HHS awarded $17.3M for emergency travel support, with 2 bidders competing

Contract Overview

Contract Amount: $17,305,198 ($17.3M)

Contractor: Federal Business Services, Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2008-04-30

End Date: 2013-01-31

Contract Duration: 1,737 days

Daily Burn Rate: $10.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EMERGENCY TRAVEL SUPPORT SERVICES/ASPR

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20201, UNITED STATES OF AMERICA

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $17.3 million to FEDERAL BUSINESS SERVICES, INC for work described as: EMERGENCY TRAVEL SUPPORT SERVICES/ASPR Key points: 1. Contract value appears reasonable given the duration and scope of emergency travel support. 2. Full and open competition after exclusion of sources suggests a deliberate procurement strategy. 3. The contract's duration of nearly 5 years indicates a long-term need for these services. 4. Firm Fixed Price contract type helps manage cost certainty for the government. 5. The award was made to a single contractor, Federal Business Services, Inc. 6. The North American Industry Classification System (NAICS) code 561599 covers a broad range of travel services.

Value Assessment

Rating: good

The contract value of $17.3 million over approximately 1737 days (nearly 5 years) averages to about $9,963 per day. This daily rate for emergency travel support services seems within a reasonable range, considering the specialized nature and potential for rapid deployment required in emergency situations. Benchmarking against similar contracts for government-wide travel management or emergency response logistics would provide a more precise value assessment, but the initial figures do not raise immediate red flags.

Cost Per Unit: $9,963 per day (estimated)

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be open, specific sources may have been excluded based on predefined criteria, or the initial solicitation might have been limited before being opened more broadly. With only two bidders identified, the level of competition was moderate. This suggests that while multiple companies were aware of and potentially capable of bidding, the pool of interested and qualified vendors was not extensive, which could slightly impact price negotiation.

Taxpayer Impact: A moderate level of competition with two bidders means taxpayers likely received a fair price, but there may have been an opportunity for even greater savings with a larger number of competitive offers.

Public Impact

Federal employees requiring urgent travel arrangements during emergencies benefit from this service. The Office of the Assistant Secretary for Preparedness and Response (ASPR) is the primary beneficiary, ensuring operational continuity. Services are delivered nationwide, supporting federal personnel across various locations. The contract supports the government's ability to respond effectively to public health emergencies and other crises.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could potentially lead to higher costs than a more robust bidding process.
The exclusion of sources, even if justified, warrants scrutiny to ensure fairness and prevent market distortion.

Positive Signals

Firm Fixed Price contract type provides cost predictability.
The contract duration suggests a stable and reliable service provider for critical needs.
Awarding to a single contractor implies they met all technical and cost requirements effectively.

Sector Analysis

The travel arrangement and reservation services sector is a mature market with numerous providers. NAICS code 561599 encompasses a wide array of services beyond simple flight bookings, including complex itinerary planning, emergency accommodations, and logistical support, particularly relevant for government agencies like ASPR. The total federal spending in this sector can fluctuate based on agency needs, but contracts like this represent a consistent demand for specialized travel management, especially during crisis periods. The market is characterized by both large, established travel management companies and smaller, niche providers.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit information provided regarding subcontracting plans for small businesses. Without specific set-aside goals or reporting on subcontracting, the direct impact on the small business ecosystem is likely minimal for this particular award, though the prime contractor's own subcontracting practices would determine any indirect effects.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services (HHS), specifically the Office of the Assistant Secretary for Preparedness and Response (ASPR). As a firm-fixed-price contract, performance monitoring would focus on adherence to service level agreements and delivery timelines. Transparency is generally maintained through federal procurement databases like FPDS. The potential for Inspector General involvement exists if any performance issues or allegations of misconduct arise.

Related Government Programs

Emergency Preparedness and Response Contracts
Government Travel Management Services
Department of Health and Human Services Contracts
Federal Civilian Agency Travel Support

Risk Flags

Limited competition may impact price optimization.
Justification for exclusion of sources requires review.
Performance history on emergency-specific contracts is key.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $17.3 million to FEDERAL BUSINESS SERVICES, INC. EMERGENCY TRAVEL SUPPORT SERVICES/ASPR

Who is the contractor on this award?

The obligated recipient is FEDERAL BUSINESS SERVICES, INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of Assistant Secretary for Preparedness and Response).

What is the total obligated amount?

The obligated amount is $17.3 million.

What is the period of performance?

Start: 2008-04-30. End: 2013-01-31.

What is the track record of Federal Business Services, Inc. in providing government travel support?

Federal Business Services, Inc. has a history of receiving federal contracts, including those related to travel services. Analyzing their past performance on similar contracts, particularly with HHS or other emergency response agencies, would provide insight into their reliability, responsiveness, and ability to meet demanding requirements. Information from contract performance reports (CPARs) and the duration of previous awards can indicate their experience level and client satisfaction. A review of their contract history might reveal patterns in award types, agencies served, and overall contract values, helping to assess their suitability for emergency travel support.

How does the average daily cost of this contract compare to industry benchmarks for emergency travel support?

The estimated average daily cost for this contract is approximately $9,963. To benchmark this effectively, we would need to compare it against similar contracts for emergency travel support services provided to federal agencies. Factors influencing this cost include the level of service (e.g., 24/7 availability, complex itinerary management, booking of specialized transport), the geographic scope of support, and the specific risks associated with emergency situations. Without direct comparable data points for emergency-specific travel support, it's challenging to definitively state if this rate is high or low. However, it appears to be within a plausible range for specialized, high-urgency government support.

What are the primary risks associated with a 'Full and Open Competition After Exclusion of Sources' award?

This procurement method, 'Full and Open Competition After Exclusion of Sources,' suggests that while the competition was intended to be broad, certain potential offerors were excluded based on specific criteria, possibly related to past performance, technical capabilities, or security clearances necessary for emergency response. The primary risks include potentially limiting the pool of qualified bidders, which could reduce overall competition and potentially lead to higher prices than if all capable sources were included. It also raises questions about the justification for excluding sources and whether this process truly yielded the best value for the government. Transparency in the exclusion criteria is crucial to mitigate these risks.

How effective has Federal Business Services, Inc. been in fulfilling emergency travel needs based on past performance?

Assessing the effectiveness of Federal Business Services, Inc. in fulfilling emergency travel needs requires examining their past performance data, including Contract Award/Performance Ratings (CPARs) on similar contracts. Key indicators of effectiveness would include on-time delivery of travel arrangements, accuracy in booking, responsiveness to urgent requests, and adherence to budget constraints. Given the nature of emergency travel, their ability to provide rapid, reliable support under pressure is paramount. A review of their performance history would reveal any patterns of success or failure in meeting these critical requirements for government clients.

What is the historical spending trend for emergency travel support services by HHS or similar agencies?

Historical spending on emergency travel support services by HHS and comparable agencies can provide context for the $17.3 million awarded to Federal Business Services, Inc. Analyzing past contract awards for similar services, including their values, durations, and number of bidders, would reveal trends in demand and pricing. For instance, if spending in this category has increased significantly in recent years due to heightened emergency preparedness, this award might align with that trend. Conversely, a decrease in historical spending could warrant further investigation into the necessity and cost-effectiveness of this contract. Understanding these patterns helps in evaluating the current award's scale and justification.

What are the implications of the contract's duration (1737 days) on service quality and cost?

A contract duration of 1737 days (approximately 4.75 years) for emergency travel support services suggests a long-term, stable requirement. For service quality, a longer duration can allow the contractor to build expertise, refine processes, and establish strong working relationships with the agency, potentially leading to improved service delivery. From a cost perspective, longer-term contracts can sometimes offer better value through economies of scale or negotiated fixed rates that are more favorable than short-term, ad-hoc arrangements. However, it also locks the government into a specific provider for an extended period, potentially limiting opportunities to benefit from market competition or technological advancements that might emerge.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Travel Arrangement and Reservation Services › All Other Travel Arrangement and Reservation Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4350 EW HWY STE 1000, BETHESDA, MD, 20814

Business Categories: 8(a) Program Participant, Category Business, Hispanic American Owned Business, Minority Owned Business, Partnership or Limited Liability Partnership, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $17,305,198

Exercised Options: $17,305,198

Current Obligation: $17,305,198

Contract Characteristics

Cost or Pricing Data: NO

Timeline