HHS awarded Westat, Inc. a $19.7M contract for management support services, spanning over 8 years
Contract Overview
Contract Amount: $19,744,236 ($19.7M)
Contractor: Westat, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2007-09-28
End Date: 2015-11-17
Contract Duration: 2,972 days
Daily Burn Rate: $6.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: OTHER MANAGEMENT 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 $19.7 million to WESTAT, INC. for work described as: OTHER MANAGEMENT SUPPORT SERVICES Key points: 1. The contract's duration and cost suggest a significant, long-term need for management support. 2. The award was made under full and open competition, indicating a broad market search. 3. The cost-plus award fee structure incentivizes performance but requires careful monitoring. 4. The contract's scope covers 'Other Scientific and Technical Consulting Services,' a broad category. 5. The contract's value is moderate within the context of federal consulting services. 6. The contractor, Westat, Inc., has a history of performing federal contracts.
Value Assessment
Rating: good
The contract's value of approximately $19.7 million over nearly 8 years averages to roughly $2.5 million annually. This is a moderate expenditure for comprehensive management support services. Benchmarking against similar contracts for 'Other Scientific and Technical Consulting Services' would require detailed scope comparisons, but the duration suggests a stable, ongoing need. The cost-plus award fee (CPAF) structure allows for flexibility and performance incentives, which can be effective if managed properly, but also carries a risk of cost overruns if not closely monitored.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, suggesting that the agency sought proposals from all responsible sources. The fact that it resulted in a single award implies that Westat, Inc. was deemed the most advantageous offer based on the evaluation criteria. The level of competition is not explicitly detailed (e.g., number of bidders), but the 'full and open' designation generally promotes price discovery and allows the government to select the best value.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best possible price and quality by allowing a wide range of potential contractors to bid.
Public Impact
The primary beneficiaries are likely the Agency for Healthcare Research and Quality (AHRQ) and potentially other components within the Department of Health and Human Services (HHS), receiving enhanced management and technical consulting. The services delivered likely involve strategic planning, program evaluation, data analysis, and operational support to improve the efficiency and effectiveness of AHRQ's initiatives. The geographic impact is primarily national, supporting federal health research and policy development, with potential localized impacts in Maryland where the contractor is based. Workforce implications may include the direct employment of consultants and analysts by Westat, Inc., as well as indirect impacts on federal staff who benefit from the support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The cost-plus award fee structure requires diligent oversight to ensure costs remain reasonable and that award fees are tied to verifiable performance metrics.
- The broad nature of 'Other Scientific and Technical Consulting Services' could lead to scope creep if not clearly defined and managed.
- Long-term contracts can sometimes reduce the urgency for innovation if not actively managed for continuous improvement.
Positive Signals
- The use of full and open competition suggests a robust process for selecting the most capable contractor.
- The contract's long duration indicates a stable partnership and potentially deep institutional knowledge gained by the contractor.
- The award fee mechanism, if well-structured, can drive high performance and alignment with agency goals.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically consulting. This sector is a significant component of federal spending, supporting a wide array of government functions from research and development to administrative and operational support. The market for such services is competitive, with numerous firms capable of providing specialized expertise. Federal spending in this area often benchmarks against private sector consulting rates, adjusted for government procurement processes and requirements.
Small Business Impact
The contract details indicate that small business participation was not a specific set-aside (ss: false) nor was there a specific small business subcontracting goal explicitly mentioned (sb: false). This suggests the primary award was made to a large business, Westat, Inc. While there are no explicit requirements noted, large federal contractors are often encouraged or required to subcontract portions of their work to small businesses. The impact on the small business ecosystem would depend on whether Westat actively pursues small business partners for this contract.
Oversight & Accountability
Oversight for this contract would primarily reside with the contracting officer and the designated contract specialist at the Agency for Healthcare Research and Quality (AHRQ). Performance monitoring, invoicing, and adherence to contract terms are key oversight functions. Given the nature of the services, regular progress reports and performance reviews are likely mandated. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Management and Financial Consulting, Acquisition and Commercialization
- Professional, Scientific, and Technical Services
- Health Research and Development Support Services
- Government-wide Acquisition Contracts (GWACs) for IT and professional services
Risk Flags
- Long contract duration may require active management to prevent complacency.
- Cost-Plus Award Fee structure necessitates diligent oversight of costs and performance metrics.
- Broad service category ('Other Scientific and Technical Consulting Services') requires clear scope management.
Tags
hhs, health-and-human-services, ahrq, agency-for-healthcare-research-and-quality, consulting-services, scientific-and-technical-services, management-support, definitive-contract, cost-plus-award-fee, full-and-open-competition, maryland, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $19.7 million to WESTAT, INC.. OTHER MANAGEMENT SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is WESTAT, INC..
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Agency for Healthcare Research and Quality).
What is the total obligated amount?
The obligated amount is $19.7 million.
What is the period of performance?
Start: 2007-09-28. End: 2015-11-17.
What specific types of management and technical consulting services were provided under this contract?
While the contract is categorized under 'Other Scientific and Technical Consulting Services' (NAICS 541690), the specific deliverables are not detailed in the provided data. However, given the awarding agency (AHRQ) and the general nature of management support, services likely included strategic planning, program management, policy analysis, data interpretation, research support, operational efficiency improvements, and potentially technical assistance related to healthcare research initiatives. The 'cost plus award fee' structure suggests a focus on achieving specific performance outcomes and objectives set forth in the contract's statement of work.
How does the annual cost of this contract compare to similar management support contracts within HHS?
The contract averaged approximately $2.5 million per year ($19.7M / ~7.8 years). Comparing this to similar contracts requires access to a broader dataset of HHS procurements for 'management support' or 'scientific and technical consulting' services. However, as a general benchmark, annual costs for such services can range from hundreds of thousands to several million dollars, depending heavily on the scope, duration, and complexity of the services required. A $2.5M annual spend is within the moderate range for specialized federal consulting support, particularly for an agency like AHRQ focused on research and policy.
What are the key performance indicators (KPIs) likely used to determine award fees for Westat, Inc.?
For a contract of this nature, KPIs would likely be tied to the successful execution of the statement of work and the achievement of specific project milestones and objectives. Examples could include timely delivery of reports and analyses, quality of research findings or recommendations, effectiveness in supporting AHRQ's strategic goals, adherence to budget, successful management of project teams, and responsiveness to agency needs. The 'award fee' component implies that these KPIs are measurable and that bonuses are contingent upon exceeding baseline performance expectations.
What is Westat, Inc.'s track record with federal contracts, particularly with HHS?
Westat, Inc. is a well-established research and evaluation firm with a significant history of performing federal contracts. They have frequently worked with agencies across the U.S. government, including the Department of Health and Human Services (HHS) and its various components. Their portfolio often includes large-scale surveys, program evaluations, and data analysis projects. The fact that they were awarded this substantial, long-term contract suggests a positive performance history and a strong capability to meet the government's requirements in areas relevant to health research and policy.
What risks are associated with a long-duration Cost Plus Award Fee (CPAF) contract like this?
A primary risk with CPAF contracts is the potential for cost growth if the base cost is not well-defined or if the scope expands without adequate controls. The 'award fee' aspect, while incentivizing, can also lead to disputes if performance metrics are subjective or if the contractor disagrees with the fee determination. For long-duration contracts, there's also the risk of the contractor becoming complacent or the services becoming outdated if continuous improvement and adaptation are not actively managed by the government. Ensuring robust oversight and clear performance standards is crucial to mitigate these risks.
How does this contract fit into the broader landscape of federal spending on scientific and technical consulting?
This contract represents a segment of the substantial federal spending allocated to professional, scientific, and technical services. Agencies like AHRQ rely on external expertise for specialized research, analysis, and program support that may not be available in-house or requires specific, temporary expertise. Spending in this category is driven by the government's need for objective analysis, policy development support, and the execution of complex research agendas. This contract, valued at nearly $20 million over its term, is a significant but not extraordinary example of such federal investment in specialized knowledge services.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: AHRQ0710024
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 1650 RESEARCH BLVD, ROCKVILLE, MD, 20850
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $30,058,262
Exercised Options: $19,744,326
Current Obligation: $19,744,236
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2007-09-28
Current End Date: 2015-11-17
Potential End Date: 2015-11-17 00:00:00
Last Modified: 2015-11-20
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