HHS awards $2.4M for administrative management consulting, with Clear Insight Inc. as the sole provider

Contract Overview

Contract Amount: $2,424,310 ($2.4M)

Contractor: Clear Insight Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2024-07-30

End Date: 2027-01-14

Contract Duration: 898 days

Daily Burn Rate: $2.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: OCIO IO BUDGET & FINANCE SUPPORT SERVICES

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.4 million to CLEAR INSIGHT INC for work described as: OCIO IO BUDGET & FINANCE SUPPORT SERVICES Key points: 1. Contract focuses on administrative management and general management consulting services. 2. Sole-source award indicates limited market exploration for this specific requirement. 3. The contract duration spans over two years, suggesting a need for ongoing support. 4. Time and Materials pricing structure carries inherent risk of cost overruns if not closely managed. 5. The award is a Purchase Order, typically used for simpler, smaller procurements. 6. The North American Industry Classification System (NAICS) code 541611 aligns with management consulting.

Value Assessment

Rating: fair

The contract value of $2.4 million over approximately 2.5 years is moderate. Without specific deliverables or performance metrics, it's challenging to benchmark value for money. The Time and Materials (T&M) pricing model, while flexible, can lead to higher costs compared to fixed-price contracts if not managed diligently. The absence of a competitive process limits the ability to assess if the pricing is market-competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This suggests that the agency identified a specific need that only Clear Insight Inc. could fulfill, or that the procurement process did not allow for broader competition. The lack of competition means that potential cost savings from a competitive bidding process were not realized, and the agency may not have benefited from a wider range of innovative solutions.

Taxpayer Impact: Sole-source awards can potentially lead to higher prices for taxpayers as there is no competitive pressure to drive down costs. It also limits the opportunity for other businesses to secure government contracts.

Public Impact

The Office of the Assistant Secretary for Administration (ASA) within HHS is the primary beneficiary, receiving administrative and management support. Services are expected to enhance the operational efficiency and management practices within the ASA. The contract's geographic impact is likely concentrated within the Washington D.C. metropolitan area, where HHS administrative functions are often based. The contract supports professional services roles, potentially impacting administrative and management personnel within the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential innovation.
Time and Materials contract type poses a risk of cost escalation without strict oversight.
Lack of detailed public information on specific deliverables makes performance assessment difficult.

Positive Signals

Award to a single contractor can ensure continuity of services if the contractor has specialized knowledge.
Purchase Orders are generally used for straightforward acquisitions, suggesting a potentially well-defined need.
The contract duration allows for a sustained period of support for administrative functions.

Sector Analysis

The administrative management and general management consulting services sector is a significant part of the federal procurement landscape, supporting various government functions. This contract falls within the professional services category, which is characterized by a wide range of specialized expertise. Federal agencies frequently procure these services to improve efficiency, implement new strategies, and manage complex operations. Benchmarks for similar consulting services can vary widely based on scope, duration, and contractor expertise.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to Clear Insight Inc., a single entity, does not inherently indicate its size category or its impact on the broader small business ecosystem without further information. The absence of set-aside provisions means that opportunities for small businesses to compete for this specific contract were not prioritized.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services, specifically the Office of the Assistant Secretary for Administration. As a Purchase Order, it is likely managed through the agency's internal procurement and financial management systems. Transparency is limited due to the sole-source nature and the lack of detailed public reporting on performance metrics. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

HHS Administrative Support Services
Management and Consulting Services
Office of the Secretary Support Contracts
Federal Administrative Management Consulting

Risk Flags

Sole-source award
Time and Materials pricing
Lack of competitive bidding

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.4 million to CLEAR INSIGHT INC. OCIO IO BUDGET & FINANCE SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is CLEAR INSIGHT 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 $2.4 million.

What is the period of performance?

Start: 2024-07-30. End: 2027-01-14.

What is the track record of Clear Insight Inc. in performing similar administrative management consulting services for federal agencies?

Information regarding Clear Insight Inc.'s specific track record for federal administrative management consulting services is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and client feedback from previous government engagements. Federal agencies typically maintain databases of contractor performance (e.g., Contractor Performance Assessment Reporting System - CPARS) that can offer insights into a contractor's reliability, quality of work, and adherence to schedules and budgets. Without access to such detailed performance data, it is difficult to definitively assess their suitability and past success in delivering comparable services.

How does the awarded amount of $2.4 million compare to similar administrative management consulting contracts awarded by HHS or other federal agencies?

Benchmarking the $2.4 million award requires comparing it against contracts with similar scopes of work, durations, and service levels. Administrative management consulting can encompass a broad range of activities, from strategic planning to operational process improvement. Contracts for these services can vary significantly in value. For instance, large-scale, multi-year strategic consulting projects might exceed tens of millions, while smaller, task-specific engagements could be in the hundreds of thousands. Without specific details on the deliverables and the complexity of the services to be provided under this contract, a precise comparison is challenging. However, $2.4 million over approximately 2.5 years suggests a moderate-sized engagement, likely focused on specific administrative support functions rather than a comprehensive agency-wide transformation.

What are the primary risks associated with the Time and Materials (T&M) contract type for this administrative support service?

The primary risk associated with a Time and Materials (T&M) contract type for administrative support services is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for the actual labor hours and materials used, plus a fixed fee or profit. If the scope of work is not clearly defined, or if project management and oversight are insufficient, the contractor may incur more hours or use more resources than initially anticipated, leading to a higher final cost for the government. This necessitates robust monitoring by the contracting officer and the agency's technical team to ensure that hours are reasonable and allocable to the contract's objectives. Without diligent oversight, the T&M structure can be less cost-effective than other contract types.

What are the potential implications of this contract being awarded on a sole-source basis for future procurements of similar services?

Awarding this contract on a sole-source basis may have several implications for future procurements of similar services. Firstly, it suggests that the agency may have specific, unique requirements or that the market research conducted did not identify sufficient viable alternatives, potentially limiting future competition. If the agency continues to perceive a lack of alternatives or a need for highly specialized, single-source solutions, future solicitations for similar services might also be sole-sourced, thereby reducing opportunities for other vendors. Conversely, if the agency's rationale for sole-sourcing was based on specific, temporary circumstances, future procurements could be competed. It also means that the government did not benefit from competitive pricing or a broader range of innovative solutions that a competitive process might have yielded.

How does the NAICS code 541611 (Administrative Management and General Management Consulting Services) typically align with the services provided under this contract?

The North American Industry Classification System (NAICS) code 541611 specifically covers establishments primarily engaged in providing operating, human resource, marketing, information technology, and other administrative and managerial consulting services. This includes advising on office management, workflow, business planning, and general management practices. For this contract, awarded to Clear Insight Inc. for 'OCIO IO BUDGET & FINANCE SUPPORT SERVICES,' the NAICS code 541611 is highly relevant. It indicates that the services procured are focused on improving the administrative and managerial functions within the Office of the Chief Information Officer (OCIO), likely involving advice on budgeting, financial processes, operational efficiency, and strategic management within that specific IT-focused department.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: RFQ07092024

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1007 HERITAGE FIELDS AVE, POTOMAC, MD, 20850

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,499,950

Exercised Options: $2,424,310

Current Obligation: $2,424,310

Actual Outlays: $1,477,461

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline