EAGLE HEALTH, LLC received $36.5M for administrative management consulting, with contract duration exceeding 900 days

Contract Overview

Contract Amount: $36,509,062 ($36.5M)

Contractor: Eagle Health, LLC

Awarding Agency: Agency for International Development

Start Date: 2020-02-01

End Date: 2022-08-17

Contract Duration: 928 days

Daily Burn Rate: $39.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EAGLE HEALTH SHALL PROVIDE ALL CONTRACTOR SUPPORT SERVICES TO HCTM AS DETAILED IN THE SOW OF THIS CONTRACT.

Place of Performance

Location: MANASSAS, PRINCE WILLIAM County, VIRGINIA, 20109

State: Virginia Government Spending

Plain-Language Summary

Agency for International Development obligated $36.5 million to EAGLE HEALTH, LLC for work described as: EAGLE HEALTH SHALL PROVIDE ALL CONTRACTOR SUPPORT SERVICES TO HCTM AS DETAILED IN THE SOW OF THIS CONTRACT. Key points: 1. The contract value of $36.5M for administrative management consulting services appears substantial, warranting a close look at the scope and deliverables. 2. The 'NOT AVAILABLE FOR COMPETITION' status raises questions about the justification for a sole-source award and potential missed opportunities for competitive pricing. 3. The contract's duration of 928 days suggests a long-term need for these services, implying a significant impact on the agency's operations. 4. The fixed-price contract type provides cost certainty but requires careful management to ensure the contractor delivers on all aspects of the Statement of Work (SOW). 5. The North American Industry Classification System (NAICS) code 541611 indicates a focus on general management consulting, a broad category that needs specific performance metrics for evaluation. 6. The award to EAGLE HEALTH, LLC, with a reported value of $36.5M, positions them as a significant service provider to the Agency for International Development (USAID).

Value Assessment

Rating: fair

The contract value of $36.5 million for administrative management and general management consulting services is significant. Without specific benchmarks for similar support services at USAID or comparable agencies, it is difficult to definitively assess value for money. The fixed-price nature of the contract suggests that the agency aimed for cost certainty, but the long duration and the 'not available for competition' status warrant scrutiny to ensure that the pricing reflects fair market value and that the scope of work was appropriately defined to prevent cost overruns or under-delivery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source procurement. The justification for this approach is not provided, but it typically means that only one responsible source was found to be capable of meeting the agency's needs. This lack of competition means that price discovery through a bidding process was bypassed, potentially leading to higher costs for the government compared to a fully competed contract.

Taxpayer Impact: Sole-source awards limit taxpayer value by removing the downward pressure on pricing that competition provides. It also raises concerns about whether the agency explored all avenues to foster competition.

Public Impact

The primary beneficiary of this contract is the Agency for International Development (USAID), which receives contractor support services to fulfill its mission. The services provided are detailed in the Statement of Work (SOW), likely encompassing a range of administrative and management functions crucial for agency operations. The geographic impact is centered around the agency's operational locations, primarily in Virginia where the contract is registered. The contract supports the agency's administrative workforce, potentially augmenting or providing specialized expertise that may not be available internally.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have led to suboptimal pricing.
The broad nature of 'Administrative Management and General Management Consulting Services' requires robust oversight to ensure deliverables align with needs.
Long contract duration (928 days) increases the risk of scope creep or evolving requirements not being adequately managed.
The 'NOT AVAILABLE FOR COMPETITION' status necessitates a thorough review of the justification to ensure it was appropriate.

Positive Signals

The firm-fixed-price contract type provides budget certainty for the agency.
The contract is with EAGLE HEALTH, LLC, a specific entity, allowing for focused performance management.
The contract is registered in Virginia, indicating a potential for local economic impact or utilization of regional expertise.

Sector Analysis

The administrative management and general management consulting services sector is a significant part of the professional services industry supporting government operations. This contract falls within the broader professional services market, which is characterized by a wide range of specialized expertise. Government spending in this area often supports agency functions ranging from strategic planning and organizational efficiency to human capital management and IT strategy. Benchmarking this contract's value would require comparing it to similar consulting engagements within federal agencies, considering the specific scope of work and the contractor's qualifications.

Small Business Impact

The data indicates that small business participation was not a primary focus for this contract, as the 'ss' (small business set-aside) and 'sb' (small business) flags are false. There is no explicit mention of subcontracting goals for small businesses. This suggests that the primary contractor, EAGLE HEALTH, LLC, is likely not a small business, and the contract did not include specific provisions to ensure small business involvement, potentially limiting opportunities for the small business ecosystem in this particular procurement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Agency for International Development's contracting officers and program managers. As a sole-source award, the justification and performance monitoring are critical. Transparency would be enhanced by public disclosure of the justification for the sole-source award and detailed performance reports. The contract's fixed-price nature implies that financial oversight will focus on ensuring all deliverables are met within the agreed-upon price, rather than managing cost-reimbursement elements.

Related Government Programs

Management and Financial Consulting, Acquisition and Technology Services
Professional Services Contracts
Government Consulting Services
Agency Support Services

Risk Flags

Sole-source award justification requires scrutiny.
Potential for uncompetitive pricing due to lack of competition.
Long contract duration may increase risk of scope creep.
Need for robust performance monitoring given broad service category.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $36.5 million to EAGLE HEALTH, LLC. EAGLE HEALTH SHALL PROVIDE ALL CONTRACTOR SUPPORT SERVICES TO HCTM AS DETAILED IN THE SOW OF THIS CONTRACT.

Who is the contractor on this award?

The obligated recipient is EAGLE HEALTH, LLC.

Which agency awarded this contract?

Awarding agency: Agency for International Development (Agency for International Development).

What is the total obligated amount?

The obligated amount is $36.5 million.

What is the period of performance?

Start: 2020-02-01. End: 2022-08-17.

What specific administrative and management consulting services were provided under this contract?

The contract data indicates that EAGLE HEALTH, LLC was contracted to 'PROVIDE ALL CONTRACTOR SUPPORT SERVICES TO HCTM AS DETAILED IN THE SOW OF THIS CONTRACT.' While the Statement of Work (SOW) is not provided in the data, the NAICS code 541611 ('Administrative Management and General Management Consulting Services') suggests a broad range of potential services. These could include areas such as organizational structure analysis, process improvement, strategic planning, policy development, human capital management support, operational efficiency assessments, and general administrative support functions critical to the Agency for International Development's (USAID) mission. The specific details within the SOW would define the precise deliverables, performance standards, and reporting requirements.

What was the justification for awarding this contract on a sole-source basis?

The provided data states the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which signifies a sole-source procurement. Federal Acquisition Regulation (FAR) Part 6 outlines the policies for full and open competition, and exceptions for sole-source awards are strictly defined. Common justifications include that only one responsible source is capable of providing the required services, the need for standardization or interoperability, or in certain emergency situations. Without access to the specific justification document filed by the Agency for International Development (USAID) for this contract, the precise reason remains unknown. However, the agency would have been required to document and approve this justification, demonstrating why competition was not feasible or practicable.

How does the $36.5 million contract value compare to similar administrative consulting contracts at USAID or other federal agencies?

Comparing the $36.5 million contract value for administrative management and general management consulting services requires access to a broader dataset of federal contracts, including their scope, duration, and specific services rendered. However, for a contract spanning approximately two and a half years (928 days), this value is substantial. Large-scale consulting engagements for federal agencies can range from a few million to tens or even hundreds of millions of dollars, depending on the complexity, duration, and criticality of the services. Given the sole-source nature and the broad NAICS code, a detailed benchmark analysis would involve identifying contracts with similar scopes of work, agency types (e.g., foreign affairs, development aid), and contract types (firm-fixed-price) to assess if the pricing is competitive and reflects fair market value.

What are the potential risks associated with a long-duration, sole-source contract for consulting services?

Long-duration, sole-source contracts for consulting services present several risks. Firstly, the lack of competition can lead to complacency from the contractor and potentially higher costs for the government, as there is no competitive pressure to innovate or offer the best pricing. Secondly, a long duration (928 days in this case) increases the risk of scope creep, where the requirements may evolve beyond the original SOW, leading to cost increases or contract modifications. It also means the agency is heavily reliant on a single provider, potentially hindering the development of internal capabilities. Furthermore, without regular competitive re-evaluation, the agency might miss out on advancements in service delivery or technology offered by other potential providers. Robust oversight and clear performance metrics are crucial to mitigate these risks.

What is the track record of EAGLE HEALTH, LLC in performing federal contracts, particularly those of similar size and scope?

Information regarding EAGLE HEALTH, LLC's specific track record for federal contracts of this size and scope is not detailed in the provided data. To assess their performance history, one would typically consult federal procurement databases (like SAM.gov or FPDS) to review past awards, contract performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any past performance issues or successes. Given this is a $36.5 million contract, it suggests EAGLE HEALTH, LLC has the capacity and experience to handle significant government engagements. However, a thorough analysis would require examining their history with the Agency for International Development (USAID) and other agencies to understand their reliability, quality of service, and adherence to contract terms.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7050 INFANTRY RIDGE RD, MANASSAS, VA, 20109

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $39,850,000

Exercised Options: $39,850,000

Current Obligation: $36,509,062

Actual Outlays: $36,509,062

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: NO

Timeline