JBS International received $15.5M for technical assistance, with 5 bidders indicating moderate competition

Contract Overview

Contract Amount: $15,529,288 ($15.5M)

Contractor: JBS International, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2006-08-24

End Date: 2011-09-14

Contract Duration: 1,847 days

Daily Burn Rate: $8.4K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 5

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: STATE SYSTEMS TECHNICAL ASSISTANCE PROJECT - SSTAP

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $15.5 million to JBS INTERNATIONAL, INC. for work described as: STATE SYSTEMS TECHNICAL ASSISTANCE PROJECT - SSTAP Key points: 1. The contract focused on consulting services, suggesting a need for specialized expertise. 2. A moderate number of bidders implies some level of market interest but potentially limited price competition. 3. The contract duration of nearly 5 years indicates a long-term need for these services. 4. The cost-plus award fee structure incentivizes performance but requires careful oversight to manage costs. 5. The specific NAICS code (541690) points to a niche consulting area within scientific and technical services. 6. The contract was awarded as a delivery order under a larger contract vehicle, common for task-specific needs.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more detailed cost breakdowns and performance metrics. The cost-plus award fee structure can lead to cost overruns if not managed tightly. Comparing it to similar technical assistance contracts would require access to more granular data on scope and deliverables. However, the total award amount of $15.5 million over nearly five years suggests a significant investment in specialized consulting.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a competitive delivery order process, with 5 bidders participating. The presence of multiple bidders suggests that the opportunity was broadly advertised and that several firms were capable of meeting the requirements. While 5 bidders is a reasonable number, it may not represent the full spectrum of potential competition, which could impact price discovery and potentially lead to higher costs than a more robustly competed contract.

Taxpayer Impact: The competitive nature of this award, with 5 bidders, likely provided some level of price discipline, benefiting taxpayers by avoiding a sole-source situation. However, the extent of savings is difficult to quantify without knowing the specific bid details.

Public Impact

The primary beneficiaries are likely the Substance Abuse and Mental Health Services Administration (SAMHSA) and its funded programs, which receive technical support. Services delivered include consulting and technical assistance, aimed at improving the effectiveness of public health initiatives. The geographic impact is national, supporting federal programs that operate across the United States. Workforce implications are indirect, potentially enhancing the skills and knowledge of personnel within the supported agencies or programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus award fee contracts can incentivize higher spending if not closely monitored.
The duration of the contract (nearly 5 years) means sustained financial commitment.
Limited transparency on specific performance metrics makes it hard to assess true value for money.

Positive Signals

The contract was competitively awarded, indicating a degree of market vetting.
The award to JBS International suggests they possess specialized expertise in technical assistance.
The delivery order mechanism allows for task-specific execution within a broader framework.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically consulting. The market for such services is vast and competitive, with numerous firms offering expertise in areas like public health, program management, and technical assistance. Federal spending in this category often supports agency operations, policy implementation, and research. Comparable spending benchmarks would depend on the specific nature of the technical assistance provided, but consulting services represent a significant portion of federal procurement.

Small Business Impact

There is no explicit indication that this contract included small business set-asides. The prime contractor, JBS International, is a mid-sized business. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses, which is a common practice for larger federal contracts to promote small business participation.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services and the Substance Abuse and Mental Health Services Administration. As a delivery order under a larger contract, oversight mechanisms would be tied to the terms of the base contract. Transparency is moderate, with basic award data available, but detailed performance reports and cost justifications are typically internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Substance Abuse and Mental Health Services Administration Grants
Federal Consulting Services Procurement
Public Health Technical Assistance Programs
Department of Health and Human Services Contracts

Risk Flags

Cost-plus award fee contracts require diligent oversight to prevent cost overruns.
The specific nature of 'technical assistance' can be broad, requiring clear performance metrics.
Long contract durations necessitate sustained monitoring and potential adjustments.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $15.5 million to JBS INTERNATIONAL, INC.. STATE SYSTEMS TECHNICAL ASSISTANCE PROJECT - SSTAP

Who is the contractor on this award?

The obligated recipient is JBS INTERNATIONAL, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Substance Abuse and Mental Health Services Administration).

What is the total obligated amount?

The obligated amount is $15.5 million.

What is the period of performance?

Start: 2006-08-24. End: 2011-09-14.

What specific technical assistance was provided under the STATE SYSTEMS TECHNICAL ASSISTANCE PROJECT (SSTAP)?

The STATE SYSTEMS TECHNICAL ASSISTANCE PROJECT (SSTAP) contract, awarded to JBS INTERNATIONAL, INC., focused on providing 'Other Scientific and Technical Consulting Services.' While the specific deliverables are not detailed in the provided data, such contracts typically involve expert advice, program evaluation, strategic planning, and capacity building for federal agencies. Given the awarding agency's focus (Substance Abuse and Mental Health Services Administration - SAMHSA), the technical assistance likely supported state and local entities in improving their systems for delivering substance abuse and mental health services. This could include guidance on data collection, program implementation, policy development, and grant management to enhance the effectiveness and efficiency of these critical public health programs.

How does the $15.5 million award compare to similar technical assistance contracts within HHS?

Comparing the $15.5 million award for the SSTAP contract requires context regarding the scope, duration, and specific services rendered. Federal technical assistance contracts can vary widely in value. Contracts supporting large-scale, multi-year initiatives or requiring highly specialized expertise often reach tens of millions of dollars. Given that this contract spanned nearly five years (1847 days), the annual average expenditure was approximately $3.1 million. This figure is within a reasonable range for significant federal consulting engagements, particularly those supporting complex public health systems managed by agencies like SAMHSA. However, a precise comparison would necessitate analyzing contracts with similar objectives, durations, and required skill sets within the Department of Health and Human Services.

What are the potential risks associated with a Cost Plus Award Fee (CPAF) contract structure for this project?

The Cost Plus Award Fee (CPAF) structure for the SSTAP contract presents specific risks. While it incentivizes contractor performance by offering award fees based on meeting or exceeding certain criteria, it can also lead to increased costs if not managed diligently. The government bears the risk of higher costs, as the contractor is reimbursed for allowable expenses plus a fee that includes a base amount and a potential award amount. The primary risk is that the contractor may prioritize achieving award fee targets over cost efficiency, potentially inflating expenses. Robust oversight, clear performance metrics, and stringent cost controls are essential to mitigate these risks and ensure the government receives good value for its investment.

What does the competition level (5 bidders) indicate about the market for these services?

The fact that 5 bidders competed for this delivery order suggests a moderately competitive market for the specific technical assistance services required by SAMHSA. A higher number of bidders generally indicates broader market interest and potentially more robust price competition, which could lead to lower costs for the government. Conversely, a very low number of bidders might signal market concentration or barriers to entry. With 5 bidders, it implies that several firms possessed the necessary qualifications and capacity, but it doesn't necessarily guarantee the lowest possible price. It strikes a balance, indicating that the opportunity was accessible to multiple capable providers without being overly saturated.

What is the historical spending pattern for similar technical assistance projects by SAMHSA?

Analyzing historical spending patterns for SAMHSA's technical assistance projects requires access to comprehensive federal procurement data beyond this single contract. However, it's common for agencies like SAMHSA to engage in multi-year, multi-million dollar contracts for technical assistance to support state and local grantees. Spending often fluctuates based on congressional appropriations, program priorities, and the lifecycle of specific initiatives. Contracts can range from smaller, task-order-based awards to large, comprehensive service agreements. Understanding SAMHSA's historical spending would involve examining trends in contract values, durations, and the types of services procured over several fiscal years to identify patterns and budget allocations for technical support.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 270060152

Offers Received: 5

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 8630 FENTON ST STE 1200, SILVER SPRING, MD, 08

Business Categories: Category Business, Not Designated a Small Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $15,571,584

Exercised Options: $15,529,288

Current Obligation: $15,529,288

Contract Characteristics

Multi-Year Contract: Yes

Parent Contract

Parent Award PIID: 270031000

IDV Type: IDC

Timeline