HHS awarded $14.7M for administrative support, with New West Technologies managing services over 4 years

Contract Overview

Contract Amount: $14,668,769 ($14.7M)

Contractor: NEW West Technologies, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2007-10-25

End Date: 2012-04-24

Contract Duration: 1,643 days

Daily Burn Rate: $8.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

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, 20260

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $14.7 million to NEW WEST TECHNOLOGIES, LLC for work described as: OTHER ADMINISTRATIVE SUPPORT SVCS Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of 1643 days (approx. 4.5 years) indicates a long-term need for these administrative services. 4. The North American Industry Classification System (NAICS) code 541611 points to management consulting services. 5. The contract was awarded to New West Technologies, LLC, a single entity. 6. The contract was awarded by the Department of Health and Human Services (HHS).

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the services rendered and the market rates for similar administrative support. The Cost Plus Fixed Fee (CPFF) structure means the government pays the actual costs plus a fixed fee, which can be less predictable than fixed-price contracts. However, CPFF contracts are often used when the scope of work is not fully defined, allowing for flexibility. The total award amount of $14.7 million over approximately 4.5 years suggests an average annual spend of around $3.26 million, which needs to be assessed against the specific deliverables and market comparables.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that the opportunity was publicly advertised, and multiple sources were allowed to submit proposals. The 'exclusion of sources' part might refer to specific pre-qualification criteria or a phased approach, but the core intent was broad competition. The number of bidders is not explicitly stated in the provided data, but the designation implies a robust competitive environment was sought.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and improve the quality of services offered.

Public Impact

The primary beneficiaries are likely internal departments within HHS requiring administrative support services. Services delivered include general management and administrative consulting, aiding in operational efficiency. The geographic impact is centered in the District of Columbia, where the contract is registered. Workforce implications may include the direct employment by New West Technologies, LLC, and potential indirect impacts on HHS staff who utilize these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize higher spending if not rigorously monitored.
The duration of the contract (over 4 years) requires ongoing performance monitoring to ensure continued value.
Lack of specific performance metrics in the provided data makes it difficult to assess the quality of services delivered.
The 'exclusion of sources' clause, while common, warrants understanding the specific criteria that might have limited the initial pool of competitors.

Positive Signals

Awarded through full and open competition, indicating a commitment to market-based pricing and vendor selection.
The contract is managed by the Department of Health and Human Services, a major federal agency with established procurement processes.
The fixed fee component in the CPFF contract provides some level of cost predictability for the government.
The long-term nature of the contract suggests a sustained and recognized need for the services provided.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This is a broad category encompassing a wide range of support functions for government agencies. The market for these services is highly competitive, with numerous firms offering specialized expertise. Comparable spending benchmarks would depend heavily on the specific nature of the administrative support required, but federal spending on such services is substantial across various agencies.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this specific contract. This suggests that the competition was likely geared towards larger, established firms capable of meeting the contract's requirements. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity for engaging the small business ecosystem in supporting this federal requirement.

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 tied to the terms and conditions of the Cost Plus Fixed Fee contract, including regular reporting on costs, performance, and adherence to the scope of work. Transparency is generally facilitated through federal procurement databases like FPDS, where contract awards are recorded, though detailed performance reports are often internal.

Related Government Programs

HHS Administrative Support Contracts
Federal Management Consulting Services
Cost Plus Fixed Fee Contracts
Administrative Services for Federal Agencies

Risk Flags

Cost Overrun Risk (CPFF)
Performance Monitoring Requirement
Scope Creep Potential
Limited Small Business Participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $14.7 million to NEW WEST TECHNOLOGIES, LLC. OTHER ADMINISTRATIVE SUPPORT SVCS

Who is the contractor on this award?

The obligated recipient is NEW WEST TECHNOLOGIES, LLC.

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 $14.7 million.

What is the period of performance?

Start: 2007-10-25. End: 2012-04-24.

What specific administrative support services were provided under this contract?

The provided data indicates the contract falls under NAICS code 541611, which covers Administrative Management and General Management Consulting Services. This typically includes a range of services such as organizational planning, policy development, administrative procedure development, and general management advice. However, the exact scope of services for this specific $14.7 million contract with New West Technologies, LLC is not detailed in the summary data. Further investigation into the contract's Statement of Work (SOW) would be necessary to understand the precise deliverables, such as financial management support, human resources administration, program management assistance, or operational efficiency improvements.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar services?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined or is expected to evolve. In a CPFF contract, the government reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. This differs from fixed-price contracts, where the price is set regardless of the final cost, offering more cost certainty to the government but potentially less flexibility for the contractor. It also differs from Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF) contracts, which include mechanisms to adjust the fee based on performance. For administrative support services, CPFF can be advantageous if the requirements are dynamic, but it carries a higher risk of cost growth if not managed diligently through robust oversight and clear performance metrics.

What is the typical duration for federal contracts providing administrative support services?

Federal contracts for administrative support services can vary significantly in duration, often ranging from one to five years, with options for extensions. The duration is typically determined by the nature and complexity of the services required, the agency's budget cycles, and strategic planning. A contract duration of 1643 days (approximately 4.5 years) for a $14.7 million award, as seen with New West Technologies, LLC, is within the common range for significant, long-term support needs. Shorter contracts might be used for specific projects or initial assessments, while longer durations suggest a sustained operational requirement or a desire for continuity in service delivery.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply for this contract?

The term 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that the contract was initially intended for full and open competition, meaning all responsible sources were permitted to submit a bid. However, 'after exclusion of sources' suggests that certain potential offerors were excluded from the competition, likely due to specific criteria outlined in the solicitation, such as pre-qualification requirements, past performance evaluations, or specific technical capabilities. While it aims for broad competition, this clause implies that not all interested parties were eligible to bid, potentially narrowing the field from the outset. Understanding the specific reasons for exclusion is key to assessing the true level of competition achieved.

What is the significance of NAICS code 541611 for this contract?

NAICS code 541611, 'Administrative Management and General Management Consulting Services,' signifies the primary business activity the contract is intended to cover. This code encompasses a broad range of professional services aimed at improving organizational efficiency and effectiveness. Companies bidding on contracts with this code typically offer expertise in areas such as strategic planning, organizational design, process improvement, human capital management, and financial management consulting. For this HHS contract, it means the services procured are focused on enhancing the administrative and management functions within the agency, rather than direct healthcare delivery or IT development.

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: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 9250 E COSTILLA AVE #202, ENGLEWOOD, CO, 80112

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $14,668,769

Exercised Options: $14,668,769

Current Obligation: $14,668,769

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline