HHS awarded $14.26M for logistics support, with The Hill Group Inc. as contractor

Contract Overview

Contract Amount: $14,264,324 ($14.3M)

Contractor: THE Hill Group Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2009-09-09

End Date: 2015-02-28

Contract Duration: 1,998 days

Daily Burn Rate: $7.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LOGISTICS SUPPORT SERVICES

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817, UNITED STATES OF AMERICA

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $14.3 million to THE HILL GROUP INC for work described as: LOGISTICS SUPPORT SERVICES Key points: 1. Contract value of $14.26M over its period of performance. 2. The contract was awarded under full and open competition. 3. The contractor, The Hill Group Inc., has a history with this type of service. 4. The contract duration was 1998 days. 5. The contract was awarded in Maryland. 6. The North American Industry Classification System (NAICS) code is 541990.

Value Assessment

Rating: fair

The contract value of $14.26M for logistics support services over nearly 2000 days suggests a moderate annual expenditure. Benchmarking this against similar contracts would require detailed service scope and performance metrics. Without specific deliverables, it's difficult to definitively assess value for money, but the duration and total value indicate a substantial commitment. The fixed-price nature of the contract provides cost certainty for the government, assuming the scope was well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process was initiated, but specific sources may have been excluded based on predefined criteria. The presence of 'full and open' suggests multiple bidders were likely considered, which generally promotes price discovery and potentially better pricing for the government. However, the 'after exclusion of sources' clause warrants further investigation into the specific reasons for exclusion.

Taxpayer Impact: A competitive award process, even with exclusions, is generally favorable for taxpayers as it aims to secure the best value through market forces. The extent of competition and the reasons for any source exclusions are critical to understanding the true impact on taxpayer dollars.

Public Impact

The Department of Health and Human Services (HHS) benefits from these logistics support services. Services provided likely include warehousing, inventory management, and transportation of supplies and equipment. The geographic impact is primarily within Maryland, where the contract was awarded. The contract supports the operational efficiency of HHS administrative functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'after exclusion of sources' clause in the competition type requires scrutiny to ensure no undue restrictions limited competition.
Lack of detailed performance metrics makes it challenging to assess the contractor's effectiveness and value beyond the financial award.
The specific nature of 'logistics support services' is broad and could encompass a wide range of activities, impacting cost-effectiveness assessment.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
The contract utilized a Firm Fixed Price (FFP) award type, providing cost predictability for the government.
The contractor, The Hill Group Inc., has a history of performing services for the government, potentially indicating reliability.

Sector Analysis

Logistics support services are a critical component across various government sectors, enabling the efficient movement and management of goods. This contract falls within the broader professional, scientific, and technical services sector. The market for such services is competitive, with numerous providers ranging from large corporations to specialized small businesses. The $14.26M award represents a significant, albeit specific, investment in maintaining operational readiness and supply chain integrity for a major federal agency like HHS.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on the small business ecosystem would be through potential subcontracting opportunities, if any were mandated or pursued by the prime contractor, The Hill Group Inc. Without specific subcontracting plans or data, it's difficult to quantify the direct benefit to small businesses from this particular award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services' administrative and contracting offices. The 'Office of the Assistant Secretary for Administration' likely plays a key role. Transparency is generally facilitated through contract award databases like FPDS. Accountability measures would be tied to the contract's performance clauses and the Firm Fixed Price structure, with potential for audits or reviews by HHS or the Inspector General's office if performance issues arise.

Related Government Programs

HHS Administrative Support Contracts
Federal Logistics and Supply Chain Management
Professional, Scientific, and Technical Services Contracts
Government Wide Acquisition Contracts (GWACs) for Services

Risk Flags

Competition Type Ambiguity: 'Full and Open Competition After Exclusion of Sources' requires further clarification on the justification for exclusions.
Lack of Performance Metrics: Effectiveness and value-for-money assessment are hindered by the absence of specific performance data.
Undefined Service Scope: The broad nature of 'logistics support services' makes detailed cost-benefit analysis challenging.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $14.3 million to THE HILL GROUP INC. LOGISTICS SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is THE HILL GROUP 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 $14.3 million.

What is the period of performance?

Start: 2009-09-09. End: 2015-02-28.

What specific logistics services were included under this contract?

The provided data categorizes this contract under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' and describes the award as 'LOGISTICS SUPPORT SERVICES.' This broad classification suggests the services could encompass a wide range of activities, potentially including warehousing, inventory management, transportation, distribution, mail services, fleet management, or specialized equipment handling. Without access to the detailed contract statement of work (SOW), the precise nature and scope of the logistics support remain undefined. Understanding the specific deliverables is crucial for a comprehensive assessment of the contract's value and performance.

How does the $14.26M contract value compare to similar logistics support contracts awarded by HHS or other agencies?

Benchmarking the $14.26M contract value requires comparing it against contracts with similar scopes of work, durations, and service levels. Given the contract's duration of approximately 1998 days (about 5.5 years), the average annual value is roughly $2.59 million. This figure needs to be contextualized within the specific demands of HHS's logistics needs. For instance, if this contract covered extensive national distribution or specialized medical supply chain management, the value might be considered standard or even low. Conversely, if it involved more localized or less complex support, it could represent a higher-than-average cost. A detailed analysis would involve querying contract databases for comparable services and adjusting for inflation, geographic scope, and service complexity.

What were the specific reasons for excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' award type?

The designation 'Full and Open Competition After Exclusion of Sources' implies that while the procurement was intended to be competitive, certain potential bidders were deliberately excluded. The reasons for such exclusions must be documented and justified according to federal acquisition regulations (FAR). Common justifications include specific technical capabilities, past performance requirements, security clearances, or unique certifications that only a limited number of firms possess. Without access to the contract's Justification and Approval (J&A) document or other procurement records, the exact rationale for excluding sources remains unknown. This lack of transparency can raise concerns about whether the exclusion unduly limited competition and potentially impacted the final price or quality of services obtained.

What is the track record of The Hill Group Inc. in performing logistics support services for the federal government?

The Hill Group Inc. was the contractor awarded this $14.26M contract for logistics support services by the Department of Health and Human Services (HHS). While the provided data confirms their role as the awardee, it does not detail their specific performance history on this or other contracts. To assess their track record, one would need to examine past performance evaluations, contract completion records, and any documented disputes or awards associated with The Hill Group Inc. across various federal agencies. A positive track record typically involves consistent delivery of services meeting or exceeding requirements, adherence to schedules and budgets, and a history of positive client feedback. Conversely, a negative track record might include contract terminations, performance deficiencies, or significant cost overruns.

How effective has this contract been in meeting HHS's logistics support needs?

Assessing the effectiveness of this contract requires evaluating its performance against the defined objectives and deliverables outlined in the Statement of Work (SOW). Key performance indicators (KPIs) might include on-time delivery rates, inventory accuracy, cost savings achieved, and overall client satisfaction. Since the provided data lacks specific performance metrics or outcomes, a definitive judgment on effectiveness cannot be made. The contract's duration (nearly 2000 days) suggests a long-term need and potentially successful, ongoing service provision. However, without qualitative and quantitative performance data, its true effectiveness remains undetermined.

What were the historical spending patterns for logistics support services at HHS prior to this contract?

The provided data focuses solely on this specific $14.26M contract awarded in 2009. It does not offer insights into HHS's historical spending patterns for logistics support services. To understand historical trends, one would need to analyze HHS's budget allocations and contract awards for similar services over multiple fiscal years. This analysis could reveal whether spending has increased, decreased, or remained stable, and identify any shifts in contracting strategies, such as moving from sole-source to competitive awards or vice versa. Such historical context is vital for evaluating the significance of this particular contract within the agency's overall expenditure on logistics.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6903 ROCKLEDGE DR STE 540, BETHESDA, MD, 20817

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $14,264,324

Exercised Options: $14,264,324

Current Obligation: $14,264,324

Parent Contract

Parent Award PIID: HHSP23320092401II

IDV Type: IDC

Timeline