HHS awarded $6.8M in administrative consulting services to Intellizant LLC via a non-competitive contract

Contract Overview

Contract Amount: $6,787,642 ($6.8M)

Contractor: Intellizant LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2015-07-01

End Date: 2019-10-31

Contract Duration: 1,583 days

Daily Burn Rate: $4.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::CT::IGF

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $6.8 million to INTELLIZANT LLC for work described as: IGF::CT::IGF Key points: 1. The contract value of $6.8M for administrative management consulting services represents a significant investment in external expertise. 2. The sole-source nature of this award raises questions about the extent of market research and potential for cost savings through competition. 3. The contract duration of over 1500 days suggests a long-term need for these services, warranting scrutiny of performance and ongoing necessity. 4. The use of a Time and Materials pricing structure can increase cost uncertainty if not closely managed and monitored for efficiency. 5. The absence of small business set-aside considerations in this award warrants review to ensure equitable opportunities where applicable. 6. The specific services provided under 'Administrative Management and General Management Consulting Services' require detailed understanding to assess value.

Value Assessment

Rating: questionable

Benchmarking the value of this $6.8M contract is challenging without specific deliverables and performance metrics. However, the non-competitive award and Time and Materials pricing structure present inherent risks to achieving optimal value for money. Comparing this to similar administrative consulting contracts would require detailed scope analysis, but the lack of competition suggests potential overpayment compared to what a competitive process might yield. The duration of the contract also implies a substantial investment that needs continuous justification.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This indicates that the agency identified a specific contractor deemed uniquely qualified or that circumstances precluded a competitive solicitation. The lack of competition limits the agency's ability to leverage market forces to drive down prices and ensure the best possible value. It also raises questions about whether alternative solutions or contractors were adequately explored.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without competing the requirement, there is less assurance that the price reflects fair market value, potentially leading to less efficient use of public funds.

Public Impact

The primary beneficiaries are likely the administrative and management functions within the Department of Health and Human Services, receiving support for general management consulting services. The services delivered are categorized as Administrative Management and General Management Consulting Services, aimed at improving operational efficiency and strategic planning. The geographic impact is primarily within the agency's operational locations, likely concentrated around the agency's headquarters and major offices. Workforce implications may include support for existing staff, potential augmentation of specific skill sets, or the implementation of new management strategies affecting agency personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases costs for taxpayers.
Time and Materials contract type can lead to cost overruns if not managed rigorously.
Long contract duration (over 4 years) requires ongoing justification and performance monitoring.
Lack of transparency regarding the justification for sole-source award.
No indication of small business participation or subcontracting goals.

Positive Signals

Contract awarded to Intellizant LLC, suggesting established capabilities in administrative consulting.
Contract duration indicates a sustained need and potential for long-term partnership.
Services provided fall under a standard federal classification (NAICS 541611), suggesting a defined scope of work.
Contract awarded by the Department of Health and Human Services, a major federal agency.

Sector Analysis

The federal sector for Administrative Management and General Management Consulting Services (NAICS 541611) is substantial, with agencies frequently procuring external expertise to support operations, strategy, and efficiency improvements. This contract fits within the broader trend of government outsourcing specialized functions. Comparable spending benchmarks are difficult to establish without detailed scope, but agencies often spend millions annually on such services. The market includes numerous firms, making the sole-source award notable.

Small Business Impact

This contract does not appear to have included a small business set-aside. The sole-source nature of the award further limits opportunities for small businesses to compete. There is no information provided regarding subcontracting plans with small businesses. This award does not contribute to the government's small business contracting goals and may represent a missed opportunity to engage the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services' contracting officers and program managers. The agency's Inspector General may also conduct audits or investigations into contract performance and expenditures. Transparency regarding the justification for the sole-source award and detailed performance reports would be key accountability measures. The Time and Materials nature necessitates close monitoring of labor hours and rates.

Related Government Programs

Management and Financial Consulting, Acquisition and Commercialization Services
Professional, Scientific, and Technical Services
Administrative Support Services

Risk Flags

Sole-source award raises concerns about competition and potential cost efficiencies.
Time and Materials contract type carries inherent risks of cost overruns.
Long contract duration requires continuous justification and oversight.
Lack of transparency regarding the specific justification for sole-source award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $6.8 million to INTELLIZANT LLC. IGF::CT::IGF

Who is the contractor on this award?

The obligated recipient is INTELLIZANT 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 $6.8 million.

What is the period of performance?

Start: 2015-07-01. End: 2019-10-31.

What was the specific justification for awarding this contract on a sole-source basis to Intellizant LLC?

The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. Federal Acquisition Regulation (FAR) Part 6 outlines the policies for competitive acquisitions, and FAR Part 16.505(b) details exceptions for sole-source procurements under indefinite-delivery indefinite-quantity (IDIQ) contracts, while FAR Part 13.500(a) allows for sole-source procurements for commercial items under certain conditions. Agencies must document the specific circumstances justifying the exclusion of competition, such as the unique capability of the contractor, urgency, or lack of other responsible sources. Without access to the Justification and Approval (J&A) document for this specific contract, the precise rationale remains unknown but would typically involve demonstrating that only Intellizant LLC could meet the government's needs.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar consulting services, and what are the associated risks?

Time and Materials (T&M) contracts are used when the level of effort or resources required cannot be estimated with certainty at the time of award. They reimburse the contractor for direct labor hours at specified fixed hourly rates and for the actual cost of materials. This contrasts with Firm-Fixed-Price (FFP) contracts, where the price is set regardless of the contractor's actual costs, or Cost-Plus contracts, which reimburse costs plus a fee. The primary risk with T&M contracts is the potential for cost growth if the contractor's labor hours or rates are not efficiently managed or if the scope creeps. For consulting services, where deliverables can sometimes be subjective, T&M requires robust oversight to ensure efficient use of labor and prevent overcharging. Agencies often prefer FFP for well-defined scopes to ensure cost certainty.

What is the typical performance period and value range for administrative management consulting services contracts awarded by HHS?

The typical performance period for administrative management consulting services contracts can vary significantly based on the scope and complexity of the requirement. Contracts can range from short-term projects lasting a few months to longer-term engagements spanning several years, often with option periods. The value range is equally broad, from tens of thousands to millions of dollars. This specific contract, valued at approximately $6.8 million over a period of roughly 1583 days (over 4 years), falls within the higher end for longer-term engagements. Benchmarking requires detailed comparison of the specific services rendered, deliverables, and the agency's needs, but multi-year, multi-million dollar contracts for specialized consulting are not uncommon within large federal agencies like HHS.

What are the potential implications of a sole-source award on contractor performance and accountability?

Sole-source awards can have mixed implications for contractor performance and accountability. On one hand, a lack of competition might reduce the incentive for a contractor to perform exceptionally well, as they may feel less pressure from potential competitors. This can sometimes lead to complacency. On the other hand, if the sole-source award is based on a proven track record and specialized expertise, the contractor may be highly motivated to maintain that reputation. Accountability mechanisms, such as performance metrics, regular reviews, and the potential for contract termination (though often difficult with sole-source), remain crucial. However, the absence of competitive pressure means that the government must rely more heavily on its own oversight and contract management capabilities to ensure satisfactory performance and value.

Are there specific performance metrics or key performance indicators (KPIs) associated with this contract that can be used to assess its success?

The provided data does not include specific performance metrics or Key Performance Indicators (KPIs) for this contract. Typically, such metrics would be detailed within the contract's Statement of Work (SOW) or Performance Work Statement (PWS). For administrative management consulting services, KPIs might include adherence to project timelines, quality of deliverables (e.g., reports, analyses, recommendations), achievement of cost-saving targets, successful implementation of recommended process improvements, or client satisfaction ratings. Without these specific measures, it is difficult to quantitatively assess the success or value derived from the $6.8 million awarded to Intellizant LLC. The government contracting officer is responsible for monitoring performance against these agreed-upon metrics.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 15233SOL00259

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 2390 STONEFENCE LN, OAK HILL, VA, 20171

Business Categories: 8(a) Program Participant, Category Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,272,537

Exercised Options: $6,787,642

Current Obligation: $6,787,642

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: YES

Timeline