HHS awards $11.7M for professional support services to Katmai Resource Management, LLC

Contract Overview

Contract Amount: $11,735,236 ($11.7M)

Contractor: Katmai Resource Management, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2019-09-29

End Date: 2022-09-28

Contract Duration: 1,095 days

Daily Burn Rate: $10.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OSH/DOH PROFESSIONAL SUPPORT SERVICES

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30341

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $11.7 million to KATMAI RESOURCE MANAGEMENT, LLC for work described as: OSH/DOH PROFESSIONAL SUPPORT SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Firm Fixed Price contract type suggests cost certainty for the government. 3. Contract duration of 1095 days (3 years) indicates a need for sustained support. 4. The contract falls under 'All Other Professional, Scientific, and Technical Services,' a broad category. 5. Awardee has a single contract with the government for this service. 6. The base value of the contract is $10.7M, with potential for growth.

Value Assessment

Rating: fair

The contract's value of $11.7M over three years for professional support services appears within a reasonable range for specialized technical assistance. However, without specific details on the services rendered or comparable sole-source contracts, a precise value-for-money assessment is challenging. The firm fixed-price structure provides cost predictability, but the lack of competition may have led to a higher price than a competed contract.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one responsible source is available or authorized by statute. The limited competition means that the government did not benefit from a bidding process that could drive down prices or encourage innovative solutions from multiple vendors.

Taxpayer Impact: Sole-source awards can potentially result in higher costs for taxpayers compared to competitively awarded contracts, as there is less pressure on the contractor to offer the most competitive pricing.

Public Impact

The Centers for Disease Control and Prevention (CDC) benefits from this contract by receiving essential professional support services. These services likely contribute to the operational efficiency and effectiveness of public health initiatives. The contract supports the agency's mission in Georgia, indicating a potential geographic focus. The contract supports a firm, potentially impacting its workforce and business operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential for better value.
Broad service category makes it difficult to assess specific performance metrics.
Lack of historical data on this contractor's performance in similar roles.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Contract duration suggests a stable, ongoing need for services.
Awardee is a single entity, simplifying contract management.

Sector Analysis

The professional, scientific, and technical services sector is vast and encompasses a wide range of support functions for government agencies. This contract falls under the 'All Other Professional, Scientific, and Technical Services' NAICS code (541990), indicating a broad scope. Government spending in this area is substantial, supporting everything from research and development to administrative and operational assistance. Benchmarking this specific contract is difficult due to its broad classification and sole-source nature, but it represents a portion of the significant federal investment in specialized expertise.

Small Business Impact

This contract was not set aside for small businesses, and the awardee, Katmai Resource Management, LLC, is not explicitly identified as a small business in the provided data. Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The absence of a small business set-aside means that opportunities for small businesses to participate in this specific contract are limited unless they are subcontractors to the prime awardee.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the Centers for Disease Control and Prevention (CDC). As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency is generally maintained through contract databases, but specific performance monitoring details are not publicly available. The Inspector General for the Department of Health and Human Services would have jurisdiction over any potential fraud, waste, or abuse related to this award.

Related Government Programs

Professional Support Services
Scientific and Technical Services
Public Health Support
Government Contracting

Risk Flags

Sole-source award may indicate limited market research or vendor lock-in.
Broad service category lacks specificity for detailed performance assessment.
Limited contractor history in federal contracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $11.7 million to KATMAI RESOURCE MANAGEMENT, LLC. OSH/DOH PROFESSIONAL SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is KATMAI RESOURCE MANAGEMENT, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $11.7 million.

What is the period of performance?

Start: 2019-09-29. End: 2022-09-28.

What specific professional, scientific, and technical services are being provided under this contract?

The provided data indicates the contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This is a broad category that can encompass a wide array of activities, including but not limited to research support, data analysis, technical consulting, program management assistance, and specialized scientific expertise. Without further details from the contract's statement of work or performance reports, the precise nature of the services rendered remains unspecified. However, given the awarding agency is the CDC, these services likely support public health initiatives, disease surveillance, research, or operational functions within the agency.

How does the contract value compare to similar professional support services contracts awarded by the CDC or HHS?

Comparing the $11.7 million contract value for three years requires access to a database of similar contracts, which is not provided. However, for a sole-source award of this duration and scope within a broad professional services category, the value appears within a plausible range for specialized government support. A key factor in assessing value would be the specific deliverables and the criticality of the services. If this contract provides essential, unique expertise not readily available elsewhere, the price might be justified. Conversely, if the services are more commoditized, a sole-source award at this price point warrants scrutiny regarding price reasonableness.

What are the potential risks associated with awarding this contract on a sole-source basis?

The primary risk of a sole-source award is the lack of price competition, which can lead to the government paying a premium compared to what might be achieved in an open bidding process. This can reduce overall value for money. Another risk is that the government may not be exposed to potentially more innovative or efficient solutions that other qualified contractors might offer. Furthermore, sole-source awards can sometimes indicate a lack of strategic planning or market research to identify multiple capable sources. For taxpayers, this translates to a higher likelihood of inflated costs and potentially missed opportunities for better service delivery.

What is the track record of Katmai Resource Management, LLC with federal contracts?

Based on the provided data, Katmai Resource Management, LLC has been awarded one definitive contract by the government. This contract is for 'OSH/DOH PROFESSIONAL SUPPORT SERVICES' with the Department of Health and Human Services, specifically the Centers for Disease Control and Prevention. The contract has a base value of $10,717,000 and a total award value of $11,735,235.66, running from September 29, 2019, to September 28, 2022. This indicates the company has experience performing services for HHS, but it is the only federal contract listed, suggesting a limited track record in the federal space.

What does the 'firm fixed price' contract type imply for performance and cost control?

A Firm Fixed Price (FFP) contract type means the price is set and not subject to adjustment based on the contractor's cost experience. This provides the government with cost certainty, as the total amount paid will not exceed the agreed-upon price, barring any contract modifications. For the contractor, it means they assume the risk of cost overruns. This contract structure incentivizes the contractor to manage its costs efficiently to maximize profit. For the CDC, it simplifies financial management and budgeting, as the expenditure is predictable. However, it does not inherently guarantee performance quality; the contract must still include clear performance standards and remedies for non-performance.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 75D30119R68068

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Katmai Resource Management LLC

Address: 11001 O'MALLEY CENTRE DRIVE, STE 204, ANCHORAGE, AK, 99515

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, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,906,724

Exercised Options: $11,906,724

Current Obligation: $11,735,236

Actual Outlays: $4,525,331

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $161,337

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline