HHS awards $13.6M contract for professional services to C4 Innovations LLC

Contract Overview

Contract Amount: $13,635,641 ($13.6M)

Contractor: C4 Innovations LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2006-09-08

End Date: 2012-12-31

Contract Duration: 2,306 days

Daily Burn Rate: $5.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: CONTRACT AWARD

Place of Performance

Location: NEWTON CENTER, MIDDLESEX County, MASSACHUSETTS, 02459

State: Massachusetts Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $13.6 million to C4 INNOVATIONS LLC for work described as: CONTRACT AWARD Key points: 1. Contract value of $13.6M over 6 years suggests a moderate annual spend. 2. The contract was awarded under full and open competition, indicating a competitive process. 3. The 'All Other Professional, Scientific, and Technical Services' NAICS code covers a broad range of activities. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 5. The award was made by the Substance Abuse and Mental Health Services Administration (SAMHSA). 6. The contract duration of 2306 days (over 6 years) allows for long-term service delivery.

Value Assessment

Rating: fair

The contract value of $13.6 million over approximately six years averages to about $2.27 million per year. Without specific benchmarks for 'All Other Professional, Scientific, and Technical Services' for SAMHSA, it's difficult to definitively assess value for money. The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, carries inherent risks of cost escalation compared to fixed-price contracts. Further analysis would require comparing the specific services rendered against industry standards and the pricing structure of the fixed fee.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that the agency initially considered excluding certain sources but ultimately opened the competition to all eligible offerors. The number of bidders is not specified, but the 'full and open' designation suggests a robust competitive environment, which generally benefits price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging innovative solutions from multiple vendors.

Public Impact

The primary beneficiaries are likely individuals and communities served by SAMHSA's programs, receiving support through the professional services provided. The services delivered fall under the broad category of 'All Other Professional, Scientific, and Technical Services', potentially encompassing research, analysis, program support, and technical assistance. The geographic impact is likely national, given SAMHSA's mission to improve the nation's health by providing leadership, information, and resources. Workforce implications could include the employment of various professionals, such as researchers, analysts, consultants, and administrative staff, both within the contractor's organization and potentially through subcontracting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize higher costs if not closely monitored.
The broad NAICS code (541990) makes it challenging to pinpoint the exact nature and value of services without further detail.
The exclusion of sources in the initial phase, even if later opened, might warrant scrutiny regarding the fairness of the process.

Positive Signals

Awarded under full and open competition, suggesting a fair and accessible process.
Long contract duration (over 6 years) allows for sustained program support and relationship building.
The contract is with C4 Innovations LLC, a specific entity, implying a focused relationship for service delivery.

Sector Analysis

The contract falls within the Professional, Scientific, and Technical Services sector, specifically under the broad NAICS code 541990. This sector is characterized by a wide array of specialized services, including research, consulting, and technical support. The market size for such services is substantial, driven by government and private sector demand for expertise. This contract likely represents a portion of SAMHSA's broader efforts to procure specialized support for its public health initiatives.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no indication of a small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses, and there is no explicit requirement for subcontracting with small businesses mentioned in this summary data. The impact on the small business ecosystem would therefore be neutral to minimal, as this award does not appear to prioritize or mandate small business involvement.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within SAMHSA. The Cost Plus Fixed Fee structure necessitates rigorous oversight to ensure costs are reasonable and allocable, and that the fixed fee is earned. Transparency is generally facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

SAMHSA Grants and Cooperative Agreements
Federal Public Health Services
Professional and Technical Services Contracts
Health and Human Services IT Support

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Broad NAICS code may obscure specific service details and value.
Initial exclusion of sources warrants review for adherence to procurement fairness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $13.6 million to C4 INNOVATIONS LLC. CONTRACT AWARD

Who is the contractor on this award?

The obligated recipient is C4 INNOVATIONS LLC.

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 $13.6 million.

What is the period of performance?

Start: 2006-09-08. End: 2012-12-31.

What specific services does C4 Innovations LLC provide under this contract?

The contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This is a very broad category that can encompass a wide range of activities, including but not limited to research and development, management consulting, environmental consulting, and other specialized technical services. Without more specific contract line item details or a statement of work, it is difficult to ascertain the precise nature of the services provided by C4 Innovations LLC. However, given the awarding agency is SAMHSA, the services are likely related to substance abuse and mental health program support, research, data analysis, technical assistance, or policy development within that domain.

How does the $13.6 million contract value compare to similar contracts for professional services at SAMHSA?

Comparing the $13.6 million contract value requires context on the typical scale of professional services contracts awarded by SAMHSA. Contracts in the 'All Other Professional, Scientific, and Technical Services' category can vary significantly in value depending on the scope and duration. A $13.6 million award over approximately six years averages to about $2.27 million annually. To assess if this is high or low, one would need to benchmark against SAMHSA's historical spending for similar services, the number of bidders, and the complexity of the tasks. Without access to SAMHSA's procurement history for comparable services, a definitive comparison is challenging. However, for a multi-year federal contract supporting a specific agency's mission, this value is within a plausible range.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract type for this service?

The Cost Plus Fixed Fee (CPFF) contract type, used here, presents specific risks. The government agrees to pay the contractor's allowable costs plus a fixed fee representing profit. The primary risk is that the contractor may have less incentive to control costs compared to fixed-price contracts, as their profit (the fixed fee) is predetermined. If costs escalate beyond initial estimates, the government bears the burden of these increased costs, potentially leading to a higher overall expenditure than initially anticipated. Effective oversight, detailed cost accounting, and clear performance metrics are crucial to mitigate these risks and ensure the government receives good value.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply about the procurement process?

This procurement method, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggests a nuanced approach. It implies that the agency initially considered restricting the competition to a select group of sources (perhaps due to specific qualifications or prior relationships) but then decided to open the bidding process to all responsible prospective contractors. This could occur if the initial exclusion was found to be unnecessary, or if the agency sought to ensure broader market participation. While it ultimately resulted in full and open competition, the initial exclusion phase might warrant a review to ensure fairness and adherence to procurement regulations. The key takeaway is that the contract was ultimately awarded through a process intended to maximize competition.

How does the duration of the contract (over 6 years) impact its value and risk?

The contract's duration of approximately 2306 days (over 6 years) allows for sustained support and the development of institutional knowledge by the contractor, C4 Innovations LLC. This can be beneficial for long-term projects where continuity is important. However, a longer duration also increases the government's exposure to potential cost increases over time, especially with a CPFF contract type. It also means that the government is committed to this specific contractor for an extended period, potentially limiting flexibility if needs change or if better solutions emerge from other vendors. Effective contract management and performance reviews throughout the period are essential to ensure continued value.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 280060150

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 181 WELLS AVE, NEWTON, MA, 04

Business Categories: Category Business, Educational Institution, Higher Education, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $13,635,641

Exercised Options: $13,635,641

Current Obligation: $13,635,641

Contract Characteristics

Multi-Year Contract: Yes

Cost or Pricing Data: NO

Timeline