HHS awards $29.5M for administrative management consulting, with a significant portion for long-term support

Contract Overview

Contract Amount: $29,504,879 ($29.5M)

Contractor: Walter R Mcdonald & Associates, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2018-09-30

End Date: 2023-09-29

Contract Duration: 1,825 days

Daily Burn Rate: $16.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF FOR OTHER FUNCTIONS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20201

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $29.5 million to WALTER R MCDONALD & ASSOCIATES, INC. for work described as: IGF::OT::IGF FOR OTHER FUNCTIONS Key points: 1. Contract provides essential administrative and management consulting services to support HHS operations. 2. The contract's duration of five years suggests a need for sustained support in these critical areas. 3. A single award indicates a specific focus on the capabilities of WALTER R MCDONALD & ASSOCIATES, INC. 4. The use of Time and Materials pricing may require close monitoring to ensure cost efficiency. 5. This contract falls under the administrative management and general management consulting services NAICS code. 6. The contract was awarded through full and open competition, suggesting a broad search for qualified vendors.

Value Assessment

Rating: good

The contract value of $29.5 million over five years for administrative management consulting appears reasonable given the scope and duration. Benchmarking against similar contracts for management consulting services at the federal level would provide a more precise value-for-money assessment. The Time and Materials (T&M) pricing structure, while flexible, necessitates diligent oversight to prevent cost overruns and ensure that hours billed are directly related to the services provided. Without specific performance metrics or detailed breakdowns of services rendered, a definitive value assessment is challenging, but the sustained award suggests perceived value by the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the solicitation was made available to all responsible sources. The fact that it resulted in a single award suggests that WALTER R MCDONALD & ASSOCIATES, INC. was the most advantageous offer received based on the evaluation criteria. While the number of bidders is not explicitly stated, full and open competition generally promotes a wider range of proposals and can lead to better pricing and service offerings.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it fosters a competitive environment that can drive down costs and improve the quality of services received by the government.

Public Impact

The primary beneficiaries are the various offices within the Department of Health and Human Services (HHS) that receive administrative and management support. Services delivered include general management consulting, administrative support, and potentially strategic planning assistance. The geographic impact is primarily within the District of Columbia, where the contracting agency is located. Workforce implications may include the utilization of specialized consulting expertise to augment federal staff capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep with Time and Materials pricing if not closely managed.
Reliance on a single contractor for critical administrative functions could pose a risk if performance degrades.
Limited transparency on specific performance metrics and outcomes achieved under the contract.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Long-term contract (5 years) indicates sustained need and likely satisfaction with contractor's performance.
Contractor is established and likely possesses relevant expertise in administrative management consulting.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically under administrative management and general management consulting services. This sector is characterized by a wide range of firms offering expertise in areas such as organizational efficiency, strategic planning, and operational improvement. Federal spending in this category supports government agencies in optimizing their operations and achieving their missions. Comparable spending benchmarks would involve analyzing other large-scale consulting contracts awarded to support federal agency administration.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. Therefore, the direct impact on small businesses through this specific award is likely minimal, unless the prime contractor engages in subcontracting opportunities with small businesses. Analysis of subcontracting plans would be necessary to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Health and Human Services. The contract's Time and Materials nature necessitates close monitoring of labor hours and direct costs to ensure compliance with the contract terms and prevent overspending. Transparency is facilitated through contract award databases, but detailed performance reports and specific oversight activities are generally not publicly disclosed.

Related Government Programs

HHS Administrative Support Contracts
Management and Consulting Services
Federal Administrative Services
Government Management Consulting

Risk Flags

Potential for cost overruns due to T&M pricing structure.
Reliance on a single awardee for critical services.
Need for robust government oversight to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $29.5 million to WALTER R MCDONALD & ASSOCIATES, INC.. IGF::OT::IGF FOR OTHER FUNCTIONS

Who is the contractor on this award?

The obligated recipient is WALTER R MCDONALD & ASSOCIATES, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $29.5 million.

What is the period of performance?

Start: 2018-09-30. End: 2023-09-29.

What is the track record of WALTER R MCDONALD & ASSOCIATES, INC. with federal contracts, particularly within HHS?

WALTER R MCDONALD & ASSOCIATES, INC. has a history of federal contracting, including work with the Department of Health and Human Services. Analyzing their past performance on similar contracts, including any past performance evaluations or awards, would provide insight into their reliability and effectiveness. A review of their contract history might reveal patterns in contract types, values, and agencies served, helping to assess their suitability for this specific administrative management consulting role. Information from sources like the Federal Procurement Data System (FPDS) or SAM.gov would be crucial for a comprehensive assessment of their track record.

How does the awarded amount of $29.5 million compare to similar administrative management consulting contracts awarded by HHS or other large federal agencies?

To benchmark the $29.5 million award, one would compare it against contracts for similar services (administrative management and general management consulting) awarded by HHS and other large federal agencies over the past few fiscal years. Key comparison points include contract duration, scope of work, pricing structure (e.g., T&M, FFP), and the number of bidders. For instance, if other five-year contracts for comparable consulting services ranged from $20 million to $40 million, this award would appear within a reasonable range. Conversely, if similar contracts were significantly lower or higher, it might indicate either exceptional value or potential overpricing/underbidding. The specific services detailed in the contract statement of work are critical for an accurate comparison.

What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude and duration?

The primary risk with a T&M contract of this size ($29.5 million over five years) is the potential for cost overruns if not meticulously managed. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual time and materials used. This can lead to increased costs if the contractor is inefficient, if the scope of work expands without proper controls, or if labor rates are higher than anticipated. For taxpayers, this means the final cost could exceed initial projections. Effective risk mitigation requires robust government oversight, including detailed tracking of labor hours, verification of materials, and regular performance reviews to ensure the contractor is delivering value efficiently and that the work remains aligned with the original objectives.

What specific administrative management or general management consulting services are being procured under this contract?

The contract falls under NAICS code 541611, which covers Administrative Management and General Management Consulting Services. This typically includes a broad range of services aimed at improving organizational efficiency and effectiveness. Specific services could encompass strategic planning, organizational design, process improvement, policy development, program management support, human capital management consulting, and general administrative support. The exact nature of the services would be detailed in the contract's Statement of Work (SOW), outlining the specific tasks, deliverables, and objectives the contractor is expected to achieve for the Department of Health and Human Services.

How does the competition level (full and open) for this contract potentially influence its cost-effectiveness for the government?

Awarding this contract through full and open competition generally enhances cost-effectiveness for the government. This approach maximizes the pool of potential bidders, increasing the likelihood of receiving competitive proposals that offer favorable pricing and superior technical solutions. A wider range of competition can drive down costs as contractors vie for the award. Furthermore, it ensures that the government selects the most advantageous offer based on a comprehensive evaluation of price and non-price factors, rather than being limited to a pre-selected group of vendors. This process helps ensure that taxpayer dollars are used efficiently.

What is the significance of the contract's duration (5 years) in the context of administrative management consulting needs at HHS?

A five-year duration for an administrative management consulting contract signifies a long-term, strategic need for the services within HHS. It suggests that the agency requires sustained support to address complex or ongoing challenges related to organizational efficiency, program management, or strategic direction. Such long-term engagements allow for deeper integration of the contractor's expertise into agency operations, fostering continuity and potentially leading to more impactful and sustainable improvements. It also indicates a level of confidence in the selected contractor's ability to deliver consistent value over an extended period, reducing the administrative burden and costs associated with frequent re-competition.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Trimetrix, Inc.

Address: 2495 NATOMAS PARK DR STE 575, SACRAMENTO, CA, 95833

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

Financial Breakdown

Contract Ceiling: $29,504,879

Exercised Options: $29,504,879

Current Obligation: $29,504,879

Actual Outlays: $13,580,512

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSP233201500042I

IDV Type: IDC

Timeline