HHS awards $4.7M for QA professional services to Shabas Solutions LLC under a firm-fixed-price contract

Contract Overview

Contract Amount: $4,741,393 ($4.7M)

Contractor: Shabas Solutions LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2022-12-01

End Date: 2027-11-30

Contract Duration: 1,825 days

Daily Burn Rate: $2.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: QA PROFESSIONAL SERVICES

Place of Performance

Location: FAIRFAX, FAIRFAX CITY County, VIRGINIA, 22030

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $4.7 million to SHABAS SOLUTIONS LLC for work described as: QA PROFESSIONAL SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for administrative management and general management consulting services. 3. The duration of the contract is 5 years, indicating a long-term need for these services. 4. The award is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The contract type is firm-fixed-price, which shifts cost risk to the contractor. 6. The contractor, Shabas Solutions LLC, is a small business based in Virginia.

Value Assessment

Rating: good

The contract value of $4.7 million over five years averages to approximately $948,000 annually. Benchmarking this against similar QA professional services contracts within the federal government is challenging without more specific service details. However, for administrative management consulting, this value appears within a reasonable range for a five-year engagement. The firm-fixed-price structure is generally favorable for the government when scope is well-defined, as it caps potential cost overruns.

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 data does not specify the number of bids received, but the designation implies a robust competitive environment. This approach is generally expected to yield fair market prices and encourage innovation from multiple vendors.

Taxpayer Impact: Full and open competition maximizes the potential for the government to secure the best value for taxpayer dollars by fostering a competitive marketplace.

Public Impact

The primary beneficiaries are the Department of Health and Human Services (HHS) and its various operating divisions, which will receive quality assurance professional services. These services are crucial for ensuring the reliability, effectiveness, and compliance of HHS programs and operations. The geographic impact is primarily within Virginia, where the contractor is located, though the services may support national HHS initiatives. The contract supports a small business contractor, potentially contributing to the federal small business contracting goals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the definition of 'QA professional services' is not tightly managed.
Dependence on a single small business contractor for critical QA functions could pose a risk if performance issues arise.
The specific impact on workforce implications within HHS is not detailed, which could be a concern if it leads to internal skill gaps.

Positive Signals

Firm-fixed-price contract structure transfers cost risk to the contractor.
Awarded under full and open competition, suggesting a competitive process that should yield good value.
Contractor is a small business, aligning with federal small business utilization goals.
Long-term contract duration (5 years) provides stability for service delivery.

Sector Analysis

The federal sector for administrative management and general management consulting services (NAICS 541611) is substantial. This contract falls within the broader professional services category, which agencies utilize for a wide range of support functions, from strategic planning to operational efficiency improvements. Spending in this area is often driven by the need for specialized expertise that may not be available in-house or to augment existing government staff. Comparable spending benchmarks would depend heavily on the specific scope of QA services required by HHS.

Small Business Impact

Shabas Solutions LLC is identified as a small business. The award of this contract to a small business is positive for federal small business contracting goals. However, the data does not indicate if this was a small business set-aside or if subcontracting opportunities will be available to other small businesses. Further analysis would be needed to determine the broader impact on the small business ecosystem beyond the prime contractor.

Oversight & Accountability

Oversight for this contract would typically reside within the Office of the Assistant Secretary for Administration (ASA) at HHS. As a delivery order under a potential IDIQ, oversight may also involve the contracting office that awarded the parent IDIQ. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to meet defined deliverables. Transparency is generally facilitated through federal procurement databases like FPDS-NG, where contract awards are reported.

Related Government Programs

HHS Administrative Support Contracts
Federal Quality Assurance Services
Management and Consulting Services
IT Quality Assurance
Program Management Support

Risk Flags

Contractor performance risk (unknown track record)
Scope definition risk (potential for ambiguity in 'QA Professional Services')
Small business capacity risk (potential scaling issues over 5 years)

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $4.7 million to SHABAS SOLUTIONS LLC. QA PROFESSIONAL SERVICES

Who is the contractor on this award?

The obligated recipient is SHABAS SOLUTIONS 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 $4.7 million.

What is the period of performance?

Start: 2022-12-01. End: 2027-11-30.

What is the specific scope of 'QA Professional Services' required by HHS under this contract?

The provided data indicates the contract is for 'QA PROFESSIONAL SERVICES' under NAICS code 541611 (Administrative Management and General Management Consulting Services). However, the specific deliverables, tasks, and quality standards are not detailed in the summary data. These services likely encompass activities such as developing quality assurance plans, conducting process assessments, performing audits, ensuring compliance with regulations and standards, and providing recommendations for improvement across various HHS programs or operations. Without the full contract statement of work, the precise nature and extent of the QA services remain undefined.

How does the $4.7 million contract value compare to similar QA professional services contracts awarded by HHS or other agencies?

Benchmarking the $4.7 million value requires a detailed comparison of the scope of work, duration, and specific services rendered. For a 5-year contract, this averages to $940,000 annually. Contracts for general management consulting can vary widely. If these QA services are highly specialized or involve complex program oversight, the value could be justified. However, if they are more standardized process reviews, this value might be on the higher end. Access to historical contract data for similar services within HHS or across government agencies, controlling for factors like contract type and complexity, would be necessary for a precise comparison.

What is the track record of Shabas Solutions LLC in performing similar QA professional services for the federal government?

The provided data identifies Shabas Solutions LLC as the contractor and notes its location in Virginia. However, it does not offer details on the company's past performance, previous federal contracts, or specific experience in delivering QA professional services. To assess their track record, one would need to review their contract history, past performance evaluations (if publicly available), and any awards or recognitions related to their service delivery. As a small business, their portfolio might be more focused, but understanding their demonstrated capabilities in QA is crucial for evaluating risk.

What are the potential risks associated with awarding a 5-year contract for critical QA services to a single small business?

Awarding a 5-year contract to a single small business carries several potential risks. Firstly, there's the risk of contractor performance degradation over time or the contractor's inability to scale resources if HHS needs increase significantly. Secondly, if the contractor faces financial instability or operational challenges, it could disrupt critical QA functions. Thirdly, reliance on one entity might limit the infusion of new ideas or technologies that could come from a more diverse or larger pool of competitors. Finally, the government's leverage in negotiating future terms or addressing issues might be reduced compared to having multiple options.

How does the firm-fixed-price (FFP) contract type benefit the government in this scenario?

The firm-fixed-price (FFP) contract type is generally advantageous for the government when the scope of work is well-defined and understood. In this case, it means Shabas Solutions LLC assumes the primary risk for cost overruns. The government agrees to pay a set price, and the contractor is responsible for completing the work within that budget. This provides cost certainty for HHS and incentivizes the contractor to manage its resources efficiently to maintain profitability. It simplifies financial administration and reduces the need for extensive cost auditing compared to cost-reimbursement contracts.

What is the significance of this contract being a 'Delivery Order'?

The designation 'DELIVERY ORDER' indicates that this contract is likely a task order or delivery order issued under a larger, pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar multiple-award contract vehicle. This means that HHS (or the issuing agency) likely competed the opportunity to be placed on a list of pre-qualified vendors for QA professional services. This specific award represents one specific order for services placed against that larger contract. This approach allows for streamlined procurement of services over time while still maintaining a competitive framework at the IDIQ level.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › QUALITY CONTROL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11166 FAIRFAX BLVD, FAIRFAX, VA, 22030

Business Categories: 8(a) Program Participant, Category Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,741,393

Exercised Options: $4,741,393

Current Obligation: $4,741,393

Actual Outlays: $3,154,761

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F110GA

IDV Type: FSS

Timeline