HHS awards $58.2M contract for scientific and technical consulting services to Education Development Center, Inc

Contract Overview

Contract Amount: $58,191,028 ($58.2M)

Contractor: Education Development Center, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2008-08-22

End Date: 2014-10-31

Contract Duration: 2,261 days

Daily Burn Rate: $25.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: RFP 277-08-0218THE CENTER FOR THE APPLICATIONS PREVENTION TECHNOLOGIES (CAPTS)

Place of Performance

Location: NEWTON, MIDDLESEX County, MASSACHUSETTS, 02458

State: Massachusetts Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $58.2 million to EDUCATION DEVELOPMENT CENTER, INC. for work described as: RFP 277-08-0218THE CENTER FOR THE APPLICATIONS PREVENTION TECHNOLOGIES (CAPTS) Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee, which incentivizes performance but can lead to higher costs. 3. Duration of over 6 years indicates a long-term need for these consulting services. 4. The North American Industry Classification System (NAICS) code 541690 points to 'Other Scientific and Technical Consulting Services'. 5. The award is managed by the Substance Abuse and Mental Health Services Administration (SAMHSA). 6. The contract was awarded in August 2008 and ended in October 2014.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The Cost Plus Award Fee structure allows for costs to be reimbursed plus a fee that is adjusted based on performance. While this can drive efficiency, it also introduces a degree of uncertainty in the final cost compared to fixed-price contracts. The total award amount of $58.2 million over approximately six years suggests an average annual spend of around $9.7 million, which needs to be evaluated against the scope and impact of the services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The presence of 5 bidders suggests a moderate level of competition for this requirement. A competitive process generally helps in achieving better pricing and service quality by allowing the government to select the most advantageous offer.

Taxpayer Impact: A competitive award process is beneficial for taxpayers as it typically leads to more cost-effective solutions and encourages contractors to offer their best pricing and capabilities.

Public Impact

The primary beneficiary is likely the Department of Health and Human Services, specifically SAMHSA, which receives expert consulting services. Services delivered likely support SAMHSA's mission in areas related to substance abuse and mental health prevention technologies. The geographic impact is national, supporting federal initiatives across the United States. Workforce implications would involve specialized scientific and technical consultants contributing to public health efforts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can sometimes lead to higher overall costs if performance targets are not well-defined or if award fees are consistently maximized.
The long duration of the contract (over 6 years) might indicate a lack of flexibility to adapt to changing needs or technologies without re-competition.
Limited information on specific deliverables makes it difficult to assess the true value for money achieved.

Positive Signals

Awarded through full and open competition, ensuring a broad range of potential contractors could participate.
The contract structure includes an award fee, which incentivizes the contractor to meet or exceed performance expectations.
The contractor, Education Development Center, Inc., has a history of working with government agencies, suggesting some level of established capability.

Sector Analysis

This contract falls within the 'Other Scientific and Technical Consulting Services' sector, a broad category encompassing specialized advisory and analytical services. The market for such services is diverse, serving various government agencies and private sector clients. Federal spending in this area supports policy development, research, program evaluation, and technical assistance across numerous domains, including public health. Benchmarking requires comparison to similar consulting contracts within HHS or other agencies requiring expertise in scientific and technical domains.

Small Business Impact

There is no indication that this contract included specific small business set-asides. The contract was awarded to Education Development Center, Inc., which is not typically classified as a small business. Further analysis would be needed to determine if subcontracting opportunities were available to small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within SAMHSA. Performance monitoring, review of incurred costs, and assessment of award fee criteria would be key oversight mechanisms. Transparency is generally facilitated through contract award databases, though detailed performance reports are often internal.

Related Government Programs

Public Health Consulting Services
Scientific Research Support
Technical Assistance Contracts
Health and Human Services Contracts

Risk Flags

Cost Plus Award Fee structure requires careful monitoring of performance metrics to ensure value for money.
Long contract duration may limit adaptability to evolving needs.
Specific performance outcomes and value assessment are not detailed in the provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $58.2 million to EDUCATION DEVELOPMENT CENTER, INC.. RFP 277-08-0218THE CENTER FOR THE APPLICATIONS PREVENTION TECHNOLOGIES (CAPTS)

Who is the contractor on this award?

The obligated recipient is EDUCATION DEVELOPMENT CENTER, 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 $58.2 million.

What is the period of performance?

Start: 2008-08-22. End: 2014-10-31.

What specific scientific and technical consulting services did Education Development Center, Inc. provide under this contract?

While the contract falls under NAICS code 541690 (Other Scientific and Technical Consulting Services), the specific deliverables are not detailed in the provided data. However, given the awarding agency is the Substance Abuse and Mental Health Services Administration (SAMHSA), it is highly probable that the services rendered were related to supporting SAMHSA's mission. This could include areas such as program evaluation, research support, data analysis, development of technical assistance materials, strategic planning, and policy analysis related to substance abuse and mental health prevention and treatment programs. The Cost Plus Award Fee structure suggests that the services were complex and performance-based, requiring ongoing assessment and potential incentives for exceeding expectations.

How does the $58.2 million award compare to typical spending for similar consulting services at HHS?

Comparing the $58.2 million award requires context regarding the duration and scope. This contract spanned over six years (August 2008 to October 2014), averaging approximately $9.7 million per year. This annual figure is substantial but not necessarily out of line for large-scale, long-term scientific and technical consulting engagements within a major federal agency like HHS, especially for specialized areas like public health. However, without knowing the specific services rendered and comparing them to other HHS contracts for similar expertise (e.g., epidemiological consulting, health policy analysis, program implementation support), a definitive benchmark is difficult. The number of bidders (5) suggests moderate interest, which could imply a competitive market for these services.

What are the potential risks associated with a Cost Plus Award Fee (CPAF) contract of this magnitude?

The primary risk with a CPAF contract is the potential for cost overruns, as the government reimburses the contractor's allowable costs plus a fee. While the 'award' component aims to incentivize performance and control costs, it relies heavily on well-defined performance metrics and objective evaluation. If these are weak, the contractor may receive a high fee without necessarily delivering exceptional value. There's also a risk that the contractor might focus on maximizing the fee rather than the most cost-effective solution. For a contract of this size ($58.2M over 6+ years), ensuring robust oversight and clear performance standards is critical to mitigate these risks and ensure taxpayer funds are used efficiently.

What was the track record of Education Development Center, Inc. prior to or during this contract?

Education Development Center, Inc. (EDC) is a well-established non-profit organization with a long history of working on health, education, and international development projects, often funded by government agencies. Prior to and during this HHS contract, EDC had a significant portfolio of federal grants and contracts. Their track record generally involves program design, research, evaluation, and technical assistance. While specific performance details for this particular contract are not publicly available, EDC's overall reputation is that of an experienced implementer of large-scale public health and education initiatives. Their ability to secure and perform on contracts of this size suggests a demonstrated capacity and reliability.

How did the competition level (5 bidders) impact the pricing and outcome of this contract?

Having five bidders for this 'full and open' competition suggests a reasonably competitive environment. More bidders generally increase the likelihood of receiving competitive pricing and innovative solutions, as contractors vie for the award. While five bidders is a healthy number, it's not exceptionally high for a contract of this potential scope and duration. The impact on pricing is difficult to quantify without access to the submitted bids. However, the competitive pressure likely encouraged bidders to offer more favorable terms than they might have under a sole-source or limited-competition scenario. The final price and the selected offer would reflect the government's evaluation of technical merit, past performance, and cost.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 55 CHAPEL ST, NEWTON, MA, 04

Business Categories: Category Business, Corporate Entity Tax Exempt, Federally Funded Research and Development Corp, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $63,522,393

Exercised Options: $58,191,028

Current Obligation: $58,191,028

Contract Characteristics

Cost or Pricing Data: YES

Timeline