HHS Awards $2.2M 8(a) Sole Source Contract to Chase Consulting Group for Technical Services
Contract Overview
Contract Amount: $2,198,463 ($2.2M)
Contractor: Chase Consulting Group, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2017-09-01
End Date: 2020-09-30
Contract Duration: 1,125 days
Daily Burn Rate: $2.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IGF::OT::IGF MARKETPLACE COMPLAINT REVIEW (MCR)- 8(A) SOLE SOURCE AWARD
Place of Performance
Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22306
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $2.2 million to CHASE CONSULTING GROUP, LLC for work described as: IGF::OT::IGF MARKETPLACE COMPLAINT REVIEW (MCR)- 8(A) SOLE SOURCE AWARD Key points: 1. Contract awarded via 8(a) sole source, limiting competition. 2. The contract is for 'All Other Professional, Scientific, and Technical Services'. 3. Awarded by CMS, a major agency within HHS. 4. Duration of 1125 days suggests a significant project.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Without a competitive process, it's difficult to assess if the price is fair and reasonable compared to market rates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded under the 8(a) sole source program, which is intended for small disadvantaged businesses. While this program aims to promote small business participation, it inherently limits competition and can potentially lead to higher prices than a fully competitive procurement.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the lack of competitive bidding.
Public Impact
Limited transparency due to sole-source award. Potential for higher costs compared to competitive contracts. Focus on specific technical services for Medicare and Medicaid. Impact on small business landscape within federal contracting.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Sole-source award mechanism
Positive Signals
- Supports small disadvantaged business (8a program)
- Awarded to a specific small business entity
Sector Analysis
The 'All Other Professional, Scientific, and Technical Services' category (NAICS 541990) is broad and encompasses a wide range of specialized services. Benchmarks for this sector vary significantly based on the specific services rendered and contract type.
Small Business Impact
This contract was awarded under the 8(a) program, specifically designed to assist small disadvantaged businesses. While this supports the growth of one small business, the sole-source nature means other small businesses in this sector did not have an opportunity to compete for this work.
Oversight & Accountability
The 8(a) sole-source award mechanism requires justification and approval, but oversight is crucial to ensure the program's intent is met and that fair pricing is achieved. Further review of the justification and performance would be needed.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Limited competition
- Potential for cost overruns (CPFF)
- Lack of price benchmark due to sole source
- Broad service category may obscure specific value
Tags
all-other-professional-scientific-and-te, department-of-health-and-human-services, va, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $2.2 million to CHASE CONSULTING GROUP, LLC. IGF::OT::IGF MARKETPLACE COMPLAINT REVIEW (MCR)- 8(A) SOLE SOURCE AWARD
Who is the contractor on this award?
The obligated recipient is CHASE CONSULTING GROUP, 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 $2.2 million.
What is the period of performance?
Start: 2017-09-01. End: 2020-09-30.
What specific technical services were provided under this contract, and how do they align with CMS's mission?
The contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' While the specific services are not detailed in the provided data, they likely support the operational or technical needs of the Centers for Medicare and Medicaid Services. Understanding the precise nature of these services is key to evaluating their necessity and impact on CMS's ability to administer its programs effectively.
What was the justification for awarding this contract as an 8(a) sole source, and were alternative competitive strategies considered?
Sole-source awards, even within programs like 8(a), require a strong justification demonstrating why competition is not feasible or would not be in the government's best interest. For this contract, the justification would need to detail the unique capabilities of Chase Consulting Group, LLC, or specific circumstances necessitating a sole-source approach. A review of the procurement file would reveal the rationale and whether any market research was conducted to explore competitive options.
How was the 'fixed fee' component of this Cost Plus Fixed Fee contract determined, and what mechanisms were in place to control costs?
In a Cost Plus Fixed Fee (CPFF) contract, the government pays the contractor's allowable costs plus a fixed fee representing profit. Determining the fixed fee typically involves negotiation based on the estimated cost of performance, the complexity of the work, and the contractor's risk. Oversight mechanisms would include regular reviews of incurred costs, performance monitoring, and potentially incentive structures to manage expenditures and ensure the government receives value for its investment.
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: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 7686 RICHMOND HWY STE 113, ALEXANDRIA, VA, 22306
Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,198,463
Exercised Options: $2,198,463
Current Obligation: $2,198,463
Actual Outlays: $-39,365
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2017-09-01
Current End Date: 2020-09-30
Potential End Date: 2020-09-30 00:00:00
Last Modified: 2026-01-07
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