HHS awards $19.8M for logistics consulting, highlighting fixed-price contract and competitive delivery order
Contract Overview
Contract Amount: $19,800,279 ($19.8M)
Contractor: PAE Applied Technologies LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2003-06-15
End Date: 2008-05-31
Contract Duration: 1,812 days
Daily Burn Rate: $10.9K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 51
Pricing Type: FIXED PRICE
Sector: Other
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20201, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Health and Human Services obligated $19.8 million to PAE APPLIED TECHNOLOGIES LLC for work described as: Key points: 1. Contract awarded to PAE APPLIED TECHNOLOGIES LLC for process, physical distribution, and logistics consulting. 2. Fixed-price contract type suggests cost certainty for the government. 3. Competitive delivery order indicates a degree of market competition. 4. Spending occurred over a 5-year period, averaging approximately $3.96M annually. 5. The contract was awarded by the Department of Health and Human Services.
Value Assessment
Rating: fair
The contract's fixed-price nature is generally favorable for cost control. However, without specific performance metrics or benchmarks for 'Process, Physical Distribution, and Logistics Consulting Services,' a precise value assessment is difficult. The award amount of $19.8M over five years suggests a moderate annual spend.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
This was a competitive delivery order, suggesting multiple vendors were considered. The competitive nature likely contributed to price discovery, though the specific mechanism and number of bids are not detailed. The fixed-price structure further aids in price certainty.
Taxpayer Impact: The competitive award process and fixed-price contract type are generally beneficial for taxpayers, aiming to secure services at a reasonable cost through market forces.
Public Impact
Impacts HHS's operational efficiency through improved logistics and distribution processes. Supports the agency's administrative functions by optimizing resource management. Potential for improved service delivery within the healthcare sector due to better supply chain management. The long duration (5 years) suggests a sustained need for these consulting services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics for value assessment.
- Limited insight into the competitive bidding process details.
- Consulting services can be subjective in measuring direct impact.
Positive Signals
- Fixed-price contract type offers cost predictability.
- Competitive award process suggests market engagement.
- Long-term award indicates sustained agency need and potential for relationship building.
Sector Analysis
The IT and professional services sector sees significant government spending on consulting. Benchmarks for logistics consulting vary widely based on scope and duration, but $19.8M over five years for a federal agency is a substantial award, indicating a significant operational requirement.
Small Business Impact
There is no indication from the provided data whether small businesses were involved as prime contractors or subcontractors. Further investigation would be needed to determine small business participation.
Oversight & Accountability
The award was made by the Department of Health and Human Services, Office of the Assistant Secretary for Administration. Standard government procurement oversight processes would apply, including contract administration and performance monitoring, though specific oversight details are not provided.
Related Government Programs
- Process, Physical Distribution, and Logistics Consulting Services
- Department of Health and Human Services Contracting
- Office of the Assistant Secretary for Administration Programs
Risk Flags
- Lack of detailed performance metrics.
- Limited transparency on the competitive bidding specifics.
- Potential for scope creep in long-term consulting contracts.
- Subjectivity in measuring the impact of consulting services.
Tags
process-physical-distribution-and-logist, department-of-health-and-human-services, dc, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $19.8 million to PAE APPLIED TECHNOLOGIES LLC. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is PAE APPLIED TECHNOLOGIES LLC.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).
What is the total obligated amount?
The obligated amount is $19.8 million.
What is the period of performance?
Start: 2003-06-15. End: 2008-05-31.
What specific improvements or efficiencies were realized as a result of the $19.8M logistics consulting contract?
The provided data does not detail the specific outcomes or performance metrics achieved by PAE APPLIED TECHNOLOGIES LLC. To assess the value, one would need to review post-award performance reports, agency testimonials, or documented efficiency gains in HHS's process, physical distribution, and logistics operations. Without this, the realized value remains qualitative.
How did the competitive delivery order process ensure the best possible price for these specialized consulting services?
A competitive delivery order implies that multiple vendors were solicited, allowing for price comparison and negotiation. The fixed-price structure further locks in costs. However, the 'best' price is relative; without knowing the number of bids, the bid spread, or the specific evaluation criteria used, it's difficult to definitively state how effectively the competition drove down costs beyond the general benefit of a competitive process.
Given the 5-year duration, what mechanisms were in place to ensure the consulting services remained relevant and effective throughout the contract period?
Long-term contracts typically include provisions for contract modifications, performance reviews, and potential re-negotiations to adapt to changing agency needs or market conditions. The effectiveness would depend on the HHS's contract management practices, including regular check-ins, performance evaluations, and the ability to adjust the scope or approach as required to maintain relevance and achieve desired outcomes.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Offers Received: 51
Pricing Type: FIXED PRICE (J)
Contractor Details
Parent Company: Computer Sciences Corporation (UEI: 009581091)
Address: 1 RIDGMAR CTR 6500 W FR, FORT WORTH, TX, 76116
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $57,858,768
Exercised Options: $76,156,777
Current Obligation: $19,800,279
Parent Contract
Parent Award PIID: GS10F0068M
IDV Type: FSS
Timeline
Start Date: 2003-06-15
Current End Date: 2008-05-31
Potential End Date: 2008-05-31 00:00:00
Last Modified: 2016-04-18
More Contracts from PAE Applied Technologies LLC
- TAS::97 4930::TAS — $911.3M (Department of Defense)
- Facilities Support Services TAS::80 0130::TAS — $819.1M (National Aeronautics and Space Administration)
- Other Target Cost - Aircraft Maintenance — $528.4M (Department of Defense)
- Federal Contract — $494.9M (Department of Defense)
- Awarding and Adding Funding to the Contract — $425.6M (Department of Defense)
Other Department of Health and Human Services Contracts
- Contact Center Operations (CCO) — $5.5B (Maximus Federal Services, Inc.)
- TAS::75 0849::TAS Oper of Govt R&D Goco Facilities — $4.8B (Leidos Biomedical Research Inc)
- THE Purpose of This Contract IS to Provide the Full Complement of Services Necessary to Care for UC in ORR Custody Including Facilities Set-Up, Maintenance, and Support Internal and Perimeter (IF Applicable) Security, Direct Care and Supervision Inc — $3.5B (Rapid Deployment Inc)
- Contact Center Operations — $2.6B (Maximus Federal Services, Inc.)
- Federal Contract — $2.4B (Leidos Biomedical Research Inc)
View all Department of Health and Human Services contracts →