HHS awards $26.4M for administrative management consulting, with Booz Allen Hamilton as prime contractor

Contract Overview

Contract Amount: $26,356,261 ($26.4M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2017-05-17

End Date: 2022-02-28

Contract Duration: 1,748 days

Daily Burn Rate: $15.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF FFM AGENT AND BROKER PROGRAM SUPPORT AND TRAINING

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $26.4 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF FFM AGENT AND BROKER PROGRAM SUPPORT AND TRAINING Key points: 1. Contract value of $26.4 million over its period of performance. 2. Booz Allen Hamilton, a large, established firm, is the prime contractor. 3. The contract was awarded under full and open competition. 4. Services include administrative management and general management consulting. 5. The contract duration was approximately 4.8 years. 6. This contract represents a portion of broader federal spending on consulting services.

Value Assessment

Rating: fair

The contract value of $26.4 million is moderate for a multi-year consulting engagement. Benchmarking against similar contracts for administrative management and general management consulting services is necessary to fully assess value for money. Without specific deliverables or performance metrics, it's difficult to definitively state if the pricing represents excellent value. The contract type (Time and Materials) can sometimes lead to cost overruns if not closely managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple bidders were likely considered. This approach generally promotes competitive pricing and allows the government to select the best value offer. The presence of four bids suggests a reasonable level of competition for this type of service.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs and ensures the government receives competitive pricing for services rendered.

Public Impact

The Centers for Medicare and Medicaid Services (CMS) benefits from enhanced administrative and management consulting. Services provided likely support the operational efficiency and effectiveness of CMS programs. The geographic impact is primarily within Virginia, where the contractor is located. Workforce implications include the employment of consultants and support staff by Booz Allen Hamilton.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can pose a risk of cost escalation if not managed diligently.
Lack of specific performance metrics in the provided data makes it hard to assess effectiveness.
The broad nature of 'administrative management and general management consulting' could lead to scope creep if not clearly defined.

Positive Signals

Awarded under full and open competition, suggesting a competitive process.
Booz Allen Hamilton is a well-established contractor with a track record in government services.
The contract duration indicates a sustained need for these services.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is a significant component of federal spending, supporting a wide range of government functions. Comparable spending benchmarks would involve analyzing other contracts for similar consulting services across federal agencies, particularly within health and human services.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities, which are not detailed here. The focus on a large prime contractor like Booz Allen Hamilton suggests that direct set-aside benefits for small businesses were not prioritized in this award.

Oversight & Accountability

Oversight mechanisms would typically involve contract officers, program managers, and potentially an Inspector General's office within HHS. Accountability measures are usually tied to performance metrics and deliverables outlined in the contract statement of work. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available.

Related Government Programs

Federal Consulting Services
Administrative Support Contracts
Management Consulting Services
Centers for Medicare and Medicaid Services Contracts

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Scope creep risk if 'administrative management and general management consulting' is not tightly defined.
Need for detailed performance metrics to fully assess value and effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $26.4 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF FFM AGENT AND BROKER PROGRAM SUPPORT AND TRAINING

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

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 $26.4 million.

What is the period of performance?

Start: 2017-05-17. End: 2022-02-28.

What is the track record of Booz Allen Hamilton with the Department of Health and Human Services?

Booz Allen Hamilton has a substantial track record with the Department of Health and Human Services (HHS) and its various agencies, including CMS. They have been awarded numerous contracts over the years for a wide array of services, including IT, management consulting, cybersecurity, and program support. Their long-standing presence indicates a familiarity with HHS's complex mission and operational environment. Analyzing specific past performance on similar contracts would provide further insight into their reliability and effectiveness in delivering services to HHS.

How does the $26.4 million contract value compare to other administrative management consulting contracts within HHS?

The $26.4 million contract value is a moderate figure for a multi-year consulting engagement within a large agency like HHS. HHS frequently awards contracts in the tens or hundreds of millions for complex IT systems, program management, and strategic consulting. This specific contract's value suggests it addresses a defined scope of administrative and management support rather than a massive enterprise-wide transformation. To provide a precise comparison, one would need to analyze the duration, scope, and specific services of other comparable contracts awarded by HHS and CMS over similar timeframes.

What are the primary risks associated with a Time and Materials (T&M) contract for consulting services?

The primary risk associated with a Time and Materials (T&M) contract for consulting services is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. If the scope of work is not well-defined, or if project management is weak, the contractor may incur more hours or use more materials than initially anticipated, leading to a higher final cost for the government. Effective oversight, clear task definitions, and diligent monitoring of labor hours and material usage are crucial to mitigate these risks.

How effective is full and open competition in ensuring value for money for administrative consulting services?

Full and open competition is generally considered the most effective method for ensuring value for money in federal contracting, including for administrative consulting services. By allowing all responsible sources to submit bids, the government maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. This process encourages contractors to offer their best terms and pricing to win the contract. While it requires a robust evaluation process to select the best value, it typically leads to better outcomes for taxpayers compared to sole-source or limited competition awards.

What is the typical duration and value range for administrative management consulting contracts at CMS?

The typical duration and value range for administrative management consulting contracts at CMS can vary significantly based on the specific needs and scope. Contracts can range from short-term, project-specific engagements lasting a few months to longer-term, multi-year support contracts. Values can range from tens of thousands to several million dollars. This $26.4 million contract, spanning nearly five years, falls within the higher end for sustained administrative support but is not unusual for comprehensive consulting services supporting a major federal agency like CMS.

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: FCO00CORP0000C

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: 8283 GREENSBORO DR, MC LEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,356,261

Exercised Options: $26,356,261

Current Obligation: $26,356,261

Actual Outlays: $1,402,901

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $416,205

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F008DA

IDV Type: FSS

Timeline