HHS awards $11.06M for Logistical Support Services to Cabezon Group, Inc. over 5 years

Contract Overview

Contract Amount: $20,191,629 ($20.2M)

Contractor: Cabezon Group, Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2012-09-21

End Date: 2017-09-20

Contract Duration: 1,825 days

Daily Burn Rate: $11.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 13

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: TASK ORDER AWARD LOGISTICAL SUPPORT SERVICES FOR SAMHSA(LSSS)

Place of Performance

Location: ELLICOTT CITY, HOWARD County, MARYLAND, 21043

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $20.2 million to CABEZON GROUP, INC for work described as: TASK ORDER AWARD LOGISTICAL SUPPORT SERVICES FOR SAMHSA(LSSS) Key points: 1. The contract value is $11.06 million over 1825 days. 2. Competition was full and open after exclusion of sources. 3. The contract type is Cost Plus Award Fee. 4. The sector is primarily administrative and support services.

Value Assessment

Rating: fair

The Cost Plus Award Fee structure allows for performance-based incentives, but requires careful monitoring to ensure costs remain reasonable and aligned with awarded fees. Benchmarking against similar logistical support contracts is needed for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition after excluding specific sources, suggesting a competitive process aimed at finding the best value. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: The $11.06 million award represents taxpayer investment in essential logistical support for SAMHSA's operations.

Public Impact

Ensures continuity of critical logistical operations for SAMHSA. Supports the agency's mission in mental health and substance abuse services. Provides employment opportunities through the prime contractor and potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee structure requires diligent oversight.
Exclusion of sources in competition warrants review.
Contract duration is substantial (5 years).

Positive Signals

Full and open competition utilized.
Clear performance objectives likely tied to award fee.
Supports a critical federal agency's mission.

Sector Analysis

This contract falls within the administrative and support services sector, specifically logistics consulting. Spending in this area is crucial for efficient government operations, with benchmarks varying widely based on the scope and complexity of services required.

Small Business Impact

The data indicates the prime contractor is Cabezon Group, Inc. and that small business participation (sb) was false. Further investigation is needed to determine if subcontracting opportunities were offered to small businesses.

Oversight & Accountability

The Cost Plus Award Fee contract type necessitates robust oversight from HHS to ensure performance targets are met and costs are controlled effectively. Regular performance reviews and audits are essential for accountability.

Related Government Programs

Process, Physical Distribution, and Logistics Consulting Services
Department of Health and Human Services Contracting
Substance Abuse and Mental Health Services Administration Programs

Risk Flags

Potential for cost overruns with Cost Plus Award Fee structure.
Lack of small business prime participation.
Exclusion of sources may limit competition.
Long contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $20.2 million to CABEZON GROUP, INC. TASK ORDER AWARD LOGISTICAL SUPPORT SERVICES FOR SAMHSA(LSSS)

Who is the contractor on this award?

The obligated recipient is CABEZON GROUP, 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 $20.2 million.

What is the period of performance?

Start: 2012-09-21. End: 2017-09-20.

What specific logistical services are provided under this contract, and how do they directly support SAMHSA's mission?

The contract covers logistical support services essential for SAMHSA's operations. This likely includes warehousing, inventory management, distribution of materials, and potentially transportation coordination. These services are critical for ensuring that SAMHSA can effectively manage and distribute resources, information, and program materials related to mental health and substance abuse, thereby directly supporting its public health mission.

What was the rationale for excluding specific sources during the full and open competition, and did this exclusion impact the final award price?

The rationale for excluding specific sources needs to be documented and justified. While 'full and open competition after exclusion of sources' implies a competitive process, the exclusion might limit the pool of potential bidders. The impact on the final award price depends on whether the excluded sources were significant competitors and if their exclusion led to less aggressive bidding from the remaining pool.

How is the 'Award Fee' component structured, and what metrics are used to determine contractor performance and fee allocation?

The 'Award Fee' component is performance-based, meaning the contractor earns a fee based on achieving specific, pre-defined performance objectives. These metrics are typically outlined in the contract's Performance Work Statement (PWS) and could include factors like on-time delivery, inventory accuracy, cost savings initiatives, or responsiveness to requests. HHS evaluators would assess performance against these metrics to determine the awarded fee.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 283121000

Offers Received: 13

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 6031 UNIVERSITY BLVD STE 235, ELLICOTT CITY, MD, 21043

Business Categories: 8(a) Program Participant, Category Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $21,464,134

Exercised Options: $20,191,629

Current Obligation: $20,191,629

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSS283201200064I

IDV Type: IDC

Timeline