HHS Awards $326M for HR Consulting Services to Synergy America, Inc
Contract Overview
Contract Amount: $326,387 ($326.4K)
Contractor: Synergy America, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2020-06-26
End Date: 2024-04-12
Contract Duration: 1,386 days
Daily Burn Rate: $235/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: DOES NOT APPLY
Place of Performance
Location: SPOKANE, SPOKANE County, WASHINGTON, 99207
Plain-Language Summary
Department of Health and Human Services obligated $326,387.11 to SYNERGY AMERICA, INC. for work described as: DOES NOT APPLY Key points: 1. Significant contract value of $326.4 million over nearly four years. 2. Synergy America, Inc. is the sole awardee. 3. Contract type is Firm Fixed Price, indicating price certainty. 4. The NAICS code 541612 suggests a focus on Human Resources Consulting Services.
Value Assessment
Rating: questionable
The contract value of $326.4 million for HR consulting services is substantial. Benchmarking against similar contracts is difficult without more specific service details, but the duration and scale warrant scrutiny for value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed under SAP and is listed as sole-source. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the best possible price due to a lack of competition.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The long contract duration could lock in potentially suboptimal pricing. Lack of transparency in the sole-source award process raises accountability concerns.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
- Long contract duration
Positive Signals
- Firm Fixed Price contract type
Sector Analysis
This contract falls under professional services, specifically Human Resources Consulting. Spending in this sector can vary widely, but large sole-source awards like this warrant careful review to ensure efficiency and necessity.
Small Business Impact
The data does not indicate any specific provisions or considerations for small businesses in this award, suggesting it was not set aside for them.
Oversight & Accountability
The sole-source nature of this award raises questions about the oversight applied to ensure fair pricing and necessity. Further review of the justification for sole-sourcing is recommended.
Related Government Programs
- Human Resources Consulting Services
- Department of Health and Human Services Contracting
- Centers for Disease Control and Prevention Programs
Risk Flags
- Potential for overpayment due to lack of competition.
- Limited transparency in the procurement process.
- Risk of vendor lock-in with a sole-source provider.
- Contract duration may exceed actual need, increasing costs.
Tags
human-resources-consulting-services, department-of-health-and-human-services, wa, purchase-order, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $326,387.11 to SYNERGY AMERICA, INC.. DOES NOT APPLY
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 $326,387.11.
What is the period of performance?
Start: 2020-06-26. End: 2024-04-12.
What was the justification for awarding this contract on a sole-source basis, and was a full and open competition truly not feasible?
The justification for a sole-source award is critical for understanding why competitive market forces were bypassed. Agencies typically must demonstrate that only one responsible source can provide the required services or that a compelling urgency exists. Without this documentation, it's difficult to assess if the government received the best value and if taxpayer funds were used efficiently.
How does the pricing structure and overall cost of this $326 million HR consulting contract compare to industry benchmarks for similar services, especially given its sole-source nature?
Benchmarking this contract's pricing is essential to determine if the government secured a fair price. Given it was a sole-source award, there's a heightened risk of inflated costs. A thorough analysis would involve comparing the per-unit costs, labor rates, and overall project expenses against publicly available data for comparable HR consulting services obtained through competitive means.
What specific HR consulting services are being procured under this contract, and how will their effectiveness be measured to ensure value for the $326 million investment?
Understanding the specific deliverables and performance metrics is crucial for assessing the contract's effectiveness and value. Clear objectives, measurable outcomes, and robust performance monitoring mechanisms are necessary to ensure that the substantial investment of $326 million yields tangible benefits for the CDC and ultimately for public health initiatives.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Human Resources Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 75D301-20-Q-72080
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6340 SUGARLOAF PKWY STE 200, DULUTH, GA, 30097
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, 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: $344,361
Exercised Options: $344,361
Current Obligation: $326,387
Actual Outlays: $231,069
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2020-06-26
Current End Date: 2024-04-12
Potential End Date: 2024-04-12 00:00:00
Last Modified: 2026-04-07
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