HHS awarded $22.9M for management consulting, with Edwards Industries, LLC. delivering services

Contract Overview

Contract Amount: $22,911,409 ($22.9M)

Contractor: Edwards Industries, LLC.

Awarding Agency: Department of Health and Human Services

Start Date: 2015-09-13

End Date: 2020-11-29

Contract Duration: 1,904 days

Daily Burn Rate: $12.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF FOR OTHER FUNCTIONS PERFORMANCE MANAGEMENT SUPPORT AND TRAINING

Place of Performance

Location: COLUMBIA, HOWARD County, MARYLAND, 21044

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $22.9 million to EDWARDS INDUSTRIES, LLC. for work described as: IGF::OT::IGF FOR OTHER FUNCTIONS PERFORMANCE MANAGEMENT SUPPORT AND TRAINING Key points: 1. Contract value appears reasonable for the duration and scope of management consulting services. 2. Full and open competition suggests a potentially competitive pricing environment. 3. Performance period of nearly five years indicates a long-term need for these services. 4. The contract falls within a common professional services category for federal agencies. 5. No specific small business set-aside was noted, suggesting a focus on larger prime contractors.

Value Assessment

Rating: good

The contract's total value of $22.9 million over approximately five years averages to about $4.6 million annually. This figure seems within a reasonable range for comprehensive management consulting support, especially for an agency like CMS. Benchmarking against similar contracts for administrative management and general management consulting services would provide a more precise value-for-money assessment, but the initial figure does not raise immediate concerns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service quality for the government. The agency likely sought to maximize competition to ensure it received the best value.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to vie for the contract, potentially driving down costs and improving the quality of services received.

Public Impact

The Centers for Medicare and Medicaid Services (CMS) benefits from enhanced administrative management and general management consulting services. Services delivered likely support the operational efficiency and effectiveness of CMS programs. The contract's impact is primarily within the federal government's administrative functions, with potential downstream effects on healthcare program administration. Workforce implications are likely related to the contractor's personnel providing specialized consulting expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or outcome data makes it difficult to fully assess the impact of the consulting services.
The duration of the contract (nearly 5 years) could lead to vendor lock-in if not managed carefully.
Reliance on external consultants for core management functions may indicate internal capacity gaps.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Firm Fixed Price contract type helps control costs and provides budget certainty.
The contract supports critical administrative functions within a major federal health agency.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically under administrative management and general management consulting services (NAICS code 541611). This is a significant category for federal spending, as agencies frequently contract for expertise in areas like strategic planning, organizational improvement, and operational efficiency. The market for these services is competitive, with numerous firms offering specialized consulting capabilities to government clients.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). This suggests that the competition was likely open to businesses of all sizes, and the prime contractor, Edwards Industries, LLC., may be a larger entity or a small business that won through open competition. There is no explicit information on subcontracting plans, but in a full and open competition, there is typically less emphasis on mandatory small business subcontracting goals compared to set-aside contracts.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services (HHS) and the Centers for Medicare and Medicaid Services (CMS) contracting and program officials. As a delivery order under a larger contract vehicle, specific oversight details might be embedded within the parent contract's terms. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

Management and Financial Consulting, Acquisition and Commercialization Support Services
Professional, Scientific, and Technical Services
Administrative Management and General Management Consulting Services

Risk Flags

Potential for scope creep given the long duration and nature of consulting services.
Lack of specific performance metrics makes outcome assessment challenging.
Contractor's past performance history not detailed in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $22.9 million to EDWARDS INDUSTRIES, LLC.. IGF::OT::IGF FOR OTHER FUNCTIONS PERFORMANCE MANAGEMENT SUPPORT AND TRAINING

Who is the contractor on this award?

The obligated recipient is EDWARDS INDUSTRIES, LLC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).

What is the total obligated amount?

The obligated amount is $22.9 million.

What is the period of performance?

Start: 2015-09-13. End: 2020-11-29.

What specific types of management consulting services were provided under this contract?

While the NAICS code 541611 indicates 'Administrative Management and General Management Consulting Services,' the specific deliverables under this contract are not detailed in the provided data. Typically, such services can encompass a wide range, including strategic planning, organizational analysis, process improvement, performance management, policy development support, and training. Given the agency (CMS), the consulting likely supported efforts related to healthcare program administration, operational efficiency, or regulatory compliance. Further review of the contract statement of work (SOW) would be necessary to ascertain the precise nature of the services rendered.

How does the awarded amount of $22.9 million compare to similar contracts for management consulting at HHS or CMS?

The total award of $22.9 million over approximately 1904 days (roughly 5.2 years) equates to an average annual value of about $4.4 million. This figure is substantial but not necessarily out of line for a large federal agency like HHS, particularly CMS, which manages complex healthcare programs. Benchmarking this against other large-scale management consulting contracts awarded by HHS or similar agencies would be necessary for a definitive comparison. However, considering the scope and duration, the value appears to be within a plausible range for significant consulting engagements.

What is the track record of Edwards Industries, LLC. in performing federal contracts, particularly for HHS?

The provided data identifies Edwards Industries, LLC. as the contractor. To assess their track record, a review of their past performance on federal contracts, especially those with HHS and CMS, would be crucial. This would involve examining contract histories for on-time delivery, quality of work, adherence to budget, and any past performance issues or awards. Without access to a comprehensive federal procurement database or past performance reviews, it's difficult to provide a detailed assessment of their specific track record beyond this single award.

What were the key performance indicators (KPIs) or success metrics for this contract?

The provided summary data does not include specific Key Performance Indicators (KPIs) or success metrics for this contract. Typically, these would be detailed in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). For management consulting services, KPIs might relate to the successful implementation of recommended process improvements, achievement of efficiency targets, completion of strategic plans, or positive feedback on training programs. The absence of this information in the summary prevents a direct assessment of the contract's effectiveness based on predefined metrics.

Were there any significant risks identified during the procurement or performance of this contract?

The provided data does not explicitly list any identified risks associated with this contract. However, general risks inherent in large management consulting contracts include scope creep, challenges in measuring the impact of intangible services, potential for contractor performance issues, and reliance on contractor expertise. The fact that it was awarded under full and open competition might suggest that potential risks were evaluated and mitigated through the selection process. A thorough review of contract documentation, including any pre-award risk assessments or post-award reviews, would be needed for a comprehensive understanding of specific risks.

How has federal spending on administrative management and general management consulting services (NAICS 541611) trended over the past five years?

Federal spending on administrative management and general management consulting services (NAICS 541611) has generally been substantial and has seen fluctuations over the past five years. Agencies across the government utilize these services for a variety of needs, including strategic planning, organizational restructuring, process optimization, and IT strategy. While specific year-over-year trends require detailed analysis of federal procurement data, this category consistently represents a significant portion of the professional services spending. Factors influencing spending include agency priorities, budget allocations, and the need for specialized expertise to address complex challenges.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: TFTPMC000874B

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10980 GRANTCHESTER WAY STE 300, COLUMBIA, MD, 21044

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $22,911,409

Exercised Options: $22,911,409

Current Obligation: $22,911,409

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS10F0422M

IDV Type: FSS

Timeline