HHS awards $33.3M for PRME Service Design and Engineering Support, with limited competition

Contract Overview

Contract Amount: $33,324,802 ($33.3M)

Contractor: Skylight Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2021-12-08

End Date: 2024-11-14

Contract Duration: 1,072 days

Daily Burn Rate: $31.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: R&D

Official Description: PRME SERVICE DESIGN AND ENGINEERING SUPPORT SERVICES

Place of Performance

Location: SARASOTA, SARASOTA County, FLORIDA, 34236

State: Florida Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $33.3 million to SKYLIGHT INC. for work described as: PRME SERVICE DESIGN AND ENGINEERING SUPPORT SERVICES Key points: 1. Contract value of $33.3M for design and engineering support services. 2. Services are categorized under Research and Development in Physical, Engineering, and Life Sciences. 3. Contract awarded as a definitive contract with a Time and Materials pricing structure. 4. Performance period spans from December 2021 to November 2024. 5. The contract was not competed, raising questions about price discovery. 6. The primary service area is Florida, with a total duration of 1072 days.

Value Assessment

Rating: fair

The contract value of $33.3 million for PRME Service Design and Engineering Support is substantial. However, without a competitive bidding process, it is difficult to benchmark the value for money effectively. The Time and Materials pricing structure can sometimes lead to cost overruns if not managed diligently. Further analysis would require comparing the specific deliverables and labor rates to similar government contracts or private sector benchmarks.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to full and open competition. This approach is typically used when only one responsible source is available or when a compelling justification exists for not seeking competition. The lack of multiple bidders limits the government's ability to leverage competitive pressures to achieve the best possible pricing and terms.

Taxpayer Impact: Taxpayers may not be receiving the most cost-effective solution due to the absence of competitive bidding. The government's negotiating position is weakened without alternative offers.

Public Impact

The Centers for Disease Control and Prevention (CDC) benefits from specialized design and engineering support. Services are crucial for the development and implementation of public health initiatives. The primary geographic impact is in Florida, where the services are being delivered. The contract supports a workforce skilled in research, engineering, and design within the life sciences sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Time and Materials contract type can pose cost control risks if not closely monitored.
Limited transparency into the selection process due to sole-source award.

Positive Signals

Addresses a critical need for specialized design and engineering support within the CDC.
Long-term performance period suggests a sustained requirement for these services.
Contract awarded to Skylight Inc., indicating a potentially established relationship or specialized capability.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for such specialized support services is driven by government agencies requiring expertise in complex scientific and technical projects. Benchmarking this spending would involve comparing it to other R&D support contracts awarded by agencies like HHS or other federal entities with similar scientific missions.

Small Business Impact

The data indicates that small business participation was not a stated factor in this award (ss: false, sb: false). As a sole-source award, there are no explicit subcontracting requirements for small businesses mandated by the contract terms. This means the direct impact on the small business ecosystem is minimal unless the prime contractor voluntarily engages small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services and the Centers for Disease Control and Prevention. Accountability measures would be embedded in the contract's performance standards and reporting requirements. Transparency is limited due to the sole-source nature of the award, but contract details should be available through federal procurement databases.

Related Government Programs

Public Health Services
Scientific Research and Development Support
Engineering Consulting Services
Federal Health IT Services

Risk Flags

Sole-source award limits competitive pricing.
Time and Materials contract type poses cost control risks.
Lack of detailed scope of work in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $33.3 million to SKYLIGHT INC.. PRME SERVICE DESIGN AND ENGINEERING SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is SKYLIGHT 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 $33.3 million.

What is the period of performance?

Start: 2021-12-08. End: 2024-11-14.

What is the specific nature of the 'PRME Service Design and Engineering Support Services' being provided?

The provided data does not detail the specific nature of the 'PRME Service Design and Engineering Support Services'. However, given the agency (CDC) and the NAICS code (541715 - Research and Development in the Physical, Engineering, and Life Sciences), these services likely involve complex technical and scientific support. This could encompass areas such as designing research protocols, developing engineering solutions for scientific equipment, providing technical expertise for data analysis platforms, or supporting the development of new public health technologies and infrastructure. The 'PRME' acronym itself might refer to a specific program or initiative within the CDC requiring these specialized skills.

Why was this contract awarded on a sole-source basis instead of being competed?

The data explicitly states the contract was 'NOT AVAILABLE FOR COMPETITION', indicating a sole-source award. The justification for such an award typically stems from situations where only one vendor possesses the unique capabilities, proprietary technology, or specialized expertise required for the project, or if there's an urgent need that cannot be met through a competitive process. Without further documentation (like a Justification for Other Than Full and Open Competition - JOFOC), the precise reason remains undisclosed, but it implies a belief by the agency that competition was not feasible or practical for this specific requirement.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar R&D support services?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to evolve, which can be common in R&D. Unlike fixed-price contracts, T&M reimburses the contractor for the actual cost of labor (at specified hourly rates) and materials. While flexible, T&M contracts carry a higher risk of cost overruns for the government if not managed closely, as there's less incentive for the contractor to control costs. For R&D support, fixed-price or cost-plus contracts might be preferred if the scope is well-defined, offering better cost certainty. The choice of T&M here suggests the agency prioritized flexibility over strict cost control upfront.

What are the potential risks associated with a $33.3 million sole-source contract awarded on a Time and Materials basis?

The primary risks associated with this contract are threefold. Firstly, the sole-source nature means the government likely paid a higher price than it might have in a competitive environment, as there was no pressure from competing bids to drive down costs. Secondly, the Time and Materials (T&M) pricing structure, while flexible, inherently carries a risk of cost escalation. Without stringent oversight and well-defined task orders, the contractor could incur significant labor hours and material costs, leading to a final price exceeding initial expectations. Thirdly, the lack of competition reduces transparency and makes it harder to assess whether the contractor's performance and pricing are truly aligned with market rates or best value for the government.

What is the historical spending pattern for PRME Service Design and Engineering Support at the CDC or HHS?

The provided data only includes details for this specific contract award. To understand historical spending patterns, one would need to access broader federal procurement databases (like USASpending.gov or FPDS) and search for similar contract actions awarded by the CDC or HHS for 'PRME Service Design and Engineering Support' or related service categories (e.g., R&D support, engineering services, design services) over several fiscal years. Analyzing past awards would reveal trends in contract values, competition levels, and the contractors frequently utilized for such services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

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: 75D301-22-Q-74217

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1226 N TAMIAMI TRL STE 201-13, SARASOTA, FL, 34236

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

Financial Breakdown

Contract Ceiling: $33,324,802

Exercised Options: $33,324,802

Current Obligation: $33,324,802

Actual Outlays: $28,442,302

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline