HHS awards $24.5M to Serco for administrative management consulting services via full and open competition

Contract Overview

Contract Amount: $24,452,269 ($24.5M)

Contractor: Serco Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2009-12-01

End Date: 2012-03-31

Contract Duration: 851 days

Daily Burn Rate: $28.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: LABOR HOURS

Sector: Other

Official Description: TAS::75 4552 001::TAS E0710CL NEW PR CT 90009-0001 DO-0001 MIPR N4599710MPP5701 CLIN I-PRO SERVICE IAW SOW POP 12 MONTHS FROM AWARD SOURCE SERCO HHSP350200900046I

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64106, UNITED STATES OF AMERICA

State: Missouri Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $24.5 million to SERCO INC for work described as: TAS::75 4552 001::TAS E0710CL NEW PR CT 90009-0001 DO-0001 MIPR N4599710MPP5701 CLIN I-PRO SERVICE IAW SOW POP 12 MONTHS FROM AWARD SOURCE SERCO HHSP350200900046I Key points: 1. Contract awarded to Serco Inc. for administrative management and general management consulting services. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The total value of the contract is approximately $24.5 million over its duration. 4. The contract period spans from December 1, 2009, to March 31, 2012, with a duration of 851 days.

Value Assessment

Rating: fair

The contract value of $24.5 million for administrative management consulting services over approximately two years and four months appears to be within a reasonable range for such services, though specific benchmarks are not readily available without more detailed service scope comparison.

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. This method generally promotes price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: The use of full and open competition suggests that taxpayers are likely receiving a fair price for the services rendered, as multiple vendors had the opportunity to bid.

Public Impact

This contract supports administrative functions within the Department of Health and Human Services, impacting internal operations. The services provided are crucial for the efficient management and general operations of the Office of the Assistant Secretary for Administration. The duration of the contract suggests a sustained need for these consulting services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or outcomes in the provided data.
Potential for cost overruns if not managed effectively.
Dependence on a single contractor for critical administrative functions.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Clear contract period and defined service type.
Contract managed by a reputable agency (HHS).

Sector Analysis

The sector for this contract is administrative management and general management consulting services. Spending in this area can vary widely depending on agency needs, but typically supports internal operations and strategic planning. Benchmarks are difficult without specific service details.

Small Business Impact

The data indicates that this contract was not awarded to a small business (ss: false, sb: false). Therefore, there is no direct benefit to small businesses from this specific award.

Oversight & Accountability

Oversight would typically be managed by the contracting officer's representative (COR) within the Department of Health and Human Services. Accountability relies on contract performance reviews and adherence to the Statement of Work (SOW).

Related Government Programs

Administrative Management and General Management Consulting Services
Department of Health and Human Services Contracting
Office of the Assistant Secretary for Administration Programs

Risk Flags

Contract value is substantial.
Duration is significant (over two years).
No indication of small business participation.
Specific performance metrics are not detailed.
Potential for cost creep if scope is not tightly managed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $24.5 million to SERCO INC. TAS::75 4552 001::TAS E0710CL NEW PR CT 90009-0001 DO-0001 MIPR N4599710MPP5701 CLIN I-PRO SERVICE IAW SOW POP 12 MONTHS FROM AWARD SOURCE SERCO HHSP350200900046I

Who is the contractor on this award?

The obligated recipient is SERCO 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 $24.5 million.

What is the period of performance?

Start: 2009-12-01. End: 2012-03-31.

What specific administrative management and general management consulting services were provided under this contract, and how did they contribute to the agency's mission?

The provided data does not detail the specific services rendered. However, administrative management consulting typically involves improving organizational efficiency, streamlining processes, and providing strategic advice for operational functions. General management consulting can encompass a broader range of services, including policy development, program management, and organizational restructuring, all aimed at enhancing the effectiveness and efficiency of the Office of the Assistant Secretary for Administration within HHS.

Given the $24.5 million value and the 851-day duration, what was the average daily or monthly cost, and how does this compare to industry benchmarks for similar consulting services?

The average daily cost is approximately $28,734 ($24,452,268.98 / 851 days). Comparing this to industry benchmarks is challenging without knowing the exact nature of the consulting services, the seniority of the consultants, and the specific deliverables. However, this daily rate is on the higher end, suggesting potentially complex or specialized consulting work was involved.

What mechanisms were in place to ensure the effectiveness and value for money of Serco's services throughout the contract period?

Effectiveness and value for money would typically be ensured through regular performance reviews by the COR, adherence to the Service Level Agreements (SLAs) outlined in the SOW, and potentially through milestone-based payments. The 'full and open competition' award method also implies a competitive baseline was established, but ongoing oversight is critical for sustained value.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Serco Group PLC (UEI: 298452707)

Address: 1818 LIBRARY ST STE 1000, RESTON, VA, 20190

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business

Financial Breakdown

Contract Ceiling: $28,787,110

Exercised Options: $28,787,110

Current Obligation: $24,452,269

Parent Contract

Parent Award PIID: HHSP350200900046I

IDV Type: IDC

Timeline