HHS Awards $55.8M Contract to Synectics for Other Computer Related Services

Contract Overview

Contract Amount: $157,926,645 ($157.9M)

Contractor: Synectics for Management Decisions, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2009-09-16

End Date: 2017-06-15

Contract Duration: 2,829 days

Daily Burn Rate: $55.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: NEW AWARD

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $157.9 million to SYNECTICS FOR MANAGEMENT DECISIONS, INC. for work described as: NEW AWARD Key points: 1. Contract awarded to Synectics for Management Decisions, Inc. for computer-related services. 2. The contract was awarded under full and open competition. 3. The contract duration is 2829 days, with a total value of $55,824,000. 4. The contract type is Cost Plus Award Fee, indicating performance-based incentives. 5. The awarding agency is the Department of Health and Human Services (HHS).

Value Assessment

Rating: good

The contract is a Cost Plus Award Fee type, which allows for flexibility in pricing based on performance. The total award value of $55.8M over nearly 8 years suggests a moderate annual spend, requiring careful monitoring of cost efficiency against performance metrics.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition after exclusion of sources. This method generally promotes competitive pricing and ensures the government receives the best value by considering all qualified offerors.

Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds are being utilized efficiently through a process designed to secure favorable pricing and service quality.

Public Impact

This contract supports the Substance Abuse and Mental Health Services Administration (SAMHSA) within HHS. The services provided are classified under 'Other Computer Related Services', indicating a broad scope. The long duration of the contract suggests a sustained need for these services by the agency. The contract was awarded in 2009 and completed in 2017, reflecting past federal spending.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with Cost Plus Award Fee contracts if not managed closely.
Long contract duration may lead to vendor lock-in or reduced flexibility for the agency.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Performance-based fee structure incentivizes contractor efficiency and effectiveness.

Sector Analysis

The IT services sector, particularly 'Other Computer Related Services', is a significant area of federal spending. Benchmarks for similar contracts would depend on the specific nature of the 'other' services, but this award represents a substantial investment over its term.

Small Business Impact

The contract was awarded through full and open competition, which typically allows for participation by small businesses if they meet the qualifications. However, the data does not specify if small businesses were involved as prime contractors or subcontractors.

Oversight & Accountability

The Cost Plus Award Fee structure implies oversight is necessary to monitor performance and determine award fees. The agency's ability to manage this contract effectively would be key to ensuring accountability and value for taxpayer money.

Related Government Programs

Other Computer Related Services
Department of Health and Human Services Contracting
Substance Abuse and Mental Health Services Administration Programs

Risk Flags

Cost Plus Award Fee structure requires diligent oversight to ensure value.
Long contract duration (2829 days) may present challenges in adapting to changing needs.
Broad 'Other Computer Related Services' category lacks specificity, making direct comparison difficult.
Contract completed in 2017; current relevance depends on ongoing needs and successor contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $157.9 million to SYNECTICS FOR MANAGEMENT DECISIONS, INC.. NEW AWARD

Who is the contractor on this award?

The obligated recipient is SYNECTICS FOR MANAGEMENT DECISIONS, INC..

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 $157.9 million.

What is the period of performance?

Start: 2009-09-16. End: 2017-06-15.

What specific 'Other Computer Related Services' were provided under this contract, and how did they align with SAMHSA's mission?

The 'Other Computer Related Services' category is broad and could encompass a wide range of IT support, software development, data management, or consulting. Without further details, it's difficult to ascertain the precise services rendered. However, given the awarding agency is SAMHSA, these services likely supported their efforts in providing information and services for substance abuse and mental health.

How did the performance metrics and award fee structure influence the final cost and effectiveness of the services delivered?

The Cost Plus Award Fee (CPAF) structure ties a portion of the contractor's profit to achieving specific performance objectives. Effective oversight by HHS would involve setting clear metrics and evaluating Synectics' performance against them. If performance was high, the award fee would increase the total cost but theoretically reflect value. Conversely, poor performance would limit the award fee, impacting contractor motivation.

Were there any identified risks or challenges during the contract's execution, and how were they mitigated?

Long-term IT service contracts, especially CPAF, can face risks such as scope creep, evolving technological needs, and contractor performance issues. Mitigation strategies would typically involve robust contract management, regular performance reviews, clear communication channels, and potentially contract modifications if necessary. The absence of specific risk flags in this summary suggests either effective management or a lack of detailed reporting on challenges.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 283071000

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 1901 NORTH MOORE STREET, ARLINGTON, VA, 22209

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Small Business

Financial Breakdown

Contract Ceiling: $157,926,645

Exercised Options: $157,926,645

Current Obligation: $157,926,645

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSS283200700048I

IDV Type: IDC

Timeline