HHS awarded $11.1M contract for administrative management consulting services to CYGNUS CORP INC

Contract Overview

Contract Amount: $11,122,593 ($11.1M)

Contractor: Cygnus Corp Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2000-11-15

End Date: 2008-01-30

Contract Duration: 2,632 days

Daily Burn Rate: $4.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Place of Performance

Location: MARYLAND, UNITED STATES OF AMERICA

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $11.1 million to CYGNUS CORP INC for work described as: Key points: 1. Contract awarded via full and open competition, suggesting a robust market for these services. 2. The contract duration of 2632 days (approx. 7.2 years) indicates a long-term need for these services. 3. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 4. The agency is the Department of Health and Human Services (HHS), a major federal spender. 5. The North American Industry Classification System (NAICS) code 541611 points to general management consulting services. 6. The contract was awarded in Maryland, a state with a significant federal contracting presence.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables and performance metrics. The Cost Plus Fixed Fee structure means costs could fluctuate, and the fixed fee component needs to be assessed against the scope of work. Comparing this to similar administrative management consulting contracts within HHS or other agencies would provide a clearer picture of whether the pricing is competitive and represents good value for the services rendered over its extended duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 6 bidders suggests a competitive marketplace for these administrative management and general management consulting services. A higher number of bidders generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it fosters a competitive environment, driving down costs and encouraging innovation among potential contractors.

Public Impact

The primary beneficiaries are likely the various divisions within the Department of Health and Human Services that require administrative management and general management consulting expertise. The services delivered are expected to improve the efficiency and effectiveness of HHS's administrative operations. The geographic impact is primarily within the state of Maryland, where the contract was awarded. The contract supports the federal workforce by potentially augmenting agency capabilities with specialized consulting skills.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
The long duration of the contract may reduce flexibility if agency needs change significantly.
Reliance on external consultants for core administrative functions could raise questions about internal capacity building.

Positive Signals

Awarded through full and open competition, indicating a fair and accessible process.
The contract aims to provide essential administrative management and general management consulting services to a critical federal agency.
The fixed fee component provides some level of cost certainty for the government.

Sector Analysis

Administrative Management and General Management Consulting Services represent a significant segment of the professional services market supporting government operations. This contract falls within the broader professional services sector, which is characterized by a wide range of specialized expertise. Comparable spending benchmarks would involve looking at other large, long-term consulting contracts awarded by federal agencies for similar management support functions.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary award went to a large business, and the impact on the small business ecosystem would depend on whether CYGNUS CORP INC. engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Agency for Healthcare Research and Quality (AHRQ) or the broader HHS. Accountability measures would be tied to the performance work statement and the Cost Plus Fixed Fee structure. Transparency is generally facilitated through contract databases like FPDS-NG, though detailed performance reports may not always be publicly available.

Related Government Programs

HHS Administrative Support Contracts
Federal Management Consulting Services
Agency for Healthcare Research and Quality (AHRQ) Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long contract duration may lead to evolving agency needs not being fully met.
Lack of explicit small business subcontracting requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $11.1 million to CYGNUS CORP INC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is CYGNUS CORP INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Agency for Healthcare Research and Quality).

What is the total obligated amount?

The obligated amount is $11.1 million.

What is the period of performance?

Start: 2000-11-15. End: 2008-01-30.

What is the track record of CYGNUS CORP INC. with federal contracts, particularly within HHS?

To assess CYGNUS CORP INC.'s track record, a detailed review of their past federal contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or terminations would be necessary. Information from the Federal Procurement Data System (FPDS) can reveal the types of contracts they have held, their value, and the agencies they have served. A strong performance history with HHS or similar agencies would indicate reliability and capability in delivering administrative management and general management consulting services. Conversely, a history of poor performance or contract issues would raise concerns about their ability to successfully execute this current $11.1 million award.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar services?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined or is expected to evolve, and it aims to provide flexibility while controlling costs. The government pays the contractor's allowable costs plus a fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers less cost certainty for the government but can be more appropriate for complex services where costs are difficult to estimate upfront. However, it requires robust oversight to ensure costs remain reasonable and are directly related to the contract's objectives. Other types like Time and Materials (T&M) might be simpler but can lead to higher costs if not managed tightly. The choice of CPFF for this $11.1 million contract suggests that HHS anticipated some level of uncertainty in the administrative management consulting services required.

What are the key performance indicators (KPIs) used to measure the success of this contract?

While specific KPIs are not detailed in the provided data, typical performance indicators for administrative management and general management consulting services contracts would likely include metrics related to efficiency improvements, cost savings achieved, successful implementation of recommended strategies, timeliness of deliverables, and client satisfaction. For a CPFF contract, adherence to budget projections (even with cost reimbursement) and the achievement of defined milestones would also be critical. The Agency for Healthcare Research and Quality (AHRQ) would establish these KPIs in the Performance Work Statement (PWS) to ensure the contractor is meeting the agency's objectives and providing value for the $11.1 million investment over the contract's duration.

What is the historical spending trend for administrative management and general management consulting services at HHS?

Analyzing historical spending trends for administrative management and general management consulting services at HHS provides context for the $11.1 million award. Federal procurement data reveals that agencies like HHS frequently procure these types of services to support their vast operations. Trends might show an increasing or decreasing reliance on external consultants, shifts in preferred contract types, or changes in average contract values. Understanding these patterns can help determine if this specific contract is in line with historical spending, represents an increase or decrease, and whether it aligns with broader government initiatives related to efficiency and cost management within administrative functions.

What are the potential risks associated with a long-duration contract (2632 days) for consulting services?

Long-duration contracts, such as this 2632-day award, carry several potential risks. Firstly, the agency's needs and priorities may evolve significantly over the contract period, potentially rendering the original scope of work outdated or less relevant. This can lead to scope creep, contract modifications, or reduced effectiveness. Secondly, maintaining consistent quality and performance from the contractor over an extended period can be challenging. Thirdly, long-term reliance on external consultants might hinder the development of internal expertise within the agency. Finally, market conditions and technological advancements can change, making the contracted services or solutions less optimal over time. Robust contract management and regular reviews are crucial to mitigate these risks.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 5640 NICHOLSON LN STE 300, ROCKVILLE, MD, 20852

Business Categories: Category Business, Small Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $20,247,502

Exercised Options: $20,247,502

Current Obligation: $11,122,593

Timeline