HHS Awards $2.3M for Management Consulting Services to Explore Digits Inc

Contract Overview

Contract Amount: $2,334,746 ($2.3M)

Contractor: Explore Digits Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2024-04-30

End Date: 2026-04-29

Contract Duration: 729 days

Daily Burn Rate: $3.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: INDEPENDENTLY AND NOT AS AN AGENT OF THE GOVERNMENT, THE CONTRACTOR SHALL FURNISH ALL THE NECESSARY SERVICES, QUALIFIED PERSONNEL, MATERIAL, EQUIPMENT, FACILITIES, AND SUPPLIES, NOT OTHERWISE PROVIDED BY THE GOVERNMENT AS NEEDED TO PERFORM THE REQU

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.3 million to EXPLORE DIGITS INC for work described as: INDEPENDENTLY AND NOT AS AN AGENT OF THE GOVERNMENT, THE CONTRACTOR SHALL FURNISH ALL THE NECESSARY SERVICES, QUALIFIED PERSONNEL, MATERIAL, EQUIPMENT, FACILITIES, AND SUPPLIES, NOT OTHERWISE PROVIDED BY THE GOVERNMENT AS NEEDED TO PERFORM THE REQU Key points: 1. Contract awarded to Explore Digits Inc. for administrative management and general management consulting. 2. The contract is a definitive contract with a firm fixed price. 3. The contract was not available for competition, raising potential concerns about price discovery. 4. The sector is professional services, specifically management consulting.

Value Assessment

Rating: questionable

The contract value of $2.3M for a 2-year period is difficult to benchmark without specific deliverables. The firm fixed price suggests a defined scope, but the lack of competition makes it hard to assess if the pricing is optimal compared to similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract is listed as 'NOT AVAILABLE FOR COMPETITION', indicating a limited competition approach. This limits the potential for competitive bidding and may result in higher prices than if multiple vendors were considered.

Taxpayer Impact: The lack of competition could lead to taxpayers paying more than necessary for these consulting services.

Public Impact

Citizens may question the justification for a sole-source or limited competition contract. The effectiveness of the consulting services will impact the Centers for Medicare and Medicaid Services' operations. Transparency in the procurement process is crucial for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of clear justification for limited competition

Positive Signals

Firm fixed price contract type
Defined contract duration

Sector Analysis

This contract falls within the professional services sector, specifically management consulting. Spending in this area can vary widely based on agency needs, but competitive bidding is generally expected to ensure value for money.

Small Business Impact

The data indicates this contract was not awarded to a small business, as the 'sb' field is false.

Oversight & Accountability

Oversight is needed to ensure the justification for limited competition is sound and that the services provided are effective and represent good value for taxpayer funds.

Related Government Programs

Administrative Management and General Management Consulting Services
Department of Health and Human Services Contracting
Centers for Medicare and Medicaid Services Programs

Risk Flags

Potential for overpayment due to limited competition.
Lack of transparency regarding the justification for limited competition.
Risk of suboptimal service quality if competition was avoided solely for convenience.
Difficulty in benchmarking performance and cost without comparable contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.3 million to EXPLORE DIGITS INC. INDEPENDENTLY AND NOT AS AN AGENT OF THE GOVERNMENT, THE CONTRACTOR SHALL FURNISH ALL THE NECESSARY SERVICES, QUALIFIED PERSONNEL, MATERIAL, EQUIPMENT, FACILITIES, AND SUPPLIES, NOT OTHERWISE PROVIDED BY THE GOVERNMENT AS NEEDED TO PERFORM THE REQU

Who is the contractor on this award?

The obligated recipient is EXPLORE DIGITS INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).

What is the total obligated amount?

The obligated amount is $2.3 million.

What is the period of performance?

Start: 2024-04-30. End: 2026-04-29.

What specific administrative management and general management consulting services are being procured, and how do they align with CMS's strategic goals?

The contract details are limited, but the NAICS code 541611 suggests services related to general management consulting. These could encompass areas like organizational efficiency, strategic planning, or operational improvements within CMS. A clearer understanding of the specific tasks and objectives would be needed to fully assess their alignment with agency goals and the necessity of the procurement.

What is the justification for awarding this contract under limited competition, and what steps were taken to ensure fair pricing?

The contract explicitly states 'NOT AVAILABLE FOR COMPETITION'. Without further documentation, the justification remains unclear. Agencies typically cite reasons like urgent need, unique capabilities, or lack of market availability. The impact on fair pricing is significant, as limited competition reduces the pressure to offer the most competitive rates, potentially leading to higher costs for the government.

How will the effectiveness and value of Explore Digits Inc.'s consulting services be measured and ensured throughout the contract period?

As a firm fixed-price contract, the focus will likely be on the delivery of defined services rather than hourly rates. However, robust performance metrics and regular progress reviews by CMS are essential to ensure the contractor meets objectives and delivers tangible value. Clear deliverables and key performance indicators should be established to objectively assess the success of the consulting engagement.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 75FCMC24R0004

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8403 COLESVILLE RD STE 1100, SILVER SPRING, MD, 20910

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,439,191

Exercised Options: $2,334,746

Current Obligation: $2,334,746

Actual Outlays: $2,063,359

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline