HHS awards $17.2M for administrative support services to Mathematica Inc. over 7 years

Contract Overview

Contract Amount: $17,210,686 ($17.2M)

Contractor: Mathematica Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2007-09-30

End Date: 2015-01-31

Contract Duration: 2,680 days

Daily Burn Rate: $6.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: OTHER ADMINISTRATIVE SUPPORT SVCS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024, UNITED STATES OF AMERICA

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $17.2 million to MATHEMATICA INC. for work described as: OTHER ADMINISTRATIVE SUPPORT SVCS Key points: 1. Contract awarded to Mathematica Inc. for administrative support. 2. Full and open competition was utilized. 3. The contract duration was 2680 days. 4. The contract was awarded by the Department of Health and Human Services. 5. The NAICS code is 541990.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. The total award amount of $17.2M over 7 years suggests a moderate annual spend, but without per-unit data, a direct comparison is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which generally promotes competitive pricing. However, the Cost Plus Fixed Fee structure might limit the price discovery benefits compared to fixed-price contracts.

Taxpayer Impact: The use of full and open competition is positive for taxpayer value. The Cost Plus Fixed Fee structure requires careful oversight to ensure costs remain reasonable.

Public Impact

Supports administrative functions within HHS. Long-term contract indicates ongoing need for services. Potential impact on efficiency of administrative operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contract type can incentivize cost overruns.
  • Long contract duration may not reflect current market prices.
  • Lack of specific performance metrics makes value assessment difficult.

Positive Signals

  • Awarded through full and open competition.
  • Contract supports essential administrative functions.

Sector Analysis

This contract falls under administrative support services, a broad category. Benchmarks for this sector vary widely based on the specific services provided. The annual spend of approximately $2.46M is moderate for a federal contract of this duration.

Small Business Impact

The data indicates this contract was not set aside for small businesses and the awardee is likely a large business, given the contract value and duration. There is no indication of small business participation in this award.

Oversight & Accountability

The Cost Plus Fixed Fee contract type necessitates robust oversight from HHS to ensure that costs are reasonable and allocable to the contract. Regular audits and performance reviews are crucial for accountability.

Related Government Programs

  • All Other Professional, Scientific, and Technical Services
  • Department of Health and Human Services Contracting
  • Office of the Assistant Secretary for Administration Programs

Risk Flags

  • Cost Plus Fixed Fee contract type.
  • Long contract duration.
  • Broad service description.
  • Lack of performance metrics.
  • Potential for cost overruns.

Tags

all-other-professional-scientific-and-te, department-of-health-and-human-services, dc, dca, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $17.2 million to MATHEMATICA INC.. OTHER ADMINISTRATIVE SUPPORT SVCS

Who is the contractor on this award?

The obligated recipient is MATHEMATICA 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 $17.2 million.

What is the period of performance?

Start: 2007-09-30. End: 2015-01-31.

What specific administrative support services were provided under this contract?

The contract description 'OTHER ADMINISTRATIVE SUPPORT SVCS' and NAICS code 541990 are very broad. Without further detail, it's impossible to ascertain the exact nature of the services, such as whether they included financial management, human resources support, IT administration, or other specialized functions. This lack of specificity hinders a precise value assessment.

How did the fixed fee component of the contract align with market rates for similar administrative support services?

Determining the alignment of the fixed fee with market rates is challenging without detailed service descriptions and performance metrics. While full and open competition suggests an attempt at competitive pricing, the Cost Plus Fixed Fee structure means the government bears the cost risk. A post-award analysis of the fee against industry standards would be necessary for a definitive assessment.

What mechanisms were in place to ensure the effectiveness and efficiency of Mathematica Inc.'s administrative support services over the 7-year period?

The provided data does not detail the performance monitoring or quality assurance mechanisms employed by HHS. For a long-term contract like this, effective oversight would typically involve regular performance reviews, defined service level agreements, and clear metrics for success. The absence of this information raises questions about accountability for service delivery.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesOther Professional, Scientific, and Technical ServicesAll Other Professional, Scientific, and Technical Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mathematica Inc (UEI: 154125140)

Address: 600 ALEXANDER PARK, PRINCETON, NJ, 08540

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,210,686

Exercised Options: $17,210,686

Current Obligation: $17,210,686

Contract Characteristics

Multi-Year Contract: Yes

Timeline

Start Date: 2007-09-30

Current End Date: 2015-01-31

Potential End Date: 2015-01-31 00:00:00

Last Modified: 2016-04-18

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