HHS awarded $23.4M to ICF Incorporated for regional training and technical assistance

Contract Overview

Contract Amount: $23,420,540 ($23.4M)

Contractor: ICF Incorporated, L.L.C.

Awarding Agency: Department of Health and Human Services

Start Date: 2015-07-01

End Date: 2020-06-30

Contract Duration: 1,826 days

Daily Burn Rate: $12.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF OHS REGIONAL TRAINING AND TECHNICAL ASSISTANCE NETWORK - REGION III

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22031

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $23.4 million to ICF INCORPORATED, L.L.C. for work described as: IGF::OT::IGF OHS REGIONAL TRAINING AND TECHNICAL ASSISTANCE NETWORK - REGION III Key points: 1. Contract awarded via 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 the contract is 5 years, indicating a long-term need for these services. 4. The contract was awarded to a single vendor, ICF Incorporated, L.L.C. 5. The North American Industry Classification System (NAICS) code is 541611, related to administrative management and general management consulting services. 6. The contract was awarded by the Department of Health and Human Services (HHS). 7. The place of performance is Virginia. 8. The contract value is over $23 million.

Value Assessment

Rating: fair

The contract value of $23.4 million over five years for regional training and technical assistance appears to be within a reasonable range for services of this nature, especially considering the broad scope of administrative management and general management consulting. However, without specific benchmarks for similar regional training networks within HHS or comparable agencies, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type introduces a degree of risk, as it allows the contractor to recover all allowable costs plus a predetermined fee. This necessitates robust oversight to ensure costs remain reasonable and that the fixed fee adequately compensates the contractor for their effort without excessive profit.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of two bids suggests a moderate level of competition for this requirement. While two bidders are better than one, a higher number of bids typically leads to more robust price discovery and potentially lower costs for the government. The specific details of the bidding process, such as the evaluation criteria and the relative strengths of the proposals, would provide further insight into the effectiveness of the competition.

Taxpayer Impact: The full and open competition, despite having only two bidders, aimed to secure the best value for taxpayers. The government's objective was to obtain high-quality training and technical assistance services at a competitive price through this process.

Public Impact

Beneficiaries include various entities within the Department of Health and Human Services (HHS) and potentially its sub-agencies or programs that require regional training and technical assistance. Services delivered encompass administrative management and general management consulting, likely focusing on improving operational efficiency, program delivery, and compliance within HHS. The geographic impact is primarily focused on Region III, which typically includes states like Pennsylvania, Delaware, Maryland, Virginia, West Virginia, and the District of Columbia. Workforce implications may include training and development for HHS staff, enhancing their skills and knowledge in administrative and management functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize higher costs if not closely monitored.
Limited competition with only two bidders might have restricted the potential for achieving the lowest possible price.
The long contract duration (5 years) increases the risk of scope creep or evolving needs not being optimally addressed without modifications.

Positive Signals

Awarded through full and open competition, ensuring a fair opportunity for multiple vendors.
The contract addresses a clear need for regional training and technical assistance within HHS.
The vendor, ICF Incorporated, L.L.C., has a track record that can be reviewed for performance history.

Sector Analysis

The administrative management and general management consulting services sector is a significant part of the federal procurement landscape, supporting a wide array of government functions. This contract fits within the broader category of professional services, where agencies contract for expertise to improve operations, strategy, and implementation. Comparable spending benchmarks for similar regional training and technical assistance networks within HHS or other large federal agencies would be necessary for a more precise comparison of this contract's scale and cost-effectiveness.

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 specifically mandated for small businesses through a set-aside. However, the prime contractor, ICF Incorporated, L.L.C., may choose to subcontract portions of the work to small businesses as part of their overall business strategy or to meet broader socioeconomic goals, but this is not a contractual requirement based on the provided data.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the program officials within the Department of Health and Human Services responsible for the training and technical assistance network. The Cost Plus Fixed Fee structure necessitates diligent monitoring of costs and performance to ensure adherence to the contract terms and prevent unnecessary expenditures. Transparency would be facilitated through contract reporting mechanisms and potentially through public contract databases, though specific oversight reports or Inspector General involvement would depend on identified issues or audits.

Related Government Programs

HHS Regional Operations
Federal Management Consulting Services
Government Training Programs
Technical Assistance Contracts
Administrative Support Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Limited competition (2 bidders) may impact price discovery.
Long contract duration increases potential for scope changes or evolving needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $23.4 million to ICF INCORPORATED, L.L.C.. IGF::OT::IGF OHS REGIONAL TRAINING AND TECHNICAL ASSISTANCE NETWORK - REGION III

Who is the contractor on this award?

The obligated recipient is ICF INCORPORATED, L.L.C..

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 $23.4 million.

What is the period of performance?

Start: 2015-07-01. End: 2020-06-30.

What is ICF Incorporated, L.L.C.'s track record with HHS and similar federal contracts?

ICF Incorporated, L.L.C. is a well-established government contractor with a significant history of serving federal agencies, including the Department of Health and Human Services (HHS). Their portfolio often includes work in areas such as public health, environmental services, energy, and management consulting. For contracts similar to this one, focusing on training, technical assistance, and administrative management, ICF has demonstrated capabilities in developing and delivering complex programs. A detailed review of their past performance evaluations, contract awards, and any reported issues or successes on federal contracts would provide a clearer picture of their reliability and effectiveness. Specific data on their performance on previous HHS contracts, especially those involving regional networks or similar consulting services, would be crucial for a comprehensive assessment.

How does the $23.4 million contract value compare to similar regional training and technical assistance contracts within HHS or other federal agencies?

Benchmarking the $23.4 million contract value requires identifying comparable contracts within HHS or other federal agencies that provide regional training and technical assistance services, particularly those under the NAICS code 541611 (Administrative Management and General Management Consulting Services). Factors such as the geographic scope (e.g., number of regions covered), the specific types of training and assistance provided, the duration of the contract, and the complexity of the target audience influence cost. Without access to a detailed database of comparable contract values and scopes, it is difficult to definitively state whether $23.4 million over five years is high, low, or average. However, for a multi-regional scope requiring extensive consulting and training, this figure could be considered within a reasonable range, assuming the scope of work is substantial and the contractor's proposed approach is effective.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude ($23.4 million over 5 years) revolve around cost control and contractor incentive. In a CPFF arrangement, the contractor is reimbursed for all allowable costs incurred, plus a fixed fee representing profit. The main risk is that the contractor may have less incentive to control costs compared to fixed-price contracts, as they are assured their costs will be covered. This can lead to cost overruns if the government's oversight is not rigorous. Additionally, the 'fixed fee' component, while intended to provide a stable profit, could become disproportionately high if the initial cost estimates were significantly underestimated. Effective risk mitigation requires robust government oversight, detailed cost monitoring, clear definition of allowable costs, and strong performance management to ensure the contractor remains efficient and delivers value.

What is the expected effectiveness and impact of the services provided under this contract for HHS Region III?

The expected effectiveness and impact of the services provided under this contract are centered on enhancing the operational capabilities and program delivery within HHS Region III. By offering regional training and technical assistance in administrative management and general management consulting, the contract aims to improve efficiency, compliance, and the overall effectiveness of HHS programs and initiatives in the specified geographic area. This could translate into better resource allocation, improved staff performance, more streamlined administrative processes, and ultimately, more successful program outcomes for the beneficiaries of HHS services in Region III. The success will depend on the quality of the training, the relevance of the technical assistance, and the contractor's ability to adapt to the specific needs and challenges faced by HHS entities within the region.

How has HHS spending on administrative management and general management consulting services (NAICS 541611) trended over the past five years?

Analyzing HHS spending trends for NAICS code 541611 (Administrative Management and General Management Consulting Services) over the past five years would provide context for the $23.4 million award. Generally, federal spending in this category can fluctuate based on agency priorities, budget allocations, and specific project needs. An upward trend might indicate an increasing reliance on external expertise for operational improvements, while a downward trend could suggest efforts to bring such services in-house or a reduction in related initiatives. Without specific data on HHS's historical spending for this NAICS code, it's difficult to provide a precise trend. However, consulting services are often utilized during periods of organizational change, budget scrutiny, or when specialized skills are required, suggesting that spending can be cyclical and responsive to broader governmental and economic factors.

Industry Classification

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

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 15233SOL00019

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: ICF International, Inc. (UEI: 139001544)

Address: 9300 LEE HWY, FAIRFAX, VA, 22031

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

Financial Breakdown

Contract Ceiling: $23,420,540

Exercised Options: $23,420,540

Current Obligation: $23,420,540

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline