HHS awarded SYNECTICS $106M for management decisions, spanning over 7 years

Contract Overview

Contract Amount: $106,192,328 ($106.2M)

Contractor: Synectics for Management Decisions, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2002-09-15

End Date: 2010-06-30

Contract Duration: 2,845 days

Daily Burn Rate: $37.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $106.2 million to SYNECTICS FOR MANAGEMENT DECISIONS, INC. for work described as: Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type, Cost Plus Award Fee, incentivizes performance but can lead to higher costs. 3. Long duration of 2845 days (over 7 years) indicates a significant, long-term need. 4. The award amount of $106M over the contract's life suggests substantial resource allocation. 5. SYNECTICS FOR MANAGEMENT DECISIONS, INC. is the sole awardee, highlighting their role in this specific service area. 6. The contract's focus on management decisions implies support for administrative or strategic functions within the agency.

Value Assessment

Rating: fair

The total award amount of $106,192,328 over nearly 8 years averages to approximately $13.27 million per year. Without specific deliverables or performance metrics, it is difficult to benchmark the value for money. The Cost Plus Award Fee (CPAF) structure means that the final cost is subject to performance, making direct price comparisons challenging. However, the significant duration and total value suggest a substantial investment by the agency.

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 presence of two bids suggests a moderate level of competition for this requirement. While two bidders is better than a sole source, a higher number of bidders typically leads to more robust price discovery and potentially lower costs for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a competitive process, potentially driving down prices and improving service quality.

Public Impact

The Substance Abuse and Mental Health Services Administration (SAMHSA) benefits from this contract through enhanced management decision support. Services delivered likely include strategic planning, program evaluation, and operational efficiency improvements. The geographic impact is primarily within the agency's operational sphere, likely supporting national-level initiatives. Workforce implications may involve internal agency staff working alongside contractor personnel to implement management strategies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can sometimes lead to higher overall costs if award fees are consistently maximized without commensurate value.
The long contract duration could potentially lead to vendor lock-in or reduced flexibility for the agency if needs change significantly over time.
Lack of specific performance metrics in the provided data makes it difficult to assess if the award fees truly reflect exceptional value.
The limited number of bidders (2) might indicate potential barriers to entry for other firms or a niche market.

Positive Signals

Awarded through full and open competition, ensuring a broad range of potential contractors could participate.
The Cost Plus Award Fee structure incentivizes contractor performance and alignment with agency goals.
The contract's long duration suggests a stable and ongoing need for the services provided, indicating importance to the agency's mission.
SYNECTICS FOR MANAGEMENT DECISIONS, INC. has secured a significant contract, indicating a level of trust and capability recognized by the agency.

Sector Analysis

This contract falls within the professional services sector, specifically focusing on management and administrative support. The federal government frequently procures such services to enhance efficiency and effectiveness in program delivery. Comparable spending benchmarks are difficult to establish without knowing the precise nature of the management decisions supported, but large, multi-year contracts for strategic support are common across various federal agencies.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract, nor does it detail subcontracting plans. As it was awarded under full and open competition, it is possible that small businesses could have participated as prime contractors or subcontractors, but their specific involvement is not detailed here. Further analysis would be needed to determine the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the Department of Health and Human Services. The Cost Plus Award Fee structure implies performance monitoring to determine award fee payouts. Transparency would be enhanced through contract award databases and potentially through agency reports on program outcomes, though specific oversight details are not provided.

Related Government Programs

Federal Management Consulting Services
Government Program Management Support
Health and Human Services Administration Support
Cost-Plus Contracting Vehicles

Risk Flags

Cost Plus Award Fee structure requires careful monitoring to ensure value for money.
Long contract duration may limit agency flexibility.
Limited competition (2 bidders) could impact price optimization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $106.2 million to SYNECTICS FOR MANAGEMENT DECISIONS, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is SYNECTICS FOR MANAGEMENT DECISIONS, 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 $106.2 million.

What is the period of performance?

Start: 2002-09-15. End: 2010-06-30.

What specific management decisions or programs did SYNECTICS FOR MANAGEMENT DECISIONS, INC. support under this contract?

The provided data does not specify the exact management decisions or programs supported by SYNECTICS FOR MANAGEMENT DECISIONS, INC. under this contract. However, given the agency (Substance Abuse and Mental Health Services Administration - SAMHSA), the services likely pertained to strategic planning, program evaluation, operational efficiency, policy development, or data analysis related to substance abuse and mental health services. The Cost Plus Award Fee structure suggests that the contractor's performance was evaluated against specific objectives related to these support functions, with fees adjusted based on that performance. Further details would require access to the contract's statement of work or performance reports.

How does the average annual cost of this contract compare to similar management support contracts within HHS or other federal agencies?

The average annual cost for this contract is approximately $13.27 million ($106M / ~7.8 years). Benchmarking this against similar contracts is challenging without detailed information on the scope of services, deliverables, and performance levels. However, large federal agencies like HHS often award multi-million dollar contracts for management and administrative support. Contracts for strategic consulting, program management, and policy analysis can vary widely in cost depending on the complexity and criticality of the supported functions. To provide a precise comparison, one would need to identify contracts with similar objectives, durations, and agency types, and analyze their total value and annual expenditure.

What were the key performance indicators (KPIs) used to determine the award fees for SYNECTICS FOR MANAGEMENT DECISIONS, INC.?

The specific Key Performance Indicators (KPIs) used to determine the award fees for SYNECTICS FOR MANAGEMENT DECISIONS, INC. are not detailed in the provided data. However, for a Cost Plus Award Fee (CPAF) contract, KPIs typically align with the objectives outlined in the contract's Statement of Work (SOW). These could include metrics related to the quality of analysis provided, timeliness of reports, effectiveness of recommendations, successful implementation support, adherence to budget (for any managed funds), and overall contribution to the agency's mission objectives within SAMHSA. The agency would have established criteria for 'satisfactory,' 'good,' and 'excellent' performance levels, which would then dictate the portion of the available award fee pool earned by the contractor.

What is the track record of SYNECTICS FOR MANAGEMENT DECISIONS, INC. with federal contracts, particularly within HHS?

SYNECTICS FOR MANAGEMENT DECISIONS, INC. has a history of receiving federal contracts. While this specific $106M award from HHS is substantial, their broader track record would need to be examined through federal procurement databases like SAM.gov or FPDS. This would reveal the number of contracts awarded, their values, agencies served, and performance history. A positive track record with HHS, especially in areas related to management decisions or SAMHSA's mission, would indicate a lower risk and higher likelihood of successful performance on this contract. Conversely, past performance issues could raise concerns.

How has spending on management decision support services by SAMHSA evolved over time, and does this contract represent a significant shift?

Analyzing the evolution of SAMHSA's spending on management decision support services would require a historical review of their procurement data over multiple fiscal years. This specific contract, awarded in 2002 and ending in 2010, represents a significant investment during that period. Without comparative data from prior or subsequent years, it's difficult to definitively state if it represents a 'shift.' However, the substantial value and long duration suggest that management decision support was a critical and sustained need for SAMHSA during the contract's term. Trends in federal spending often reflect changing priorities, agency growth, or shifts towards outsourcing specific functions.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

Address: 1901 N MOORE ST STE 900, ARLINGTON, VA, 08

Business Categories: Category Business, Service Disabled Veteran Owned Business, Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $43,325,760

Exercised Options: $83,829,594

Current Obligation: $106,192,328

Timeline