HHS awards $9.9M for logistics consulting, exceeding benchmark by 39% over 4 years

Contract Overview

Contract Amount: $9,892,348 ($9.9M)

Contractor: T. a. Consulting, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2007-11-01

End Date: 2011-09-30

Contract Duration: 1,429 days

Daily Burn Rate: $6.9K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CONTRACT SUPPORT

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64106, UNITED STATES OF AMERICA

State: Missouri Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $9.9 million to T. A. CONSULTING, INC. for work described as: CONTRACT SUPPORT Key points: 1. Spending of $9.9M on logistics consulting services. 2. Contract awarded to T. A. CONSULTING, INC. 3. High contract value suggests significant need or scope. 4. Potential for cost savings given the benchmark variance.

Value Assessment

Rating: questionable

The contract's total award of $9,892,348.31 for logistics consulting services appears high. With a benchmark of $6,923,000, this contract is 43% over the benchmark, indicating potentially unfavorable pricing.

Cost Per Unit: $6,923

Competition Analysis

Competition Level: unknown

Awarded via a competitive delivery order, suggesting multiple vendors were considered. However, the significant overage compared to the benchmark raises questions about the effectiveness of the price discovery process during competition.

Taxpayer Impact: Taxpayers may have overpaid by approximately $2.97 million due to the contract exceeding the benchmark.

Public Impact

Significant federal investment in logistics consulting services. Potential for improved operational efficiency within HHS. Questions about cost-effectiveness and taxpayer value.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Price significantly exceeds benchmark
No small business participation noted
Long contract duration

Positive Signals

Competitive award process
Clear service category

Sector Analysis

This contract falls under professional services, specifically logistics consulting. Benchmarks for such services can vary widely based on complexity and duration, but a 43% overage warrants scrutiny.

Small Business Impact

The data indicates that small business participation was not a factor in this contract award (ss: false, sb: false). This suggests the contract was likely awarded to a larger, established firm.

Oversight & Accountability

The competitive delivery order process implies some level of oversight, but the substantial deviation from the benchmark suggests a potential lapse in cost control or negotiation effectiveness.

Related Government Programs

Process, Physical Distribution, and Logistics Consulting Services
Department of Health and Human Services Contracting
Office of the Assistant Secretary for Administration Programs

Risk Flags

Significant cost overrun compared to benchmark
Lack of small business participation
Long contract duration (4 years)
Potential for inefficient price discovery

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $9.9 million to T. A. CONSULTING, INC.. CONTRACT SUPPORT

Who is the contractor on this award?

The obligated recipient is T. A. CONSULTING, 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 $9.9 million.

What is the period of performance?

Start: 2007-11-01. End: 2011-09-30.

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

The contract aimed to address process, physical distribution, and logistics consulting services. This could encompass a wide range of needs, from supply chain optimization and inventory management to transportation efficiency and operational process re-engineering within the Department of Health and Human Services.

How was the benchmark of $6,923,000 established, and why was the final award so much higher?

The benchmark's origin is unclear from the provided data. However, the significant 43% variance suggests potential issues. This could stem from an outdated benchmark, unforeseen scope expansion during the contract period, or a less competitive bidding environment than anticipated, leading to higher-than-expected pricing.

What tangible improvements or cost savings resulted from this $9.9M investment in logistics consulting?

The provided data does not contain information on the tangible outcomes or cost savings achieved. Further analysis would be required to assess the return on investment and determine if the significant expenditure led to measurable improvements in HHS's logistics operations.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3037 LITTLE HAVEN RD, VIRGINIA BEACH, VA, 23452

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $9,892,348

Exercised Options: $9,892,348

Current Obligation: $9,892,348

Parent Contract

Parent Award PIID: GS10F0024U

IDV Type: FSS

Timeline