HHS awarded $10.3M for management consulting, with SAIC delivering services over 5 years

Contract Overview

Contract Amount: $10,324,202 ($10.3M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2006-06-01

End Date: 2011-03-31

Contract Duration: 1,764 days

Daily Burn Rate: $5.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 06-F-16555/PR 31720/SAIC/ IEMP PHASE VII

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30341

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $10.3 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: 06-F-16555/PR 31720/SAIC/ IEMP PHASE VII Key points: 1. The contract value of $10.3M over nearly 5 years suggests a moderate annual spend for management consulting services. 2. Full and open competition was utilized, indicating a potentially competitive bidding process. 3. The contract was awarded as a Delivery Order under a larger contract, implying it's part of an existing framework. 4. The fixed-price contract type generally shifts risk to the contractor, potentially leading to cost efficiencies if managed well. 5. The primary service area is Administrative Management and General Management Consulting, a common need across federal agencies. 6. The contract was awarded to Science Applications International Corporation (SAIC), a large federal contractor.

Value Assessment

Rating: good

The total award of $10.3M over approximately 4.8 years equates to an average annual spend of roughly $2.15M. This figure is within a reasonable range for comprehensive management consulting services provided to a major federal agency like the CDC. Benchmarking against similar large-scale consulting contracts for federal health agencies would provide a more precise value-for-money assessment, but the overall spend does not appear excessively high given the duration and scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The agency sought proposals from all responsible sources, aiming to secure the best value.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider pool of contractors to compete, potentially driving down costs and improving the quality of services received, thereby maximizing the efficient use of public funds.

Public Impact

The Centers for Disease Control and Prevention (CDC) benefits from enhanced administrative and management consulting. Services delivered likely support the operational efficiency and strategic planning of the CDC. The geographic impact is primarily within the agency's operational centers, likely in Georgia where the contract was managed. Workforce implications may include support staff and subject matter experts contributing to CDC's mission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not tightly managed, given the multi-year duration.
Reliance on a single large contractor for critical management functions could pose a risk if performance falters.
Ensuring continued alignment with evolving public health needs and agency priorities over the contract term.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Fixed-price contract type incentivizes contractor efficiency and cost control.
The contractor, SAIC, is a well-established entity with significant federal contracting experience.
The contract duration allows for sustained support and knowledge transfer.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. This is a significant market within the federal government, with agencies frequently procuring such services to improve operations, strategy, and program management. The total federal spending on management and management consulting services is in the billions annually, with agencies like HHS being major consumers. This contract represents a small portion of that overall market.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While SAIC is a large business, there is no explicit information on subcontracting plans for small businesses. Federal regulations encourage large prime contractors to utilize small businesses for subcontracting opportunities, but the extent to which this occurred is not detailed here. Further review of subcontracting reports would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program managers within the CDC. As a delivery order under a larger contract, there may be established oversight mechanisms from the parent contract. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

HHS Management and Program Support Contracts
CDC Consulting Services
Federal Administrative Support Services
Professional Services Schedule (PSS) Contracts

Risk Flags

Contract duration exceeds 4 years
Awarded to a large business prime contractor
Potential for undefined scope in consulting services

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $10.3 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. 06-F-16555/PR 31720/SAIC/ IEMP PHASE VII

Who is the contractor on this award?

The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.

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 $10.3 million.

What is the period of performance?

Start: 2006-06-01. End: 2011-03-31.

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

The contract, NAICS code 541611 (Administrative Management and General Management Consulting Services), suggests the CDC sought expertise to improve its internal operations, strategic planning, program execution, and overall organizational efficiency. This could encompass areas such as process optimization, organizational restructuring, policy development support, performance management systems, and resource allocation strategies. Given the CDC's mission-critical role in public health, such consulting is vital for ensuring effective and responsive program delivery, adapting to emerging health threats, and managing complex initiatives. The specific challenges addressed would likely be detailed in the original contract statement of work, which is not provided here but would typically outline the precise objectives and deliverables.

How does the $10.3M award compare to other similar management consulting contracts at the CDC or HHS?

The total award of $10.3M over approximately 4.8 years translates to an average annual value of roughly $2.15M. This figure is moderate for a large federal agency like the CDC. Benchmarking requires comparing it to contracts with similar scopes of work (management and administrative consulting), duration, and agency size. Larger, more complex transformation projects or agency-wide strategic initiatives might command higher values. Conversely, smaller, task-specific consulting engagements would be significantly less. Without access to a comprehensive database of comparable CDC/HHS contracts, a precise comparison is difficult, but this award appears to be within a typical range for sustained, high-level consulting support.

What is SAIC's track record with federal management consulting contracts, particularly with HHS?

Science Applications International Corporation (SAIC) is a major federal contractor with extensive experience across various agencies, including HHS. They have a long history of providing a wide range of services, including IT, engineering, and management consulting. Their track record with management consulting typically involves supporting complex program management, strategic planning, and operational improvements. SAIC has held numerous contracts with HHS and its sub-agencies, demonstrating a capacity to meet the government's requirements. Performance history on specific contracts, available through sources like the Contractor Performance Assessment Reporting System (CPARS), would offer a more granular view of their success and reliability in delivering management consulting services.

What are the potential risks associated with a fixed-price contract for management consulting services?

While fixed-price contracts are generally favored for shifting risk to the contractor and encouraging cost control, they can present risks in service-based engagements like management consulting. If the scope of work is not precisely defined or if unforeseen complexities arise, the contractor may face challenges in delivering the required services within the agreed price. This could lead to the contractor cutting corners, reducing service quality, or seeking change orders, potentially negating the cost benefits. Conversely, if the contractor significantly underestimates costs or effort, they may incur losses. For the government, the risk lies in potentially receiving subpar services if the contractor struggles to meet the fixed price, or in paying a premium if the contractor overprices to account for uncertainty.

How has federal spending on management and administrative consulting services evolved over the period of this contract (2006-2011)?

The period of this contract (2006-2011) coincided with significant federal activity, including the lead-up to and aftermath of the 2008 financial crisis, and increasing focus on government efficiency and accountability. Federal spending on management and administrative consulting services generally remained robust during this time, driven by needs for strategic planning, program evaluation, IT modernization, and process improvements across agencies. While specific year-over-year trends would require detailed analysis of federal procurement data, it's likely that spending in this category saw fluctuations influenced by budget cycles, administration priorities, and economic conditions. Agencies like HHS consistently require such support to manage their large and complex operations.

Industry Classification

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

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 2006Q08522

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12010 SUNSET HILLS RD, RESTON, VA, 20190

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

Financial Breakdown

Contract Ceiling: $45,296,379

Exercised Options: $45,296,379

Current Obligation: $10,324,202

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS23F8006H

IDV Type: FSS

Timeline