DoD's $17.4M UBO Support Services Contract Awarded to Altarum Institute for Management Consulting

Contract Overview

Contract Amount: $17,411,165 ($17.4M)

Contractor: Altarum Institute

Awarding Agency: Department of Defense

Start Date: 2009-09-29

End Date: 2016-01-31

Contract Duration: 2,315 days

Daily Burn Rate: $7.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: BASE PERIOD UBO SUPPORT SERVICES&ODCS

Place of Performance

Location: ANN ARBOR, WASHTENAW County, MICHIGAN, 48105

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $17.4 million to ALTARUM INSTITUTE for work described as: BASE PERIOD UBO SUPPORT SERVICES&ODCS Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. 3. The duration of the contract is substantial at 2315 days, indicating a long-term need for these services. 4. The North American Industry Classification System (NAICS) code 541611 points to administrative management and general management consulting services. 5. The contract was awarded as a Delivery Order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. The contract was not set aside for small businesses, indicating it was open to all eligible offerors. 7. The contract was awarded to a single vendor, Altarum Institute, for this specific delivery order.

Value Assessment

Rating: fair

Benchmarking the value of this specific $17.4 million delivery order is challenging without knowing the scope of work and comparing it to similar UBO support services contracts. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk, as costs can escalate beyond initial estimates, potentially impacting overall value for money. The fixed fee component provides some cost control, but the government bears the risk of increased costs. Further analysis would require detailed performance metrics and comparison with industry benchmarks for similar consulting services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The fact that it resulted in a single delivery order award suggests that Altarum Institute was the selected contractor among potentially multiple bidders. The level of competition for the underlying IDIQ contract, if applicable, is not detailed here, but the award process for this specific order implies a structured procurement.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality. It ensures that the government explores a wide range of potential contractors, increasing the likelihood of securing the best value.

Public Impact

The Department of Defense (DoD) is the primary beneficiary, receiving administrative management and general management consulting services. These services likely support the Uniform Business Office (UBO) and related administrative functions, crucial for efficient operations. The contract's geographic impact is primarily within the United States, supporting federal government operations. The workforce implications are related to the employment of consultants and administrative staff by Altarum Institute to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor to incur costs, potentially leading to higher than expected expenditures.
Lack of specific performance metrics in the provided data makes it difficult to assess the effectiveness and efficiency of the services delivered.
The long contract duration (2315 days) could lead to vendor lock-in and reduced flexibility for the agency to adapt to changing needs.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair procurement process.
The contract is for essential administrative and management consulting services, indicating a clear need within the Department of Defense.
The fixed fee component in the CPFF structure provides a degree of cost predictability for the contractor's profit.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. The federal government is a significant consumer of these services to support a wide array of functions, from policy development to operational efficiency. The market for management consulting is large and competitive, with numerous firms offering specialized expertise. This contract represents a portion of the government's overall spending on such services, aimed at improving administrative processes and business operations within the Department of Defense.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'sb': false. This means the competition was open to all eligible offerors, including large businesses. There is no explicit information provided regarding subcontracting plans or their impact on the small business ecosystem. Typically, larger contracts may include subcontracting goals, but this detail is not present in the summary data.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is generally facilitated through contract award databases like FPDS, where basic information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Administrative Support Contracts
Management and Consulting Services for Federal Agencies
Uniform Business Office (UBO) Operations Support
Cost-Plus-Fixed-Fee Contracts
Indefinite-Delivery/Indefinite-Quantity (IDIQ) Contract Vehicles

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost escalation risks.
Lack of detailed performance metrics makes value assessment difficult.
Long contract duration may limit agency flexibility.
Specific scope of work details are not provided in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.4 million to ALTARUM INSTITUTE. BASE PERIOD UBO SUPPORT SERVICES&ODCS

Who is the contractor on this award?

The obligated recipient is ALTARUM INSTITUTE.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $17.4 million.

What is the period of performance?

Start: 2009-09-29. End: 2016-01-31.

What is the specific scope of work for Altarum Institute's UBO support services?

The provided data indicates the contract is for 'BASE PERIOD UBO SUPPORT SERVICES & ODCS' (Other Direct Costs). While the exact scope is not detailed, UBO support services typically involve managing healthcare services cost recovery for the Department of Defense, including billing, collections, and reconciliation of medical services provided to non-active duty beneficiaries. ODCS would cover incidental expenses directly related to fulfilling the contract's primary objectives. A comprehensive understanding would require reviewing the full contract statement of work.

How does the $17.4 million award compare to historical spending on UBO support services?

Without historical spending data specifically for UBO support services from the Department of Defense, a direct comparison is not possible. However, $17.4 million for a delivery order over approximately 6.3 years (2315 days) suggests a significant, ongoing requirement. To assess historical trends, one would need to analyze past awards for similar services, potentially across different contract vehicles or agencies, to identify patterns in spending levels, contract durations, and contractor performance over time.

What are the key risks associated with a Cost Plus Fixed Fee (CPFF) contract for consulting services?

The primary risk with CPFF contracts is that the contractor is reimbursed for all allowable costs incurred, plus a fixed fee representing profit. If costs escalate beyond initial projections, the total contract value can increase significantly, potentially exceeding the government's budget or perceived value. For consulting services, this risk is amplified if the scope of work is not precisely defined or if unforeseen complexities arise. Effective oversight, detailed cost tracking, and robust negotiation are crucial to mitigate these risks and ensure fair pricing.

What is Altarum Institute's track record with federal government contracts, particularly within the DoD?

Altarum Institute is a known entity that has received numerous federal contracts, including those with the Department of Defense. Their work often spans healthcare, public health, and defense-related consulting. A detailed review of their contract history would reveal the types of services they have provided, their performance ratings on past contracts, and their experience with similar large-scale support services. This specific contract award suggests they possess the capabilities and competitive standing to secure such work.

How does the competition level (full and open) typically influence pricing and service quality for DoD contracts?

Full and open competition is designed to maximize the number of potential bidders, thereby increasing the likelihood of receiving competitive proposals. This generally leads to better pricing for the government as contractors vie for the award. It also encourages higher service quality, as contractors aim to differentiate themselves based on performance and value. While this contract was awarded under full and open competition, the specific number of bidders for this delivery order is not provided, which could offer further insight into the intensity of the competition.

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: W81XWH05R0004

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3520 GREEN CT STE 300, ANN ARBOR, MI, 48105

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $18,536,217

Exercised Options: $17,411,165

Current Obligation: $17,411,165

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W81XWH08D0023

IDV Type: IDC

Timeline