HHS Awards $4.57M Logistics Consulting Contract to Shabas Solutions LLC
Contract Overview
Contract Amount: $4,565,999 ($4.6M)
Contractor: Shabas Solutions LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2013-03-18
End Date: 2018-10-31
Contract Duration: 2,053 days
Daily Burn Rate: $2.2K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::CT::IGF SUPPLY CHAIN MANAGEMENT SUPPORT CONTRACT
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $4.6 million to SHABAS SOLUTIONS LLC for work described as: IGF::CT::IGF SUPPLY CHAIN MANAGEMENT SUPPORT CONTRACT Key points: 1. Contract awarded to Shabas Solutions LLC for $4.57M. 2. Services fall under Process, Physical Distribution, and Logistics Consulting. 3. Contract was not competed under Simplified Acquisition Procedures. 4. The contract duration was 2053 days, spanning over 5 years.
Value Assessment
Rating: questionable
The contract's fixed price nature is standard, but the lack of competition raises concerns about whether the $4.57M represents a fair market price for the services rendered. Benchmarking against similar logistics consulting contracts would be necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed under Simplified Acquisition Procedures, suggesting a limited competition approach. This method may not have explored the full range of potential vendors, potentially impacting price discovery and overall value for money.
Taxpayer Impact: The limited competition raises questions about whether taxpayers received the best possible price for these consulting services.
Public Impact
Taxpayers may have overpaid due to a lack of competitive bidding. The long contract duration could indicate a need for ongoing services, but the procurement method warrants scrutiny. The specific impact on public health services is unclear without more detail on the logistics support provided.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
- Potential for overpayment
Positive Signals
- Firm Fixed Price contract type
- Services align with agency needs
Sector Analysis
The $4.57M awarded for logistics consulting services falls within the broader professional services sector. Benchmarks for similar contracts vary widely based on scope and duration, but a lack of competition often inflates costs.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine if small business participation was considered or required.
Oversight & Accountability
The procurement method, specifically not competing under SAP, suggests a potential gap in oversight or a justification for limited competition that needs further examination to ensure accountability.
Related Government Programs
- Process, Physical Distribution, and Logistics Consulting Services
- Department of Health and Human Services Contracting
- Office of the Assistant Secretary for Administration Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency on justification for sole-source/limited competition
- Long contract duration without clear performance metrics
Tags
process-physical-distribution-and-logist, department-of-health-and-human-services, md, purchase-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $4.6 million to SHABAS SOLUTIONS LLC. IGF::CT::IGF SUPPLY CHAIN MANAGEMENT SUPPORT CONTRACT
Who is the contractor on this award?
The obligated recipient is SHABAS SOLUTIONS 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 $4.6 million.
What is the period of performance?
Start: 2013-03-18. End: 2018-10-31.
What was the justification for not competing this contract under Simplified Acquisition Procedures, and did it result in a fair and reasonable price?
The justification for not competing under SAP is not provided in the data. However, limited competition typically leads to less price discovery and potentially higher costs for the government. Without a competitive process, it is difficult to ascertain if the $4.57M awarded was a fair and reasonable price for the logistics consulting services.
What specific logistics challenges did the Office of the Assistant Secretary for Administration face that necessitated this contract, and how effective were Shabas Solutions LLC's services?
The provided data does not detail the specific logistics challenges faced by the agency or the effectiveness of Shabas Solutions LLC's services. Understanding the nature of the support and its outcomes would be crucial for assessing the contract's true value and impact beyond the financial outlay.
Given the 5-year duration and lack of competition, what is the risk of vendor lock-in or complacency, and how can future procurements mitigate this?
A long-term, non-competed contract carries a significant risk of vendor lock-in and complacency, potentially leading to reduced innovation and inflated costs over time. Future procurements should prioritize competitive bidding, break down large requirements into smaller, more manageable contracts, and incorporate performance metrics to ensure ongoing value and accountability.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 13805 STONEFIELD DR, CLIFTON, VA, 20124
Business Categories: 8(a) Program Participant, Category Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $4,612,888
Exercised Options: $4,565,999
Current Obligation: $4,565,999
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2013-03-18
Current End Date: 2018-10-31
Potential End Date: 2026-03-23 00:00:00
Last Modified: 2026-03-25
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