HHS awards $13.5M for independent program management support, with a 5-year duration

Contract Overview

Contract Amount: $13,527,268 ($13.5M)

Contractor: Eliav International LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2021-09-29

End Date: 2026-09-28

Contract Duration: 1,825 days

Daily Burn Rate: $7.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: ECAPE - INDEPENDENT PROGRAM MANAGEMENT SUPPORT/STAFF AUGMENTATION

Place of Performance

Location: EDGEWATER, ANNE ARUNDEL County, MARYLAND, 21037

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $13.5 million to ELIAV INTERNATIONAL LLC for work described as: ECAPE - INDEPENDENT PROGRAM MANAGEMENT SUPPORT/STAFF AUGMENTATION Key points: 1. Contract provides essential staff augmentation for program management, indicating a need for specialized expertise. 2. The contract's duration of five years suggests a long-term requirement for these services. 3. The award was made under full and open competition, implying a robust bidding process. 4. The use of Time and Materials pricing may present cost control challenges if not closely monitored. 5. The specific NAICS code (518210) points to a focus on data processing and hosting services. 6. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the services provided and the labor categories involved. However, the total award amount of $13.5 million over five years averages to approximately $2.7 million annually. This figure needs to be compared against similar program management support contracts within the federal government, particularly those awarded by the Department of Health and Human Services (HHS). The Time and Materials (T&M) pricing structure, while common for staff augmentation, can lead to higher costs if not managed diligently, as it directly reimburses labor hours and material costs. Without clear performance metrics or a fixed-price component, assessing the true value-for-money is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition after Exclusion of Sources,' which is a specific type of full and open competition. This indicates that the solicitation was made available to all responsible sources, but certain sources were excluded prior to the solicitation, likely due to specific requirements or pre-qualification. The number of bidders is not provided, but the designation suggests a competitive process was intended. The level of competition is generally positive for price discovery, as multiple vendors had the opportunity to bid.

Taxpayer Impact: A competitive award process generally benefits taxpayers by driving down prices and encouraging efficient service delivery from contractors.

Public Impact

Beneficiaries include various program offices within HHS requiring independent program management expertise. Services delivered likely encompass project planning, execution oversight, risk management, and stakeholder coordination. The geographic impact is primarily within the Washington D.C. metropolitan area, given the contractor's location in Maryland. Workforce implications include the creation of specialized program management roles, potentially requiring advanced degrees and certifications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not meticulously managed and monitored.
Lack of specific performance metrics in the provided data makes it difficult to assess contractor efficiency and effectiveness.
The 'Exclusion of Sources' clause, while part of a full and open competition, warrants scrutiny to ensure fairness and prevent undue restrictions.

Positive Signals

Awarded under full and open competition, suggesting a fair and accessible bidding environment.
The contract duration of five years indicates a stable, long-term need for these critical program management services.
The contractor, ELIAV INTERNATIONAL LLC, is providing services to a major federal agency (HHS), suggesting a level of established capability.

Sector Analysis

The Information Technology (IT) and professional services sector is characterized by a high demand for specialized expertise in program management, project execution, and technical support. This contract falls within the broader IT services category, specifically related to computing infrastructure providers, data processing, and web hosting (NAICS 518210), but the description 'Independent Program Management Support/Staff Augmentation' suggests a focus on the management and oversight aspects rather than direct IT service provision. Comparable spending benchmarks for program management support services within federal agencies can vary widely based on the complexity and scope of the programs being supported. The annual value of approximately $2.7 million is moderate for a federal contract of this nature.

Small Business Impact

The provided data indicates that this 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 small business set-aside. The prime contractor, ELIAV INTERNATIONAL LLC, is not identified as a small business in the provided data, suggesting it is likely a mid-size or large business. Analysis of subcontracting plans, if any, would be necessary to understand potential opportunities for small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the program office within the Department of Health and Human Services (HHS), specifically the Office of the Assistant Secretary for Administration. The Time and Materials (T&M) pricing structure necessitates robust oversight to ensure that labor hours and material costs are reasonable and allocable to the contract's objectives. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

HHS Program Management Support Services
IT Staff Augmentation Contracts
Federal IT Services Indefinite Delivery/Indefinite Quantity (IDIQ) Vehicles
Professional Services Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Need for robust oversight to manage T&M contract effectively.
Justification for 'Exclusion of Sources' requires scrutiny.
Scope of services and performance metrics not fully detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $13.5 million to ELIAV INTERNATIONAL LLC. ECAPE - INDEPENDENT PROGRAM MANAGEMENT SUPPORT/STAFF AUGMENTATION

Who is the contractor on this award?

The obligated recipient is ELIAV INTERNATIONAL LLC.

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 $13.5 million.

What is the period of performance?

Start: 2021-09-29. End: 2026-09-28.

What is the specific nature of the 'independent program management support' being provided under this contract?

The contract description 'ECAPE - INDEPENDENT PROGRAM MANAGEMENT SUPPORT/STAFF AUGMENTATION' suggests that ELIAV INTERNATIONAL LLC is providing personnel to augment the existing program management capabilities within the Department of Health and Human Services (HHS). This support is likely 'independent' in the sense that the contractor's personnel are expected to provide objective advice and support, potentially acting as an unbiased third party to assist HHS program managers. Services could include tasks such as strategic planning, project scheduling, risk assessment and mitigation, budget tracking, stakeholder communication, and ensuring compliance with federal regulations and policies. The exact scope would be detailed in the Statement of Work (SOW) associated with the delivery order, which is not provided here. The NAICS code 518210 (Computing Infrastructure Providers, Data Processing, etc.) is somewhat unusual for pure program management support, suggesting there might be an IT component or that the programs being supported are IT-intensive.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar services?

Time and Materials (T&M) contracts are commonly used for services where the level of effort is difficult to estimate upfront, such as staff augmentation, repairs, or research and development. Unlike fixed-price contracts, T&M reimburses the contractor for the actual labor hours expended (at pre-negotiated hourly rates) and the cost of materials used. While offering flexibility, T&M contracts carry a higher risk of cost overruns for the government if not managed closely. Compared to firm-fixed-price (FFP) contracts, T&M provides less cost certainty. However, for services like program management support where the exact duration and intensity of effort can fluctuate based on project needs, T&M can be more appropriate than FFP. Other hybrid contract types, like Cost-Plus-Fixed-Fee (CPFF), aim to balance flexibility with cost control by allowing cost reimbursement plus a fixed fee.

What are the potential risks associated with the 'Exclusion of Sources' clause in this full and open competition?

The 'Full and Open Competition after Exclusion of Sources' designation indicates that while the competition was intended to be open, certain potential sources were excluded prior to the solicitation. This exclusion must be justified by the agency based on specific criteria outlined in the Federal Acquisition Regulation (FAR), such as the need to satisfy a proposed sole source justification or to meet specific technical requirements that only a limited number of vendors can fulfill. The primary risk is that this exclusion, if not properly justified and documented, could inadvertently limit competition, potentially leading to higher prices or reduced innovation. It could also raise concerns about fairness and equal opportunity among potential offerors. Agencies must ensure that such exclusions are based on legitimate, documented needs and do not serve to unfairly disadvantage qualified businesses.

What is the historical spending pattern for independent program management support at HHS?

Analyzing historical spending patterns for independent program management support at HHS requires access to comprehensive federal procurement data over multiple fiscal years. Without specific historical data for this contract or similar services, it's difficult to provide a precise pattern. However, federal agencies like HHS consistently require program management support due to the complexity and scale of their operations and numerous large-scale initiatives. Spending in this area typically fluctuates based on agency priorities, budget allocations, and the initiation or completion of major programs. Trends might show an increasing reliance on specialized support services as government programs become more complex and require advanced project management methodologies. Examining past awards for similar services, including the number of contracts, their values, and durations, would reveal whether this $13.5 million award represents a typical or an outlier expenditure for HHS.

How does the contractor, ELIAV INTERNATIONAL LLC, perform on other federal contracts?

To assess the performance of ELIAV INTERNATIONAL LLC on other federal contracts, a review of their contract history within the Federal Procurement Data System (FPDS) or other relevant databases would be necessary. This would involve examining past awards, contract values, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any instances of contract disputes or terminations. A positive performance history, indicated by high ratings in past performance reviews and successful completion of previous contracts, would suggest a lower risk for this current award. Conversely, a history of poor performance, missed deadlines, or cost overruns on prior contracts would raise concerns about ELIAV INTERNATIONAL LLC's ability to successfully execute this program management support role effectively and within budget.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 75P00121R00111

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 3962 GERMANTOWN RD, EDGEWATER, MD, 21037

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $13,527,268

Exercised Options: $13,527,268

Current Obligation: $13,527,268

Actual Outlays: $11,118,624

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75P00121D00005

IDV Type: IDC

Timeline