HHS awards $48.9M contract for TANF evidence building, focusing on employment and economic security

Contract Overview

Contract Amount: $48,937,498 ($48.9M)

Contractor: Mdrc

Awarding Agency: Department of Health and Human Services

Start Date: 2017-09-26

End Date: 2025-08-31

Contract Duration: 2,896 days

Daily Burn Rate: $16.9K/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 EVIDENCE BUILDING IN TANF: ADVANCING INNOVATIONS TO PROMOTE EMPLOYMENT AND ECONOMIC SECURITY FOR LOW-INCOME INDIVIDUALS

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10016

State: New York Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $48.9 million to MDRC for work described as: IGF::OT::IGF EVIDENCE BUILDING IN TANF: ADVANCING INNOVATIONS TO PROMOTE EMPLOYMENT AND ECONOMIC SECURITY FOR LOW-INCOME INDIVIDUALS Key points: 1. Contract aims to advance innovations for low-income individuals' economic security. 2. Focus on promoting employment and economic security for vulnerable populations. 3. Contract duration of nearly 8 years suggests a long-term strategic investment. 4. Delivery order structure indicates flexibility in tasking and resource allocation. 5. Administrative Management and General Management Consulting Services are key to program success. 6. The contract's value is substantial, requiring careful performance monitoring.

Value Assessment

Rating: good

The contract value of $48.9 million over nearly 8 years appears reasonable for a program focused on evidence building and innovation in social services. While direct comparisons are difficult without more specific service details, the cost-plus-fixed-fee structure allows for flexibility while providing the contractor with an incentive to manage costs effectively. Benchmarking against similar large-scale federal grants or contracts for program evaluation and development in the social services sector would provide further context on value for money.

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 had the opportunity to submit proposals. This competitive process is expected to drive better pricing and service quality. The presence of two bidders, as indicated by 'no': 2, suggests a moderate level of competition for this specific award.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and a wider range of innovative approaches.

Public Impact

Low-income individuals and families seeking to improve their economic security and employment prospects are the primary beneficiaries. The contract supports the development and testing of innovative approaches to TANF program delivery. Services delivered are expected to enhance the effectiveness of programs aimed at promoting self-sufficiency. The geographic impact is likely national, given the focus on federal TANF policy and evidence building. Workforce implications may include the need for specialized research, evaluation, and program design expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the long duration and focus on innovation.
Ensuring measurable outcomes and demonstrable impact from the evidence-building activities.
Maintaining contractor focus on core objectives amidst evolving program needs.

Positive Signals

Commitment to evidence-based policy and program improvement.
Focus on critical social issues like employment and economic security.
Long-term investment suggests a strategic approach to program enhancement.

Sector Analysis

This contract falls within the professional services sector, specifically administrative management and general management consulting. This sector is crucial for government agencies seeking expertise in program design, evaluation, and operational efficiency. The market for such services is competitive, with numerous firms capable of providing these specialized skills. The contract's value is significant within this niche, reflecting the complexity and importance of improving social welfare programs.

Small Business Impact

The data does not indicate any specific small business set-aside or subcontracting requirements for this contract. As a full and open competition, it's possible that small businesses could participate as prime contractors or subcontractors, but there's no explicit provision mentioned. Further analysis would be needed to determine if small business participation was encouraged or achieved.

Oversight & Accountability

Oversight for this contract would typically reside within the Department of Health and Human Services, likely through the Office of the Assistant Secretary for Administration and the relevant program offices overseeing TANF. Accountability measures would be defined in the contract's terms and conditions, including performance metrics and reporting requirements. Transparency is generally facilitated through contract award databases and public reporting, though specific project details may be proprietary.

Related Government Programs

Temporary Assistance for Needy Families (TANF)
Social Services Block Grant (SSBG)
Workforce Innovation and Opportunity Act (WIOA) Programs
Child Care and Development Fund (CCDF)

Risk Flags

Long contract duration may increase risk of scope creep or changing requirements.
Measuring the direct impact of 'evidence building' can be complex.
Reliance on Cost-Plus-Fixed-Fee requires careful cost monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $48.9 million to MDRC. IGF::OT::IGF EVIDENCE BUILDING IN TANF: ADVANCING INNOVATIONS TO PROMOTE EMPLOYMENT AND ECONOMIC SECURITY FOR LOW-INCOME INDIVIDUALS

Who is the contractor on this award?

The obligated recipient is MDRC.

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 $48.9 million.

What is the period of performance?

Start: 2017-09-26. End: 2025-08-31.

What is the contractor's track record with similar federal contracts, particularly in social program evaluation and innovation?

MDRC (the contractor) is a well-respected research organization with extensive experience in evaluating social and economic policies and programs, particularly those aimed at low-income individuals and families. They have a strong track record with federal agencies, including HHS, on projects related to welfare reform, employment, education, and child support. Their work often involves rigorous research designs, including experimental and quasi-experimental evaluations, to build evidence on program effectiveness. While specific details of past contracts are not provided here, MDRC's reputation suggests a high likelihood of competence in managing complex research and evidence-building initiatives for programs like TANF.

How does the cost-plus-fixed-fee (CPFF) pricing structure compare to other contract types for similar services, and what are its implications for value?

The Cost-Plus-Fixed-Fee (CPFF) structure is common for research, development, and services where the scope of work can be difficult to define precisely upfront, as is often the case with innovation and evidence-building projects. It allows the government to pay the actual allowable costs incurred by the contractor, plus a fixed fee representing profit. This structure provides flexibility for the contractor to adapt to evolving needs and discoveries. For taxpayers, the 'fixed fee' component provides some cost certainty regarding profit. However, the 'cost' portion means the total expenditure can vary. Compared to fixed-price contracts, CPFF can be less price-certain but more adaptable. Compared to cost-reimbursement contracts without a fixed fee, it offers more contractor incentive to control costs to protect their profit margin.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Key risks include the potential for the 'evidence building' to yield inconclusive or negative results, the contractor's ability to adapt to changing policy landscapes within TANF, and ensuring the innovations developed are scalable and practical for real-world implementation. Another risk is ensuring effective collaboration between the contractor and various HHS offices and potentially state TANF agencies. Mitigation strategies likely involve clearly defined performance metrics, regular progress reviews, phased deliverables, and robust communication channels between the government and MDRC. The long duration also presents a risk of shifting priorities or personnel changes within the government or contractor organization, which would need careful management.

How has historical spending on TANF-related research and evaluation compared to this contract's value?

Historical spending on TANF-related research and evaluation by HHS has varied significantly year to year, influenced by legislative priorities and funding appropriations. Large-scale initiatives focused on program innovation and evidence generation, like this $48.9 million contract, represent substantial investments. While specific historical figures for comparable contracts are not readily available in this dataset, it's understood that significant funding is allocated to understanding and improving the effectiveness of major social programs. This contract's value appears to be a significant, multi-year commitment reflecting a strategic focus on enhancing TANF's impact through rigorous research and the development of innovative approaches.

What are the potential challenges in measuring the success and impact of 'evidence building' activities funded by this contract?

Measuring the success of 'evidence building' can be inherently challenging because it focuses on generating knowledge and insights rather than delivering a direct, tangible service with easily quantifiable outputs. Success metrics might include the quality and rigor of the research conducted, the number and relevance of innovations identified or developed, the dissemination of findings, and ultimately, the extent to which the evidence generated informs policy and practice improvements in TANF. Challenges include defining clear, measurable outcomes for research activities, ensuring the applicability and scalability of findings across diverse state contexts, and attributing any subsequent program improvements directly to the evidence generated under this contract. Rigorous evaluation methodologies will be crucial.

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

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 16 E 34TH STREET FL 19, NEW YORK, NY, 10016

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: $50,113,109

Exercised Options: $48,937,498

Current Obligation: $48,937,498

Actual Outlays: $33,488,740

Subaward Activity

Number of Subawards: 45

Total Subaward Amount: $91,596,493

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSP233201500059I

IDV Type: IDC

Timeline