HHS Awards $21.6M for Emergency Intake Site Wrap-Around Care to PAE Applied Technologies
Contract Overview
Contract Amount: $21,582,121 ($21.6M)
Contractor: PAE Applied Technologies LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2021-04-18
End Date: 2022-02-15
Contract Duration: 303 days
Daily Burn Rate: $71.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: THE PURPOSE OF THIS CONTRACT IS TO PROVIDE WRAP AROUND CARE SERVICES AT THE STARR COMMONWEALTH EMERGENCY INTAKE SITE.
Place of Performance
Location: ALBION, CALHOUN County, MICHIGAN, 49224
State: Michigan Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $21.6 million to PAE APPLIED TECHNOLOGIES LLC for work described as: THE PURPOSE OF THIS CONTRACT IS TO PROVIDE WRAP AROUND CARE SERVICES AT THE STARR COMMONWEALTH EMERGENCY INTAKE SITE. Key points: 1. Contract awarded for essential wrap-around care services at an emergency intake site. 2. PAE Applied Technologies LLC secured the $21.6 million contract. 3. The contract was not competed, raising potential concerns about price discovery. 4. Services fall under Emergency and Other Relief Services within the Health and Human Services sector.
Value Assessment
Rating: questionable
The contract value of $21.6 million for 303 days of service appears high, especially given the lack of competition. Benchmarking against similar emergency relief services is difficult without more data, but the absence of competitive bidding suggests potential overpricing.
Cost Per Unit: $71,228 per day
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in a higher cost to taxpayers compared to a competitively bid contract.
Taxpayer Impact: The lack of competition for this significant contract raises concerns about the efficient use of taxpayer funds.
Public Impact
Provides critical support services for individuals at an emergency intake site. Ensures continuity of care during a critical period for vulnerable populations. Supports the Administration for Children and Families' mission in Michigan.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High per-unit cost
- Limited transparency in pricing
Positive Signals
- Addresses critical need for wrap-around care
- Supports vulnerable populations
Sector Analysis
This contract falls under the Emergency and Other Relief Services category, often utilized during crises. Spending in this area can fluctuate significantly based on national emergencies. The $21.6 million award is substantial for a single, non-competed contract of this duration.
Small Business Impact
There is no indication that small businesses were involved in this contract, as it was awarded directly to PAE Applied Technologies LLC without competition.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the services provided are necessary and that the pricing is reasonable, despite the absence of competitive bidding.
Related Government Programs
- Emergency and Other Relief Services
- Department of Health and Human Services Contracting
- Administration for Children and Families Programs
Risk Flags
- Sole-source award lacks competitive pricing
- High daily cost raises value concerns
- Limited public information on service details
- Potential for inefficient use of funds
Tags
emergency-and-other-relief-services, department-of-health-and-human-services, mi, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $21.6 million to PAE APPLIED TECHNOLOGIES LLC. THE PURPOSE OF THIS CONTRACT IS TO PROVIDE WRAP AROUND CARE SERVICES AT THE STARR COMMONWEALTH EMERGENCY INTAKE SITE.
Who is the contractor on this award?
The obligated recipient is PAE APPLIED TECHNOLOGIES LLC.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Administration for Children and Families).
What is the total obligated amount?
The obligated amount is $21.6 million.
What is the period of performance?
Start: 2021-04-18. End: 2022-02-15.
What specific wrap-around care services are included in this contract, and how do they justify the $21.6 million cost?
The contract details are limited, but 'wrap-around care services' typically encompass a range of support, including case management, counseling, health services, and potentially housing assistance. The high cost suggests a comprehensive service package or a significant number of individuals being served. Further documentation would be needed to fully understand the scope and cost justification.
Given the sole-source award, what steps were taken to ensure the price was fair and reasonable?
Without a competitive bidding process, it is crucial that the contracting agency performed a thorough price analysis based on historical data, market research, or cost proposals from the contractor. The absence of competition makes it difficult for taxpayers to verify the fairness of the price independently.
How effective has PAE Applied Technologies been in providing these services, and what metrics are used to measure success?
Effectiveness metrics are not provided in the data. Typically, for wrap-around care, success would be measured by client outcomes, satisfaction rates, and the efficient delivery of services. Post-award performance reviews and contract close-out reports would contain this information.
Industry Classification
NAICS: Health Care and Social Assistance › Community Food and Housing, and Emergency and Other Relief Services › Emergency and Other Relief Services
Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: PAE Government Services Inc.
Address: 100 ENERGY WAY STE 1500, FORT WORTH, TX, 76102
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $21,582,121
Exercised Options: $21,582,121
Current Obligation: $21,582,121
Actual Outlays: $19,609,719
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2021-04-18
Current End Date: 2022-02-15
Potential End Date: 2022-02-15 00:00:00
Last Modified: 2025-10-31
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