HHS awards $9.5M administrative support contract to Alutiiq Professional Training, LLC over five years

Contract Overview

Contract Amount: $9,544,865 ($9.5M)

Contractor: Alutiiq Professional Training, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2017-09-29

End Date: 2022-09-28

Contract Duration: 1,825 days

Daily Burn Rate: $5.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: IGF::OT::IGF LONG TERM ADMINISTRATIVE SUPPORT SERVICES

Place of Performance

Location: BROOKHAVEN, DEKALB County, GEORGIA, 30329

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $9.5 million to ALUTIIQ PROFESSIONAL TRAINING, LLC for work described as: IGF::OT::IGF LONG TERM ADMINISTRATIVE SUPPORT SERVICES Key points: 1. Contract provides essential administrative management and general management consulting services. 2. The contract was awarded on a sole-source basis, limiting competitive opportunities. 3. Performance spans five years, indicating a long-term need for these services. 4. The contract type is a definitive contract, suggesting a clear scope of work. 5. The North American Industry Classification System (NAICS) code 541611 points to a focus on management consulting. 6. The contract was awarded to a single vendor, raising questions about price discovery and potential cost efficiencies. 7. The contract is managed under the GSA Schedule, which can offer pre-negotiated rates. 8. The contract is not set aside for small businesses, suggesting the scope or nature of services may not align with typical small business offerings.

Value Assessment

Rating: fair

The contract's value of $9.5 million over five years averages to $1.9 million annually. Without specific deliverables or performance metrics, a direct value-for-money assessment is challenging. Benchmarking against similar administrative support contracts within HHS or other agencies would be necessary to determine if the pricing is competitive. The use of GSA Schedule pricing may offer some level of pre-negotiated value, but the sole-source nature warrants scrutiny to ensure fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when circumstances prevent a competitive process. The lack of competition means that potential cost savings that could arise from a bidding process may not have been realized. It also limits the government's ability to explore a wider range of solutions or innovative approaches from the market.

Taxpayer Impact: For taxpayers, a sole-source award means there is a reduced likelihood of achieving the lowest possible price through market competition. Oversight is crucial to ensure the awarded price is fair and reasonable, and that the services provided are essential and effectively delivered.

Public Impact

The Centers for Disease Control and Prevention (CDC) benefits from this contract by receiving administrative management and consulting services. These services are crucial for the operational efficiency and effectiveness of the agency's programs. The contract supports administrative functions within the Department of Health and Human Services. The primary beneficiaries are the internal operations and administrative staff of the CDC, enabling them to focus on core public health missions. The contract's impact is primarily internal to the agency, supporting its administrative infrastructure rather than directly impacting the public or specific geographic regions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential for cost savings.
Lack of transparency in the justification for sole-source award.
Potential for vendor lock-in due to the long-term, sole-source nature of the contract.
Difficulty in benchmarking performance and cost without comparable contracts or detailed metrics.

Positive Signals

Contract awarded under GSA Schedule, potentially leveraging pre-negotiated rates.
Long-term contract (5 years) provides stability for essential administrative support.
Focus on administrative management and consulting services addresses a clear agency need.

Sector Analysis

The administrative management and general management consulting services sector is a significant part of the federal contracting landscape, supporting a wide array of government functions. NAICS code 541611 encompasses firms that provide expertise in organizational efficiency, strategic planning, and operational management. Federal spending in this sector is broad, covering everything from IT consulting to human resources and program management support. This contract fits within the broader category of professional services, where agencies often rely on external expertise to supplement internal capabilities. Benchmarks for this sector vary widely based on the specific services and complexity, but consistent demand indicates its importance to government operations.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The sole-source nature of the award, coupled with the specific nature of administrative management and consulting services, may have contributed to this. Without a competitive bidding process that includes small business considerations, the direct impact on the small business ecosystem for this particular contract is likely minimal. Future contracts of this nature could benefit from exploring set-aside options or encouraging subcontracting to foster small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services and the Centers for Disease Control and Prevention's contracting officers and program managers. As a GSA Schedule contract, there may be additional oversight from the General Services Administration. Transparency regarding the justification for the sole-source award and performance metrics would be key to assessing accountability. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Administrative Support Services
Management and Consulting Services
GSA Schedule Contracts
Department of Health and Human Services Contracts
Centers for Disease Control and Prevention Contracts

Risk Flags

Sole-source award may limit price competition.
Lack of detailed performance metrics makes value assessment difficult.
Justification for sole-source award not provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $9.5 million to ALUTIIQ PROFESSIONAL TRAINING, LLC. IGF::OT::IGF LONG TERM ADMINISTRATIVE SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is ALUTIIQ PROFESSIONAL TRAINING, 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 $9.5 million.

What is the period of performance?

Start: 2017-09-29. End: 2022-09-28.

What specific administrative management and general management consulting services are being provided under this contract?

The contract, identified by NAICS code 541611, focuses on Administrative Management and General Management Consulting Services. While the specific deliverables are not detailed in the provided data, these services typically encompass areas such as organizational structure analysis, process improvement, strategic planning, operational efficiency assessments, and general management advisory support. For the Centers for Disease Control and Prevention (CDC), this could translate to support in areas like program management, data analysis support, policy development assistance, or streamlining internal administrative processes to enhance the agency's ability to execute its public health mission. The 'Labor Hours' contract type suggests that the contractor is compensated based on the time spent by their personnel performing these consulting tasks, rather than fixed deliverables.

What was the justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one responsible source is available or capable of providing the required services, or when there is a compelling urgency. Without further documentation, the precise justification for this sole-source award to Alutiiq Professional Training, LLC is unknown. Typically, agencies must publicly justify such awards, detailing why a competitive process was not feasible or advantageous. This justification is crucial for ensuring fair and transparent government contracting and for demonstrating that taxpayer funds are being used appropriately.

How does the pricing of this contract compare to similar administrative support contracts within the federal government?

Directly comparing the pricing of this $9.5 million, five-year contract to similar administrative support contracts is challenging without access to detailed pricing structures and performance metrics for comparable awards. However, the contract was awarded under the GSA Schedule, which often implies that pricing has been pre-negotiated and vetted for reasonableness. The average annual value is approximately $1.9 million. To conduct a thorough benchmark, one would need to analyze contracts with similar NAICS codes (541611), contract types (Labor Hours), and agencies (HHS, CDC), looking at hourly rates, total contract values, and the scope of services. The sole-source nature of this award means that a competitive price discovery process was bypassed, making external benchmarking even more critical to ensure fair value.

What is the track record of Alutiiq Professional Training, LLC in performing federal contracts, particularly for administrative support?

Information regarding the specific track record of Alutiiq Professional Training, LLC in performing federal contracts, especially for administrative support services, is not detailed in the provided data. A comprehensive assessment would require reviewing the company's past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), other federal contract awards, and any reported issues or successes. Given this is a sole-source award, it might suggest a prior positive relationship or a perceived unique capability. However, without access to their performance history, it's difficult to definitively assess their reliability and effectiveness in delivering the required administrative management and consulting services for the CDC.

What are the potential risks associated with a sole-source award for administrative support services?

The primary risk associated with a sole-source award for administrative support services is the potential for inflated costs due to the lack of competitive pressure. Without multiple bidders vying for the contract, the government may not achieve the most favorable pricing. Another risk is a potential decline in service quality or innovation over time, as the contractor may face less incentive to improve if they are guaranteed the contract without competition. Furthermore, a sole-source award can limit the government's access to a broader range of solutions or specialized expertise that might be available in the market. Ensuring robust oversight and performance management becomes even more critical in sole-source situations to mitigate these risks.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 2017N18164

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Afognak Native Corporation

Address: 3909 ARCTIC BLVD STE 500, ANCHORAGE, AK, 99503

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

Financial Breakdown

Contract Ceiling: $9,964,688

Exercised Options: $9,544,865

Current Obligation: $9,544,865

Actual Outlays: $2,560,209

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $9,343,910

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline