HHS awards $5.6M for HR management consulting, with a focus on drug evaluation human capital

Contract Overview

Contract Amount: $5,606,211 ($5.6M)

Contractor: Aeio LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2021-03-24

End Date: 2024-09-27

Contract Duration: 1,283 days

Daily Burn Rate: $4.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: THE PURPOSE OF THIS TASK ORDER IS TO HELP ENSURE A MUTUAL UNDERSTANDING OF THE OBJECTIVES, ROLES, RESPONSIBILITIES AND TIMEFRAMES RELATED TO THE HUMAN CAPITAL AND HUMAN RESOURCE MANAGEMENT EFFORTS BEING SPONSORED BY THE CENTER FOR DRUG EVALUATION AND

Place of Performance

Location: OXON HILL, PRINCE GEORGES County, MARYLAND, 20745

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $5.6 million to AEIO LLC for work described as: THE PURPOSE OF THIS TASK ORDER IS TO HELP ENSURE A MUTUAL UNDERSTANDING OF THE OBJECTIVES, ROLES, RESPONSIBILITIES AND TIMEFRAMES RELATED TO THE HUMAN CAPITAL AND HUMAN RESOURCE MANAGEMENT EFFORTS BEING SPONSORED BY THE CENTER FOR DRUG EVALUATION AND Key points: 1. The contract focuses on human capital and human resource management for drug evaluation efforts. 2. AEIO LLC is the contractor, with a delivery order under a larger contract. 3. The contract duration is over three years, spanning from March 2021 to September 2024. 4. The task order aims to ensure mutual understanding of objectives, roles, and responsibilities. 5. The primary service category is Administrative Management and General Management Consulting Services. 6. The contract was awarded under full and open competition after exclusion of sources. 7. The contract type is labor hours, indicating payment based on hours worked. 8. The work is primarily located in Maryland.

Value Assessment

Rating: fair

The contract value of $5.6 million over approximately 3.25 years suggests a moderate annual spend for HR consulting services. Benchmarking this against similar government contracts for management consulting requires more specific details on the scope of services. However, given the specialized nature of supporting drug evaluation human capital, the pricing may be justified if AEIO LLC possesses unique expertise. Without comparable contract data or detailed service breakdowns, a precise value-for-money assessment is challenging, but the cost appears within a reasonable range for specialized consulting.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources.' This indicates that while the initial contract vehicle might have had some restrictions, this specific task order was competed broadly among eligible offerors. The number of bidders is not specified, but the 'full and open' nature suggests a competitive process designed to solicit the best value. This approach generally leads to better price discovery and a wider pool of potential solutions.

Taxpayer Impact: This competitive approach is beneficial for taxpayers as it encourages multiple companies to offer their best pricing and services, potentially driving down costs and improving the quality of the HR management support provided to the FDA.

Public Impact

The primary beneficiaries are the Food and Drug Administration (FDA) and its Center for Drug Evaluation and Research (CDER). The services delivered aim to enhance human capital and human resource management within CDER. This directly supports the FDA's mission to protect public health by ensuring the safety, efficacy, and security of human and veterinary drugs. The contract's focus on human resources is critical for maintaining a skilled and effective workforce within a vital public health agency. The work is geographically centered in Maryland, where the FDA has a significant presence.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if objectives are not clearly defined and managed.
Reliance on a single task order for critical HR functions could pose a risk if the contractor underperforms.
The 'labor hours' contract type requires diligent oversight to ensure efficient use of billable time.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Clear definition of objectives, roles, and responsibilities is stated as a goal.
Long-term duration allows for sustained support and relationship building.

Sector Analysis

This contract falls within the Management and Administrative Consulting Services sector, specifically focusing on Human Resources. This sector is crucial for government agencies to optimize their workforce, manage talent, and ensure operational efficiency. The market for these services is competitive, with numerous firms offering specialized expertise. The FDA's need for support in managing human capital for drug evaluation highlights a critical niche within the broader consulting landscape, where expertise in both HR and regulatory environments is valued.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). As a delivery order under a potentially larger contract, the subcontracting implications would depend on the terms of the prime contract. Without further information on the prime contract's small business subcontracting plan, it's difficult to assess the direct impact on the small business ecosystem. However, the absence of a specific set-aside suggests larger, established firms were likely primary participants in the competition.

Oversight & Accountability

Oversight for this task order would typically reside with the contracting officer and the FDA program officials responsible for the human capital and HR management efforts. As a delivery order, it falls under the purview of the parent contract's oversight mechanisms. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

HHS Human Capital Management
FDA Workforce Development Programs
Federal HR Consulting Services
Drug Safety and Evaluation Support

Risk Flags

Contract duration exceeds typical short-term consulting engagements.
Specific expertise required for drug evaluation HR may be niche.
Labor hour contract type requires careful monitoring of hours billed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $5.6 million to AEIO LLC. THE PURPOSE OF THIS TASK ORDER IS TO HELP ENSURE A MUTUAL UNDERSTANDING OF THE OBJECTIVES, ROLES, RESPONSIBILITIES AND TIMEFRAMES RELATED TO THE HUMAN CAPITAL AND HUMAN RESOURCE MANAGEMENT EFFORTS BEING SPONSORED BY THE CENTER FOR DRUG EVALUATION AND

Who is the contractor on this award?

The obligated recipient is AEIO LLC.

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 $5.6 million.

What is the period of performance?

Start: 2021-03-24. End: 2024-09-27.

What is the specific expertise AEIO LLC brings to human capital management within the context of drug evaluation?

The provided data does not detail AEIO LLC's specific expertise. However, the contract's objective to support 'human capital and human resource management efforts being sponsored by the Center for Drug Evaluation and' suggests a need for specialized knowledge in areas such as talent acquisition, performance management, workforce planning, and employee relations, tailored to the unique demands and regulatory environment of the FDA's drug evaluation processes. This could include understanding scientific personnel needs, compliance requirements, and the strategic importance of human capital in advancing public health missions. AEIO LLC would likely need to demonstrate a track record in similar complex, mission-critical government environments.

How does the $5.6 million cost compare to similar HR consulting contracts for federal agencies of the FDA's size?

Directly comparing the $5.6 million cost requires access to a database of similar federal HR consulting contracts, including their scope, duration, and specific services rendered. However, for a multi-year task order (over three years) supporting specialized functions like human capital management for a critical agency division (CDER), this amount appears moderate. Annual spending would be roughly $1.7 million. Factors influencing cost include the level of consultant expertise required, the complexity of the HR challenges, and the number of personnel impacted. Without more granular data on the services provided and the specific HR challenges addressed, a definitive benchmark is difficult, but it doesn't immediately suggest overpricing for specialized government consulting.

What are the key performance indicators (KPIs) used to measure the success of this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, for HR management consulting, KPIs might include metrics related to recruitment timelines, employee retention rates, training completion rates, employee satisfaction scores, efficiency of HR processes (e.g., time to fill positions), and successful implementation of HR strategies. The contract's stated purpose of ensuring 'mutual understanding of objectives, roles, responsibilities and timeframes' suggests that adherence to project milestones and deliverables would also be critical. The FDA program office and contracting officer would be responsible for defining and monitoring these KPIs.

What is the historical spending pattern for HR management consulting services at the FDA or CDER?

The provided data only pertains to this specific task order awarded in March 2021. To understand historical spending patterns for HR management consulting at the FDA or CDER, one would need to analyze federal procurement databases (like USASpending.gov or FPDS) for contracts awarded to the FDA and its sub-agencies over several fiscal years. This analysis would involve searching for relevant NAICS codes (like 541611 for Administrative Management and General Management Consulting Services) and keywords related to HR and human capital. Without this broader analysis, it's impossible to determine if the $5.6 million represents an increase, decrease, or consistent level of spending for such services.

What are the potential risks associated with relying on external consultants for critical HR functions like human capital management?

Relying on external consultants for critical HR functions carries several potential risks. Firstly, there's a risk of knowledge transfer gaps, where the agency may not fully internalize the expertise gained, leading to dependency on the contractor. Secondly, data security and confidentiality are paramount, as consultants will handle sensitive employee information. A breach could have severe consequences. Thirdly, there's the risk of misalignment between the consultant's objectives and the agency's long-term strategic goals, especially if the contract is narrowly focused. Finally, the 'labor hours' contract type necessitates robust oversight to prevent inefficient use of billable time and ensure the work remains within scope and budget. Maintaining institutional knowledge within the agency is also crucial.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting 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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 120 WATERFRONT ST STE 220, OXON HILL, MD, 20745

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $5,606,211

Exercised Options: $5,606,211

Current Obligation: $5,606,211

Actual Outlays: $5,186,008

Contract Characteristics

Multi-Year Contract: Yes

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

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSF223201710018I

IDV Type: IDC

Timeline