HHS awarded $14.9M for professional services, with a cost-plus-award-fee structure

Contract Overview

Contract Amount: $14,871,436 ($14.9M)

Contractor: Professional and Scientific Associates, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2005-09-23

End Date: 2008-09-01

Contract Duration: 1,074 days

Daily Burn Rate: $13.8K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: OTHER PROFESSIONAL SERVICES

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $14.9 million to PROFESSIONAL AND SCIENTIFIC ASSOCIATES, INC. for work described as: OTHER PROFESSIONAL SERVICES Key points: 1. The contract utilized a cost-plus-award-fee structure, which can incentivize performance but requires careful oversight to manage costs. 2. With a duration of over 1000 days, this represents a significant, long-term commitment for professional services. 3. The contract was awarded as a competitive delivery order, suggesting a degree of market engagement. 4. The specific North American Industry Classification System (NAICS) code 541990 indicates a broad category of 'All Other Professional, Scientific, and Technical Services'. 5. The contract's value is moderate within the context of federal professional services spending. 6. The award was made to Professional and Scientific Associates, Inc., a single entity for this specific order.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the services rendered. The cost-plus-award-fee (CPAF) structure allows for cost reimbursement plus a performance-based fee, which can lead to higher overall costs if not managed effectively. Compared to fixed-price contracts for similar broad professional services, CPAF can sometimes result in less predictable final costs for the government. However, it can be effective in situations where the scope is not fully defined at the outset.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that it was likely competed among multiple vendors. The presence of 'competitive' in the award type suggests that proposals were solicited and evaluated, leading to the selection of Professional and Scientific Associates, Inc. The number of bidders is not explicitly stated, but the competitive nature implies more than one offer was received.

Taxpayer Impact: A competitive award process generally benefits taxpayers by fostering price discovery and encouraging vendors to offer competitive pricing to win the contract.

Public Impact

The primary beneficiaries are likely the Health Resources and Services Administration (HRSA) within HHS, which receives the professional services. The services delivered fall under the broad category of 'All Other Professional, Scientific, and Technical Services', suggesting support for various agency functions. The geographic impact is centered around the contractor's location in Maryland (MD), though the services may support national HRSA initiatives. Workforce implications would include employment for individuals working for Professional and Scientific Associates, Inc. on this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Award Fee (CPAF) structure requires robust government oversight to ensure costs are reasonable and the award fee is justified by performance.
The broad NAICS code (541990) makes it difficult to assess if the contractor possesses specialized expertise relevant to the specific needs of HRSA.
The contract duration of over 1000 days necessitates ongoing performance monitoring to ensure continued value and alignment with agency goals.

Positive Signals

The contract was awarded through a competitive process, indicating potential for good value and vendor selection.
The award fee component of the CPAF structure incentivizes the contractor to meet or exceed performance expectations.
The contractor is based in Maryland, potentially facilitating easier communication and oversight for HRSA, which is also headquartered in the region.

Sector Analysis

This contract falls within the 'Professional, Scientific, and Technical Services' sector, a broad category encompassing a wide range of specialized expertise. The federal government is a significant consumer of these services, utilizing them for everything from research and development to administrative support and consulting. The NAICS code 541990 specifically covers services not elsewhere classified within professional, scientific, and technical fields. Comparable spending benchmarks would depend heavily on the specific nature of the 'other' professional services provided.

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 for this particular award. The prime contractor, Professional and Scientific Associates, Inc., is likely a larger entity if it was competing for and awarded this delivery order.

Oversight & Accountability

The oversight for this contract would primarily reside with the Health Resources and Services Administration (HRSA) contracting officers and program managers. As a Cost Plus Award Fee (CPAF) contract, rigorous monitoring of incurred costs and performance metrics is crucial to ensure value for money and to justify the award fee. Transparency would be enhanced through regular reporting requirements from the contractor and potentially through contract data reporting systems. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

HHS Professional Services Contracts
HRSA Support Services
Federal IT and Professional Services
Cost-Plus-Award-Fee Contracts
General Services Administration (GSA) Schedules (if applicable)

Risk Flags

Cost Plus Award Fee (CPAF) structure requires diligent oversight.
Broad NAICS code may indicate a lack of specialized service definition.
Performance metrics for award fee need to be clearly defined and measurable.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $14.9 million to PROFESSIONAL AND SCIENTIFIC ASSOCIATES, INC.. OTHER PROFESSIONAL SERVICES

Who is the contractor on this award?

The obligated recipient is PROFESSIONAL AND SCIENTIFIC ASSOCIATES, 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 $14.9 million.

What is the period of performance?

Start: 2005-09-23. End: 2008-09-01.

What specific types of 'All Other Professional, Scientific, and Technical Services' were provided under this contract?

The provided data only specifies the broad NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' Without access to the contract's statement of work or detailed task orders, it is impossible to determine the precise nature of the services rendered. This could range from administrative support, specialized research assistance, data analysis, program evaluation, or other non-classified professional support functions critical to the Health Resources and Services Administration's mission. Understanding the specific services is key to assessing the contract's true value and performance.

How did Professional and Scientific Associates, Inc. perform against the award fee criteria?

The contract utilizes a Cost Plus Award Fee (CPAF) structure, which includes a performance-based award fee. To assess performance, one would need to review the government's performance evaluations and the resulting award fee determinations made by HRSA. These evaluations typically compare the contractor's deliverables and performance against pre-defined metrics and objectives outlined in the contract. Without access to these internal government assessments, it's impossible to definitively state how well Professional and Scientific Associates, Inc. performed or what portion of the potential award fee they received.

What was the total number of bids received for this competitive delivery order?

The contract type is listed as 'COMPETITIVE DELIVERY ORDER,' which implies that multiple vendors were solicited and submitted proposals. However, the specific number of bids received is not detailed in the provided summary data. Typically, this information would be available in more comprehensive contract databases or award documents. A higher number of bids generally suggests more robust competition, potentially leading to better pricing and a wider selection of qualified contractors for the government.

How does the average hourly rate or total cost compare to similar professional services contracts awarded by HHS or HRSA during the same period?

Benchmarking the cost-effectiveness requires comparing this contract's total value ($14.9M over approximately 3 years) and its underlying cost structure (CPAF) against similar contracts for comparable services. Without knowing the specific services and the labor mix, a direct comparison is difficult. However, the CPAF structure itself can sometimes lead to higher total costs than fixed-price contracts if performance incentives are heavily weighted or if cost controls are not stringent. A detailed analysis would involve examining the contractor's labor categories, rates, and the government's assessment of the award fee earned.

What is the track record of Professional and Scientific Associates, Inc. with federal contracts, particularly within the Department of Health and Human Services?

The provided data indicates Professional and Scientific Associates, Inc. was awarded this specific contract by HRSA. To assess their broader track record, one would need to examine their entire federal contract history. This includes looking at past performance on other HHS contracts, their success rate in competitive bids, any past performance issues or awards, and their experience with similar types of professional services. A review of their contract portfolio would reveal their experience level, the types of services they typically provide, and their overall reliability as a federal contractor.

What are the potential risks associated with the Cost Plus Award Fee (CPAF) contract structure for this specific service category?

The primary risk with a CPAF contract is the potential for cost overruns if the government's oversight of incurred costs is insufficient and if the award fee criteria are not tightly defined and objectively measured. Contractors may be incentivized to increase costs to maximize the base fee, and the award fee itself can be subjective if not carefully managed. For 'All Other Professional, Scientific, and Technical Services,' where scope can be fluid, there's a risk that costs could escalate without a clear ceiling, making budget predictability a concern for taxpayers. Effective contract administration is paramount to mitigate these risks.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: KCT Group, Inc. (UEI: 075334420)

Address: 2100 RESTON PARKWAY, RESTON, VA, 11

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Woman Owned Business

Financial Breakdown

Contract Ceiling: $14,871,436

Exercised Options: $14,871,436

Current Obligation: $14,871,436

Parent Contract

Parent Award PIID: HHSH250200446007I

IDV Type: IDC

Timeline