HHS awards $107.8M for Health Program Support to KARNA LLC under full and open competition

Contract Overview

Contract Amount: $107,850,327 ($107.9M)

Contractor: Karna LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2016-11-28

End Date: 2021-11-30

Contract Duration: 1,828 days

Daily Burn Rate: $59.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF WTCHP HEALTH PROGRAM SUPPORT

Place of Performance

Location: BROOKHAVEN, FULTON County, GEORGIA, 30329

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $107.9 million to KARNA LLC for work described as: IGF::OT::IGF WTCHP HEALTH PROGRAM SUPPORT Key points: 1. The contract value of $107.8M over 5 years indicates significant investment in health program support. 2. KARNA LLC, a single awardee, suggests a focused relationship for these services. 3. The 'Cost Plus Fixed Fee' contract type carries inherent risk of cost overruns. 4. Services fall under 'All Other Professional, Scientific, and Technical Services', a broad category.

Value Assessment

Rating: fair

The contract value of $107.8M over 5 years averages approximately $21.5M annually. Benchmarking this against similar 'All Other Professional, Scientific, and Technical Services' contracts would be necessary for a precise assessment, but the scale suggests a substantial investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', indicating an initial broad solicitation followed by a specific exclusion. This method can sometimes limit the competitive pool, potentially impacting price discovery.

Taxpayer Impact: While competition was utilized, the 'Cost Plus Fixed Fee' structure warrants scrutiny to ensure taxpayer funds are used efficiently and effectively.

Public Impact

Public health initiatives supported by this contract could impact disease prevention, research, and health service delivery. The long-term nature of the contract suggests ongoing needs for specialized professional and technical services within the CDC. Transparency in how the fixed fee is determined and managed is crucial for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to higher costs if not managed tightly.
Exclusion of sources after initial full and open competition may limit competitive pressure.
Broad service category ('All Other Professional, Scientific, and Technical Services') could obscure specific performance metrics.

Positive Signals

Awarded under full and open competition, suggesting an effort to solicit a wide range of potential contractors.
Definitive contract provides a clear framework for services over a defined period.
Long contract duration (1828 days) allows for sustained support of critical health programs.

Sector Analysis

This contract falls within the broad professional, scientific, and technical services sector, often supporting government agencies' research, analysis, and program management needs. Annual spending in this sector can vary significantly based on agency priorities and project lifecycles.

Small Business Impact

The data does not indicate any specific set-aside for small businesses, nor does it mention subcontracting goals. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The contract's duration and value necessitate robust oversight from the Centers for Disease Control and Prevention to ensure performance standards are met and costs are controlled, especially given the CPFF structure.

Related Government Programs

All Other Professional, Scientific, and Technical Services
Department of Health and Human Services Contracting
Centers for Disease Control and Prevention Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Potential for limited competition due to source exclusion.
Broad service category may obscure specific performance.
Lack of small business participation data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $107.9 million to KARNA LLC. IGF::OT::IGF WTCHP HEALTH PROGRAM SUPPORT

Who is the contractor on this award?

The obligated recipient is KARNA LLC.

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 $107.9 million.

What is the period of performance?

Start: 2016-11-28. End: 2021-11-30.

What specific health programs are supported by this contract, and what is the measurable impact of KARNA LLC's services on public health outcomes?

The contract supports general 'Health Program Support' for the CDC. Specific program details are not provided in this data. To assess value, one would need to examine the CDC's program objectives and performance reports related to this contract. Measuring the direct impact on public health outcomes requires linking the contractor's deliverables to specific health metrics, such as disease surveillance rates, research advancements, or program enrollment figures.

What are the primary risks associated with the 'Cost Plus Fixed Fee' (CPFF) contract type in this context, and how are they mitigated?

The primary risk of CPFF is that the contractor may have less incentive to control costs, as the fee is fixed regardless of the final cost. This can lead to cost overruns. Mitigation strategies include rigorous government oversight, detailed cost tracking, clear performance metrics, and potentially incentive clauses tied to cost savings or efficiency improvements, although these are not explicitly detailed here.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method impact the overall effectiveness and cost-efficiency of this contract?

This method suggests an initial broad solicitation followed by the exclusion of certain sources. While aiming for broad competition initially, the exclusion step could limit the final pool of bidders. The effectiveness and cost-efficiency depend on the justification for excluding sources and whether the remaining competition was sufficient to drive competitive pricing and ensure the best value was obtained for the government.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 2016N17955

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Blue Cross and Blue Shield of South Carolina

Address: 2987 CLAIRMONT RD STE 205, ATLANTA, GA, 30329

Business Categories: 8(a) Program Participant, Category Business, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $110,589,495

Exercised Options: $110,589,495

Current Obligation: $107,850,327

Actual Outlays: $7,192,728

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline