HHS awards $14.9M contract for administrative management services to The Hill Group Inc

Contract Overview

Contract Amount: $14,943,041 ($14.9M)

Contractor: THE Hill Group Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2022-12-02

End Date: 2026-12-02

Contract Duration: 1,461 days

Daily Burn Rate: $10.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OCPS DDTP MULTIPLE SERVICES AWARD.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $14.9 million to THE HILL GROUP INC for work described as: OCPS DDTP MULTIPLE SERVICES AWARD. Key points: 1. The contract's value of $14.9 million over approximately four years suggests a significant investment in management consulting. 2. Competition dynamics for this contract were limited, with a 'full and open competition after exclusion of sources' approach. 3. The fixed-price contract type aims to control costs, but the specific value-for-money assessment requires further benchmarking. 4. Performance context is provided by the 'Administrative Management and General Management Consulting Services' NAICS code, indicating a focus on operational efficiency. 5. The contract is positioned within the broader healthcare sector, specifically supporting the Indian Health Service. 6. Risk indicators are moderate, given the fixed-price nature and the exclusion of certain sources during competition.

Value Assessment

Rating: fair

The contract value of $14.9 million for administrative management services over four years averages approximately $3.7 million annually. Benchmarking this against similar contracts for management consulting within the federal government is challenging without more specific service details. However, the NAICS code 541611 suggests a broad category, and the price appears within a reasonable range for comprehensive management support, though a detailed value-for-money assessment would require comparing specific deliverables and outcomes against market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'full and open competition after exclusion of sources.' This indicates that while the competition was intended to be open, certain sources were excluded prior to the solicitation. The number of bidders is not explicitly stated, but the 'exclusion of sources' suggests a potentially narrower field than a truly unrestricted full and open competition. This approach can sometimes lead to less aggressive pricing if the excluded sources represent significant competition.

Taxpayer Impact: The limited competition may mean taxpayers did not benefit from the most competitive pricing achievable if key potential bidders were excluded without clear justification.

Public Impact

The primary beneficiaries of this contract are the Indian Health Service (IHS) and its operational units, which will receive administrative management support. The services delivered are expected to enhance the efficiency and effectiveness of IHS administrative functions. The geographic impact is primarily within the District of Columbia, where the contractor is located, but the services likely support IHS operations nationwide. Workforce implications may include the direct employment of consultants by The Hill Group Inc. and potential indirect impacts on IHS staff through improved processes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' during the competition phase raises questions about the extent of true market competition and potential price impacts.
Lack of detailed performance metrics makes it difficult to assess the true value for money and contractor effectiveness.
The broad NAICS code for administrative management consulting could encompass a wide range of services, making specific performance evaluation challenging.

Positive Signals

The contract is awarded as a Firm Fixed Price (FFP) type, which provides cost certainty for the government.
The contract duration of approximately four years allows for sustained support and potential for long-term improvements in administrative processes.
The contractor, The Hill Group Inc., is a known entity in the federal contracting space, suggesting some level of established capability.

Sector Analysis

The federal administrative management and general management consulting services sector is a significant market within government contracting. Agencies frequently procure these services to improve operational efficiency, implement new policies, and manage complex programs. The NAICS code 541611 covers a broad range of consulting activities. Spending in this sector is driven by the government's continuous need for expertise in areas such as strategic planning, organizational development, and process improvement. Comparable spending benchmarks would typically be found by analyzing other contracts awarded under the same NAICS code across various agencies.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'sb: false'. The Hill Group Inc. is likely a large business. There is no explicit mention of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award, and there are no immediate indications of significant subcontracting opportunities being generated for small businesses through this contract.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Health and Human Services, specifically the Indian Health Service contracting and program offices. Accountability measures are inherent in the Firm Fixed Price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated through federal contract databases where award details are published. The Inspector General for HHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

HHS Administrative Support Contracts
Indian Health Service IT and Management Services
Federal Management Consulting Services
General Services Administration (GSA) Schedule Contracts

Risk Flags

Limited competition due to source exclusion
Potential for undefined scope creep in consulting services
Need for robust performance monitoring to ensure value for money

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $14.9 million to THE HILL GROUP INC. OCPS DDTP MULTIPLE SERVICES AWARD.

Who is the contractor on this award?

The obligated recipient is THE HILL GROUP INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Indian Health Service).

What is the total obligated amount?

The obligated amount is $14.9 million.

What is the period of performance?

Start: 2022-12-02. End: 2026-12-02.

What is the track record of The Hill Group Inc. in delivering administrative management consulting services to federal agencies?

The provided data indicates The Hill Group Inc. is the awardee for this $14.9 million contract with the Department of Health and Human Services (HHS) for administrative management and general management consulting services. To assess their track record, a deeper dive into federal procurement databases like SAM.gov or FPDS would be necessary. This would reveal past performance on similar contracts, including their size, duration, agency, and any reported performance issues or commendations. Examining past performance evaluations and any contract modifications or disputes would offer a more comprehensive understanding of their capabilities and reliability in delivering these types of services.

How does the awarded price of $14.9 million compare to similar administrative management consulting contracts within the federal government?

The $14.9 million contract value for approximately four years of administrative management and general management consulting services (NAICS 541611) for the Indian Health Service needs to be benchmarked against similar procurements. Without specific details on the scope of work, deliverables, and the specific expertise required, a precise comparison is difficult. However, annual spending for such services can range from hundreds of thousands to several million dollars depending on the complexity and scale. A comprehensive analysis would involve querying federal databases for contracts under the same NAICS code, filtering by agency, contract type, and duration, to identify average pricing and identify if this award represents a high, low, or average investment for the services rendered.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential scope creep if the administrative management services are not clearly defined, and the risk of not achieving desired efficiencies or improvements if the contractor's expertise does not align with IHS's specific needs. The 'full and open competition after exclusion of sources' also presents a risk of suboptimal pricing due to limited competition. Mitigation strategies are primarily embedded in the contract structure: the Firm Fixed Price (FFP) nature helps control costs, and the contract's duration allows for performance monitoring. Clear performance work statements and regular progress reviews by HHS would be crucial for ongoing risk mitigation and ensuring value delivery.

How effective is the 'full and open competition after exclusion of sources' approach in ensuring fair pricing and optimal contractor selection for administrative services?

The 'full and open competition after exclusion of sources' approach is a nuanced method that aims to balance broad market access with specific requirements. While it starts with the intent of open competition, the exclusion of certain sources can limit the competitive pool. This can potentially lead to higher prices if the excluded sources represented significant competition or if the remaining bidders face less pressure to offer the lowest possible price. For administrative services, where expertise and understanding of agency-specific needs are critical, this approach might be used to ensure only technically qualified or specialized firms participate. However, it necessitates careful justification for the exclusions to ensure that taxpayers still receive fair value and that the selection process remains robust and transparent.

What is the historical spending pattern for administrative management and general management consulting services by the Indian Health Service?

To determine the historical spending patterns for administrative management and general management consulting services by the Indian Health Service (IHS), one would need to analyze past contract awards under NAICS code 541611 specifically for IHS. This analysis would involve querying federal procurement data to identify the volume, value, and frequency of such contracts over several fiscal years. Understanding these patterns can reveal whether IHS has consistently invested in these services, if spending has increased or decreased, and which contractors have been historically successful. Such historical context is vital for evaluating the current $14.9 million award as part of a larger strategic investment or a deviation from past practices.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 75H70423R00001

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1017 12TH ST NW STE 300, WASHINGTON, DC, 20005

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,833,318

Exercised Options: $14,943,041

Current Obligation: $14,943,041

Actual Outlays: $11,637,229

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline