HHS awarded $21.8M for management consulting, with 4 bids received

Contract Overview

Contract Amount: $21,830,778 ($21.8M)

Contractor: Baylor College of Medicine

Awarding Agency: Department of Health and Human Services

Start Date: 2008-09-26

End Date: 2013-10-05

Contract Duration: 1,835 days

Daily Burn Rate: $11.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST NO FEE

Sector: Other

Official Description: OTHER MANAGEMENT SUPPORT SERVICES

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77030, UNITED STATES OF AMERICA

State: Texas Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $21.8 million to BAYLOR COLLEGE OF MEDICINE for work described as: OTHER MANAGEMENT SUPPORT SERVICES Key points: 1. Contract value appears reasonable given the scope of administrative and management consulting services. 2. Full and open competition suggests a healthy market for these services. 3. The contract duration of nearly 5 years indicates a need for sustained support. 4. Performance was awarded on a cost-plus-fixed-fee basis, allowing for flexibility. 5. The agency for Healthcare Research and Quality (AHRQ) is the primary user. 6. Texas is the primary performance location, suggesting a regional focus.

Value Assessment

Rating: good

The contract value of $21.8 million over approximately five years for administrative management and general management consulting services appears to be within a reasonable range for federal contracts of this nature. Benchmarking against similar contracts for management consulting services by agencies like HHS would provide a more precise value-for-money assessment. The cost-plus-fixed-fee (CPFF) contract type allows for cost reimbursement plus a fixed fee, which can be appropriate for services where the exact costs are difficult to predict but provides less cost certainty than a firm-fixed-price contract.

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. With four bids received, the competition level suggests a moderately competitive environment. While more bidders could potentially drive prices lower, four bids generally provide sufficient market insight to ensure fair pricing and prevent undue cost inflation. The agency likely benefited from a range of proposals to choose from.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it encourages a wider pool of contractors to bid, potentially leading to more competitive pricing and better value for the government's investment.

Public Impact

The primary beneficiary is the Agency for Healthcare Research and Quality (AHRQ), which receives administrative and management consulting support. Services delivered include general management consulting, aiding in operational efficiency and strategic planning. The contract's performance is primarily located in Texas, suggesting a regional impact on the local economy and workforce. The contract supports professional services roles within the management consulting sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The cost-plus-fixed-fee structure may offer less cost certainty for the government compared to fixed-price contracts.
The specific details of the consulting services provided are not detailed, making it difficult to assess the precise value delivered.
Performance is concentrated in Texas, potentially limiting broader geographic impact or accessibility of services.

Positive Signals

Awarded under full and open competition, ensuring a broad range of potential contractors participated.
The contract duration of nearly five years suggests a stable and ongoing need for the services, indicating a well-defined requirement.
The contractor, Baylor College of Medicine, is a reputable institution, potentially bringing specialized knowledge.

Sector Analysis

The contract falls within the professional services sector, specifically administrative management and general management consulting. This sector is crucial for government operations, providing expertise to improve efficiency, strategy, and program execution. The market for these services is broad, with numerous firms capable of providing support. Federal spending in management consulting is substantial, with agencies frequently seeking external expertise to navigate complex challenges and optimize operations. This contract represents a portion of that broader spending aimed at enhancing governmental functions.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem appears minimal. However, the prime contractor, Baylor College of Medicine, may engage small businesses as subcontractors if deemed necessary for specific tasks, though this is not explicitly stated.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Agency for Healthcare Research and Quality (AHRQ). Performance reviews, milestone tracking, and financial audits are standard oversight mechanisms. Transparency is generally maintained through contract databases like FPDS, which provide details on award amounts, dates, and competition. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Management and Administrative Support Services
Professional and Management Consulting Services
Healthcare Agency Support Contracts
Federal Consulting Services

Risk Flags

Cost-Plus-Fixed-Fee contract type may lead to cost uncertainty for the government.
Limited public information on specific deliverables and performance outcomes.
Performance concentrated in a single geographic location (Texas).

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $21.8 million to BAYLOR COLLEGE OF MEDICINE. OTHER MANAGEMENT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is BAYLOR COLLEGE OF MEDICINE.

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 $21.8 million.

What is the period of performance?

Start: 2008-09-26. End: 2013-10-05.

What is the track record of Baylor College of Medicine as a federal contractor, particularly in providing management consulting services?

Baylor College of Medicine, while primarily known as a leading academic health sciences center, has also engaged in federal contracting. Its track record in providing management and administrative support services, as indicated by this contract, suggests an ability to meet government requirements in these areas. Specific details on past performance, such as on-time delivery, quality of service, and adherence to budget on previous contracts, would require a deeper dive into federal procurement databases. However, the award of a nearly five-year contract by HHS implies a level of trust and demonstrated capability in fulfilling its contractual obligations. Further analysis could explore other contracts awarded to Baylor College of Medicine across different agencies to assess the breadth and consistency of its federal contracting performance.

How does the awarded amount of $21.8 million compare to similar management consulting contracts within HHS or other federal agencies?

The $21.8 million awarded to Baylor College of Medicine for administrative management and general management consulting services over approximately five years averages to about $4.36 million per year. This figure appears moderate within the context of federal consulting contracts. Larger, more complex consulting engagements, especially those involving IT modernization, large-scale program management, or strategic defense initiatives, can easily reach tens or hundreds of millions of dollars. However, for specialized administrative and management support within a specific agency like AHRQ, this amount is plausible. A comprehensive comparison would involve analyzing contracts with similar North American Industry Classification System (NAICS) codes (like 541611) awarded by HHS and other agencies over the same period, considering contract duration, scope of work, and competition level to establish a robust benchmark.

What are the primary risks associated with a Cost-Plus-Fixed-Fee (CPFF) contract for management consulting services?

The primary risk associated with a Cost-Plus-Fixed-Fee (CPFF) contract for management consulting services is the potential for cost overruns, as the government agrees to reimburse the contractor for all allowable costs incurred, plus a fixed fee. While the fixed fee provides some cost predictability for the contractor's profit, the total cost to the government can fluctuate significantly if costs escalate beyond initial estimates. This structure can reduce the contractor's incentive to control costs rigorously, as their profit margin is fixed regardless of the actual expenses. For the government, effective oversight is crucial to ensure that all costs claimed are reasonable, allocable, and allowable. Without stringent monitoring and auditing, there is a risk of paying inflated prices for services rendered. This contrasts with firm-fixed-price contracts, where the contractor bears the risk of cost overruns.

How effective has the Agency for Healthcare Research and Quality (AHRQ) been in leveraging management consulting services to improve its operations or programs?

Assessing the specific effectiveness of AHRQ's use of management consulting services under this particular contract requires detailed performance metrics and program outcome data, which are not publicly available in this summary. Generally, AHRQ's mission is to produce evidence to make healthcare safer, higher quality, more accessible, equitable, and affordable. Management consulting services could support this mission by optimizing research grant processes, improving data analysis methodologies, enhancing stakeholder engagement strategies, or streamlining internal administrative functions. The fact that AHRQ awarded a multi-year contract suggests they found value in the services provided. However, a definitive judgment on effectiveness would necessitate reviewing AHRQ's strategic goals, the specific objectives outlined in the contract statement of work, and the reported outcomes achieved through the contractor's support.

What is the historical spending pattern for administrative management and general management consulting services at the Agency for Healthcare Research and Quality (AHRQ)?

The provided data indicates a single contract award of $21.8 million to Baylor College of Medicine for administrative management and general management consulting services (NAICS 541611) by AHRQ, spanning from September 2008 to October 2013. This represents a significant, albeit specific, investment during that period. To understand the broader historical spending pattern, one would need to examine AHRQ's procurement history over multiple fiscal years. This would involve looking for other contracts awarded under the same or similar NAICS codes, analyzing the total annual spending on consulting services, and identifying trends in contract types, durations, and awardees. Without this broader dataset, it's difficult to establish a comprehensive historical spending pattern beyond this single, substantial contract.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: ONE BAYLOR PLAZA T100, HOUSTON, TX, 77030

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,384,180

Exercised Options: $21,830,778

Current Obligation: $21,830,778

Timeline