HHS awarded Westat, Inc. a $10.6M contract for professional services, spanning over 7 years
Contract Overview
Contract Amount: $10,592,840 ($10.6M)
Contractor: Westat, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2006-09-27
End Date: 2013-12-31
Contract Duration: 2,652 days
Daily Burn Rate: $4.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: OTHER PROFESSIONAL SERVICES
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $10.6 million to WESTAT, INC. for work described as: OTHER PROFESSIONAL SERVICES Key points: 1. The contract's duration and cost suggest a significant, long-term need for specialized professional services. 2. The use of a Cost Plus Fixed Fee (CPFF) pricing structure warrants scrutiny for potential cost overruns. 3. Competition was full and open, indicating a broad market search and potentially competitive pricing. 4. The contract falls under 'All Other Professional, Scientific, and Technical Services,' a broad category. 5. Performance was primarily in Maryland, suggesting a localized impact for this federal spending. 6. The contract was awarded as a definitive contract, implying a clear scope of work.
Value Assessment
Rating: fair
The contract's total value of $10.6 million over more than seven years averages approximately $1.5 million annually. Without specific deliverables or performance metrics, it's challenging to benchmark value against similar contracts. The CPFF structure, while allowing flexibility, can sometimes lead to higher costs if not managed tightly. However, the full and open competition suggests that pricing was likely vetted against market rates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. This approach typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The number of bidders is not specified, but the open competition suggests a robust process aimed at achieving fair market value.
Taxpayer Impact: Taxpayers benefit from full and open competition as it generally leads to more competitive pricing and a wider array of innovative solutions being considered, potentially reducing overall program costs.
Public Impact
The primary beneficiary is the Department of Health and Human Services (HHS), which received professional services to support its administrative functions. The services provided are broadly categorized as 'All Other Professional, Scientific, and Technical Services,' indicating a wide range of potential support activities. The contract's performance was concentrated in Maryland, suggesting a direct impact on the local economy and workforce in that region. The long duration of the contract implies sustained employment opportunities for professionals working on behalf of Westat, Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The Cost Plus Fixed Fee (CPFF) contract type can incentivize contractors to increase costs to maximize their fee, requiring diligent oversight.
- The broad nature of 'All Other Professional, Scientific, and Technical Services' makes it difficult to assess the specific value and necessity of each service rendered without further detail.
- The contract's extended duration (over 7 years) could lead to scope creep or a lack of adaptability to evolving needs if not actively managed.
Positive Signals
- Awarded under full and open competition, suggesting a competitive bidding process that likely secured fair market pricing.
- The contract was awarded to a single entity (Westat, Inc.), indicating a potentially strong and specialized capability for the required services.
- The definitive contract award type implies a well-defined scope of work and clear expectations between the government and the contractor.
Sector Analysis
This contract falls within the broad 'Professional, Scientific, and Technical Services' sector, which is a significant component of federal spending. This sector encompasses a wide array of services, including research, consulting, and specialized technical support. Federal spending in this area often supports agency operations, policy development, and program implementation. Comparable spending benchmarks would depend heavily on the specific nature of the 'other' professional services provided.
Small Business Impact
The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities offered by the prime contractor, Westat, Inc. The extent of such opportunities is not detailed in the provided data.
Oversight & Accountability
Oversight for this contract would primarily reside within the Office of the Assistant Secretary for Administration at HHS. As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring are crucial to ensure costs remain reasonable and deliverables are met. Transparency would be enhanced through regular reporting requirements and potentially through contract performance reviews. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- HHS Administrative Support Contracts
- Professional Services Contracts
- Cost-Plus-Fixed-Fee Contracts
- Definitive Contracts
- Technical Services Contracts
Risk Flags
- Cost Plus Fixed Fee pricing structure requires diligent oversight to mitigate risk of cost overruns.
- Broad 'All Other Professional Services' category lacks specificity, potentially obscuring true value and necessity.
- Extended contract duration necessitates active management to prevent scope creep and ensure adaptability.
Tags
other-professional-services, westat-inc, department-of-health-and-human-services, office-of-the-assistant-secretary-for-administration, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, maryland, large-contract, long-term-contract, technical-services, administrative-support
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $10.6 million to WESTAT, INC.. OTHER PROFESSIONAL SERVICES
Who is the contractor on this award?
The obligated recipient is WESTAT, INC..
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 $10.6 million.
What is the period of performance?
Start: 2006-09-27. End: 2013-12-31.
What specific types of professional services were rendered under this contract?
The contract falls under the North American Industry Classification System (NAICS) code 541990, 'All Other Professional, Scientific, and Technical Services.' This is a very broad category that can encompass a wide range of activities, including but not limited to research, data analysis, program evaluation, consulting, and specialized technical support. Without further details on the specific task orders or statements of work issued under this definitive contract, it is impossible to ascertain the precise nature of the services provided. The contract's duration and value suggest these services were ongoing and critical to HHS's administrative functions.
How does the average annual cost of this contract compare to similar professional services contracts awarded by HHS?
This contract's total value of $10.6 million over approximately 7.3 years (from Sept 2006 to Dec 2013) equates to an average annual expenditure of roughly $1.45 million. Benchmarking this against similar contracts requires access to a detailed database of HHS professional services awards, categorized by specific service type and contract vehicle. Given the broad NAICS code, direct comparisons are difficult. However, for long-term, comprehensive professional support services, this annual average appears within a reasonable range for a federal agency of HHS's size and scope, assuming the services were substantial and critical.
What are the key risks associated with the Cost Plus Fixed Fee (CPFF) contract type used here?
The primary risk with CPFF contracts is that the contractor may have less incentive to control costs compared to fixed-price contracts, as their fee is a percentage of the allowable costs. While a fixed fee provides some ceiling, the 'cost-plus' element means that if costs increase, the fee (and thus total contract value) also increases. This necessitates robust government oversight to scrutinize all claimed costs and ensure they are reasonable, allocable, and necessary. Without diligent management, CPFF contracts can lead to cost overruns and potentially less value for taxpayer money compared to well-defined fixed-price agreements.
What was the historical spending trend for this specific contract or similar services at HHS prior to this award?
The provided data only details this single contract award from 2006 to 2013. It does not offer information on historical spending trends for these specific services at HHS before this contract, nor does it provide data on subsequent contracts for similar services. To analyze historical trends, one would need to examine HHS's spending records for NAICS code 541990 or related service categories over a longer period, potentially identifying patterns of recurring needs, changes in contract values, or shifts in contracting strategies.
How effective was Westat, Inc. in delivering services under this contract, and were there any performance issues?
The provided data does not include specific performance metrics, evaluations, or any indication of performance issues related to Westat, Inc.'s execution of this contract. Contract performance information is typically found in contract databases that track award details, modifications, and sometimes contractor performance assessments (e.g., CPARS reports). Without access to such performance data, it is impossible to assess the effectiveness of Westat, Inc. in fulfilling its obligations under this $10.6 million agreement.
What is the significance of this contract being a 'Definitive Contract' versus other contract types like a BPA or IDIQ?
A 'Definitive Contract' is a standard, bilateral agreement for a fixed quantity of supplies or services for a specified price and delivery date. Unlike Broad Agency Announcements (BAAs) or Indefinite Delivery/Indefinite Quantity (IDIQ) contracts, which are often used for research and development or when the exact quantity or timing of needs is uncertain, a definitive contract implies a more concrete and predictable scope of work. This suggests that HHS had a clear understanding of its requirements when awarding this contract to Westat, Inc., and it was intended to fulfill a specific, defined need over its duration.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1650 RESEARCH BLVD, ROCKVILLE, MD, 20850
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $10,592,840
Exercised Options: $10,592,840
Current Obligation: $10,592,840
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2006-09-27
Current End Date: 2013-12-31
Potential End Date: 2014-01-31 00:00:00
Last Modified: 2021-06-15
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