HHS awarded $35.3M for administrative management consulting, with Synectics for Management Decisions, Inc. as the primary contractor

Contract Overview

Contract Amount: $35,341,483 ($35.3M)

Contractor: Synectics for Management Decisions, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2013-06-20

End Date: 2017-07-31

Contract Duration: 1,502 days

Daily Burn Rate: $23.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF HEAD START ENTERPRISE SYSTEM

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $35.3 million to SYNECTICS FOR MANAGEMENT DECISIONS, INC. for work described as: IGF::OT::IGF HEAD START ENTERPRISE SYSTEM Key points: 1. The contract focused on administrative management and general management consulting services, indicating a need for specialized expertise in operational efficiency. 2. Awarded under full and open competition, suggesting a broad market search for qualified vendors. 3. The contract duration of approximately 4 years (1502 days) allowed for sustained support and project development. 4. The delivery order type suggests a flexible approach to acquiring services as needed. 5. The primary contractor, Synectics for Management Decisions, Inc., has experience in this service area. 6. The contract was awarded to a single vendor, which warrants scrutiny regarding potential price impacts.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or performance metrics. The total award amount of $35.3 million over approximately four years suggests a moderate annual spend. Comparing this to similar administrative management consulting contracts would require detailed analysis of scope and service levels. The pricing structure, likely based on time and materials, can sometimes lead to cost overruns if not closely managed, but it also offers flexibility for evolving project needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the agency sought proposals from all responsible sources. The data shows one award, which, despite the open competition, means that only one entity ultimately secured the contract. The level of competition is not explicitly detailed beyond the award type, so it's unclear how many bids were received or how competitive the final selection was. This could mean that while the market was open, only one firm met all the stringent requirements or offered the most compelling proposal.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple vendors to bid, potentially driving down prices and ensuring the government receives the best value. However, with a single award, the direct benefit of price reduction through intense bidding might be limited unless the proposal evaluation process was highly competitive.

Public Impact

The primary beneficiaries are likely the various offices within the Department of Health and Human Services (HHS) that require enhanced administrative and management support. Services delivered include general management consulting, aimed at improving operational efficiency, strategic planning, and administrative processes within the agency. The geographic impact is primarily within the agency's operational locations, likely concentrated in areas where HHS has significant administrative functions. Workforce implications may include the augmentation of existing HHS staff with specialized consulting expertise, potentially leading to improved project outcomes and internal capacity building.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation due to the time and materials pricing model if not rigorously monitored.
Limited visibility into the specific performance metrics and outcomes achieved by the contractor.
Concentration of award to a single vendor may limit future competitive opportunities or price discovery.

Positive Signals

Awarded through full and open competition, suggesting a broad market approach.
Contract duration allowed for sustained support and potential for deep integration of services.
The contractor has experience in administrative management and general management consulting.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is crucial for government operations, providing expertise to improve efficiency, strategy, and execution. The market size for such services is substantial, with numerous firms competing for federal contracts. This specific award represents a portion of the broader federal spending on management consulting, which often supports agency-wide initiatives and operational improvements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, Synectics for Management Decisions, Inc., is likely a mid-to-large-sized business. The absence of a small business set-aside means that opportunities for small business participation would depend on the prime contractor's own subcontracting plans or if they were outcompeted by larger firms during the full and open competition.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Health and Human Services. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected or reported.

Related Government Programs

Administrative Management Services
Management and Financial Consulting, Acquisition and Systems Support
Professional Services
Consulting Services

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Lack of specific performance metrics in summary data.
Single award despite full and open competition may warrant further investigation into competition dynamics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $35.3 million to SYNECTICS FOR MANAGEMENT DECISIONS, INC.. IGF::OT::IGF HEAD START ENTERPRISE SYSTEM

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 $35.3 million.

What is the period of performance?

Start: 2013-06-20. End: 2017-07-31.

What specific administrative challenges did HHS aim to address with this contract?

The contract's focus on 'Administrative Management and General Management Consulting Services' (NAICS 541611) suggests that HHS sought to improve internal operational efficiencies, streamline administrative processes, enhance strategic planning capabilities, or address specific management challenges within its various offices. Without access to the detailed statement of work, the precise administrative issues are not specified. However, such contracts often involve optimizing workflows, improving resource allocation, developing performance metrics, or providing expert advice on organizational structure and management best practices to support the agency's mission delivery.

How does the $35.3 million award compare to typical spending on similar consulting services by HHS or other large federal agencies?

The $35.3 million awarded over approximately four years translates to an average annual spend of roughly $8.8 million. This figure is moderate for a large federal agency like HHS, which manages extensive programs and complex administrative structures. Large-scale consulting engagements for federal agencies can range from a few million to tens or even hundreds of millions of dollars, depending on the scope, duration, and criticality of the services. This contract appears to be a significant but not exceptionally large award, likely supporting specific, ongoing administrative functions rather than a massive, agency-wide transformation project. Benchmarking requires comparing the specific services rendered and the agency's size and complexity.

What were the key performance indicators (KPIs) or success metrics for this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or success metrics for this contract. Typically, for administrative management consulting services, KPIs would be tied to improvements in efficiency (e.g., reduced processing times, cost savings), effectiveness (e.g., enhanced decision-making quality, better program outcomes), or adherence to project timelines and budgets. The success of such a contract often relies on the clarity of the Statement of Work (SOW) and the diligence of the government's project managers in monitoring the contractor's progress against agreed-upon deliverables and objectives.

What is the track record of Synectics for Management Decisions, Inc. in securing and performing on federal contracts, particularly within HHS?

Synectics for Management Decisions, Inc. has a history of performing federal contracts. While the provided data confirms they were awarded this $35.3 million contract by HHS, a comprehensive assessment of their track record would require examining their entire contract history across various agencies and contract types. This would involve looking at past performance evaluations, any contract disputes or terminations, and their success rate in competitive bidding. Their ability to secure this specific contract suggests they met HHS's requirements and demonstrated relevant expertise in administrative management and consulting services.

Were there any identified risks or challenges associated with this contract during its performance period?

The provided summary data does not explicitly list risks or challenges encountered during the performance of this contract. However, contracts of this nature, especially those using a Time and Materials (T&M) pricing structure, inherently carry risks such as potential cost overruns if not managed tightly, scope creep, and ensuring the delivered consulting services translate into tangible improvements. The effectiveness of oversight by the government contracting officer and program managers is crucial in mitigating these risks. Without specific IG reports or performance reviews, it's difficult to ascertain any realized challenges.

How has HHS's spending on administrative management consulting evolved over the years, and does this contract represent a trend?

Analyzing the evolution of HHS spending on administrative management consulting requires historical data beyond this single contract award. This contract, awarded in 2013 and ending in 2017, represents a snapshot of spending during that period. To understand trends, one would need to examine HHS's contracting data for NAICS code 541611 (and related codes) over multiple fiscal years. Factors influencing spending include agency priorities, budget allocations, specific program needs, and the availability of internal expertise versus the need for external consultants. This contract's value suggests a consistent need for such services within HHS during its performance period.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: TFTPMC000874B

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1101 WILSON BLVD STE 1500, ARLINGTON, VA, 22209

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $39,764,438

Exercised Options: $35,341,483

Current Obligation: $35,341,483

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS10F0207L

IDV Type: FSS

Timeline