HHS awards $16.8M contract for OCC Monitoring and Oversight System to Walter R. McDonald & Associates

Contract Overview

Contract Amount: $16,833,007 ($16.8M)

Contractor: Walter R Mcdonald & Associates, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2024-09-30

End Date: 2026-09-29

Contract Duration: 729 days

Daily Burn Rate: $23.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OCC MONITORING AND OVERSIGHT SYSTEM

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $16.8 million to WALTER R MCDONALD & ASSOCIATES, INC. for work described as: OCC MONITORING AND OVERSIGHT SYSTEM Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is for administrative management and general management consulting services. 3. The duration of the contract is 729 days, ending in September 2026. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. The award is a Delivery Order, indicating it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. The contractor, Walter R. McDonald & Associates, Inc., has secured this award. 7. The contract is managed by the Administration for Children and Families within HHS.

Value Assessment

Rating: fair

The contract value of $16.8 million over approximately two years for a monitoring and oversight system appears to be within a reasonable range for such services. Benchmarking against similar government contracts for management consulting and system development is necessary for a definitive value assessment. Without specific details on the system's complexity and deliverables, a precise comparison is challenging. However, the firm fixed-price nature suggests that the government has negotiated a set price, which can be advantageous if the scope is well-defined.

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 bids. The number of bidders is not specified in the provided data, but the competitive nature of the award process is generally expected to drive better pricing and service quality. A robust competition typically leads to a more favorable outcome for the government by allowing multiple vendors to propose solutions and pricing.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a marketplace where contractors vie for government business, potentially leading to cost savings and innovative solutions. This process ensures that taxpayer funds are utilized efficiently by selecting the most capable and cost-effective offeror.

Public Impact

The primary beneficiaries are likely the Administration for Children and Families (ACF) within HHS, who will receive the OCC Monitoring and Oversight System. The system is intended to enhance the monitoring and oversight of programs managed by ACF. This could lead to improved program efficiency, accountability, and effectiveness in serving children and families. The geographic impact is likely national, given ACF's broad mandate, though specific program impacts may vary. The contract supports administrative management and consulting services, potentially impacting a specialized workforce within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or success criteria in the provided data makes it difficult to assess the contractor's past performance or potential future effectiveness.
The duration of the contract (729 days) is substantial, requiring ongoing monitoring to ensure continued value delivery.
The absence of small business subcontracting information raises questions about broader economic impact and opportunities for smaller firms.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded a strong offer.
Firm Fixed Price contract type shifts cost overrun risk to the contractor, providing budget certainty for the government.
The contract is for a critical function: monitoring and oversight, which is essential for program accountability and effectiveness.

Sector Analysis

The contract falls within the Administrative Management and General Management Consulting Services sector (NAICS code 541611). This sector is characterized by firms providing expertise in organizational efficiency, strategic planning, and operational management. Government spending in this area is substantial, supporting various agencies in improving their internal processes and program delivery. Comparable spending benchmarks would involve analyzing other large-scale consulting contracts awarded by federal agencies for similar system development and management support.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from a set-aside. The primary focus is on larger, established firms capable of handling comprehensive management consulting and system development projects.

Oversight & Accountability

Oversight for this contract will likely be managed by the Administration for Children and Families (ACF) contracting officers and program managers. As a federal contract, it is subject to standard government oversight mechanisms, including performance reviews and audits. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

HHS IT Modernization Initiatives
ACF Program Management Support
Federal Consulting Services Contracts
Government Oversight Systems
Administrative Management Services

Risk Flags

Potential for scope creep in FFP contracts if requirements are not clearly defined.
Need for robust government oversight to ensure contractor performance meets expectations.
Dependence on contractor's technical expertise for system development and maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $16.8 million to WALTER R MCDONALD & ASSOCIATES, INC.. OCC MONITORING AND OVERSIGHT SYSTEM

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 $16.8 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-09-29.

What is the specific nature and scope of the OCC Monitoring and Oversight System being developed or maintained under this contract?

The provided data identifies the contract as being for the 'OCC MONITORING AND OVERSIGHT SYSTEM' and classifies the services under NAICS code 541611 (Administrative Management and General Management Consulting Services). While the exact functionalities are not detailed, the title suggests the system is designed to track, evaluate, and report on the performance and compliance of programs or operations managed by the Administration for Children and Families (ACF). This could involve data collection, analysis, performance metric tracking, risk assessment, and generating reports for ACF leadership and potentially other stakeholders. The system's development or enhancement aims to improve ACF's ability to ensure accountability, efficiency, and effectiveness in its various programs.

How does the $16.8 million contract value compare to similar government contracts for management consulting and system development?

A direct comparison of the $16.8 million contract value requires access to a comprehensive database of similar federal contracts, including their scope, duration, and specific deliverables. However, for a two-year contract (729 days) involving system development and management consulting, this figure appears to be within a plausible range for a significant government project. Contracts for enterprise-level systems, program management support, and strategic consulting can easily reach multi-million dollar figures. Factors influencing this value include the complexity of the system, the number of users, the level of customization required, and the specific expertise of the contractor. Without more granular details on the system's requirements and the contractor's proposed solution, a precise benchmark is difficult, but it suggests a project of considerable scale and importance within ACF.

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

Walter R. McDonald & Associates, Inc. (WRMA) has a history of securing federal contracts, including those with the Department of Health and Human Services (HHS). Their portfolio often includes services related to program administration, financial management, and consulting for various government agencies. To assess their track record specifically for this type of system development and oversight contract, a deeper dive into their past performance ratings, any past issues or successes on similar projects, and their overall contract history with HHS would be necessary. Information from sources like the Federal Procurement Data System (FPDS) or agency-specific performance evaluations would provide more insight into their reliability and capability in delivering complex solutions.

What are the potential risks associated with a firm fixed-price contract for a monitoring and oversight system?

While firm fixed-price (FFP) contracts offer budget certainty by fixing the total price, they carry specific risks, especially for complex system development or implementation projects. If the scope of the OCC Monitoring and Oversight System is not perfectly defined upfront, the contractor may face challenges in meeting all requirements within the agreed price. This could lead to the contractor cutting corners on quality, performance, or features to maintain profitability, potentially resulting in a system that doesn't fully meet the government's needs. Conversely, if the government's requirements change significantly, the contractor may seek change orders, which could increase the overall cost, negating some of the FFP benefits. Effective project management and clear communication are crucial to mitigate these risks.

How might the implementation of this system impact the operational efficiency and accountability of ACF programs?

The implementation of a dedicated OCC Monitoring and Oversight System is intended to significantly enhance operational efficiency and accountability within ACF programs. By providing a centralized platform for data collection, analysis, and reporting, the system can streamline the process of tracking program performance against established metrics. This allows for quicker identification of successes, challenges, and areas needing improvement. Enhanced oversight can lead to better resource allocation, more effective risk management, and improved compliance with regulations and policies. Ultimately, this should translate into more effective service delivery to the populations ACF serves and greater assurance to taxpayers that funds are being used appropriately and achieving desired outcomes.

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: 1

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: $21,113,711

Exercised Options: $16,833,007

Current Obligation: $16,833,007

Actual Outlays: $11,105,100

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAA21D006L

IDV Type: FSS

Timeline