HHS awarded $18M for Knowledge Application Program, a 5-year contract for technical services

Contract Overview

Contract Amount: $17,997,911 ($18.0M)

Contractor: Cdm/Jbs Joint Venture

Awarding Agency: Department of Health and Human Services

Start Date: 2009-09-11

End Date: 2014-09-14

Contract Duration: 1,829 days

Daily Burn Rate: $9.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: KNOWLEDGE APPLICATION PROGRAM (KAP) REFERENCE NO. 270-09-0307

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20814

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $18.0 million to CDM/JBS JOINT VENTURE for work described as: KNOWLEDGE APPLICATION PROGRAM (KAP) REFERENCE NO. 270-09-0307 Key points: 1. Contract value of $17.99M over 5 years suggests a moderate annual spend. 2. The contract was awarded via full and open competition, indicating a competitive process. 3. The cost-plus award fee (CPAF) structure incentivizes performance but can lead to cost overruns if not managed closely. 4. The NAICS code 541990 covers 'All Other Professional, Scientific, and Technical Services,' a broad category. 5. The contract duration of 1829 days (approx. 5 years) is typical for complex service contracts. 6. The award to a joint venture (CDM/JBS) may indicate a need for combined expertise.

Value Assessment

Rating: fair

The contract's total value of approximately $18 million over five years averages to about $3.6 million annually. Without specific performance metrics or deliverables, it's challenging to benchmark the value for money definitively. The cost-plus award fee (CPAF) structure allows for costs plus a fee that is adjusted based on performance. This can be effective if performance targets are well-defined and rigorously assessed, but it also carries a risk of higher costs if oversight is lax. Comparing this to similar contracts for 'All Other Professional, Scientific, and Technical Services' would require more granular data on the specific services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' suggesting that all responsible sources were permitted to submit a bid. This typically leads to a more robust selection process and potentially better pricing due to market forces. The number of bidders is not specified, but the open competition implies that multiple entities likely vied for the contract, fostering price discovery and innovation.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that generally drives down costs and ensures the government receives the best value for its investment.

Public Impact

The Knowledge Application Program (KAP) likely benefits federal agencies by providing specialized technical and scientific expertise. Services delivered under this contract would support the Substance Abuse and Mental Health Services Administration (SAMHSA) mission. The contract's impact is primarily national, supporting federal program objectives rather than specific geographic regions. The workforce implications would involve skilled professionals in scientific, technical, and analytical fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The cost-plus award fee (CPAF) structure requires diligent oversight to prevent potential cost overruns and ensure performance targets are met.
The broad NAICS code (541990) could lead to scope creep if not clearly defined and managed.
The joint venture structure, while potentially bringing diverse expertise, can sometimes introduce complexities in management and accountability.

Positive Signals

Awarding under full and open competition suggests a commitment to leveraging market competition for best value.
The contract's duration of five years allows for continuity of services and potential for long-term impact.
The award fee component, if tied to clear performance metrics, can incentivize high-quality service delivery.

Sector Analysis

The contract falls under the broad 'Professional, Scientific, and Technical Services' sector, specifically NAICS code 541990. This sector is characterized by a wide range of specialized services, including research and development, consulting, and technical support. Federal spending in this area is substantial, supporting various agency missions. Comparable spending benchmarks would depend heavily on the specific technical services provided, but annual expenditures in this broad category often run into billions of dollars across the government.

Small Business Impact

The data indicates that small business participation (sb) was false, and there was no specific small business set-aside (ss). This suggests the contract was not specifically targeted towards small businesses. Consequently, the primary contractor, CDM/JBS Joint Venture, is unlikely to have significant subcontracting obligations to small businesses unless voluntarily pursued. This contract does not appear to directly contribute to the small business ecosystem through set-asides.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services, specifically the Substance Abuse and Mental Health Services Administration (SAMHSA). As a Cost Plus Award Fee (CPAF) contract, rigorous monitoring of costs and performance against defined award criteria is crucial. Transparency would be facilitated through contract reporting mechanisms and potentially through the agency's Inspector General if any performance or financial irregularities arise. The effectiveness of oversight depends on the agency's internal controls and the diligence of contract officers.

Related Government Programs

Federal IT Services Contracts
Scientific and Technical Consulting Services
Health Program Support Contracts
Professional Services Contracts
Government-wide Acquisition Contracts (GWACs)

Risk Flags

Cost-plus award fee contracts require diligent oversight to manage costs.
Broad NAICS code may indicate a need for clear scope definition.
Joint venture structure can introduce management complexities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $18.0 million to CDM/JBS JOINT VENTURE. KNOWLEDGE APPLICATION PROGRAM (KAP) REFERENCE NO. 270-09-0307

Who is the contractor on this award?

The obligated recipient is CDM/JBS JOINT VENTURE.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Substance Abuse and Mental Health Services Administration).

What is the total obligated amount?

The obligated amount is $18.0 million.

What is the period of performance?

Start: 2009-09-11. End: 2014-09-14.

What specific technical services were provided under the Knowledge Application Program (KAP)?

The provided data indicates the contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This is a very broad category. Specific services could range from data analysis, research support, program evaluation, technical consulting, or specialized scientific expertise relevant to the Substance Abuse and Mental Health Services Administration's (SAMHSA) mission. Without further details on the Statement of Work (SOW) or task orders issued under this contract, the precise nature of the services remains undefined. However, given SAMHSA's focus, it likely involved applying scientific knowledge and technical skills to advance understanding and solutions in mental health and substance abuse.

How does the Cost Plus Award Fee (CPAF) structure compare to other contract types for similar services?

Cost Plus Award Fee (CPAF) contracts are often used when the scope of work is not precisely defined or when performance incentives are critical. Unlike fixed-price contracts, CPAF allows the contractor to recover allowable costs plus a fee that is determined by the government based on performance against pre-defined criteria. This contrasts with Cost Plus Fixed Fee (CPFF), where the fee is fixed regardless of performance, or firm-fixed-price (FFP) contracts, where the price is set upfront. CPAF offers flexibility and incentivizes performance, but it requires robust government oversight to manage costs and ensure the award fee is justified. For technical services where innovation and quality are paramount, CPAF can be effective, but it necessitates clear performance metrics and diligent administration to avoid uncontrolled cost growth.

What is the typical annual spending for 'All Other Professional, Scientific, and Technical Services' across the federal government?

Federal spending on 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) is substantial, though it represents a fraction of the total government expenditure on professional services. While specific aggregate figures for this exact NAICS code can fluctuate and are often embedded within broader categories in budget reports, agencies collectively spend billions annually on such services. For context, the entire Professional, Scientific, and Technical Services sector (which includes many other NAICS codes like R&D, legal, accounting, architectural, and engineering services) consistently ranks among the largest categories of federal contracting. The annual spend for 541990 alone would likely be in the high hundreds of millions to low billions, depending on the year and specific agency needs.

What are the potential risks associated with a joint venture winning this contract?

While joint ventures can bring together complementary strengths, they also introduce potential risks. One risk is complexity in management and decision-making, as partners may have differing priorities or operational styles. Accountability can sometimes become diffused. Furthermore, if one partner within the joint venture has a weaker performance history or financial stability, it could impact the overall execution of the contract. Ensuring clear lines of responsibility, communication protocols, and performance metrics within the joint venture agreement is crucial for mitigating these risks. The government must also ensure that the joint venture structure does not circumvent regulations related to contractor responsibility or past performance evaluations.

How does the contract's duration (approx. 5 years) impact its overall value and risk?

A five-year duration for a contract valued at $18 million indicates an average annual value of approximately $3.6 million. This duration provides continuity of services, which is beneficial for programs requiring sustained support, like the Knowledge Application Program. It allows the contractor to develop deep institutional knowledge and build strong working relationships. However, longer durations also increase the risk of cost escalation over time due to inflation or changing market conditions, especially with a CPAF structure. It also means that the government is committed to a specific provider for an extended period, potentially limiting its flexibility to adapt to new technologies or approaches that might emerge during the contract term.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 7500 OLD GEORGETOWN RD STE 900, BETHESDA, MD, 08

Business Categories: Category Business, Minority Owned Business, Other Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,654,601

Exercised Options: $17,997,911

Current Obligation: $17,997,911

Contract Characteristics

Multi-Year Contract: Yes

Cost or Pricing Data: NO

Timeline