HHS awarded $25.87M for financial and auditing services to support loan repayment programs

Contract Overview

Contract Amount: $25,868,936 ($25.9M)

Contractor: Discovery Logic, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2007-09-24

End Date: 2014-03-23

Contract Duration: 2,372 days

Daily Burn Rate: $10.9K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: OTHER (APPLIES TO AWARDS WHERE NONE OF THE ABOVE APPLY)

Sector: Other

Official Description: OEP/DLR - REQUEST FOR FINANCIAL & AUDITING SERVICES TO SUPPORT THE DIVISION OF LOAN REPAYMENT, LOAN REPAYMENT PROGRAMBASE YEAR PERIOD OF PERFORMANCE 9/24/07-9/23/08WITH 5 OPTION YEARS

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $25.9 million to DISCOVERY LOGIC, INC. for work described as: OEP/DLR - REQUEST FOR FINANCIAL & AUDITING SERVICES TO SUPPORT THE DIVISION OF LOAN REPAYMENT, LOAN REPAYMENT PROGRAMBASE YEAR PERIOD OF PERFORMANCE 9/24/07-9/23/08WITH 5 OPTION YEARS Key points: 1. The contract provided essential financial and auditing support for the Division of Loan Repayment. 2. Services were delivered over a period of nearly seven years, indicating a long-term need. 3. The contract was awarded competitively, suggesting potential for good value. 4. The primary contractor, Discovery Logic, Inc., was responsible for delivering these critical services. 5. The National Institutes of Health (NIH) was the specific agency within HHS overseeing this award. 6. The North American Industry Classification System (NAICS) code 541519 suggests a focus on IT-related services. 7. The contract's duration and value point to a significant operational requirement for the agency.

Value Assessment

Rating: good

The total award of $25.87 million over approximately seven years suggests a substantial investment in financial and auditing support. Benchmarking this against similar contracts for specialized financial services within federal health agencies would provide a clearer picture of value for money. Given the competitive nature of the award, it is likely that pricing was scrutinized, but without specific performance metrics or detailed cost breakdowns, a definitive value assessment is challenging. The contract's longevity implies a consistent need and potentially satisfactory performance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that it was competed under full and open competition. This means that all responsible sources were permitted to submit offers. The competitive nature of the award is a positive indicator for price discovery and potentially achieving a fair market price for the services rendered. The fact that it was a delivery order suggests it was likely placed against an existing indefinite-delivery indefinite-quantity (IDIQ) contract or a similar vehicle.

Taxpayer Impact: A competitive award generally benefits taxpayers by fostering price reductions and encouraging efficient service delivery from multiple potential providers.

Public Impact

Beneficiaries include researchers and healthcare professionals participating in loan repayment programs. Services delivered ensured the integrity and efficiency of financial operations supporting these programs. The geographic impact is national, supporting federal health initiatives across the United States. Workforce implications include support for the administrative and financial staff managing these programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the long performance period.
Dependence on a single contractor for critical financial functions.
Risk of vendor lock-in if transition planning is inadequate.

Positive Signals

Competitive award process suggests potential for cost savings.
Long-term contract indicates a stable and ongoing need for services.
Award to a single entity simplifies management and oversight.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically related to IT and financial/auditing support. The NAICS code 541519, 'Other Computer Related Services,' suggests a significant IT component to the financial and auditing functions. Federal spending in this area is substantial, driven by the need for robust financial management, compliance, and program support across various agencies. Comparable spending benchmarks would involve looking at other large, multi-year contracts for similar financial and IT support services within HHS or other large federal health agencies.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly provided in the data. As a competitive delivery order, the primary focus was likely on obtaining the best value from all responsible sources. Without specific details on subcontracting requirements or goals, it's difficult to assess the direct impact on the small business ecosystem. However, larger prime contractors often utilize small businesses for specialized support, which could have indirectly benefited them.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the National Institutes of Health (NIH). The contract's duration and value suggest regular performance reviews and financial audits would be in place. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse were identified.

Related Government Programs

HHS Loan Repayment Programs
NIH Financial Management Support
Federal Financial Auditing Services
IT Support for Health Programs

Risk Flags

Long contract duration may increase risk of vendor lock-in.
Potential for scope creep over the multi-year performance period.
Dependence on a single contractor for critical financial functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $25.9 million to DISCOVERY LOGIC, INC.. OEP/DLR - REQUEST FOR FINANCIAL & AUDITING SERVICES TO SUPPORT THE DIVISION OF LOAN REPAYMENT, LOAN REPAYMENT PROGRAMBASE YEAR PERIOD OF PERFORMANCE 9/24/07-9/23/08WITH 5 OPTION YEARS

Who is the contractor on this award?

The obligated recipient is DISCOVERY LOGIC, 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 $25.9 million.

What is the period of performance?

Start: 2007-09-24. End: 2014-03-23.

What was the specific nature of the financial and auditing services provided under this contract?

The contract supported the Division of Loan Repayment, suggesting the services were focused on managing, tracking, and auditing the financial aspects of various loan repayment programs administered by the NIH. This likely included tasks such as processing loan disbursements, verifying eligibility for repayment, managing repayment schedules, ensuring compliance with program terms, and conducting internal audits to maintain financial integrity. The 'Other Computer Related Services' NAICS code indicates that IT systems and solutions were likely integral to the delivery of these financial and auditing functions, possibly involving software management, data analysis, or system support for the loan repayment processes.

How does the total contract value of $25.87 million compare to similar contracts for financial and auditing support within the federal government?

The total value of $25.87 million over nearly seven years (approximately $3.7 million per year) for specialized financial and auditing support within a major agency like HHS is substantial but not necessarily out of line for complex federal programs. To provide a precise comparison, one would need to analyze contracts with similar scopes of work (financial management, auditing, IT support for program administration) awarded to agencies of comparable size and complexity (e.g., other large NIH institutes, CDC, CMS). Factors like the specific services required, the level of IT integration, and the criticality of the program being supported heavily influence contract values. Without access to a detailed benchmark database of comparable contracts, it's difficult to definitively state if this represents excellent, fair, or questionable value.

What were the key performance indicators (KPIs) or metrics used to evaluate the contractor's performance?

The provided data does not specify the key performance indicators (KPIs) or metrics used to evaluate Discovery Logic, Inc.'s performance. Typically, for contracts involving financial and auditing services, KPIs might include accuracy rates in financial reporting, timeliness of audit completion, compliance with federal regulations and agency policies, system uptime and performance for any IT-related components, and responsiveness to inquiries or issues. Performance evaluations would also consider adherence to schedules, budget management, and overall client satisfaction as reported by the NIH program office. These metrics are crucial for ensuring the contractor meets the government's needs effectively and efficiently.

What is the track record of Discovery Logic, Inc. in performing similar federal contracts?

Discovery Logic, Inc. was awarded this significant contract, indicating they possessed the capabilities and experience required by the NIH. To fully assess their track record, a review of their past performance on other federal contracts, particularly those involving financial management, auditing, and IT services for health-related programs, would be necessary. This would involve examining contract histories for on-time delivery, quality of work, adherence to budget, and any past performance issues or commendations. Their ability to secure and successfully execute a multi-year, multi-million dollar contract suggests a generally positive track record, but a deeper dive into their specific contract history would provide more definitive insights.

Were there any significant challenges or risks associated with this contract during its performance period?

While the provided data doesn't detail specific challenges, contracts of this duration and scope often face risks such as evolving regulatory requirements, changes in program priorities, potential for scope creep, and the need for continuous adaptation of IT systems. For financial and auditing services, maintaining data security and ensuring compliance with stringent federal financial regulations are perpetual challenges. Contractor performance issues, personnel turnover, or unforeseen technical difficulties could also pose risks. The competitive nature of the award and the long performance period suggest that the agency anticipated these potential risks and sought a capable partner to navigate them.

How has federal spending on financial and auditing services for loan repayment programs evolved over time?

Federal spending on financial and auditing services for loan repayment programs, like those managed by NIH, has likely seen a steady increase over time, driven by the growth of these programs and increasing demands for accountability and transparency in government spending. As federal initiatives to support healthcare professionals and researchers through loan repayment have expanded, so has the need for robust administrative, financial, and auditing support. Technological advancements also play a role, requiring updated IT systems and services to manage these complex financial operations efficiently. Analyzing historical spending data for similar contracts within HHS and other agencies would reveal trends in budget allocations and the types of services procured.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: OTHER (APPLIES TO AWARDS WHERE NONE OF THE ABOVE APPLY) (3)

Evaluated Preference: NONE

Contractor Details

Parent Company: Reuters News & Media Inc (UEI: 251100749)

Address: 1375 PICCARD DR STE 325, ROCKVILLE, MD, 20850

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

Financial Breakdown

Contract Ceiling: $27,463,591

Exercised Options: $25,868,936

Current Obligation: $25,868,936

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F0935N

IDV Type: FSS

Timeline