HHS awards $11.4M contract to ASCELLON CORPORATION for public health program administration

Contract Overview

Contract Amount: $11,407,527 ($11.4M)

Contractor: Ascellon Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2003-09-15

End Date: 2008-11-15

Contract Duration: 1,888 days

Daily Burn Rate: $6.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Healthcare

Place of Performance

Location: HYATTSVILLE, PRINCE GEORGE'S County, MARYLAND, 20785

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $11.4 million to ASCELLON CORPORATION for work described as: Key points: 1. Contract value appears reasonable given the duration and scope of public health program administration. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract's duration of over 5 years indicates a long-term need for these services. 4. The Cost Plus Fixed Fee (CPFF) contract type may incentivize cost control while ensuring service delivery. 5. This contract falls within the broader category of health IT and administrative services for government programs. 6. The specific North American Industry Classification System (NAICS) code 923120 points to a focus on administration of public health programs.

Value Assessment

Rating: good

The contract value of $11.4 million over approximately five years suggests a moderate annual spend. Benchmarking against similar contracts for public health program administration is challenging without more specific service details. However, the CPFF structure aims to provide a fixed profit margin, which can offer some predictability in pricing. The number of bids received (6) indicates a healthy level of interest, which typically correlates with fair market pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. Six offers were received, indicating a competitive environment. This level of competition is generally favorable for the government as it allows for a wider range of potential solutions and pricing, driving down costs and improving value.

Taxpayer Impact: The robust competition for this contract suggests that taxpayers are likely benefiting from a fair price due to the multiple bidders vying for the award. This process helps ensure that public funds are used efficiently.

Public Impact

The Centers for Medicare and Medicaid Services (CMS) benefits from the administration of public health programs. Services delivered likely include program management, data analysis, and support for health initiatives. The contract's geographic impact is national, given the scope of federal public health programs. Workforce implications may include the need for specialized administrative and analytical personnel within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to cost overruns if not closely monitored, as the contractor is reimbursed for all allowable costs plus a fixed fee.
The long contract duration (over 5 years) necessitates ongoing performance monitoring to ensure continued value and alignment with evolving public health needs.

Positive Signals

Awarded under full and open competition, indicating a competitive process that likely yielded a fair price.
The receipt of six bids suggests significant interest and a healthy market for these services.
The contract's focus on public health program administration aligns with critical government functions.

Sector Analysis

This contract falls within the broader health services and government administration sector. The market for public health program administration is characterized by specialized firms and large government contractors capable of managing complex federal initiatives. Spending in this area is driven by the government's commitment to public health and the need for efficient program execution. Comparable spending benchmarks would typically be found within the federal budget allocated to health agencies for program management and support services.

Small Business Impact

There is no indication that this contract included a small business set-aside. The contractor, ASCELLON CORPORATION, is a large business. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in the provided data. The impact on the small business ecosystem would depend on whether ASCELLON CORPORATION actively engages small businesses for subcontracting roles.

Oversight & Accountability

Oversight for this contract would typically be managed by the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. Accountability measures are inherent in the CPFF contract structure, requiring detailed reporting and justification of costs. Transparency is generally maintained through contract award databases and public reporting requirements, though specific performance metrics may not always be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Public Health Initiatives
Healthcare Program Management
Federal Health IT Services
Government Administrative Support

Risk Flags

Contract duration exceeds 5 years.
Cost Plus Fixed Fee contract type requires careful cost monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $11.4 million to ASCELLON CORPORATION. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is ASCELLON CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).

What is the total obligated amount?

The obligated amount is $11.4 million.

What is the period of performance?

Start: 2003-09-15. End: 2008-11-15.

What specific public health programs does this contract support?

The provided data indicates the contract is for 'Administration of Public Health Programs' under NAICS code 923120. While the specific programs are not detailed, this classification typically encompasses a wide range of activities related to managing and supporting federal public health initiatives. This could include programs focused on disease prevention, health promotion, health statistics, and the administration of grants or services aimed at improving population health outcomes. The Centers for Medicare and Medicaid Services (CMS) often oversees programs that intersect with public health, such as those related to healthcare access, quality improvement, and public health data infrastructure. Further details on the specific programs would likely be found in the contract's statement of work.

How does the Cost Plus Fixed Fee (CPFF) 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 well-defined but the exact costs are difficult to estimate upfront, such as in complex service contracts like public health program administration. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing their profit. This differs from fixed-price contracts, where the price is set regardless of actual costs, and cost-reimbursement contracts (without a fixed fee), where profit is a percentage of costs. For public health administration, CPFF can provide flexibility to adapt to evolving needs while incentivizing the contractor to manage costs to protect their fixed profit margin. However, it requires robust government oversight to ensure costs are reasonable and allocable.

What is the historical spending trend for similar public health program administration contracts at HHS?

Analyzing historical spending trends for similar public health program administration contracts at the Department of Health and Human Services (HHS) requires access to comprehensive federal procurement data. The provided data for this specific $11.4 million contract with ASCELLON CORPORATION covers a period from 2003 to 2008. To establish a trend, one would need to examine spending on contracts with similar NAICS codes (like 923120) or service descriptions across various HHS agencies (including CMS, CDC, NIH, etc.) over multiple fiscal years. Factors influencing trends include shifts in public health priorities, legislative changes, economic conditions, and the overall federal budget. Without a broader dataset, it's difficult to definitively characterize historical spending patterns for this specific category of services.

What are the key performance indicators (KPIs) likely used to evaluate ASCELLON CORPORATION's performance?

Key Performance Indicators (KPIs) for a contract administering public health programs would likely focus on efficiency, effectiveness, and compliance. Examples could include metrics related to program enrollment or participation rates, timeliness of service delivery, accuracy of data reporting, adherence to budget, stakeholder satisfaction (e.g., from program beneficiaries or other government agencies), and the successful achievement of specific public health objectives outlined in the contract's Statement of Work. For a CPFF contract, KPIs would also indirectly assess the contractor's ability to manage costs effectively while meeting performance standards. Regular performance reviews and milestone achievements would be critical components of oversight.

What is the typical duration for contracts of this nature (public health program administration)?

Contracts for public health program administration can vary significantly in duration, influenced by the nature of the programs, funding cycles, and strategic objectives. The contract awarded to ASCELLON CORPORATION had a duration of approximately five years (from September 2003 to November 2008), which is a substantial period often seen for complex, long-term service agreements. Shorter-term contracts might focus on specific projects or evaluations, while longer durations are common for ongoing operational support, program management, and strategic initiatives that require sustained effort and institutional knowledge. The five-year term suggests a recognized need for stable, continuous support for the public health programs being administered.

Industry Classification

NAICS: Public Administration › Administration of Human Resource Programs › Administration of Public Health Programs

Product/Service Code: MEDICAL SERVICES › DEPENDENT MEDICARE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 8201 CORP DR STE 30, LANDOVER, MD, 04

Business Categories: 8(a) Program Participant, Category Business, HUBZone Firm, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $4,495,600

Exercised Options: $4,495,600

Current Obligation: $11,407,527

Timeline