HHS contract for administrative management consulting services totals $5.95M, with $4.38M added to original $1.34M award

Contract Overview

Contract Amount: $13,431,193 ($13.4M)

Contractor: Center for Children and Family Futures Incorporated the

Awarding Agency: Department of Health and Human Services

Start Date: 2007-09-28

End Date: 2013-09-27

Contract Duration: 2,191 days

Daily Burn Rate: $6.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: REQUISITION 07Y013958 ADDED $438396.00 TO REQUISITION 07Y013447 FOR A GRAND TOTAL OF $5953396.00

Place of Performance

Location: IRVINE, ORANGE County, CALIFORNIA, 92620, UNITED STATES OF AMERICA

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $13.4 million to CENTER FOR CHILDREN AND FAMILY FUTURES INCORPORATED THE for work described as: REQUISITION 07Y013958 ADDED $438396.00 TO REQUISITION 07Y013447 FOR A GRAND TOTAL OF $5953396.00 Key points: 1. The contract's total value increased significantly from its initial award, indicating potential scope expansion or evolving needs. 2. Competition was conducted under 'full and open competition after exclusion of sources,' suggesting a specific justification for limiting initial bidders. 3. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost overruns if not carefully managed. 4. The duration of the contract is substantial at 2191 days (approximately 6 years), allowing for long-term project engagement. 5. The services provided fall under Administrative Management and General Management Consulting Services, a broad category. 6. The contract was awarded to CENTER FOR CHILDREN AND FAMILY FUTURES INCORPORATED THE, suggesting a specific expertise or relationship.

Value Assessment

Rating: fair

The total award of $5.95 million over approximately six years for administrative management consulting services appears to be within a reasonable range for long-term engagements of this nature. However, without specific details on the deliverables and the complexity of the services rendered, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type introduces a degree of risk, as it allows for reimbursement of costs plus a fixed fee, potentially leading to higher overall expenditures if costs are not meticulously controlled by the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This designation implies that while the competition was intended to be open, certain sources were excluded, possibly due to specific requirements or prior relationships. The number of bidders is not explicitly stated, but the 'exclusion of sources' suggests a potentially narrower competitive field than a truly 'full and open' competition without exclusions.

Taxpayer Impact: The exclusion of sources may have limited the potential for the most competitive pricing, potentially resulting in higher costs for taxpayers compared to a scenario with broader participation.

Public Impact

The primary beneficiaries are likely the Department of Health and Human Services (HHS) and its various programs, which receive administrative and management consulting support. The services delivered aim to improve the efficiency and effectiveness of administrative operations within HHS. The geographic impact is primarily national, given the scope of HHS operations, though specific project locations may vary. Workforce implications could include the engagement of specialized consultants and potential internal staff development through knowledge transfer.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type carries inherent risks of cost escalation if not rigorously monitored.
The 'exclusion of sources' in the competition process raises questions about the extent of market engagement and potential cost savings missed.
The significant increase in contract value from the initial award warrants scrutiny to ensure the added funds were justified by scope changes or unforeseen requirements.

Positive Signals

The contract's long duration (approx. 6 years) suggests a stable, ongoing need for the services, potentially indicating successful performance.
The award to a specific contractor (CENTER FOR CHILDREN AND FAMILY FUTURES INCORPORATED THE) implies they possess the specialized expertise required for these administrative functions.
The contract falls under a standard NAICS code (541611), indicating it aligns with established consulting service categories.

Sector Analysis

This contract operates within the professional, scientific, and technical services sector, specifically focusing on management consulting. This is a large and competitive market, with government agencies frequently procuring such services to enhance operational efficiency, strategic planning, and program management. Benchmarks for similar administrative consulting contracts can vary widely based on scope, duration, and the specific expertise required, but multi-million dollar, multi-year contracts are common for federal agencies.

Small Business Impact

There is no indication that this contract included small business set-asides. The nature of administrative management consulting services, especially for large federal agencies, often involves complex requirements that may favor larger, more established firms. Subcontracting opportunities for small businesses are possible but not explicitly detailed in the provided data.

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. Accountability measures would be tied to the performance metrics and deliverables outlined in the contract. Transparency is generally facilitated through contract databases like FPDS, though detailed performance reports are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

HHS Administrative Support Contracts
Management and Consulting Services
Federal IT and Management Consulting
Government Program Management Support

Risk Flags

Potential for cost overruns due to CPFF contract type.
Limited competition due to 'exclusion of sources'.
Significant contract value increase requires justification.
Lack of detailed performance metrics in provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $13.4 million to CENTER FOR CHILDREN AND FAMILY FUTURES INCORPORATED THE. REQUISITION 07Y013958 ADDED $438396.00 TO REQUISITION 07Y013447 FOR A GRAND TOTAL OF $5953396.00

Who is the contractor on this award?

The obligated recipient is CENTER FOR CHILDREN AND FAMILY FUTURES INCORPORATED 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 $13.4 million.

What is the period of performance?

Start: 2007-09-28. End: 2013-09-27.

What specific administrative management and general management consulting services were provided under this contract?

The provided data indicates the contract falls under NAICS code 541611 (Administrative Management and General Management Consulting Services). This broad category typically encompasses services such as strategic planning, organizational design, process improvement, financial management consulting, human capital consulting, and general management advice. Without access to the contract's statement of work (SOW), the precise nature of the services rendered by CENTER FOR CHILDREN AND FAMILY FUTURES INCORPORATED THE remains unspecified. However, given the agency (HHS) and the contract's duration and value, it likely involved significant support for the agency's administrative functions, potentially including policy development, program evaluation support, or operational efficiency initiatives.

How did the 'exclusion of sources' impact the competitive pricing of this contract?

The 'full and open competition after exclusion of sources' clause suggests that while the competition was intended to be open, certain potential bidders were deliberately excluded. The reasons for exclusion are not provided but could stem from specific technical requirements, security clearances, or prior performance issues. This exclusion inherently limits the pool of potential offerors, which can reduce competitive pressure. When fewer companies compete, the remaining bidders may face less incentive to offer the lowest possible price, potentially leading to higher costs for the government and taxpayers compared to a scenario where all qualified sources were allowed to bid. The extent of this impact is difficult to quantify without knowing who was excluded and why.

What are the risks associated with a Cost Plus Fixed Fee (CPFF) contract type for this service?

Cost Plus Fixed Fee (CPFF) contracts reimburse the contractor for allowable costs incurred plus a predetermined fixed fee representing profit. The primary risk for the government is that the contractor has less incentive to control costs compared to fixed-price contracts, as their profit (the fee) is fixed regardless of the final cost. If costs escalate, the government still pays the incurred costs plus the agreed-upon fee. This can lead to the contract exceeding its estimated cost. Effective oversight, detailed cost tracking, and robust negotiation are crucial to mitigate these risks and ensure the government receives good value. For administrative consulting, where scope can sometimes be fluid, CPFF can be appropriate but requires diligent management.

What was the justification for the significant increase in contract value from $1.34M to $5.95M?

The provided data shows an addition of $4,383,960.00 to an initial requisition of $1,343,119.30, resulting in a grand total of $5,953,396.00. This substantial increase suggests a significant expansion of the contract's scope, duration, or the services required. Justifications for such increases typically involve unforeseen requirements, changes in program objectives, extended need for services, or the incorporation of additional tasks not originally envisioned. Without access to contract modification documents or official justifications, the precise reasons remain unknown. However, such increases warrant careful review to ensure they align with the agency's mission and represent a prudent use of funds.

How does the contractor's track record with HHS influence the assessment of this contract?

The provided data identifies the contractor as 'CENTER FOR CHILDREN AND FAMILY FUTURES INCORPORATED THE'. While this specific contract award is detailed, information regarding the contractor's broader track record with HHS or other federal agencies, including past performance, previous contract values, and any history of issues or commendations, is not included. A comprehensive assessment of this contract's value and risk would ideally incorporate a review of the contractor's historical performance, on-time delivery, quality of work, and adherence to budget on prior engagements. Without this context, the assessment relies solely on the characteristics of this particular award.

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) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4940 IRVINE BLVD STE 202, IRVINE, CA, 92620

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

Financial Breakdown

Contract Ceiling: $13,431,193

Exercised Options: $13,431,193

Current Obligation: $13,431,193

Contract Characteristics

Multi-Year Contract: Yes

Timeline