HHS Awards $24.3M to Lyceum Business Services for Public Health Service Payroll, Sole-Source Contract

Contract Overview

Contract Amount: $24,358,525 ($24.4M)

Contractor: Lyceum Business Services, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2017-01-01

End Date: 2024-06-30

Contract Duration: 2,737 days

Daily Burn Rate: $8.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF PERSONNEL AND PAYROLL SERVICES FOR OFFICERS OF THE COMMISSIONED CORPS OF THE U.S. PUBLIC HEALTH SERVICE

Place of Performance

Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20879

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $24.4 million to LYCEUM BUSINESS SERVICES, LLC for work described as: IGF::OT::IGF PERSONNEL AND PAYROLL SERVICES FOR OFFICERS OF THE COMMISSIONED CORPS OF THE U.S. PUBLIC HEALTH SERVICE Key points: 1. Contract awarded to Lyceum Business Services, LLC for payroll services. 2. The contract value is $24,358,524.71 over a duration of 2737 days. 3. This is a sole-source contract, raising questions about competition. 4. The sector is primarily administrative support within the Department of Health and Human Services.

Value Assessment

Rating: questionable

The contract value of $24.3M for payroll services over nearly 7.5 years appears high without a competitive benchmark. Pricing assessment is difficult due to the sole-source nature and lack of comparable contract data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market-based competition to drive down prices.

Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for payroll services.

Public Impact

Ensures continued payroll processing for U.S. Public Health Service officers. Potential for higher costs due to lack of competitive bidding. Limited transparency on the justification for sole-source award. Impacts a critical administrative function within HHS.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value over extended period

Positive Signals

Ensures continuity of essential payroll services

Sector Analysis

This contract falls under administrative and support services, specifically payroll processing. Benchmarks for similar large-scale payroll services contracts are difficult to ascertain without competitive data, but the value suggests a significant operational scope.

Small Business Impact

The contract was awarded to Lyceum Business Services, LLC. Information regarding whether this entity is a small business is not provided, nor is there analysis of small business participation in this contract.

Oversight & Accountability

The sole-source nature of this contract warrants further oversight to ensure the justification is sound and that taxpayer funds are being used efficiently. Accountability for the pricing and performance rests heavily on the contracting agency.

Related Government Programs

Payroll Services
Department of Health and Human Services Contracting
Office of the Assistant Secretary for Administration Programs

Risk Flags

Sole-source award lacks competition.
Potential for inflated pricing due to no competitive bidding.
Limited transparency on justification for sole-source.
Extended contract duration may mask inefficiencies.
No clear indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $24.4 million to LYCEUM BUSINESS SERVICES, LLC. IGF::OT::IGF PERSONNEL AND PAYROLL SERVICES FOR OFFICERS OF THE COMMISSIONED CORPS OF THE U.S. PUBLIC HEALTH SERVICE

Who is the contractor on this award?

The obligated recipient is LYCEUM BUSINESS SERVICES, 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 $24.4 million.

What is the period of performance?

Start: 2017-01-01. End: 2024-06-30.

What was the specific justification for awarding this payroll services contract on a sole-source basis, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required services. This could be due to unique capabilities, urgent needs, or specific government requirements. Without detailed documentation, it's difficult to assess if alternative competitive strategies were thoroughly explored or if the sole-source determination was fully justified and in the government's best interest.

How does the per-unit cost or overall pricing of this contract compare to industry benchmarks for similar payroll services, given its sole-source nature?

Direct comparison to industry benchmarks is challenging for sole-source contracts as they bypass the competitive price discovery process. While the total value is $24.3M over 2737 days, without a competitive baseline, it's hard to definitively state if it's above or below market rates. An independent cost analysis or review of historical pricing for similar government services would be needed for a more robust assessment.

What mechanisms are in place to ensure the effectiveness and efficiency of Lyceum Business Services' payroll processing for the U.S. Public Health Service officers under this contract?

Effectiveness and efficiency are typically ensured through performance standards, service level agreements (SLAs), and regular monitoring by the contracting officer's representative (COR). The Department of Health and Human Services should have established metrics to track Lyceum's performance, including timeliness, accuracy, and compliance with regulations. Regular performance reviews and feedback loops are crucial for maintaining service quality.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Payroll Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 18310 MONTGOMERY VILLAGE AVE, STE 230, GAITHERSBURG, MD, 20879

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,784,935

Exercised Options: $24,358,525

Current Obligation: $24,358,525

Actual Outlays: $3,990,063

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline