HHS awarded $15M for program review and development services to Mathematica Inc., a definitive contract

Contract Overview

Contract Amount: $15,057,478 ($15.1M)

Contractor: Mathematica Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2008-12-08

End Date: 2014-03-31

Contract Duration: 1,939 days

Daily Burn Rate: $7.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: PROGRAM REVIEW/DEVELOPMENT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $15.1 million to MATHEMATICA INC. for work described as: PROGRAM REVIEW/DEVELOPMENT SERVICES Key points: 1. The contract value of $15.06 million over approximately 6.5 years suggests a moderate annual spend. 2. Mathematica Inc. was awarded this contract, indicating a potential focus on established contractors for specialized services. 3. The contract type, Cost Plus Fixed Fee, can lead to cost overruns if not managed carefully. 4. The service category 'Other Scientific and Technical Consulting Services' is broad and requires further detail on specific deliverables. 5. The contract duration of 1939 days (over 5 years) implies a long-term need for these services. 6. The exclusion of sources after initial full and open competition warrants scrutiny of the justification for limited competition.

Value Assessment

Rating: fair

The total award of $15.06 million over nearly six years averages to approximately $2.5 million annually. Benchmarking this against similar program review and development contracts is challenging without more specific service details. The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility, carries inherent risks of cost escalation compared to fixed-price contracts. The value appears reasonable for a long-term, specialized consulting engagement, but a detailed cost-benefit analysis of the services rendered would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was initially awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This suggests that while there was an initial broad competition, subsequent phases or modifications may have restricted the pool of eligible bidders. The specific reasons for excluding other sources after the initial competition are not detailed here but are crucial for understanding the competitive landscape. A limited competition can sometimes lead to higher prices due to reduced market pressure.

Taxpayer Impact: The limited competition aspect means taxpayers may not have benefited from the lowest possible price achievable through a fully open and unrestricted bidding process.

Public Impact

The Department of Health and Human Services (HHS) benefits from expert analysis and development support for its programs. Services likely include program evaluation, policy analysis, and strategic planning to improve HHS initiatives. The impact is primarily administrative and policy-oriented within HHS, rather than directly affecting the public geographically. The contract supports a workforce of consultants and analysts, contributing to the professional services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Cost Plus Fixed Fee' structure can incentivize higher spending if not rigorously monitored.
The justification for 'exclusion of sources' after initial competition needs clear documentation to ensure fairness and prevent potential favoritism.
The broad nature of 'Other Scientific and Technical Consulting Services' could lead to scope creep and unmanaged costs.
Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the services provided.

Positive Signals

The award to a single, established contractor like Mathematica Inc. suggests a reliance on proven expertise for critical program functions.
The long contract duration indicates a sustained need and potential for deep institutional knowledge development within the contractor.
The initial 'full and open competition' phase suggests an effort to establish a baseline of market interest and potential bidders.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically consulting. This sector is characterized by a mix of large, established firms and smaller specialized companies. Government spending in this area often supports policy development, program management, and technical analysis across various agencies. Benchmarks for similar consulting contracts vary widely based on the specificity of services, duration, and agency.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside consideration ('ss': false, 'sb': false). This suggests that the primary award was likely made to a large business. There is no explicit information on subcontracting plans for small businesses, which could represent missed opportunities for smaller firms to participate in government contracting.

Oversight & Accountability

Oversight would typically be managed by the contracting officer and program officials within the Office of the Assistant Secretary for Administration at HHS. The CPFF structure necessitates close monitoring of costs and performance to ensure value for money. Transparency is dependent on the agency's reporting practices and the public availability of contract performance data, which is often limited for consulting services.

Related Government Programs

HHS Program Evaluation Services
Government Consulting Contracts
Scientific and Technical Consulting Services
Cost Plus Fixed Fee Contracts
Federal Program Development

Risk Flags

Potential for cost overruns due to CPFF structure.
Reduced competition after initial bidding phase.
Lack of specific service details hinders performance assessment.
Potential for unmanaged scope creep in broad service category.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $15.1 million to MATHEMATICA INC.. PROGRAM REVIEW/DEVELOPMENT SERVICES

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 $15.1 million.

What is the period of performance?

Start: 2008-12-08. End: 2014-03-31.

What specific program review and development services were rendered under this contract?

The contract description 'PROGRAM REVIEW/DEVELOPMENT SERVICES' and the NAICS code '541690' (Other Scientific and Technical Consulting Services) are broad. Specific services likely included evaluating the effectiveness of existing HHS programs, identifying areas for improvement, developing new program strategies, conducting policy analysis, and providing technical expertise on program implementation. Without access to the contract's statement of work (SOW), the precise deliverables, methodologies, and expected outcomes remain undefined. This lack of specificity makes it difficult to quantitatively assess the value or impact of the services provided by Mathematica Inc.

How does the $15.06 million award compare to similar contracts for program review and development services within HHS or other agencies?

Comparing the $15.06 million award requires context regarding the contract's duration (nearly 6.5 years) and the scope of services. The average annual value is approximately $2.3 million. This figure is moderate for large-scale, long-term consulting engagements within federal agencies. Agencies like the Department of Defense or the General Services Administration might award similar or larger sums for comparable services, depending on the complexity and strategic importance of the programs being reviewed. However, smaller agencies or contracts with shorter durations or narrower scopes would naturally have lower total award values. A precise benchmark would necessitate a detailed comparison of SOWs, contractor qualifications, and performance periods.

What are the primary risks associated with the 'Cost Plus Fixed Fee' (CPFF) contract type used here?

The primary risk of a CPFF contract is the potential for cost overruns. While the contractor receives a fixed fee, their costs are reimbursed. This structure can incentivize the contractor to incur higher costs, as their fee remains constant regardless of the actual expenses. Effective oversight is crucial to manage this risk, requiring rigorous tracking of all allowable costs and ensuring that the contractor operates efficiently. If not managed properly, CPFF contracts can become significantly more expensive than initially anticipated, potentially leading to a lower return on investment for the government.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation imply about the procurement process?

This designation suggests a multi-stage procurement. Initially, the opportunity was broadly advertised, allowing any qualified vendor to compete ('full and open competition'). However, after this initial phase, certain sources were excluded from further consideration. This exclusion typically requires a documented justification, such as a sole-source justification or a limited competition based on specific criteria met by only a few remaining bidders. The implication is that while the process started competitively, the final award may have been made under conditions that reduced the number of viable competitors, potentially impacting price negotiation and overall market competition.

What is Mathematica Inc.'s track record with federal contracts, particularly within HHS?

Mathematica Inc. is a well-established research and consulting firm with a significant history of federal contracting, particularly within health and human services. They frequently work with agencies like HHS, CMS (Centers for Medicare & Medicaid Services), and NIH (National Institutes of Health) on complex policy analysis, program evaluation, and data analytics projects. Their track record generally indicates expertise in social science research and program support. However, the specific performance history on individual contracts, including adherence to budget, timeliness, and quality of deliverables, would require a deeper dive into contract performance databases and agency reports.

How has federal spending on 'Other Scientific and Technical Consulting Services' (NAICS 541690) trended over the past decade?

Spending on NAICS code 541690, 'Other Scientific and Technical Consulting Services,' has generally seen an upward trend over the past decade, reflecting the government's increasing reliance on specialized external expertise. This category encompasses a wide array of services beyond core engineering or IT consulting, including policy analysis, program evaluation, and management consulting for scientific endeavors. Factors driving this growth include the complexity of modern policy challenges, the need for specialized knowledge not always available in-house, and fluctuating agency budgets that may favor outsourcing over permanent staff increases. While specific figures fluctuate annually based on agency priorities and budget appropriations, the overall demand for these diverse consulting services remains robust.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

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, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $19,799,548

Exercised Options: $15,057,478

Current Obligation: $15,057,478

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline