HHS awarded $19M for administrative management consulting, with a significant portion spent over a decade

Contract Overview

Contract Amount: $19,062,651 ($19.1M)

Contractor: EXP Federal Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2002-09-15

End Date: 2011-09-30

Contract Duration: 3,302 days

Daily Burn Rate: $5.8K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GS-00F-004M 200-2002-F-00737 IFMS

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30341

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $19.1 million to EXP FEDERAL INC. for work described as: GS-00F-004M 200-2002-F-00737 IFMS Key points: 1. The contract value of $19 million over its duration suggests a substantial investment in management consulting services. 2. The long performance period (2002-2011) indicates a sustained need for these services by the CDC. 3. The firm fixed-price contract type implies that cost risks were largely borne by the contractor. 4. The 'Administrative Management and General Management Consulting Services' NAICS code points to a broad scope of potential services. 5. The contract was awarded as a competitive delivery order, suggesting some level of competition at the task order level. 6. The contract's duration and value may warrant a review of its long-term effectiveness and cost efficiency.

Value Assessment

Rating: fair

The total award of $19 million over nearly nine years averages to approximately $2.1 million per year. Benchmarking this against similar large-scale management consulting contracts for federal agencies is challenging without more specific service details. However, the duration suggests a potentially stable, long-term relationship which can sometimes lead to cost efficiencies through familiarity, but also risks of scope creep or reduced price pressure over time. The firm fixed-price nature is a positive indicator for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This contract was awarded as a competitive delivery order. While the specific details of the competition (number of bidders, evaluation criteria) are not provided, the 'competitive' designation indicates that multiple vendors had an opportunity to bid on this specific task order under a larger contract vehicle. This suggests a degree of market engagement and potential for price negotiation.

Taxpayer Impact: A competitive award process, even at the delivery order level, generally benefits taxpayers by fostering price discovery and encouraging contractors to offer competitive rates to secure the work.

Public Impact

The Centers for Disease Control and Prevention (CDC) is the primary beneficiary, receiving administrative management and general management consulting services. These services likely supported the operational efficiency and management of various public health programs and initiatives. The contract's impact is primarily internal to the agency, focusing on improving administrative processes rather than direct public service delivery. The workforce implications are indirect, potentially involving support for agency personnel or the integration of new management strategies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The long duration of the contract (2002-2011) raises questions about whether the services remained relevant and cost-effective throughout the entire period.
Without detailed service descriptions, it's difficult to assess the specific value delivered for the $19 million expenditure.
The broad NAICS code (541611) could encompass a wide range of services, making it hard to pinpoint the exact impact and efficiency of the consulting provided.

Positive Signals

The contract was awarded competitively, indicating that multiple firms had the opportunity to bid, potentially leading to better pricing.
The firm fixed-price contract type shifts cost risk to the contractor, which can be beneficial for the government in managing budget certainty.
The sustained award over nearly nine years suggests the contractor was able to meet the agency's needs effectively over a long period.

Sector Analysis

The federal consulting services market is substantial, with agencies frequently procuring expertise in administrative management and general management to improve operations. The NAICS code 541611, 'Administrative Management and General Management Consulting Services,' covers a broad spectrum of advisory services. Contracts in this space can range from strategic planning and organizational design to process improvement and IT management consulting. The $19 million awarded over nine years places this contract in the mid-to-large tier for consulting engagements within the federal government, reflecting a significant commitment to enhancing agency effectiveness.

Small Business Impact

This contract does not appear to have a small business set-aside (SS=false, SB=false). Therefore, the primary contractor, EXP FEDERAL INC., is likely a large business. There is no explicit information provided regarding subcontracting plans or actual subcontracting to small businesses. Without this data, it's difficult to assess the impact on the small business ecosystem for this specific award, though large prime contracts often include subcontracting goals.

Oversight & Accountability

The contract was awarded as a firm fixed-price delivery order, which provides a degree of cost certainty. Oversight would typically be managed by the contracting officer and the program office within the CDC responsible for the consulting services. Transparency regarding the specific deliverables and performance metrics would be key to assessing accountability. Further details on performance reviews, reporting requirements, and any Inspector General involvement would be needed for a comprehensive oversight assessment.

Related Government Programs

Management and Financial Consulting, Acquisition and Commercialization
Professional, Scientific, and Technical Services
Federal IT Consulting Contracts
Government Administrative Support Services

Risk Flags

Long contract duration may indicate potential for cost inefficiencies or outdated service relevance.
Broad NAICS code limits specific assessment of services rendered and their impact.
Lack of detailed competition data (number of bidders, evaluation) hinders full value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $19.1 million to EXP FEDERAL INC.. GS-00F-004M 200-2002-F-00737 IFMS

Who is the contractor on this award?

The obligated recipient is EXP FEDERAL INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $19.1 million.

What is the period of performance?

Start: 2002-09-15. End: 2011-09-30.

What specific management and administrative challenges did the CDC aim to address with this $19 million contract?

The provided data indicates the contract falls under NAICS code 541611, 'Administrative Management and General Management Consulting Services.' This broad category suggests the CDC sought assistance in areas such as improving organizational efficiency, streamlining administrative processes, enhancing strategic planning, optimizing resource allocation, or implementing new management frameworks. Without access to the specific Statement of Work (SOW) or task orders issued under this contract, the precise challenges addressed remain unspecified. However, given the agency's mission, these services likely supported the operational backbone required to manage complex public health initiatives, research, and response efforts.

How does the $19 million expenditure over nine years compare to typical federal spending on similar management consulting services?

An average annual spend of approximately $2.1 million ($19M / 9 years) on management consulting is significant but not extraordinary for a large federal agency like the CDC, especially over an extended period. Federal agencies procure a wide range of consulting services, and costs can vary dramatically based on the scope, complexity, and duration. Benchmarking requires comparing this to contracts with similar NAICS codes, agencies of comparable size and mission, and specific service deliverables. However, this level of sustained investment suggests a consistent need and potentially a deep integration of the consulting services into the agency's operations. It warrants scrutiny to ensure value for money was maintained throughout the contract's life.

What was the track record of EXP FEDERAL INC. with federal contracts prior to and during this award period?

Information on EXP FEDERAL INC.'s prior federal contracting history is not detailed in the provided data. However, securing a nearly $19 million contract with the CDC, spanning from 2002 to 2011, suggests a demonstrated capability and a positive performance history that met the agency's requirements. Federal agencies typically conduct pre-award responsibility determinations and monitor contractor performance throughout the contract lifecycle. A long-term award like this implies that EXP FEDERAL INC. likely met or exceeded performance expectations, maintained compliance, and provided satisfactory services to justify continued funding and tasking over an extended period.

What are the potential risks associated with a firm fixed-price contract awarded for such a long duration?

While firm fixed-price (FFP) contracts are generally favored for cost control, a long duration (9 years) introduces specific risks. One primary risk is that the initial pricing may not accurately reflect market changes or evolving service needs over time, potentially leading to the contractor either overcharging for services that become less complex or underdelivering if costs escalate unexpectedly. Scope creep is another risk; if not managed tightly, the scope of work could expand beyond the original intent without corresponding price adjustments, negating the FFP benefit. Furthermore, the contractor might become complacent over such a long period, potentially reducing innovation or responsiveness if competition was limited at the task order level.

How did the competitive delivery order mechanism influence the pricing and service quality for this contract?

A competitive delivery order implies that while a larger contract vehicle may have been pre-competed, this specific task order was subject to competition among multiple vendors. This process generally benefits the government by fostering price discovery and encouraging vendors to offer competitive bids to win the work. For pricing, it likely resulted in rates that were more aligned with current market conditions at the time of the award for this specific task. Regarding service quality, competition incentivizes contractors to perform well to secure future task orders or maintain a good reputation. However, the extent of this influence depends on the number of bidders and the specific evaluation criteria used for the delivery order.

What is the significance of the 'Administrative Management and General Management Consulting Services' (NAICS 541611) classification for this contract?

The classification under NAICS 541611 signifies that the contract was for services related to advising organizations on administrative and general management issues. This is a broad category that can encompass strategic planning, organizational structure, operational efficiency improvements, process re-engineering, human capital management, and performance measurement. For the CDC, this likely meant engaging consultants to help optimize internal operations, improve program management, enhance decision-making processes, or implement best practices in management. The breadth of this code means the specific services rendered could vary widely, impacting how performance and value are assessed.

Industry Classification

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: EXP U.S. Services Inc. (UEI: 100943047)

Address: 205 N MICHIGAN AVE # 3500, CHICAGO, IL, 60601

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $241,909,885

Exercised Options: $222,230,418

Current Obligation: $19,062,651

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00F0004M

IDV Type: FSS

Timeline