Services. The contract type (Cost Plus Fixed Fee) necessitates careful monitoring of costs and performance against the fixed fee. Transparency is generally maintained through contract award databases and public reporting, though the detailed findings of the study itself may have varying levels of public accessibility. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Early Childhood Education Programs
Workforce Development Studies
Administrative Management Consulting
Federal Research and Development Contracts
Department of Health and Human Services Contracts

Risk Flags

Long contract duration requires sustained oversight.
Cost Plus Fixed Fee structure necessitates careful cost monitoring.
Geographic limitation to Illinois may affect broader applicability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $41.6 million to NATIONAL OPINION RESEARCH CENTER. IGF::OT::IGF FY17 - ACF-OPRE - NSECE-ECE PROGRAM AND WORKFORCE STUDY - NEW AWARD

Who is the contractor on this award?

The obligated recipient is NATIONAL OPINION RESEARCH CENTER.

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 $41.6 million.

What is the period of performance?

Start: 2017-09-26. End: 2022-11-15.

What is the track record of the National Opinion Research Center (NORC) in performing similar federal studies?

The National Opinion Research Center (NORC) at the University of Chicago is a well-established, independent research institution with a long history of conducting social science research for government agencies, foundations, and non-profits. They have a strong track record in areas such as education, health, labor, and social policy. NORC has managed numerous large-scale federal contracts, including surveys, program evaluations, and workforce studies. Their experience often involves complex data collection, rigorous analysis, and dissemination of findings to diverse audiences. While specific details of past performance on contracts identical to this one would require deeper investigation into federal procurement databases, NORC's general reputation and extensive portfolio suggest a high likelihood of capability in executing this ECE program and workforce study.

How does the value of this contract compare to similar federal studies on early childhood education or workforce development?

The $41.6 million award for a multi-year study on ECE programs and workforce is substantial, reflecting the complexity and scope typically involved in such comprehensive research. Federal studies in this domain can range significantly in cost, from smaller, targeted analyses costing a few million dollars to large-scale, longitudinal studies exceeding tens of millions. Factors influencing cost include the duration of the study, the size and diversity of the population being studied, the methodologies employed (e.g., surveys, interviews, data analysis, site visits), and the geographic scope. Given that this contract spans over five years and focuses on both program and workforce aspects within a specific state (Illinois), the $41.6 million figure appears to be within the expected range for a project of this magnitude and complexity, especially when compared to other large federal research initiatives.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for a study of this nature?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, like this one, is that the government may end up paying more than necessary if the contractor's costs are higher than anticipated. While the 'fixed fee' component provides a defined profit margin, the 'cost plus' element means the government reimburses allowable costs incurred by the contractor. If the contractor is inefficient or faces unforeseen cost increases, these are passed on to the government. For a study, risks include potential scope creep where the research expands beyond initial parameters, leading to increased costs, or difficulties in accurately estimating all necessary research expenses upfront. Effective oversight is crucial to manage these risks, ensuring that costs are reasonable, allocable, and allowable, and that the contractor remains incentivized to perform efficiently within the defined scope.

What are the potential implications of this contract for the early childhood education sector in Illinois?

This contract could have significant implications for the early childhood education (ECE) sector in Illinois by providing crucial data and analysis to inform policy and practice. The study's focus on both programs and the workforce means it could identify areas of strength, challenges, and opportunities for improvement within Illinois's ECE landscape. Findings might lead to recommendations for enhanced program quality, better resource allocation, improved workforce training and compensation, or policy adjustments at the state level. Ultimately, the study aims to provide evidence-based insights that can help shape the future of ECE in Illinois, potentially leading to better outcomes for children, families, and the ECE professionals themselves.

How does the duration of this contract (over 5 years) impact the study's potential effectiveness?

The extended duration of this contract, approximately 1876 days (over 5 years), is a significant factor that can positively impact the study's effectiveness. A longer timeframe allows for longitudinal analysis, tracking changes and trends over time, which is particularly valuable for understanding program impacts and workforce dynamics that evolve. It provides ample opportunity for thorough data collection, rigorous analysis, and iterative refinement of research methods. This extended period can also accommodate potential delays or unforeseen challenges inherent in large research projects without compromising the depth of the study. Furthermore, it allows for the development of more comprehensive and nuanced findings, moving beyond snapshot assessments to provide a more holistic understanding of the ECE sector.

What does the 'Administrative Management and General Management Consulting Services' NAICS code (541611) typically encompass in federal contracting?

The NAICS code 541611, 'Administrative Management and General Management Consulting Services,' is a broad category in federal contracting that covers establishments primarily engaged in providing operating advice and assistance on matters of management to other general business enterprises. This includes services such as administrative and operations management, business planning and organization, marketing management, human resource management, and process improvement. For federal agencies, this often translates to contracts for strategic planning, organizational analysis, policy development support, program management assistance, and efficiency improvements. This specific contract, focusing on an ECE program and workforce study, utilizes this code to procure expert analytical and advisory services to understand and potentially improve the administration and management of these critical services.

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: 17233SOL00447

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1155 E 60TH ST, CHICAGO, IL, 60637

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: $44,692,958

Exercised Options: $41,578,654

Current Obligation: $41,578,654

Actual Outlays: $4,971,487

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSP233201500048I

IDV Type: IDC

Timeline