HHS awarded $10.2M for administrative management consulting, with a significant portion spent on fixed-fee services

Contract Overview

Contract Amount: $10,249,693 ($10.2M)

Contractor: Kevric Company, Inc., the

Awarding Agency: Department of Health and Human Services

Start Date: 2005-03-01

End Date: 2011-08-31

Contract Duration: 2,374 days

Daily Burn Rate: $4.3K/day

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: OTHER PROFESSIONAL SERVICES

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910, UNITED STATES OF AMERICA

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $10.2 million to KEVRIC COMPANY, INC., THE for work described as: OTHER PROFESSIONAL SERVICES Key points: 1. The contract focused on administrative management and general management consulting services. 2. A substantial portion of the contract value was allocated to fixed-fee arrangements. 3. The contract spanned over six years, indicating a long-term need for these services. 4. The primary agency was the Department of Health and Human Services (HHS). 5. The services were delivered in Maryland. 6. The contractor, KEVRIC COMPANY, INC., THE, has a track record with this type of service.

Value Assessment

Rating: fair

The contract's total value of $10.2 million over six years suggests a moderate annual spend for consulting services. Without specific benchmarks for administrative management consulting within HHS or comparable agencies, a precise value-for-money assessment is challenging. The 'COST PLUS FIXED FEE' (CPFF) contract type can sometimes lead to higher costs if not carefully managed, as the contractor is reimbursed for all allowable costs plus a fixed fee. Further analysis would require comparing the specific deliverables and outcomes against industry standards and the fees paid.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The competition level for this contract is not explicitly detailed in the provided data. The 'no' field indicates one award, but this does not clarify the number of bids received or the method of solicitation (e.g., full and open competition, sole source). Understanding the competitive landscape is crucial for assessing whether the government secured the best possible pricing and service quality. If competition was limited, it could potentially lead to higher costs for taxpayers.

Taxpayer Impact: The level of competition directly impacts taxpayer value. Robust competition typically drives down prices and encourages innovation, leading to more efficient use of public funds. Limited competition may result in higher costs and less favorable terms.

Public Impact

The primary beneficiaries of this contract are likely the various administrations within the Department of Health and Human Services, which received administrative and management consulting support. The services delivered aimed to improve the efficiency and effectiveness of HHS operations. The geographic impact was concentrated in Maryland, where the services were performed. The contract supported the administrative functions of a major federal health agency, indirectly impacting the broader healthcare sector by ensuring smoother operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the Cost Plus Fixed Fee (CPFF) contract type if not rigorously monitored.
Lack of detailed competition data makes it difficult to ascertain if the government achieved optimal pricing.
The long duration of the contract (over 6 years) could indicate a lack of flexibility or a need for more agile contracting approaches.

Positive Signals

The contract was awarded to a single entity, suggesting a clear selection process based on specific qualifications.
The services provided fall under a standard professional services category (NAICS 541611), indicating a well-defined scope.
The contract was active for a significant period, implying a sustained need and potentially successful delivery of services.

Sector Analysis

This contract falls within the broad 'Professional, Scientific, and Technical Services' sector, specifically 'Administrative Management and General Management Consulting Services' (NAICS 541611). This sector is a significant component of federal spending, encompassing a wide range of advisory and support services. The total federal spending in this category can reach billions annually, supporting various agencies in optimizing their operations, strategic planning, and management practices. This specific contract represents a small fraction of that overall market.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses ('sb': false, 'ss': false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The prime contractor, KEVRIC COMPANY, INC., THE, is likely a larger entity, and the contract did not mandate specific small business participation goals.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Health and Human Services' Office of the Assistant Secretary for Administration. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract databases like FPDS, where basic award information is made public. Specific Inspector General (IG) jurisdiction would depend on the nature of any potential fraud, waste, or abuse identified within the contract's execution.

Related Government Programs

Management and Consulting Services
Administrative Support Services
Professional Services Contracts
Federal Agency Operational Support
Health and Human Services Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to prevent cost overruns.
Limited competition data makes it difficult to assess optimal pricing and value.
Lack of detailed performance metrics in the provided data hinders a full assessment of contractor effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $10.2 million to KEVRIC COMPANY, INC., THE. OTHER PROFESSIONAL SERVICES

Who is the contractor on this award?

The obligated recipient is KEVRIC COMPANY, INC., THE.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $10.2 million.

What is the period of performance?

Start: 2005-03-01. End: 2011-08-31.

What was the specific nature of the administrative management and general management consulting services provided under this contract?

The contract, awarded under NAICS code 541611 (Administrative Management and General Management Consulting Services), indicates that KEVRIC COMPANY, INC., THE provided expertise to the Department of Health and Human Services (HHS) in areas related to improving organizational efficiency, strategic planning, and operational management. While the exact tasks are not detailed, such services typically involve analyzing existing processes, identifying areas for improvement, developing recommendations, and assisting in the implementation of new management strategies. This could range from organizational restructuring and policy development to performance measurement and resource optimization, all aimed at enhancing the effectiveness of HHS's administrative functions.

How does the $10.2 million contract value compare to similar consulting contracts awarded by HHS or other large federal agencies?

The $10.2 million total contract value awarded over approximately six years (March 2005 to August 2011) translates to an average annual spend of roughly $1.7 million. This figure is moderate within the context of federal consulting expenditures. Large agencies like HHS often award numerous consulting contracts, with values ranging from hundreds of thousands to tens of millions of dollars annually, depending on the scope and duration. Without specific details on the deliverables and the complexity of the consulting tasks, a direct comparison is difficult. However, this contract size suggests a significant, ongoing need for specialized management support rather than a short-term, high-intensity project.

What are the potential risks associated with the 'Cost Plus Fixed Fee' (CPFF) contract type used in this award?

The Cost Plus Fixed Fee (CPFF) contract type carries inherent risks for the government. While it provides the contractor with assurance of covering their costs and receiving a predetermined profit (the fixed fee), it can incentivize less cost-conscious behavior from the contractor. The government bears the risk of cost overruns, as all allowable costs are reimbursed. Effective oversight, stringent cost controls, and clear performance metrics are crucial to mitigate these risks. If not managed diligently, CPFF contracts can result in higher overall expenditures compared to fixed-price contracts, potentially diminishing the value for taxpayers.

What was the contractor's performance history or track record prior to and during this contract?

The provided data does not include specific details on KEVRIC COMPANY, INC., THE's performance history or track record related to this particular contract. However, the fact that the contract was awarded and executed over a six-year period suggests a baseline level of satisfactory performance, as agencies typically have mechanisms to terminate contracts for poor performance. A comprehensive assessment would require reviewing past performance evaluations, any documented issues, and the contractor's overall history with federal awards. Without this granular data, it's presumed the contractor met the contractual obligations to a degree that allowed the contract to run its full course.

How did the spending on administrative management consulting services by HHS evolve before and after this contract period (2005-2011)?

The provided data focuses solely on this specific $10.2 million contract and does not offer insights into HHS's broader spending trends on administrative management consulting services before or after the 2005-2011 period. To understand the evolution of such spending, one would need to analyze historical federal procurement data (e.g., from FPDS or USASpending.gov) for HHS across multiple fiscal years. Factors influencing spending could include agency reorganizations, shifts in policy priorities, budget allocations, and the increasing complexity of healthcare regulations and operations, all of which might necessitate greater reliance on external consulting expertise.

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) › MANAGEMENT SUPPORT SERVICES

Contractor Details

Parent Company: Information Management Consultants, Inc. (UEI: 017439894)

Address: 8484 GEORGIA AVE STE 550, SILVER SPRING, MD, 20910

Business Categories: Category Business, Not Designated a Small Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $10,249,693

Exercised Options: $10,249,693

Current Obligation: $10,249,693

Parent Contract

Parent Award PIID: GS10F0071J

IDV Type: FSS

Timeline