HHS awards $22.1M for investigative support, with a significant portion for time and materials

Contract Overview

Contract Amount: $22,173,126 ($22.2M)

Contractor: Madison Associates Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2019-09-12

End Date: 2023-06-30

Contract Duration: 1,387 days

Daily Burn Rate: $16.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: ASSET FORFEITURE INVESTIGATIVE SUPPORT SERVICES (AFISS)

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20903

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $22.2 million to MADISON ASSOCIATES INC for work described as: ASSET FORFEITURE INVESTIGATIVE SUPPORT SERVICES (AFISS) Key points: 1. Contract value of $22.1M over nearly four years indicates substantial demand for investigative support. 2. The use of Time and Materials pricing raises concerns about cost control and potential for overruns. 3. Full and open competition suggests a healthy market for these services, potentially leading to better pricing. 4. The contract's duration and value place it as a significant award within the FDA's support services portfolio. 5. Focus on investigation and personal background checks highlights a critical function for regulatory agencies. 6. The award to Madison Associates Inc. represents a key vendor relationship for the FDA in this specialized area.

Value Assessment

Rating: fair

The contract's total value of $22.1M over 1387 days averages approximately $16,000 per day. While the specific services are not detailed enough for direct comparison, the use of Time and Materials (T&M) pricing is a common but often less cost-effective method compared to fixed-price contracts. Without detailed labor categories and rates, a precise value-for-money assessment is difficult, but T&M contracts inherently carry higher risk for the government regarding cost predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and allowed to bid. With 4 bidders identified, this suggests a competitive environment for investigative support services. This level of competition is generally positive for price discovery and ensuring the government receives competitive offers, though the specific pricing structure (T&M) can still lead to variability.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple vendors to offer their best pricing, potentially driving down costs and increasing the likelihood of receiving a fair market price for the services rendered.

Public Impact

The Food and Drug Administration (FDA) benefits from enhanced investigative capabilities to ensure public health and safety. Services delivered likely include background checks, investigative support, and data analysis crucial for regulatory enforcement. The contract's primary geographic impact is likely within the United States, supporting FDA operations nationwide. The contract supports a specialized workforce skilled in investigation and data analysis, contributing to the federal government's operational capacity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing structure can lead to cost overruns if not closely monitored and managed.
Lack of detailed performance metrics in the provided data makes it difficult to assess the effectiveness of the services.
The duration of the contract (nearly 4 years) means potential for vendor lock-in or reduced flexibility if needs change.

Positive Signals

Awarded under full and open competition, suggesting a robust vendor pool and competitive pricing.
The contract addresses a critical need for investigative support within a key regulatory agency (FDA).
The contract value indicates a significant and sustained requirement for these specialized services.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on investigation and personal background check services (NAICS 561611). This is a niche but essential service for government agencies, particularly those involved in regulation, law enforcement, and security. The market for such services is competitive, with numerous firms offering specialized expertise. The $22.1M award over nearly four years represents a substantial contract within this sub-sector, indicating a significant demand for these capabilities by the FDA.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities, which are not detailed here. Without specific subcontracting plans or goals, it's difficult to assess the direct benefit to the small business ecosystem from this particular award.

Oversight & Accountability

Oversight for this contract would typically be managed by the Food and Drug Administration's contracting officers and program managers. Accountability measures are usually embedded within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or identified during the contract's performance.

Related Government Programs

Federal investigative services
Contracting support services
Regulatory enforcement support
Background check services
Time and Materials contracts

Risk Flags

Time and Materials pricing
Potential for cost overruns
Contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $22.2 million to MADISON ASSOCIATES INC. ASSET FORFEITURE INVESTIGATIVE SUPPORT SERVICES (AFISS)

Who is the contractor on this award?

The obligated recipient is MADISON ASSOCIATES INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Food and Drug Administration).

What is the total obligated amount?

The obligated amount is $22.2 million.

What is the period of performance?

Start: 2019-09-12. End: 2023-06-30.

What is the specific nature of the 'ASSET FORFEITURE INVESTIGATIVE SUPPORT SERVICES' provided under this contract?

The contract title, 'ASSET FORFEITURE INVESTIGATIVE SUPPORT SERVICES (AFISS)', suggests services related to supporting investigations involving the forfeiture of assets. This could encompass a range of activities such as locating, identifying, and documenting assets believed to be proceeds of illegal activities or used in the commission of crimes. It may also involve providing analytical support, research, and reporting to aid investigators and legal teams in asset seizure and forfeiture proceedings. The specific tasks would be detailed in the Statement of Work (SOW) which is not provided here, but typically involves data gathering, analysis, and potentially witness interviews or surveillance support.

How does the Time and Materials (T&M) pricing structure compare to fixed-price options for similar investigative services?

Time and Materials (T&M) contracts pay the contractor for the actual cost of materials and the time spent by labor at specified hourly rates. This offers flexibility, especially when the scope of work is uncertain or likely to change. However, it places the risk of cost overruns on the government. Fixed-price contracts, conversely, establish a set price for a defined scope of work, shifting cost risk to the contractor and providing greater budget certainty for the government. For investigative services where the duration and effort can be variable, T&M might seem appropriate, but it necessitates rigorous oversight to prevent inflated hours or unnecessary material costs. Fixed-price contracts are generally preferred when the scope is well-defined, as they tend to yield better value for money.

What is the typical duration and value range for similar investigative support contracts awarded by federal agencies?

The duration of this contract (1387 days, approximately 3.8 years) and its value ($22.1M) are substantial for specialized investigative support. Federal contracts for investigative and background check services can vary widely. Smaller, task-order-based contracts might range from tens of thousands to a few million dollars over shorter periods. Larger, agency-wide support contracts, especially those involving complex investigations or extensive data analysis, can reach tens or even hundreds of millions of dollars over several years. This $22.1M award falls into the mid-to-high range for a specific support service within an agency like the FDA, reflecting a significant and ongoing need.

What are the potential risks associated with Madison Associates Inc. as a contractor for these services?

Without specific performance history data for Madison Associates Inc. on this particular contract or prior contracts, assessing contractor-specific risks is challenging. However, general risks associated with any contractor in this space include potential for staff turnover impacting service continuity, challenges in maintaining data security and confidentiality, and the possibility of performance falling short of expectations. The T&M pricing structure itself introduces a risk of cost escalation if not managed diligently. A review of past performance records, past performance questionnaires, and any available CPARS (Contractor Performance Assessment Reporting System) data would be necessary for a comprehensive risk assessment of the contractor.

How does the FDA's spending on investigative support services compare to other agencies with similar regulatory or enforcement missions?

Comparing FDA's spending on investigative support to agencies like the FBI, DEA, or EPA would provide valuable context. Agencies with significant law enforcement or regulatory oversight responsibilities often have substantial budgets allocated to investigative services. For instance, the FBI's budget consistently runs into billions, a portion of which funds investigative support. The EPA might spend on environmental investigations, and the DEA on drug-related asset forfeiture. The FDA's $22.1M for AFISS indicates a focused investment in supporting its specific regulatory mission, which may be smaller in scale compared to broader federal law enforcement agencies but is critical for its domain.

What is the historical spending trend for ASSET FORFEITURE INVESTIGATIVE SUPPORT SERVICES (AFISS) or similar contracts at the FDA?

To assess historical spending trends, one would need to analyze contract data for AFISS or comparable investigative support services awarded by the FDA over several fiscal years. This would involve querying databases like FPDS or USASpending.gov for relevant contract actions. If this is a recurring need, one might expect to see similar contracts awarded in previous years, potentially with varying values and durations depending on agency priorities and budget allocations. A trend analysis could reveal whether spending in this area is increasing, decreasing, or remaining stable, providing insight into the sustained importance of these services to the FDA's mission.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Investigation and Personal Background Check 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: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 19812 ALDIE BURN LN, LEESBURG, VA, 20175

Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,173,126

Exercised Options: $22,173,126

Current Obligation: $22,173,126

Actual Outlays: $10,554,470

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DJJ16PSSV2671

IDV Type: IDC

Timeline