HHS awarded $34.4M for professional services, with Synectics for Management Decisions Inc. delivering IT support

Contract Overview

Contract Amount: $34,419,976 ($34.4M)

Contractor: Synectics for Management Decisions, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2007-12-19

End Date: 2013-06-19

Contract Duration: 2,009 days

Daily Burn Rate: $17.1K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: OTHER PROFESSIONAL SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $34.4 million to SYNECTICS FOR MANAGEMENT DECISIONS, INC. for work described as: OTHER PROFESSIONAL SERVICES Key points: 1. Value for money appears fair given the 6-year duration and time-and-materials pricing, though detailed cost breakdowns are not public. 2. Competition dynamics indicate a competitive delivery order, suggesting potential for price discovery. 3. Risk indicators include the use of time-and-materials pricing, which can lead to cost overruns if not managed closely. 4. Performance context is limited to IT services, with specific deliverables not detailed in the provided data. 5. Sector positioning is within professional services, specifically IT support for administrative functions within HHS. 6. The contract's duration of six years suggests a long-term need for these services.

Value Assessment

Rating: fair

The contract's total value of $34.4 million over six years averages to approximately $5.7 million annually. Without specific deliverables or performance metrics, a direct comparison to similar contracts is challenging. However, the time-and-materials pricing structure, while flexible, carries inherent risks of cost escalation if not rigorously monitored. The benchmark for 'Other Computer Related Services' (NAICS 541519) can vary widely, but this contract's value falls within a moderate range for a federal agency of this size.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This contract was awarded as a competitive delivery order, indicating that multiple vendors likely competed for this specific task order under a broader contract vehicle. The data specifies 'COMPETITIVE DELIVERY ORDER,' suggesting a level of competition was present. The exact number of bidders is not provided, but the 'competitive' designation implies more than one offer was considered, which generally aids in achieving a more favorable price.

Taxpayer Impact: A competitive award process, even for a delivery order, is beneficial for taxpayers as it encourages vendors to offer competitive pricing and potentially more efficient service delivery to win the contract.

Public Impact

The primary beneficiaries are the administrative functions within the Office of the Assistant Secretary for Administration at HHS, receiving IT support. Services delivered include IT support, though specific functions like system maintenance, development, or help desk support are not detailed. The geographic impact is primarily within the federal government's administrative operations, likely concentrated where HHS operates. Workforce implications may involve the contractor's personnel providing specialized IT skills to supplement or support federal IT staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time-and-materials pricing can lead to unpredictable costs if not managed with strict oversight.
Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the services.
The long duration of the contract (6 years) could indicate a lack of flexibility to adapt to changing technological needs or market prices.

Positive Signals

Awarded through a competitive process, suggesting potential for cost savings and quality service.
The contract supports essential administrative functions within a major federal agency (HHS).
The contractor, Synectics for Management Decisions, Inc., has a track record of federal contracting, implying some level of established capability.

Sector Analysis

This contract falls under the broad category of 'Other Professional Services,' specifically IT support. The federal IT services market is vast and highly competitive, with agencies like HHS being significant spenders. Comparable spending benchmarks for IT support services can vary greatly depending on the scope, complexity, and duration. This contract's value of $34.4 million over six years represents a moderate investment in IT support for administrative functions within a large federal department.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor is Synectics for Management Decisions, Inc., which is likely a mid-to-large sized business given the contract value.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Contracting Officer's Representative (COR) at HHS, responsible for monitoring performance and ensuring compliance with contract terms. Transparency is limited by the public availability of detailed performance reports or cost breakdowns. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

HHS IT Modernization Initiatives
Federal Civilian Agency IT Services
Professional Services Contracts
Administrative Support Services

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Lack of specific performance metrics makes value assessment difficult.
Long contract duration may not align with rapidly changing IT needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $34.4 million to SYNECTICS FOR MANAGEMENT DECISIONS, INC.. OTHER PROFESSIONAL SERVICES

Who is the contractor on this award?

The obligated recipient is SYNECTICS FOR MANAGEMENT DECISIONS, 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 $34.4 million.

What is the period of performance?

Start: 2007-12-19. End: 2013-06-19.

What is the track record of Synectics for Management Decisions, Inc. with federal contracts, particularly within HHS?

Synectics for Management Decisions, Inc. has a history of securing federal contracts across various agencies, including the Department of Health and Human Services (HHS). Their contract portfolio often includes professional services, IT support, and management consulting. While specific performance metrics for past contracts are not publicly detailed in this dataset, their continued award of contracts suggests a satisfactory performance history and capability to meet federal requirements. Further analysis of their contract history, including past performance evaluations and any reported issues, would provide a more comprehensive understanding of their reliability and expertise.

How does the $34.4 million contract value compare to similar IT support contracts awarded by HHS or other large federal agencies?

The $34.4 million contract value for six years of IT support services, averaging approximately $5.7 million annually, positions this contract as a moderate-sized award within the federal IT landscape. Large agencies like HHS frequently award IT contracts ranging from a few million to hundreds of millions of dollars. For instance, contracts for enterprise-wide IT infrastructure, cybersecurity, or large-scale system development can far exceed this amount. However, for specific administrative IT support functions, this value is substantial and suggests a significant scope of work or a long-term, stable requirement. Benchmarking against contracts with similar service descriptions (e.g., help desk, network support, application maintenance for administrative systems) would provide a more precise comparison.

What are the primary risks associated with the time-and-materials (T&M) pricing structure used in this contract?

The primary risk associated with a Time and Materials (T&M) pricing structure is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual labor hours and materials used, plus a markup. If the scope of work is not clearly defined, or if project management and oversight are insufficient, the contractor may incur more hours or use more expensive materials than anticipated, leading to a higher final cost than initially projected. This necessitates robust monitoring by the government to ensure efficiency and prevent unnecessary labor or inflated material costs. The government's ability to effectively manage and control the contractor's effort is crucial for mitigating this risk.

What is the expected effectiveness of the IT services provided under this contract for HHS administrative functions?

The expected effectiveness of the IT services hinges on the specific tasks performed, which are not detailed in the provided data. Assuming the contract covers essential IT support functions such as help desk services, system maintenance, network support, or basic application assistance, its effectiveness would be measured by the reliability and responsiveness of these services. If these services are delivered efficiently and competently, they would contribute to the smooth operation of HHS's administrative processes, enabling staff to perform their duties without significant IT-related disruptions. However, without defined performance metrics or service level agreements (SLAs), assessing the actual effectiveness is speculative.

How has HHS's spending on 'Other Professional Services' or similar IT support categories evolved over the years?

Historical spending data for HHS on 'Other Professional Services' or similar IT support categories would reveal trends in agency investment in these areas. Generally, federal IT spending has been on an upward trajectory, driven by the need for modernization, cybersecurity, and digital transformation. Agencies like HHS often increase their reliance on external contractors for specialized IT skills and services due to budget constraints, the rapid pace of technological change, and the need for flexibility. Analyzing HHS's budget allocations and contract awards over several fiscal years would illustrate whether spending in this specific category has remained consistent, increased, or decreased, and identify any shifts in priorities or contracting strategies.

What are the implications of this contract being a 'Delivery Order' versus a 'Task Order' or a standalone contract?

A 'Delivery Order' is typically issued under a basic ordering agreement (BOA) or a similar foundational agreement, often for supplies or services that are not precisely defined at the outset but are expected to be needed. In this case, it's a 'Competitive Delivery Order,' meaning it was competed among multiple potential awardees under a pre-existing agreement. This differs from a 'Task Order,' which is usually issued under a multiple-award indefinite-delivery, indefinite-quantity (IDIQ) contract. The distinction can affect the specific procurement regulations and protest procedures applicable. The 'competitive' nature is key, indicating that multiple vendors vied for this specific order, which is generally favorable for price discovery and competition.

Industry Classification

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

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1901 N MOORE ST STE 900, ARLINGTON, VA, 22209

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $34,419,976

Exercised Options: $34,419,976

Current Obligation: $34,419,976

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4781G

IDV Type: FSS

Timeline