NIH awards $11.5M for logistical support, raising questions on value and competition

Contract Overview

Contract Amount: $11,545,774 ($11.5M)

Contractor: Rose LI and Associates, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2019-06-06

End Date: 2024-06-05

Contract Duration: 1,826 days

Daily Burn Rate: $6.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 12

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: LOGISTICAL MEETING/CONFERENCE SUPPORT FOR THE NINDS

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $11.5 million to ROSE LI AND ASSOCIATES, INC. for work described as: LOGISTICAL MEETING/CONFERENCE SUPPORT FOR THE NINDS Key points: 1. Contract value appears high for administrative management consulting services. 2. Limited competition may have inflated costs. 3. Long contract duration increases risk of cost overruns. 4. Contract type (Cost Plus Fixed Fee) offers less incentive for cost control. 5. Geographic concentration in Maryland. 6. Contractor has a significant award amount. 7. Services are administrative and general management focused.

Value Assessment

Rating: questionable

The contract's total award of $11.5 million for logistical meeting and conference support over five years seems substantial for administrative management consulting services. Benchmarking against similar contracts for logistical support or administrative services is difficult without more granular data on the specific services provided. However, the Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility, can sometimes lead to higher costs as the contractor is reimbursed for expenses plus a fixed fee, potentially reducing the incentive for aggressive cost management compared to fixed-price contracts. The lack of detailed performance metrics makes a definitive value assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which suggests that while competition was sought, certain sources were excluded, potentially limiting the pool of bidders. The data indicates 12 offers were received, which is a moderate number, but the 'exclusion of sources' clause warrants further investigation into why certain potential bidders were not considered. A more robust competition with a wider range of eligible bidders could have potentially driven down costs.

Taxpayer Impact: The limited nature of the competition, despite receiving multiple offers, may have resulted in taxpayers paying a premium for these services. A broader competition could have fostered more competitive pricing.

Public Impact

The National Institutes of Health (NIH) benefits from logistical support for meetings and conferences, enabling smoother operations. Services facilitate the organization and execution of scientific and administrative gatherings. The primary geographic impact is within Maryland, where the contractor is located. The contract supports administrative and management functions within the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type may not incentivize cost efficiency.
Long contract duration (5 years) increases exposure to potential cost escalations.
Limited competition due to 'exclusion of sources' could impact price discovery.
Lack of specific performance metrics makes value assessment difficult.

Positive Signals

Contract awarded to Rose Li and Associates, Inc., indicating established business operations.
Multiple offers (12) received, suggesting some level of market interest.
Contract supports essential logistical functions for a major research institution (NINDS).

Sector Analysis

This contract falls under the Administrative Management and General Management Consulting Services sector (NAICS 541611). This sector encompasses a wide range of services aimed at improving organizational efficiency and management. The market for such services is competitive, with numerous firms offering expertise in areas like logistics, event planning, and administrative support. The total federal spending in this sector can be substantial, supporting various government agencies' operational needs. This specific contract appears to be a significant award within this category for logistical support.

Small Business Impact

The contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside requirement. The primary contractor, Rose Li and Associates, Inc., is likely a mid-to-large-sized business given the contract value.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program managers within the National Institutes of Health (NIH). The contract type (CPFF) necessitates careful monitoring of costs and adherence to the fixed fee. Transparency is generally facilitated through contract databases like FPDS, but detailed performance reports and audits are often internal or conducted by oversight bodies like the HHS Office of Inspector General (OIG) if specific concerns arise. The effectiveness of oversight depends on the rigor of reporting and review processes.

Related Government Programs

NINDS Logistical Support Contracts
NIH Conference and Meeting Support
Federal Administrative Management Consulting Services
HHS Logistical Services
Cost-Plus-Fixed-Fee Contracts

Risk Flags

Potential for inflated costs due to CPFF contract type.
Limited competition may have reduced price discovery.
Long contract duration increases risk of cost escalation.
Lack of specific performance metrics hinders value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $11.5 million to ROSE LI AND ASSOCIATES, INC.. LOGISTICAL MEETING/CONFERENCE SUPPORT FOR THE NINDS

Who is the contractor on this award?

The obligated recipient is ROSE LI AND ASSOCIATES, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $11.5 million.

What is the period of performance?

Start: 2019-06-06. End: 2024-06-05.

What is the track record of Rose Li and Associates, Inc. with federal contracts, particularly in logistical support?

Rose Li and Associates, Inc. has been awarded federal contracts, including this significant definitive contract with the National Institutes of Health (NIH). While the provided data highlights this specific $11.5 million award for logistical meeting/conference support, a comprehensive track record analysis would require examining their entire federal contract history. This would involve looking at past performance on similar contracts, any reported issues or awards, and their overall financial stability as a contractor. Without access to a broader contract database or performance reviews, it's difficult to definitively assess their long-term track record beyond this single, substantial award. However, securing a five-year contract of this magnitude suggests a level of capability and trust from the awarding agency.

How does the $11.5 million award compare to similar logistical support contracts for federal agencies?

Directly comparing the $11.5 million award for logistical meeting and conference support to similar contracts is challenging without more specific details on the scope of services. However, for a five-year duration, this amount suggests a significant level of support is required. Federal spending on conference and meeting logistics can vary widely based on the frequency, size, and complexity of events. Contracts for large-scale scientific conferences or multi-year logistical planning for major agencies can reach millions of dollars. To benchmark effectively, one would need to identify contracts with comparable service descriptions (e.g., venue sourcing, registration management, audiovisual support, travel coordination) and similar contract types (CPFF) across different agencies. The 'Administrative Management and General Management Consulting Services' classification (NAICS 541611) is broad, so the specific nature of the 'logistical support' is key to a precise comparison.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this size and duration?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this $11.5 million size and 5-year duration revolve around cost control and potential inefficiencies. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This can incentivize the contractor to incur higher costs, as their fee remains constant regardless of the actual expenses. For the government, this increases the risk of cost overruns if costs are not meticulously monitored and controlled. The long duration also amplifies this risk, as unforeseen economic changes or scope creep can significantly impact the total cost over five years. Effective oversight, detailed cost reporting, and stringent auditing are crucial to mitigate these risks and ensure value for money.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause impact price discovery and taxpayer value?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause introduces a layer of complexity regarding price discovery and taxpayer value. While it indicates an intent to compete openly, the 'exclusion of sources' signifies that certain potential bidders were deliberately prevented from participating. The reasons for exclusion are critical; if they were based on legitimate qualifications or security concerns, the competition might still be robust among the remaining eligible firms. However, if the exclusions were arbitrary or overly restrictive, it could artificially limit the number of bidders, thereby reducing competitive pressure. Reduced competition generally leads to less favorable pricing for the government, potentially resulting in higher costs for taxpayers. Understanding the justification for excluding sources is key to assessing whether the resulting competition adequately served the government's interest in obtaining the best value.

What is the potential impact of awarding a 5-year contract for logistical support to a single entity?

Awarding a 5-year contract for logistical support to a single entity like Rose Li and Associates, Inc. can have several impacts. Positively, it can foster a strong working relationship, allow for deep institutional knowledge to be built, and provide stability and predictability for the agency's meeting and conference needs. This continuity can lead to more efficient and tailored support over time. However, it also carries risks. A long-term, single-award contract can reduce competitive pressure, potentially leading to complacency or less aggressive pricing in subsequent years. It also limits the agency's ability to adapt quickly to new technologies or service providers that may emerge during the contract period. Furthermore, if the contractor's performance falters or their business circumstances change, the agency faces significant disruption in finding and transitioning to a new provider mid-term.

Are there specific performance metrics or KPIs associated with this contract that indicate its effectiveness?

The provided data does not include specific performance metrics or Key Performance Indicators (KPIs) associated with this contract. While the contract is for 'LOGISTICAL MEETING/CONFERENCE SUPPORT,' the absence of defined metrics makes it difficult to objectively assess the effectiveness and quality of the services delivered by Rose Li and Associates, Inc. Effective contracts typically include measurable goals related to timeliness, budget adherence, attendee satisfaction, and successful execution of event logistics. Without such KPIs, the government's ability to hold the contractor accountable for performance is limited, and evaluating the true value for money becomes more reliant on qualitative assessments and potentially subjective feedback rather than concrete data.

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: NIHNIDANINDS19D006742

Offers Received: 12

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rose LI and Associates Inc.

Address: 1101 WOOTTON PKWY STE 400A, ROCKVILLE, MD, 20852

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, 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: $12,374,038

Exercised Options: $11,545,774

Current Obligation: $11,545,774

Actual Outlays: $6,398,813

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline