HHS awarded $15.8M for Management Support Services to Scientific Consulting Group Inc

Contract Overview

Contract Amount: $15,805,327 ($15.8M)

Contractor: Scientific Consulting Group Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2004-09-20

End Date: 2012-03-31

Contract Duration: 2,749 days

Daily Burn Rate: $5.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: OTHER MANAGEMENT SUPPORT SERVICES

Place of Performance

Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20878

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $15.8 million to SCIENTIFIC CONSULTING GROUP INC for work described as: OTHER MANAGEMENT SUPPORT SERVICES Key points: 1. Spending spans over 7 years, indicating a long-term need for these services. 2. The contract was awarded under full and open competition, suggesting a competitive process. 3. The primary contractor, Scientific Consulting Group Inc., is a small business. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee structure, while allowing for flexibility, carries inherent risks for cost control. Benchmarking against similar management support service contracts is difficult without more detailed service descriptions and performance metrics.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition after exclusion of sources, indicating a robust process to solicit bids. This method generally promotes competitive pricing, though the specific impact is hard to gauge without knowing the number of bidders.

Taxpayer Impact: The competitive award process likely ensured a reasonable price for the services, benefiting taxpayers. However, the Cost Plus Fixed Fee structure warrants careful oversight to prevent unnecessary costs.

Public Impact

Taxpayers funded over $15.8 million for administrative and management support services. The contract supported the National Institutes of Health, a key agency within HHS. Services were provided over a significant period, from 2004 to 2012.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
Long contract duration (7+ years) may not reflect current market needs or pricing.
Lack of specific performance metrics makes value assessment challenging.

Positive Signals

Awarded via full and open competition, suggesting a competitive marketplace.
Contractor is a small business, potentially supporting small business goals.
Services provided to a critical health research agency (NIH).

Sector Analysis

This contract falls under 'Other Management Support Services,' a broad category. Benchmarking requires comparison with similar administrative and professional services contracts, which can vary widely in scope and cost.

Small Business Impact

The contractor, Scientific Consulting Group Inc., is identified as a small business. This award may contribute to federal small business contracting goals, though the contract value is substantial.

Oversight & Accountability

The Cost Plus Fixed Fee structure necessitates strong government oversight to manage costs and ensure contractor performance aligns with contract objectives. Monitoring expenditures and deliverables is crucial for accountability.

Related Government Programs

Office Administrative Services
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Cost Plus Fixed Fee structure poses risk of cost escalation.
Lack of detailed service description hinders precise value assessment.
Long contract duration may not reflect current market efficiency.
Potential for scope creep without strict management.
Limited insight into specific performance metrics and outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $15.8 million to SCIENTIFIC CONSULTING GROUP INC. OTHER MANAGEMENT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is SCIENTIFIC CONSULTING GROUP INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $15.8 million.

What is the period of performance?

Start: 2004-09-20. End: 2012-03-31.

What specific management support services were provided, and how did they contribute to NIH's mission?

The contract data indicates 'OTHER MANAGEMENT SUPPORT SERVICES' and 'Office Administrative Services' (NAICS 561110). While specific deliverables are not detailed, these services likely encompassed administrative, operational, and potentially project management support crucial for the functioning of NIH research programs. The long duration suggests these functions were integral to ongoing operations.

What were the key factors driving the Cost Plus Fixed Fee structure for this contract?

Cost Plus Fixed Fee contracts are often used when the scope of work is not precisely defined or when there is uncertainty about the costs involved. For management support services, this structure might have been chosen to allow flexibility in adapting to evolving NIH needs over the contract's long lifespan, though it requires diligent oversight to control costs.

How did the 'full and open competition after exclusion of sources' process ensure value for money?

This procurement method implies that the government initially considered excluding certain sources but ultimately opened the competition broadly. This suggests an effort to maximize the pool of potential bidders while potentially addressing specific requirements. The competitive nature should have driven down prices, but the CPFF structure requires careful monitoring to realize full value.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 656 QUINCE ORCHARD RD # 210, GAITHERSBURG, MD, 90

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $15,805,327

Exercised Options: $15,805,327

Current Obligation: $15,805,327

Timeline