HHS awards $73M contract for professional, technical, and administrative services to Strategic Analysis, Inc

Contract Overview

Contract Amount: $73,059,551 ($73.1M)

Contractor: Strategic Analysis, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2025-01-08

End Date: 2027-01-07

Contract Duration: 729 days

Daily Burn Rate: $100.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: PROFESSIONAL, TECHNICAL, AND ADMINISTRATIVE SERVICES

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 $73.1 million to STRATEGIC ANALYSIS, INC. for work described as: PROFESSIONAL, TECHNICAL, AND ADMINISTRATIVE SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 729 days indicates a medium-term engagement for services. 3. Services encompass a broad range of professional, technical, and administrative support. 4. The contract's value of $73M positions it as a significant award within its category. 5. The award to Strategic Analysis, Inc. reflects their capability in providing these specialized services. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The contract value of $73,059,550.92 for a period of approximately two years appears reasonable for comprehensive professional, technical, and administrative services. Benchmarking against similar large-scale service contracts awarded by NIH or HHS would provide a more precise value-for-money assessment. However, given the breadth of services and the competitive award, the pricing is likely within an acceptable range for the scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 4 bidders suggests a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and ensures that the government receives offers from a range of qualified contractors, potentially driving down costs and improving service quality.

Taxpayer Impact: Taxpayers benefit from a competitive award process as it typically results in more cost-effective solutions and a wider array of innovative approaches to service delivery.

Public Impact

The primary beneficiaries are the various programs and operational units within the National Institutes of Health (NIH) and potentially other Department of Health and Human Services (HHS) agencies that require professional, technical, and administrative support. Services delivered will likely include research support, data analysis, administrative management, and other specialized technical functions crucial for the operation of a leading biomedical research agency. The geographic impact is centered in the Washington D.C. metropolitan area, where NIH and HHS are heavily concentrated, though services may extend to support remote or distributed operations. Workforce implications include the direct employment of personnel by Strategic Analysis, Inc. and potential indirect impacts on the broader scientific and administrative support ecosystem within the federal sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the definition of 'all other professional, scientific, and technical services' is not tightly managed.
Reliance on a single contractor for a broad range of critical support functions could pose a risk if performance falters.
The 'Time and Materials' contract type, while flexible, can sometimes lead to higher costs if not carefully monitored for efficiency.

Positive Signals

Awarded through full and open competition, indicating a robust selection process and likely competitive pricing.
Strategic Analysis, Inc. has secured a significant contract, suggesting a strong track record and capability to meet HHS needs.
The contract duration of over two years provides stability for both the contractor and the agency, allowing for consistent service delivery.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, a broad category encompassing a wide array of specialized expertise. The National Institutes of Health (NIH), as the awarding agency, is a major consumer of such services, particularly those related to scientific research support, data management, and administrative functions. The market for these services is highly competitive, with numerous firms vying for federal contracts. Comparable spending benchmarks would involve analyzing other large-scale service contracts awarded by agencies like HHS, NSF, or DOD for similar support functions.

Small Business Impact

This contract does not indicate any specific small business set-aside provisions (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if Strategic Analysis, Inc. chooses to engage them. Without explicit set-aside goals, the direct benefit to the small business ecosystem from this specific award is not guaranteed, though the prime contractor may still leverage small business capabilities.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program managers within the NIH. Performance will be monitored against the terms and conditions of the delivery order, including service level agreements and deliverables. Transparency is facilitated through federal procurement databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

NIH Research Support Services
HHS Administrative Support Contracts
Federal Professional Services Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts
Scientific and Technical Consulting Services

Risk Flags

Broad NAICS code may lead to scope ambiguity.
Potential for cost overruns with Time and Materials pricing if not closely monitored.
Reliance on a single awardee for diverse support functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $73.1 million to STRATEGIC ANALYSIS, INC.. PROFESSIONAL, TECHNICAL, AND ADMINISTRATIVE SERVICES

Who is the contractor on this award?

The obligated recipient is STRATEGIC ANALYSIS, 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 $73.1 million.

What is the period of performance?

Start: 2025-01-08. End: 2027-01-07.

What is the historical performance record of Strategic Analysis, Inc. with the federal government, particularly with NIH or HHS?

A review of federal procurement data (e.g., FPDS) would be necessary to detail Strategic Analysis, Inc.'s historical performance. This would involve examining past contracts awarded to the company, including their value, duration, agency, and type of service. Performance ratings, if available, would provide insights into their reliability, quality of work, and adherence to contract terms. Specific attention should be paid to any past issues, disputes, or contract terminations to assess potential risks associated with this new award. Understanding their track record with similar scientific and technical support services would be particularly relevant for this NIH contract.

How does the $73M contract value compare to similar professional, technical, and administrative service contracts awarded by NIH in the past two years?

To benchmark the $73M contract value, one would analyze recent (e.g., last 2 years) awards by NIH for 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) or similar broad service categories. This comparison should consider contract duration, scope of work, and competition level. If NIH has awarded multiple contracts in the $50M-$100M range for comparable two-year durations and similar service breadth, then $73M would appear to be within a typical market range. Conversely, if most comparable contracts are significantly lower or higher, it might indicate either exceptional value or potential overpricing/underbidding. The 'Time and Materials' (PT) nature of this contract also warrants comparison with other PT contracts of similar scale.

What are the key performance indicators (KPIs) or metrics used to evaluate Strategic Analysis, Inc.'s performance under this contract?

While the specific KPIs are not detailed in the provided data, typical metrics for professional, technical, and administrative services contracts include timeliness of deliverables, quality of work (e.g., accuracy of reports, effectiveness of support), responsiveness to requests, adherence to budget, and overall client satisfaction. For NIH, KPIs might also include support for research milestones, data integrity, or efficiency in administrative processes. The contract's 'Delivery Order' nature suggests it might be part of a larger IDIQ, where the overarching contract may define general performance standards, and this specific order would have its own set of task-specific requirements and evaluation criteria.

What is the potential risk associated with the 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) classification being very broad?

The broadness of NAICS 541990, 'All Other Professional, Scientific, and Technical Services,' presents a risk of scope ambiguity. This classification is a catch-all for services not specified elsewhere, meaning the actual tasks performed could vary widely. For NIH, this could range from highly specialized scientific consulting to general administrative support. The risk lies in potential misinterpretations of the scope, leading to contractor over- or under-delivery, cost overruns if the work is more complex than anticipated, or disputes over contract requirements. Effective contract management, clear task orders, and regular communication are crucial to mitigate this risk and ensure the contractor delivers precisely what is needed.

How does the 'Delivery Order' (aw: DELIVERY ORDER) contract type impact the overall structure and management of this award?

A 'Delivery Order' indicates that this contract is a task order issued under a pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle. This structure allows agencies to procure services incrementally as needed, rather than awarding a single large contract upfront. For NIH, this provides flexibility to order specific services within the scope of the IDIQ. The $73M likely represents the total value ceiling or anticipated spending over the contract's life. Management involves overseeing each individual delivery order's requirements, performance, and funding, while the overarching IDIQ contract establishes the terms, conditions, and competition rules.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical 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

Solicitation ID: 75N99224R00003

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 4075 WILSON BLVD, ARLINGTON, VA, 22203

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $146,749,542

Exercised Options: $73,059,551

Current Obligation: $73,059,551

Actual Outlays: $34,106,434

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $8,504,637

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75N99224D00005

IDV Type: IDC

Timeline