HHS awarded $12.6M contract for periodical publishing services to MASIMAX RESOURCES, INC

Contract Overview

Contract Amount: $12,638,474 ($12.6M)

Contractor: Masimax Resources, Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2003-09-15

End Date: 2008-10-15

Contract Duration: 1,857 days

Daily Burn Rate: $6.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $12.6 million to MASIMAX RESOURCES, INC for work described as: Key points: 1. The contract value of $12.6 million over five years suggests a significant investment in information dissemination. 2. The use of a Cost Plus Fixed Fee (CPFF) contract type warrants scrutiny for potential cost overruns. 3. Limited competition dynamics could impact pricing and value for money. 4. The contract duration of 1857 days indicates a long-term need for these services. 5. The agency's reliance on a single award for this service may indicate a specialized requirement or limited market. 6. Performance context is crucial to understand if the services delivered met the agency's objectives.

Value Assessment

Rating: fair

The contract's total value of $12.6 million over approximately five years averages to about $2.5 million annually. Without specific details on the scope of periodical publishing services (e.g., number of publications, print runs, digital distribution), it is difficult to benchmark against similar contracts. The CPFF contract type, while allowing for flexibility, can sometimes lead to higher costs if not managed tightly, as the contractor is reimbursed for allowable costs plus a fixed fee. Further analysis would require comparing the unit costs of specific publishing services against industry standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. However, the data shows only two bids were received. This level of competition, while technically open, is on the lower side and might suggest that the market for these specific services is not highly saturated or that the requirements were very specific, potentially limiting the number of qualified bidders. Lower competition can sometimes lead to less aggressive pricing.

Taxpayer Impact: While the competition was technically open, the low number of bids means taxpayers may not have benefited from the most competitive pricing achievable in a more robustly contested environment.

Public Impact

The primary beneficiaries are likely the Agency for Healthcare Research and Quality (AHRQ) and potentially the broader healthcare research community who receive access to published periodicals. The services delivered include periodical publishing, which could encompass content creation, editing, layout, printing, and distribution of research findings and health information. The geographic impact is primarily within Maryland, where the contractor is located, but the distribution of periodicals could have a national or even international reach. Workforce implications may include employment for editorial staff, designers, printers, and distribution personnel within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The use of a Cost Plus Fixed Fee (CPFF) contract type can incentivize cost increases if not rigorously monitored, potentially leading to higher overall spending than anticipated.
With only two bids received under full and open competition, there's a risk that the pricing may not reflect the most competitive market rates, potentially resulting in less value for taxpayer money.
The long contract duration (over 5 years) increases the risk of scope creep or the need for contract modifications that could escalate costs.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's efficiency and effectiveness in delivering value.
The absence of small business subcontracting goals (sb: false) means potential missed opportunities to leverage smaller businesses and their specialized services.

Positive Signals

The contract was awarded through full and open competition, suggesting an effort to ensure a fair and transparent process.
The fixed fee component of the CPFF contract provides some level of cost predictability for the government, as the contractor's profit margin is predetermined.
The contract is for periodical publishing, a service that supports the dissemination of critical research and information, potentially benefiting public health and policy.
The contractor, MASIMAX RESOURCES, INC., has secured a significant contract, indicating a level of capability and trust from the agency.

Sector Analysis

The periodical publishing sector is essential for disseminating information across various industries, including healthcare. This contract falls within the broader information services and publishing industry. The market size for government periodical publishing can be substantial, driven by the need for agencies like AHRQ to share research findings and public health information. Comparable spending benchmarks would typically involve analyzing the cost per page, per subscriber, or per publication for similar government or commercial entities.

Small Business Impact

The data indicates that small business subcontracting was not a specific requirement for this contract (sb: false). This suggests that the primary contractor is expected to perform the work independently or that subcontracting opportunities for small businesses were not explicitly mandated or tracked. This could represent a missed opportunity to engage the small business ecosystem and foster economic participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Agency for Healthcare Research and Quality (AHRQ) through a Contracting Officer's Representative (COR). Accountability measures would be tied to the terms and conditions of the Cost Plus Fixed Fee contract, including adherence to the scope of work and delivery schedules. Transparency is facilitated through contract databases like FPDS, but detailed performance reports and audits are usually internal unless specific IG investigations are initiated.

Related Government Programs

Government Printing Office Services
Information Dissemination Services
Scientific Publication Contracts
Healthcare Research Dissemination

Risk Flags

Potential for cost overruns due to CPFF contract type.
Limited competition may result in suboptimal pricing.
Lack of explicit small business subcontracting requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $12.6 million to MASIMAX RESOURCES, INC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is MASIMAX RESOURCES, 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 $12.6 million.

What is the period of performance?

Start: 2003-09-15. End: 2008-10-15.

What specific types of periodicals were published under this contract, and what was their distribution scope?

The provided data does not specify the exact types of periodicals published or their distribution scope. However, given the awarding agency is the Agency for Healthcare Research and Quality (AHRQ), it is highly probable that the periodicals focused on healthcare research findings, policy recommendations, and public health information. Distribution could range from internal agency use to broad public access, including academic institutions, healthcare providers, and policymakers nationwide. Understanding the content and reach is crucial for assessing the contract's impact and value.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar publishing services, and what are the associated risks?

The CPFF structure reimburses the contractor for allowable costs plus a predetermined fixed fee (profit). This contrasts with fixed-price contracts, where the price is set regardless of costs, or cost-reimbursement contracts without a fixed fee, which offer less profit certainty for the contractor. For publishing services, CPFF can be beneficial when the scope is not fully defined or is expected to evolve, allowing flexibility. However, the primary risk is that the contractor may have less incentive to control costs, as their fee is fixed, potentially leading to higher overall expenditures for the government compared to a well-defined fixed-price contract. Rigorous oversight is essential to manage costs effectively under a CPFF arrangement.

What was the historical spending pattern for periodical publishing services by the Agency for Healthcare Research and Quality (AHRQ) prior to this contract?

The provided data focuses on a single contract award and does not include historical spending patterns for AHRQ's periodical publishing services. To assess historical trends, one would need to analyze contract databases for previous awards related to publishing, printing, and information dissemination made by AHRQ over several fiscal years. This analysis would reveal whether spending has been consistent, increasing, or decreasing, and whether the number of contracts or their values have changed, providing context for the $12.6 million award.

Given only two bids were received, what factors might have limited competition for this periodical publishing contract?

Several factors could have limited competition to just two bidders for this periodical publishing contract. The specialized nature of healthcare research publishing might mean only a few firms possess the necessary expertise, editorial capabilities, and understanding of AHRQ's mission. The contract's geographic location (Maryland) could also be a limiting factor if local or regional vendors were preferred or if travel/logistics were a significant consideration. Furthermore, the specific technical requirements or the contract type (CPFF) might deter some potential bidders. The contract duration and total value could also influence market interest.

What performance metrics were used to evaluate MASIMAX RESOURCES, INC.'s success under this contract?

The provided data does not detail the specific performance metrics used to evaluate MASIMAX RESOURCES, INC. Typically, for publishing contracts, performance metrics could include on-time delivery of publications, adherence to editorial standards, quality of content and design, accuracy of information, effectiveness of distribution, and responsiveness to agency feedback. The success of the contract would be measured against these predefined metrics, often outlined in the contract's Performance Work Statement (PWS) or Statement of Objectives (SOO).

Industry Classification

NAICS: Information › Newspaper, Periodical, Book, and Directory Publishers › Periodical Publishers

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Parent Company: Research Triangle Institute (UEI: 004868105)

Address: 1375 PICCARD DR STE 175, ROCKVILLE, MD, 20850

Business Categories: Black American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Woman Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 290030004

IDV Type: IDC

Timeline