HHS awards $191M for Case Management Services to The Providencia Group LLC, supporting reunification efforts

Contract Overview

Contract Amount: $191,299,809 ($191.3M)

Contractor: THE Providencia Group LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2021-08-26

End Date: 2023-06-15

Contract Duration: 658 days

Daily Burn Rate: $290.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE SCOPE OF WORK (SOW) INCLUDES PROGRAM MANAGEMENT AND OPERATIONAL READINESS TO SUPPORT CASE MANAGEMENT SERVICES, SPONSOR ASSESSMENTS AND VERIFICATION, AS WELL AS TIMELY UC REUNIFICATION.

Place of Performance

Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $191.3 million to THE PROVIDENCIA GROUP LLC for work described as: THE SCOPE OF WORK (SOW) INCLUDES PROGRAM MANAGEMENT AND OPERATIONAL READINESS TO SUPPORT CASE MANAGEMENT SERVICES, SPONSOR ASSESSMENTS AND VERIFICATION, AS WELL AS TIMELY UC REUNIFICATION. Key points: 1. Contract focuses on program management and operational readiness for critical child welfare services. 2. The Providencia Group LLC is the sole awardee, raising questions about competition. 3. Risk of limited competition impacting price discovery and overall value. 4. Spending falls within the Emergency and Other Relief Services sector.

Value Assessment

Rating: fair

The $191.3 million award for program management and operational readiness is substantial. Benchmarking against similar contracts for case management services is difficult without more detailed scope information, but the lack of competition suggests potential for overpayment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This significantly limits price discovery and may prevent the government from obtaining the best possible value.

Taxpayer Impact: Taxpayer funds may not have been used as efficiently as possible due to the absence of a competitive bidding process.

Public Impact

Supports critical services for child welfare and family reunification. Ensures operational readiness for essential government programs. Potential for increased costs due to lack of competition. Impacts vulnerable populations relying on case management services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for inflated pricing

Positive Signals

Supports essential government function
Definitive contract provides clarity on duration

Sector Analysis

This contract falls under Emergency and Other Relief Services, a sector often characterized by urgent needs. Benchmarks for program management and operational readiness in this specific sub-sector are not readily available, but the scale of the award warrants scrutiny.

Small Business Impact

The awardee, The Providencia Group LLC, is not identified as a small business. The lack of small business participation in this significant sole-source contract is noted.

Oversight & Accountability

The sole-source nature of this award necessitates robust oversight to ensure the contractor is meeting all performance requirements and that costs remain reasonable, despite the absence of competition.

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 limits competition.
Potential for overpayment due to lack of price discovery.
Limited transparency on justification for sole-source.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $191.3 million to THE PROVIDENCIA GROUP LLC. THE SCOPE OF WORK (SOW) INCLUDES PROGRAM MANAGEMENT AND OPERATIONAL READINESS TO SUPPORT CASE MANAGEMENT SERVICES, SPONSOR ASSESSMENTS AND VERIFICATION, AS WELL AS TIMELY UC REUNIFICATION.

Who is the contractor on this award?

The obligated recipient is THE PROVIDENCIA GROUP 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 $191.3 million.

What is the period of performance?

Start: 2021-08-26. End: 2023-06-15.

What specific factors justified a sole-source award for these critical case management services, and were alternatives explored?

The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required services. This could be due to unique capabilities, urgent needs, or specific program requirements. Exploring alternatives would involve assessing if other contractors could meet the need, even with modifications to their offerings, or if the requirement could be broken down into smaller, competitive components.

How will the government ensure fair pricing and value for money given the lack of competitive bidding?

Ensuring fair pricing without competition relies heavily on robust contract administration, including detailed cost analysis, performance monitoring, and negotiation. The government should establish clear performance metrics and milestones, regularly review contractor expenditures against the SOW, and conduct market research to benchmark costs. Any price adjustments should be rigorously justified and documented.

What are the key performance indicators (KPIs) for this contract, and how is success measured in supporting reunification efforts?

Key performance indicators would likely include metrics related to the efficiency and effectiveness of case management, the timeliness of sponsor assessments and verifications, and crucially, the success rate and speed of UC (Unaccompanied Children) reunifications. Success would be measured by meeting or exceeding targets for these KPIs, ensuring the well-being of children and families, and adhering to program goals within the defined contract period.

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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 75ACF121R0063

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 44620 GUILFORD DR STE 150, ASHBURN, VA, 20147

Business Categories: Category Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $191,299,809

Exercised Options: $191,299,809

Current Obligation: $191,299,809

Actual Outlays: $191,299,809

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline