HHS awarded $12.6M for consulting services to Minnesota Institute of Public Health over 6 years

Contract Overview

Contract Amount: $12,626,813 ($12.6M)

Contractor: Minnesota Institute of Public Health (INC)

Awarding Agency: Department of Health and Human Services

Start Date: 2003-09-15

End Date: 2009-09-30

Contract Duration: 2,207 days

Daily Burn Rate: $5.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST NO FEE

Sector: Other

Place of Performance

Location: SAINT PAUL, RAMSEY County, MINNESOTA, 55112

State: Minnesota Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $12.6 million to MINNESOTA INSTITUTE OF PUBLIC HEALTH (INC) for work described as: Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of over 6 years indicates a long-term need for the services. 3. The 'Other Scientific and Technical Consulting Services' NAICS code suggests a broad scope of work. 4. The contract type 'COST NO FEE' implies that the government reimburses allowable costs without a fixed profit margin. 5. The award was made by the Substance Abuse and Mental Health Services Administration (SAMHSA) within HHS. 6. The contractor, Minnesota Institute of Public Health (INC), is based in Minnesota. 7. The contract value of $12.6M over 2207 days averages approximately $5,721 per day.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables and performance metrics. The 'COST NO FEE' contract type can sometimes lead to less price discipline compared to fixed-price contracts. However, the total award amount of $12.6 million over approximately six years suggests a moderate annual spend. Further analysis would require comparing the specific services rendered against industry standards and the outcomes achieved.

Cost Per Unit: $5,721 per day

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 presence of two bids suggests some level of competition, but the exact number of bidders and the nature of the competition (e.g., bid protests, evaluation criteria) are not detailed here. A robust competition typically leads to better price discovery and value for the government.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve service quality.

Public Impact

The primary beneficiary is likely the Substance Abuse and Mental Health Services Administration (SAMHSA), which receives consulting services to support its mission. The services delivered fall under 'Other Scientific and Technical Consulting Services,' which could encompass a wide range of support for public health initiatives. The geographic impact is centered in Minnesota, where the contractor is located, but the services may have national implications for SAMHSA's programs. Workforce implications are tied to the employment opportunities created by the contractor to fulfill the service requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the true value and effectiveness of the consulting services.
The 'COST NO FEE' contract type can sometimes incentivize higher spending if not closely monitored.
Limited information on the specific scope of 'Other Scientific and Technical Consulting Services' hinders a precise evaluation.
The duration of the contract (over 6 years) could lead to scope creep or a misalignment with evolving agency needs if not actively managed.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent procurement process.
The contractor, Minnesota Institute of Public Health, is a specialized entity, potentially bringing relevant expertise.
The contract has a clear start and end date, providing a defined period for service delivery.
The award amount is spread over a significant period, suggesting a steady, managed investment rather than a sudden large expenditure.

Sector Analysis

The contract falls within the professional, scientific, and technical services sector, specifically consulting. This sector is broad and supports various government functions. The NAICS code 541690, 'Other Scientific and Technical Consulting Services,' indicates a specialized niche. Benchmarking requires comparing this contract's value and scope to similar consulting engagements within federal agencies, particularly those focused on public health and substance abuse.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information about subcontracting plans. Given the contract value and duration, it is possible that larger firms or specialized entities were the primary focus of the competition. Further investigation into subcontracting opportunities would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight would typically be managed by the contracting officer and program officials within SAMHSA. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is facilitated by the contract award data being publicly available, but detailed performance reports and audits are generally not public.

Related Government Programs

Substance Abuse Prevention and Treatment Block Grant
National Institute on Drug Abuse (NIDA) Research Grants
Center for Substance Abuse Treatment (CSAT) Programs
Public Health Consulting Services
Federal Scientific and Technical Consulting Contracts

Risk Flags

Cost Control Risk (Cost-Plus Contract Type)
Performance Monitoring Complexity
Scope Definition Ambiguity (Broad NAICS Code)

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $12.6 million to MINNESOTA INSTITUTE OF PUBLIC HEALTH (INC). See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is MINNESOTA INSTITUTE OF PUBLIC HEALTH (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 $12.6 million.

What is the period of performance?

Start: 2003-09-15. End: 2009-09-30.

What specific scientific and technical consulting services were provided under this contract?

The contract falls under NAICS code 541690, 'Other Scientific and Technical Consulting Services.' While the specific details are not provided in the summary data, this category typically includes services such as research and development consulting, environmental consulting, and other specialized technical advice. Given the awarding agency, SAMHSA, the services likely relate to public health, substance abuse, and mental health program support, policy analysis, data interpretation, or strategic planning. A deeper dive into the contract's statement of work would be necessary to ascertain the precise nature of the consulting provided.

How does the $12.6 million award compare to similar consulting contracts awarded by SAMHSA or HHS?

Comparing the $12.6 million award requires context regarding the duration and scope. Spread over approximately six years, the average annual value is around $2.1 million. This is a substantial amount, but within the range of large-scale consulting contracts for federal agencies. To provide a precise comparison, one would need to analyze other SAMHSA/HHS contracts for similar 'Other Scientific and Technical Consulting Services' awarded within a comparable timeframe and with similar objectives. Factors like the specific expertise required, the number of bidders, and the contract type (e.g., cost-plus vs. fixed-price) would influence the value.

What are the key performance indicators (KPIs) or deliverables expected from the Minnesota Institute of Public Health under this contract?

The provided summary data does not include specific Key Performance Indicators (KPIs) or deliverables. For a 'COST NO FEE' contract, performance is typically outlined in a Statement of Work (SOW) and monitored through regular progress reports and reviews by the Contracting Officer's Representative (COR). Expected outcomes would likely align with SAMHSA's strategic goals related to substance abuse and mental health services. Without access to the SOW or performance evaluations, it's impossible to detail the specific KPIs or assess performance against them.

What is the track record of the Minnesota Institute of Public Health (INC) with federal contracts?

The summary data indicates that Minnesota Institute of Public Health (INC) was awarded this specific contract. To assess their broader track record, one would need to examine federal procurement databases (like FPDS-NG) for other contracts awarded to this entity. This would reveal the number of contracts, their values, agencies involved, and performance history. A positive track record would involve successful past performance, timely delivery, and adherence to contract terms, while a negative one might include contract terminations, disputes, or poor performance ratings.

What is the risk associated with a 'COST NO FEE' contract type for this service?

The 'COST NO FEE' contract type, while less common than cost-plus-fee or fixed-price, means the government reimburses the contractor for allowable costs incurred in performing the work, but the contractor does not receive a predetermined profit. The primary risk for the government is that without a fixed profit incentive, the contractor may have less motivation to control costs aggressively. This necessitates robust oversight from the government to ensure costs are reasonable, allocable, and necessary. The absence of a fee also means the contractor bears the risk of cost overruns not being reimbursed, which could impact their financial stability or willingness to perform.

How has SAMHSA's spending on 'Other Scientific and Technical Consulting Services' trended over the past decade?

Analyzing SAMHSA's spending trends on 'Other Scientific and Technical Consulting Services' (NAICS 541690) would require accessing historical federal procurement data. This analysis would reveal whether spending in this category has increased, decreased, or remained stable. Such trends could be influenced by shifts in agency priorities, budget allocations, or the increasing reliance on external expertise for complex public health challenges. This specific $12.6 million contract represents a portion of that historical spending, and its duration suggests a consistent need for such services during its term.

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: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: COST NO FEE (S)

Contractor Details

Address: 2720 HIGHWAY 10 NE, SAINT PAUL, MN, 04

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

Financial Breakdown

Contract Ceiling: $2,215,517

Exercised Options: $8,541,328

Current Obligation: $12,626,813

Timeline