HHS awards $5.4M for administrative support, with a significant portion for labor hours

Contract Overview

Contract Amount: $5,421,200 ($5.4M)

Contractor: Synergy America, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2019-09-30

End Date: 2024-09-25

Contract Duration: 1,822 days

Daily Burn Rate: $3.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: ADMINISTRATIVE 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 $5.4 million to SYNERGY AMERICA, INC. for work described as: ADMINISTRATIVE SUPPORT SERVICES Key points: 1. Contract focuses on essential office administrative functions, supporting critical public health operations. 2. The award utilized full and open competition, suggesting a competitive bidding process. 3. A single definitive contract was awarded, indicating a long-term agreement for services. 4. The contract duration spans over 1800 days, implying a need for sustained support. 5. The primary service delivery location is Georgia, highlighting regional impact. 6. Labor hours constitute the primary payment mechanism, emphasizing personnel-driven services.

Value Assessment

Rating: fair

The contract value of $5.4 million for administrative support services over approximately five years appears reasonable for the scope of work. Benchmarking against similar administrative support contracts within federal agencies is necessary for a definitive value assessment. The pricing structure based on labor hours requires careful monitoring to ensure efficiency and prevent cost overruns. Without specific details on the labor categories and rates, a precise value-for-money judgment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple potential bidders were allowed to submit proposals. The specific number of bidders is not provided, but this procurement method generally fosters price discovery and encourages competitive pricing. The agency's decision to exclude certain sources might be based on specific technical requirements or past performance, which warrants further investigation.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The Centers for Disease Control and Prevention (CDC) benefits from this contract by receiving essential administrative support. Services delivered include office administrative functions, crucial for the smooth operation of public health initiatives. The geographic impact is concentrated in Georgia, where the contractor is located and services are likely performed. Workforce implications include the employment of personnel by Synergy America, Inc. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders limits the assessment of competitive intensity.
The 'exclusion of sources' clause requires further scrutiny to understand its justification and potential impact on competition.
Absence of detailed performance metrics makes it difficult to assess the contractor's track record on this specific award.

Positive Signals

Awarded under full and open competition, indicating a commitment to a broad solicitation process.
The contract is a definitive contract, suggesting a stable, long-term relationship for consistent support.
The contractor, Synergy America, Inc., has secured a federal contract, implying a level of established capability.

Sector Analysis

Administrative support services represent a broad category within the federal contracting landscape, encompassing a wide range of office functions. This contract falls under the professional, scientific, and technical services sector. Comparable spending benchmarks for similar administrative support contracts can vary significantly based on agency, scope, and duration. The North American Industry Classification System (NAICS) code 561110, Office Administrative Services, is a common category for such procurements.

Small Business Impact

The 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 impacts on the small business ecosystem stemming from a set-aside provision. The primary focus of this award is on the prime contractor, Synergy America, Inc.

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). Accountability measures are embedded in the contract terms, including performance standards and payment schedules. Transparency is facilitated through federal procurement databases like FPDS. Inspector General jurisdiction may apply in cases of fraud, waste, or abuse, but specific IG involvement is not indicated.

Related Government Programs

Administrative Support Services
Office Administrative Services
Professional, Scientific, and Technical Services

Risk Flags

Potential for cost overruns due to labor-hour pricing structure.
Need for detailed justification of 'exclusion of sources' to ensure fair competition.
Limited transparency on the number of bidders and specific performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $5.4 million to SYNERGY AMERICA, INC.. ADMINISTRATIVE SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is SYNERGY AMERICA, INC..

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 $5.4 million.

What is the period of performance?

Start: 2019-09-30. End: 2024-09-25.

What is the specific nature of the 'administrative support services' being provided under this contract?

The contract specifies 'Office Administrative Services' under NAICS code 561110. This typically encompasses a range of tasks essential for the functioning of an office environment. These services can include tasks such as document management, scheduling, record keeping, mail processing, reception services, and general clerical support. Given the awarding agency is the CDC, these administrative functions likely support public health programs, research, or operational activities, ensuring that program staff can focus on their core mission-critical duties.

How does the awarded amount of $5.4 million compare to similar administrative support contracts awarded by the CDC or other federal agencies?

A direct comparison of the $5.4 million award requires access to a comprehensive database of similar federal contracts, including their scope, duration, and specific services rendered. However, for a contract spanning approximately five years (from September 2019 to September 2024) and involving labor hours, this value appears to be within a common range for significant administrative support needs. Agencies often procure these services to augment their internal workforce or to handle specialized administrative functions. Without more granular data on the labor rates and the exact volume of services, a precise benchmarking is difficult, but the amount suggests a substantial, ongoing requirement.

What are the potential risks associated with a definitive contract awarded on a labor-hour basis?

Definitive contracts awarded on a labor-hour basis carry inherent risks, primarily related to cost control and contractor performance. The primary risk is that costs can escalate if labor hours are not managed efficiently or if the estimated labor mix proves inaccurate. This can lead to the contract exceeding its ceiling value. Another risk is ensuring the quality and productivity of the labor provided. Without clear performance metrics tied to outcomes, it can be challenging to assess the true value delivered. Agencies must maintain robust oversight to monitor labor utilization, ensure fair and reasonable labor rates, and verify that the work performed aligns with the contract's objectives.

What does the 'full and open competition after exclusion of sources' clause imply for the procurement process and potential bidders?

The 'full and open competition after exclusion of sources' clause indicates that the agency initially intended to compete the contract broadly but subsequently decided to exclude certain potential offerors. This exclusion must be justified by specific criteria, such as unique capabilities, past performance, or specific technical requirements that only a limited number of sources can meet. While it still allows for competition among the remaining eligible sources, it narrows the field compared to a pure 'full and open' competition. This could potentially limit price competition and innovation if the exclusion criteria are not well-defined or if they inadvertently restrict viable alternatives.

What is the track record of Synergy America, Inc. in securing and performing federal administrative support contracts?

Synergy America, Inc. has secured this definitive contract with the Department of Health and Human Services, indicating a level of capability and experience recognized by the federal government. To fully assess their track record, one would need to examine their past performance on similar contracts, including client satisfaction, adherence to schedules and budgets, and any documented issues or awards. Federal procurement databases often contain past performance information, which is crucial for evaluating a contractor's reliability and effectiveness in delivering administrative support services.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 6340 SUGARLOAF PKWY STE 200, DULUTH, GA, 30097

Business Categories: 8(a) Program Participant, Category Business, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $5,761,831

Exercised Options: $5,761,831

Current Obligation: $5,421,200

Actual Outlays: $3,512,747

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline