HHS awards $27.5M contract for administrative management consulting services to Walter R. McDonald & Associates

Contract Overview

Contract Amount: $27,543,297 ($27.5M)

Contractor: Walter R Mcdonald & Associates, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2023-09-30

End Date: 2026-09-29

Contract Duration: 1,095 days

Daily Burn Rate: $25.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NATIONAL CENTER ON SUBSIDY INNOVATION AND ACCOUNTABILITY (NCSIA)

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $27.5 million to WALTER R MCDONALD & ASSOCIATES, INC. for work described as: NATIONAL CENTER ON SUBSIDY INNOVATION AND ACCOUNTABILITY (NCSIA) Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1095 days (3 years) indicates a medium-term need for services. 3. Fixed-price contract type aims to control costs and provide budget certainty. 4. The North American Industry Classification System (NAICS) code 541611 points to general management consulting services. 5. The awardee, Walter R. McDonald & Associates, Inc., is a known entity in the federal contracting space. 6. The Administration for Children and Families is the specific agency within HHS utilizing these services. 7. The contract is for delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract value of $27.5 million over three years for administrative management consulting services appears reasonable given the scope. Benchmarking against similar large-scale consulting contracts within HHS or other federal agencies would provide a more precise value-for-money assessment. The fixed-price nature of the contract suggests an effort to manage costs effectively, but the ultimate value will depend on the quality and impact of the services delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of two bidders suggests a moderate level of competition for this specific delivery order. While two bidders is better than one, a higher number of competitors typically leads to more robust price discovery and potentially better value for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple firms to bid, driving down prices and improving service quality through competitive pressures.

Public Impact

The primary beneficiaries are likely the Administration for Children and Families (ACF) within HHS, which will receive enhanced administrative management and general management consulting services. These services are expected to improve the efficiency and effectiveness of ACF's operations and programs. The geographic impact is primarily within the United States, supporting federal administrative functions. Workforce implications may include the utilization of specialized consulting expertise to augment government staff capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the consulting services are not clearly defined and managed.
Dependence on external consultants may reduce internal capacity building if not managed strategically.
Ensuring the selected consultant's expertise directly aligns with ACF's unique challenges is crucial for success.

Positive Signals

Award through full and open competition suggests a fair and transparent procurement process.
Fixed-price contract type provides cost certainty for the government.
The selection of a specific firm (Walter R. McDonald & Associates, Inc.) implies they met the required qualifications and demonstrated capability.

Sector Analysis

The federal administrative management and general management consulting services sector is a significant market within government contracting. Agencies frequently procure these services to improve operational efficiency, strategic planning, and program management. This contract fits within the broader IT and professional services category, where agencies leverage external expertise to address complex challenges and implement best practices. Comparable spending benchmarks for similar consulting services can vary widely based on the specific tasks, duration, and complexity of the engagement.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Therefore, it is unlikely that small businesses were specifically targeted for this award. However, the prime contractor, Walter R. McDonald & Associates, Inc., may engage small businesses as subcontractors, depending on the nature of the services required and their subcontracting plans. Further analysis of the contract's subcontracting goals would be needed to assess the direct impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will primarily reside with the contracting officers and program managers within the Administration for Children and Families (ACF) at HHS. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. Transparency is facilitated through federal procurement databases like FPDS-NG, which record contract awards. While specific Inspector General (IG) jurisdiction for this particular delivery order isn't detailed, the HHS OIG generally has oversight over all HHS spending to detect and prevent waste, fraud, and abuse.

Related Government Programs

HHS Administrative Support Services
Federal Management Consulting Contracts
ACF Program Management Support
Government Operations Consulting

Risk Flags

Potential for contractor performance issues.
Risk of cost overruns if scope is not well-managed.
Dependency on external expertise may impact internal capacity.
Ensuring alignment with ACF's specific needs and goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $27.5 million to WALTER R MCDONALD & ASSOCIATES, INC.. NATIONAL CENTER ON SUBSIDY INNOVATION AND ACCOUNTABILITY (NCSIA)

Who is the contractor on this award?

The obligated recipient is WALTER R MCDONALD & ASSOCIATES, INC..

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 $27.5 million.

What is the period of performance?

Start: 2023-09-30. End: 2026-09-29.

What is the track record of Walter R. McDonald & Associates, Inc. with federal contracts, particularly within HHS?

Walter R. McDonald & Associates, Inc. has a history of securing federal contracts across various agencies, including the Department of Health and Human Services (HHS). Their contract portfolio often includes services related to management consulting, administrative support, and program management. A review of their past performance on similar contracts, especially those within HHS, would reveal their ability to meet performance requirements, manage budgets, and deliver quality services. Analyzing past contract awards and performance evaluations can provide insights into their reliability and expertise in fulfilling government needs. Specific details on their performance metrics and any past issues or commendations would be crucial for a comprehensive assessment.

How does the $27.5 million contract value compare to similar administrative consulting contracts awarded by HHS or other federal agencies?

The $27.5 million contract value for three years of administrative management and general management consulting services is a substantial award. To benchmark its value, one would compare it to similar contracts awarded by HHS or other federal agencies for comparable services over similar durations. Factors such as the specific scope of work, the level of expertise required, the number of consultants involved, and the complexity of the agency's needs will influence pricing. Without detailed task orders and performance metrics, a precise comparison is difficult. However, this figure suggests a significant engagement requiring substantial resources and expertise, likely aimed at addressing complex operational or strategic challenges within the Administration for Children and Families.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential scope creep, where the consulting services expand beyond the initially defined objectives, leading to cost overruns or delays. Another risk is the contractor's ability to deliver the promised expertise and achieve desired outcomes, impacting the agency's operational efficiency. Mitigation strategies typically involve robust contract management, clear definition of deliverables and performance metrics, regular progress reviews, and strong communication channels between the agency and the contractor. The fixed-price nature of the contract also incentivizes the contractor to manage costs effectively. Furthermore, the competitive bidding process itself helps mitigate risks by selecting a contractor deemed capable and offering a fair price.

What is the expected effectiveness of these consulting services in improving the Administration for Children and Families' operations?

The effectiveness of these consulting services hinges on the specific objectives outlined in the contract and the contractor's ability to meet them. Typically, such services aim to enhance operational efficiency, streamline processes, improve strategic planning, and optimize resource allocation within the Administration for Children and Families (ACF). If the consultants provide actionable insights and support successful implementation of recommendations, the impact on ACF's operations could be significant, leading to better program delivery and improved outcomes for beneficiaries. The success will be measured against predefined performance metrics and the achievement of stated goals within the contract period.

What are the historical spending patterns for administrative management and general management consulting services within HHS?

Historical spending patterns for administrative management and general management consulting services within HHS are generally substantial, reflecting the agency's vast operational scope and continuous need for efficiency improvements. HHS frequently procures these services to support various administrations and offices in areas such as strategic planning, organizational development, process re-engineering, and IT modernization. Spending in this category can fluctuate year-to-year based on specific agency initiatives, budget allocations, and the identification of critical needs. Analyzing historical data from sources like the Federal Procurement Data System (FPDS) would reveal trends in contract values, types of services procured, and the prime contractors most frequently awarded these types of contracts within HHS.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12300 TWINBROOK PARKWAY, ROCKVILLE, MD, 20852

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $37,652,624

Exercised Options: $27,543,297

Current Obligation: $27,543,297

Actual Outlays: $20,912,730

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QRAA21D006L

IDV Type: FSS

Timeline