HHS awards $21.4M contract for CDC lab consolidation, highlighting administrative management consulting needs

Contract Overview

Contract Amount: $21,373,912 ($21.4M)

Contractor: JKT Development, Incorporated

Awarding Agency: Department of Health and Human Services

Start Date: 2009-08-14

End Date: 2012-02-28

Contract Duration: 928 days

Daily Burn Rate: $23.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 00HCAJCD-2009-75531 - BLDG 23 CDC EAST CAMPUS LAB CONSOLIDATION

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30329, UNITED STATES OF AMERICA

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $21.4 million to JKT DEVELOPMENT, INCORPORATED for work described as: 00HCAJCD-2009-75531 - BLDG 23 CDC EAST CAMPUS LAB CONSOLIDATION Key points: 1. Contract focuses on administrative management and general management consulting services. 2. Awarded through full and open competition, suggesting a robust bidding process. 3. The contract duration of 928 days indicates a significant project timeline. 4. The fixed-price nature of the contract shifts performance risk to the contractor. 5. The specific NAICS code (541611) points to a specialized consulting niche. 6. The contract was awarded to JKT DEVELOPMENT, INCORPORATED. 7. The project is located in Georgia (GA).

Value Assessment

Rating: fair

The contract value of $21.4 million for administrative management consulting services over approximately 2.5 years appears within a reasonable range for a federal project of this scope. Benchmarking against similar contracts for large-scale facility consolidation or management consulting would provide a clearer picture of value for money. The firm-fixed-price structure suggests that the initial pricing was deemed acceptable, but ongoing performance and cost control by the contractor will be key to realizing true value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was open, specific sources may have been excluded prior to the final award. The presence of 4 bidders suggests a moderate level of competition. This approach aims to ensure fair pricing and access to a broad range of qualified contractors, though the exclusion of certain sources warrants further investigation to understand its impact on the competitive landscape.

Taxpayer Impact: A competitive bidding process, even with exclusions, generally benefits taxpayers by encouraging multiple firms to offer their best pricing and services to secure the contract, potentially leading to cost savings.

Public Impact

The Centers for Disease Control and Prevention (CDC) benefits from improved laboratory facilities and operational efficiency. Services delivered include administrative and general management consulting to support the consolidation project. The geographic impact is concentrated in Georgia, where the CDC East Campus is located. The contract supports the federal government's infrastructure and operational capabilities within a key public health agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the consolidation project's requirements are not clearly defined and managed.
Risk of contractor performance issues impacting the critical timeline of lab consolidation.
Dependency on the contractor's expertise in administrative management for successful project execution.

Positive Signals

Awarded through full and open competition, indicating a broad search for qualified contractors.
Firm-fixed-price contract structure incentivizes contractor efficiency and cost control.
The project addresses a critical need for facility consolidation within a vital public health organization.

Sector Analysis

This contract falls within the administrative management and general management consulting services sector, a broad category encompassing a wide range of professional services. The federal government is a significant consumer of these services, utilizing them for project management, strategic planning, operational improvements, and facility management. The market for such services is competitive, with numerous firms ranging from large consultancies to specialized small businesses. This specific award to JKT DEVELOPMENT, INCORPORATED for a CDC facility consolidation project highlights the government's reliance on external expertise for complex infrastructure and operational initiatives.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary contractor, JKT DEVELOPMENT, INCORPORATED, will manage the project, and any engagement with small businesses would be at their discretion for support services.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the Centers for Disease Control and Prevention (CDC). The firm-fixed-price nature of the contract implies that the government's primary oversight will focus on ensuring the contractor meets the defined scope, schedule, and performance requirements. Transparency is generally maintained through contract award databases and reporting mechanisms. While specific Inspector General (IG) jurisdiction would depend on the nature of any potential fraud, waste, or abuse, the HHS OIG would likely have oversight authority.

Related Government Programs

CDC Facility Management Contracts
Administrative Management Consulting Services
Federal Building and Infrastructure Projects
Public Health Agency Support Services

Risk Flags

Potential for performance issues impacting critical facility consolidation.
Risk of scope creep in a complex project environment.
Need for clear justification of source exclusions in competitive bidding.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $21.4 million to JKT DEVELOPMENT, INCORPORATED. 00HCAJCD-2009-75531 - BLDG 23 CDC EAST CAMPUS LAB CONSOLIDATION

Who is the contractor on this award?

The obligated recipient is JKT DEVELOPMENT, INCORPORATED.

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 $21.4 million.

What is the period of performance?

Start: 2009-08-14. End: 2012-02-28.

What is the track record of JKT DEVELOPMENT, INCORPORATED in managing federal contracts of similar size and scope?

Assessing the track record of JKT DEVELOPMENT, INCORPORATED requires a review of their past performance on federal contracts. Specifically, one would look for prior awards for administrative management, general management consulting, or large-scale facility consolidation projects. Key performance indicators to examine would include on-time delivery, adherence to budget (especially for fixed-price contracts), quality of deliverables, and any past performance evaluations or disputes. Without access to a detailed contract history database or past performance reviews, it is difficult to definitively assess their capabilities. However, the award of this $21.4 million contract suggests they met the minimum qualifications and demonstrated sufficient capability to compete successfully.

How does the awarded amount of $21.4 million compare to the estimated cost or market rates for similar lab consolidation projects?

The awarded amount of $21.4 million for the CDC East Campus Lab Consolidation project needs to be benchmarked against similar federal contracts for facility consolidation and administrative management consulting. Factors influencing this comparison include the project's complexity, duration (928 days), specific requirements, and the geographic location. Market rates for administrative management consulting services vary widely based on expertise and firm size. A comprehensive value-for-money assessment would involve comparing this contract's total value and per-diem costs to industry benchmarks and other government contracts for comparable services. The firm-fixed-price nature suggests the government accepted this price as fair and reasonable at the time of award, but ongoing monitoring of contractor performance is crucial.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks associated with this contract include potential delays in the lab consolidation timeline, cost overruns if the fixed-price contract is poorly managed by the contractor, and performance issues related to the quality of administrative and management consulting services. Scope creep, where project requirements expand beyond the initial agreement, is another significant risk. Mitigation strategies would typically involve robust project management by the CDC, clear definition and enforcement of contract terms, regular performance reviews, and strong communication channels with JKT DEVELOPMENT, INCORPORATED. The firm-fixed-price structure inherently places some cost risk on the contractor, incentivizing them to manage efficiently. However, the government must remain vigilant in overseeing performance.

How effective is the 'Full and Open Competition After Exclusion of Sources' approach in ensuring optimal value for taxpayers?

The 'Full and Open Competition After Exclusion of Sources' approach aims to balance broad competition with specific requirements or capabilities. By excluding certain sources, the government might be targeting specific expertise or avoiding contractors with past performance issues. While it still allows for open competition among the remaining pool, the exclusion of potential bidders could theoretically limit the number of competitive offers, potentially impacting price discovery. The effectiveness for taxpayers hinges on whether the excluded sources were essential for achieving the lowest possible price or highest quality. If the remaining competition was robust (4 bidders in this case), it likely still yielded competitive pricing. However, transparency regarding the reasons for exclusion is key to assessing its impact.

What is the historical spending pattern for administrative management and general management consulting services by the CDC or HHS?

Analyzing historical spending patterns for administrative management and general management consulting services by the CDC or HHS is crucial for context. This involves examining prior contracts awarded for similar services, their values, durations, and the contractors involved. Understanding trends in spending can reveal whether this $21.4 million award is an outlier, a continuation of a trend, or an increase/decrease in investment in such services. It also helps in benchmarking current contract values against historical data to assess cost-effectiveness over time. A detailed analysis would require access to historical contract databases to identify patterns in agency needs and procurement strategies for management consulting.

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) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 2009N11101

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Jamestown S'klallam Tribe (UEI: 103364097)

Address: 1033 OLD BLYN HWY, SEQUIM, WA, 98382

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $135,597,273

Exercised Options: $44,377,451

Current Obligation: $21,373,912

Timeline