HHS awarded $13.5M for cross-training services, with The CDM Group Inc. as the contractor

Contract Overview

Contract Amount: $13,515,647 ($13.5M)

Contractor: THE CDM Group Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2003-09-29

End Date: 2009-03-28

Contract Duration: 2,007 days

Daily Burn Rate: $6.7K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: CO-OCCURRING CROSS TRAINING CENTER FOR EXCELLENCE

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20814

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $13.5 million to THE CDM GROUP INC for work described as: CO-OCCURRING CROSS TRAINING CENTER FOR EXCELLENCE Key points: 1. The contract aimed to enhance cross-training capabilities within the Substance Abuse and Mental Health Services Administration (SAMHSA). 2. The duration of the contract spanned over five years, suggesting a sustained need for these services. 3. The contract type, Cost Plus Award Fee (CPAF), allows for performance-based incentives. 4. The awarded amount of $13.5 million indicates a significant investment in professional development and technical consulting. 5. The primary service category was Other Scientific and Technical Consulting Services, highlighting specialized expertise. 6. The contract was a competitive delivery order, suggesting a structured procurement process.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contracts. The Cost Plus Award Fee structure implies that the final cost could vary based on performance, making a direct price comparison difficult. However, the total award of $13.5 million over five years suggests an average annual spend of approximately $2.7 million, which appears reasonable for specialized consulting services aimed at enhancing federal agency capabilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that it was competed among multiple potential offerors. The 'full-and-open' competition suggests a robust process where all responsible sources were given the opportunity to submit proposals. This level of competition is generally expected to drive 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 promotes a fair marketplace, encouraging multiple firms to offer their best pricing and capabilities, ultimately leading to a more cost-effective use of public funds.

Public Impact

The primary beneficiaries of this contract are likely the staff and leadership within SAMHSA, who would receive enhanced cross-training. The services delivered would focus on improving the agency's ability to coordinate and deliver substance abuse and mental health services. The geographic impact is primarily focused on the federal workforce within SAMHSA, potentially impacting national service delivery. Workforce implications include the development of a more skilled and adaptable federal workforce capable of addressing complex public health challenges.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Award Fee structure can sometimes lead to higher costs if performance incentives are not tightly managed.
The specific outcomes and effectiveness of the cross-training are not detailed, making it difficult to assess the full return on investment.
The contract duration of over five years requires ongoing monitoring to ensure continued relevance and value.

Positive Signals

The contract was competitively awarded, indicating a thorough vetting of potential providers.
The focus on cross-training suggests a strategic investment in human capital development for a critical federal agency.
The Cost Plus Award Fee structure, when managed effectively, can incentivize high performance and quality outcomes.

Sector Analysis

The professional services sector, particularly consulting for government agencies, is a significant market. This contract falls within the broader category of scientific and technical consulting services. The market for such services is characterized by a mix of large, established firms and smaller, specialized consultancies. Government contracts often represent a substantial portion of revenue for firms in this space, with agencies like HHS frequently seeking expertise to improve program delivery and operational efficiency.

Small Business Impact

There is no indication from the provided data that this contract included specific small business set-asides or subcontracting requirements. As a competitive delivery order, the primary focus was likely on selecting the best overall value offer, which may or may not have prioritized small business participation. Further analysis would be needed to determine if small businesses were involved as subcontractors or if the prime contractor had a history of engaging with the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within SAMHSA. The Cost Plus Award Fee structure necessitates clear performance metrics and regular evaluations to ensure the contractor is meeting objectives and to justify award fees. Transparency would be facilitated through contract reporting mechanisms, though specific details on public access to performance reviews are not provided. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse were identified.

Related Government Programs

Federal Workforce Training Programs
Public Health Consulting Services
Substance Abuse Prevention and Treatment Services
Mental Health Service Delivery Improvement
Government Professional Development Contracts

Risk Flags

Contract duration exceeds 5 years.
Cost Plus Award Fee structure requires careful performance monitoring.
Specific performance metrics and outcomes not detailed in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $13.5 million to THE CDM GROUP INC. CO-OCCURRING CROSS TRAINING CENTER FOR EXCELLENCE

Who is the contractor on this award?

The obligated recipient is THE CDM GROUP 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 $13.5 million.

What is the period of performance?

Start: 2003-09-29. End: 2009-03-28.

What was the specific performance criteria used to determine the award fees for The CDM Group Inc. under this contract?

The provided data does not specify the exact performance criteria used for determining award fees under this Cost Plus Award Fee (CPAF) contract. Typically, CPAF contracts outline specific, measurable objectives related to service delivery, quality, timeliness, and innovation. These criteria are agreed upon at the outset and are used by the government to evaluate the contractor's performance. Award fees are then granted based on how well the contractor meets or exceeds these predefined benchmarks. Without access to the contract's Statement of Work (SOW) or performance work statement (PWS), the precise metrics remain unknown, but they would likely relate to the effectiveness and efficiency of the cross-training programs developed and implemented.

How does the $13.5 million total award compare to similar cross-training or professional development contracts within HHS or SAMHSA?

Comparing the $13.5 million total award for this cross-training center contract requires context regarding the scope and duration of similar contracts. Over its approximately five-year period (September 2003 to March 2009), the average annual spend was around $2.7 million. This figure appears moderate for specialized consulting services aimed at enhancing federal agency capabilities. However, without specific data on comparable contracts for cross-training initiatives within HHS or SAMHSA, a precise benchmark is difficult. Factors such as the number of personnel trained, the complexity of the training modules, and the specific expertise required would influence the cost. Generally, large-scale federal training initiatives can range from hundreds of thousands to tens of millions of dollars annually, depending on their breadth and depth.

What were the primary risks identified during the procurement and execution of this contract, and how were they mitigated?

Potential risks associated with a contract of this nature, particularly a CPAF, include cost overruns if performance incentives are not well-defined or managed, potential for the training to become outdated if not regularly updated, and challenges in measuring the tangible impact of the training on workforce performance. Mitigation strategies would typically involve rigorous oversight by contracting officers and program managers, clear and objective performance metrics tied to award fees, regular reviews and feedback sessions with the contractor, and mechanisms for adapting the training content to evolving needs. The competitive nature of the award also serves as a risk mitigation factor, as it implies a selection of a contractor deemed capable of managing these risks effectively.

What was the historical spending pattern for cross-training or similar consulting services by SAMHSA prior to this contract?

The provided data does not include historical spending patterns for SAMHSA's cross-training or similar consulting services prior to this contract (awarded in 2003). To assess historical trends, one would need to analyze previous contract awards and expenditures by SAMHSA in related categories. Understanding past spending would help determine if this $13.5 million award represented an increase, decrease, or consistent level of investment in such services. It would also provide context for the agency's strategic priorities and its reliance on external expertise for workforce development.

Did The CDM Group Inc. have a significant track record with HHS or other federal agencies for similar consulting services before being awarded this contract?

The provided data does not detail The CDM Group Inc.'s prior contract history with HHS or other federal agencies. To assess their track record, a search of federal procurement databases (like FPDS or USASpending) would be necessary to identify previous awards, contract types, values, and performance ratings. A strong history of successful performance on similar consulting contracts, particularly within the health and human services sector, would indicate a lower risk and potentially higher likelihood of successful execution for this particular award. Conversely, a limited or poor track record might raise concerns about the contractor's capabilities.

Industry Classification

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

Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 7500 OLD GEORGETOWN ROAD, BETHESDA, MD, 08

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $13,515,648

Exercised Options: $13,515,647

Current Obligation: $13,515,647

Parent Contract

Parent Award PIID: 270034000

IDV Type: IDC

Timeline