HHS awarded $16.7M for technical assistance, with 5 bidders indicating moderate competition
Contract Overview
Contract Amount: $16,735,809 ($16.7M)
Contractor: Writeprocess, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2005-09-23
End Date: 2011-06-04
Contract Duration: 2,080 days
Daily Burn Rate: $8.0K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: TECHNICAL ASSISTANCE
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $16.7 million to WRITEPROCESS, INC. for work described as: TECHNICAL ASSISTANCE Key points: 1. Value for money appears fair given the duration and fixed-fee structure. 2. Competition dynamics suggest a moderately contested award, potentially impacting price. 3. Risk indicators are moderate, with a fixed-fee contract type. 4. Performance context shows a long-term engagement for essential technical support. 5. Sector positioning is within professional services, supporting health administration.
Value Assessment
Rating: fair
The contract's total value of $16.7 million over approximately 6.8 years suggests an average annual spend of around $2.46 million. This is a substantial amount, but the cost-plus-fixed-fee structure allows for flexibility. Benchmarking against similar technical assistance contracts is difficult without more specific service details, but the duration and scope imply a significant investment. The fixed fee component provides some cost control, but the 'cost plus' element necessitates careful oversight to ensure efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was competed under the Simplified Acquisition Procedures (SAP), with 5 bidders participating. While SAP is designed for smaller procurements, the number of bidders suggests a degree of competition. However, the specific nature of the technical assistance required may have limited the pool of qualified offerors. The presence of 5 bidders indicates that the market was not entirely restricted, but it doesn't necessarily guarantee the most competitive pricing achievable in a broader competition.
Taxpayer Impact: A moderate level of competition, while better than a sole-source award, means taxpayers may not have benefited from the lowest possible price. The government secured multiple offers, which is a positive sign for price discovery, but further analysis would be needed to confirm if the final price was truly optimal.
Public Impact
The primary beneficiaries are likely the Health Resources and Services Administration (HRSA) programs, which receive essential technical support. Services delivered include general technical assistance, crucial for program implementation and management. The geographic impact is national, supporting federal health initiatives across the United States. Workforce implications are indirect, supporting the operational capacity of federal health agencies rather than directly employing a large workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to the 'cost plus' component of the contract.
- Ensuring the 'technical assistance' provided is consistently aligned with evolving program needs.
- Monitoring contractor performance over a long contract duration to maintain quality and efficiency.
Positive Signals
- The contract was competed, indicating an effort to achieve fair market value.
- A fixed-fee element provides a degree of cost certainty for the government.
- The long duration suggests a stable and reliable source of support for HRSA.
Sector Analysis
This contract falls within the Professional, Scientific, and Technical Services sector, specifically under NAICS code 541990 (All Other Professional, Scientific, and Technical Services). This broad category encompasses a wide range of specialized support services. The federal spending in this sector is substantial, supporting various agency functions from research to administrative support. Comparable spending benchmarks would depend heavily on the specific type of technical assistance provided, but the $16.7 million total award over nearly 7 years places it as a significant, long-term service contract.
Small Business Impact
Information regarding small business set-asides or subcontracting plans was not explicitly provided in the data. Given the nature of technical assistance contracts, it's possible that larger, specialized firms were better positioned to bid. Further investigation into the contractor's utilization of small businesses for subcontracting would be necessary to assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would primarily reside with the Health Resources and Services Administration (HRSA) contracting officers and program managers. The 'cost plus fixed fee' structure necessitates diligent monitoring of incurred costs against the fixed fee to ensure compliance and prevent unnecessary expenditures. Transparency is generally maintained through contract reporting mechanisms, and the Inspector General for the Department of Health and Human Services would have jurisdiction over any potential fraud, waste, or abuse.
Related Government Programs
- Technical Assistance Contracts
- Professional and Technical Services
- Health Program Support
- Federal IT and Administrative Support
Risk Flags
- Cost Overrun Risk (CPFF)
- Performance Monitoring Intensity
- Long-Term Contract Management
Tags
technical-assistance, professional-services, health-resources-and-services-administration, department-of-health-and-human-services, competed-under-sap, cost-plus-fixed-fee, mid-atlantic, maryland, large-contract, long-duration
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $16.7 million to WRITEPROCESS, INC.. TECHNICAL ASSISTANCE
Who is the contractor on this award?
The obligated recipient is WRITEPROCESS, INC..
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Health Resources and Services Administration).
What is the total obligated amount?
The obligated amount is $16.7 million.
What is the period of performance?
Start: 2005-09-23. End: 2011-06-04.
What is the track record of WRITEPROCESS, INC. with federal contracts, particularly those involving technical assistance?
WRITEPROCESS, INC. has been awarded federal contracts, including this significant technical assistance agreement with the Department of Health and Human Services (HHS). Analyzing their broader contract history would reveal their performance across various agencies and contract types. Key metrics to examine include past performance ratings, any contract disputes or terminations, and the types of services they have historically provided. A review of their financial stability and capacity to handle large, long-term contracts would also be pertinent. Without access to a comprehensive federal procurement database or past performance information, a definitive assessment of their track record is limited to the information provided for this specific contract.
How does the $16.7 million total value compare to similar technical assistance contracts awarded by HRSA or other HHS agencies?
The total contract value of $16.7 million over approximately 6.8 years equates to an average annual value of roughly $2.46 million. To benchmark this effectively, one would need to compare it against other technical assistance contracts of similar scope, duration, and complexity awarded by HRSA or other HHS agencies. Factors such as the specific technical expertise required, the number of end-users or programs supported, and the geographic reach of the assistance are critical for a meaningful comparison. If similar contracts for comparable services have significantly lower or higher values, it could indicate issues with pricing or scope definition for this particular award. A broader market analysis of technical assistance services within the federal health sector would provide further context.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?
The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude ($16.7 million over 6.8 years) revolve around cost control and contractor efficiency. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' element means the government reimburses the contractor's allowable costs. This structure can incentivize contractors to incur higher costs if oversight is not rigorous, potentially leading to the government paying more than anticipated. There's also a risk that the contractor might not be as motivated to find the most cost-effective solutions as they would be under a firm-fixed-price contract. Effective risk mitigation requires robust government oversight of all incurred costs, clear performance metrics, and regular audits to ensure that costs are reasonable, allocable, and necessary for performing the contract.
How effective has WRITEPROCESS, INC. been in delivering the technical assistance outlined in the contract, based on available performance data?
Based solely on the provided data, there is no specific performance information available to assess the effectiveness of WRITEPROCESS, INC. in delivering the technical assistance. The data includes contract details such as award amount, dates, and competition level, but lacks qualitative or quantitative performance metrics, such as contractor performance evaluation reports (CPARs), key performance indicators (KPIs), or user satisfaction surveys. To evaluate effectiveness, one would need to access these types of performance records. Without them, it's impossible to determine if the contractor has met or exceeded expectations, delivered value for money, or successfully achieved the contract's objectives.
What has been the historical spending trend for technical assistance services within HRSA or similar agencies over the past 5-10 years?
Analyzing historical spending trends for technical assistance services within HRSA or similar agencies over the past 5-10 years would require access to detailed federal procurement databases (like USASpending.gov or FPDS). This contract, valued at $16.7 million over its duration, represents a significant investment. Understanding the broader trend would involve looking at the total annual obligations for NAICS code 541990 (or more specific codes if applicable) within HRSA and comparable agencies. Key questions would be: Is spending on technical assistance increasing, decreasing, or stable? Are there particular types of technical assistance that have seen significant growth in demand? How does this specific contract's value fit within the historical spending patterns? This context helps determine if current spending levels are consistent with past investments or represent a notable shift.
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) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 05N2315258
Offers Received: 5
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1650 NEWTON ST NW, WASHINGTON, DC, 98
Business Categories: 8(a) Program Participant, Category Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $16,735,809
Exercised Options: $16,735,809
Current Obligation: $16,735,809
Timeline
Start Date: 2005-09-23
Current End Date: 2011-06-04
Potential End Date: 2011-06-04 00:00:00
Last Modified: 2011-11-01
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