HHS awarded $12.6M for recruitment services, with NIH utilizing a full and open competition

Contract Overview

Contract Amount: $12,583,296 ($12.6M)

Contractor: Matthews Media Group, Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2006-09-06

End Date: 2011-09-29

Contract Duration: 1,849 days

Daily Burn Rate: $6.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: RECRUITMENT SERVICES

Place of Performance

Location: BALTIMORE, BALTIMORE (CITY) County, MARYLAND, 21224

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $12.6 million to MATTHEWS MEDIA GROUP, INC for work described as: RECRUITMENT SERVICES Key points: 1. The contract value of $12.6 million over its period of performance suggests a significant need for recruitment services. 2. Full and open competition was utilized, indicating a potentially robust bidding process. 3. The contract was awarded to Matthews Media Group, Inc., a single entity. 4. The duration of the contract (1849 days) implies a long-term need for these services. 5. The North American Industry Classification System (NAICS) code 541990 categorizes this as 'All Other Professional, Scientific, and Technical Services'. 6. The contract type is Cost Plus Fixed Fee (CPFF), which can sometimes lead to cost overruns if not managed carefully.

Value Assessment

Rating: fair

Benchmarking the value of this $12.6 million contract for recruitment services is challenging without specific performance metrics or comparable contract data. The Cost Plus Fixed Fee (CPFF) contract type means the government reimburses the contractor for allowable costs plus a fixed fee, which can sometimes incentivize higher spending. However, the fixed fee component aims to provide some cost control. Without details on the number of individuals recruited or the success rate, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' suggesting that all responsible sources were permitted to submit a bid. With 3 bidders identified, this indicates a moderate level of competition. While more than one bidder is positive, a higher number could potentially drive prices down further and increase the likelihood of selecting the most cost-effective solution.

Taxpayer Impact: A full and open competition, even with a moderate number of bidders, generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality compared to sole-source or limited competitions.

Public Impact

The primary beneficiaries of this contract are the National Institutes of Health (NIH), which receives support in its recruitment efforts. The services delivered are professional, scientific, and technical in nature, specifically focused on recruitment. The geographic impact is likely concentrated around NIH facilities, primarily in Maryland (ST: MD, SN: MARYLAND). Workforce implications include the potential for filling critical research and administrative positions within NIH, thereby supporting its mission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type carries inherent risks of cost escalation if not closely monitored.
Limited public information on performance metrics makes it difficult to assess the true effectiveness and value of the recruitment services.
The specific nature of 'All Other Professional, Scientific, and Technical Services' is broad, potentially obscuring the precise scope of work.

Positive Signals

The use of 'Full and Open Competition' suggests an effort to ensure a fair and broad selection process.
The award to a single contractor implies a focused relationship for these specific recruitment needs.
The contract duration indicates a sustained need and potentially a successful, ongoing relationship with the contractor.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically under NAICS code 541990. This broad category encompasses a wide range of services, including research, consulting, and administrative support. The market for recruitment services is competitive, with numerous firms offering specialized solutions. Federal spending in this area often supports agency-specific needs for talent acquisition, particularly in specialized fields like scientific research or healthcare.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (SB: false). There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this particular contract appears limited, unless the prime contractor voluntarily engages small businesses for subcontracting.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services (HHS) and specifically the National Institutes of Health (NIH). Accountability measures would be tied to the terms of the Cost Plus Fixed Fee contract, requiring detailed reporting of costs and progress towards the fixed fee. Transparency is generally facilitated through contract award databases, though detailed performance data may not always be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Human Resources Services
Professional and Management Support Services
Scientific and Technical Consulting Services
Healthcare Staffing Contracts
Government Recruitment Agencies

Risk Flags

Cost Plus Fixed Fee contract type may lead to cost overruns.
Limited transparency on performance metrics hinders value assessment.
Broad NAICS code may obscure specific service details.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $12.6 million to MATTHEWS MEDIA GROUP, INC. RECRUITMENT SERVICES

Who is the contractor on this award?

The obligated recipient is MATTHEWS MEDIA 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 $12.6 million.

What is the period of performance?

Start: 2006-09-06. End: 2011-09-29.

What was the specific performance history of Matthews Media Group, Inc. prior to this award?

Information regarding the specific performance history of Matthews Media Group, Inc. prior to this award is not detailed in the provided data. Generally, federal agencies assess past performance as part of the source selection process. This would involve reviewing previous contracts held by the company, including their timeliness, quality of work, and adherence to contract terms. Agencies often use contractor performance evaluation reports (CPARS) to document this history. Without access to those specific reports or further details on Matthews Media Group's prior federal contracts, a comprehensive assessment of their track record is not possible from this data alone.

How does the awarded amount compare to similar recruitment contracts within HHS or other agencies?

Comparing the $12.6 million award for recruitment services to similar contracts requires access to a broader dataset of federal procurements. Factors such as the duration of the contract (1849 days), the specific services required (recruitment), and the agency's needs (NIH) influence the total value. Contracts for recruitment can vary significantly based on the volume of hires, the level of positions being filled (e.g., entry-level vs. senior scientific roles), and the geographic scope. A $12.6 million contract over nearly five years suggests a substantial and ongoing recruitment effort. Benchmarking would involve identifying contracts with similar scope, duration, and service type across government agencies to determine if this represents a typical or outlier investment.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for recruitment services?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract for recruitment services is the potential for cost overruns. In a CPFF structure, the government agrees to pay the contractor's allowable costs plus a predetermined fixed fee. While the fixed fee provides some predictability, the contractor may have less incentive to control costs compared to fixed-price contracts, as their profit (the fee) is fixed regardless of the final cost. If the contractor's costs exceed initial estimates, the government bears that additional expense. Effective oversight, detailed cost tracking, and clear definition of allowable costs are crucial to mitigate this risk and ensure the government receives good value.

What specific types of recruitment needs does this contract address for the National Institutes of Health?

The provided data categorizes the contract under 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) and specifies 'RECRUITMENT SERVICES.' For the National Institutes of Health (NIH), a leading biomedical research center, these recruitment services likely focus on attracting and hiring highly specialized personnel. This could include scientists, researchers, clinicians, technical staff, and administrative professionals critical to advancing medical research and public health initiatives. The contract may cover activities such as sourcing candidates, screening applications, conducting initial interviews, managing candidate pipelines, and potentially supporting onboarding processes to fill vital roles within NIH's various institutes and centers.

How has federal spending on recruitment services evolved over the period this contract was active?

The contract was active from September 6, 2006, to September 29, 2011. During this period, federal spending on recruitment services, like many other professional services, likely saw fluctuations influenced by budget appropriations, agency hiring priorities, and economic conditions. Post-recessionary periods might have seen increased reliance on external recruitment to fill government positions efficiently. Analyzing broader federal procurement data for NAICS code 541990 or specific recruitment service categories during these years would reveal trends in overall spending, average contract values, and the number of awards, providing context for this specific $12.6 million NIH contract.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Omnicom Group Inc. (UEI: 147857429)

Address: 2600 TOWER OAKS BLVD, ROCKVILLE, MD, 08

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

Financial Breakdown

Contract Ceiling: $17,155,078

Exercised Options: $12,856,092

Current Obligation: $12,583,296

Contract Characteristics

Multi-Year Contract: Yes

Timeline