HHS awarded $24.2M for professional services, with ADVOCATES FOR HUMAN POTENTIAL INC. as the primary contractor

Contract Overview

Contract Amount: $24,187,505 ($24.2M)

Contractor: Advocates for Human Potential Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2011-09-27

End Date: 2016-09-26

Contract Duration: 1,826 days

Daily Burn Rate: $13.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: TAS::75 1362::TAS HOMELESS AND HOUSING RESOURCE NETWORK (HHRN)

Place of Performance

Location: SUDBURY, MIDDLESEX County, MASSACHUSETTS, 01776

State: Massachusetts Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $24.2 million to ADVOCATES FOR HUMAN POTENTIAL INC for work described as: TAS::75 1362::TAS HOMELESS AND HOUSING RESOURCE NETWORK (HHRN) Key points: 1. The contract's value of $24.2 million over five years suggests a significant investment in professional services. 2. The 'All Other Professional, Scientific, and Technical Services' category indicates a broad scope of work. 3. The contract type 'COST PLUS AWARD FEE' can incentivize performance but may lead to higher costs if not managed carefully. 4. The duration of 1826 days (approximately 5 years) points to a long-term need for these services. 5. The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', suggesting a competitive process with specific justifications. 6. The primary contractor, ADVOCATES FOR HUMAN POTENTIAL INC., has secured a substantial award, indicating a strong position in this service area.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the services provided. The 'COST PLUS AWARD FEE' structure, while allowing for performance incentives, can sometimes lead to costs exceeding fixed-price contracts if not rigorously managed. Comparing this $24.2 million award over five years to similar broad professional service contracts within HHS or other agencies would be necessary for a comprehensive value assessment. The absence of a specific Product or Service Code (PSC) beyond the broad NAICS code makes direct comparison difficult.

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 designation implies that while the competition was intended to be broad, certain sources were excluded, likely due to specific requirements or justifications outlined in the procurement process. The exact number of bidders is not provided, but the 'full and open' nature suggests multiple interested parties were considered.

Taxpayer Impact: A full and open competition generally promotes price discovery and can lead to more competitive pricing for taxpayers. However, the exclusion of sources, if not fully justified, could potentially limit the breadth of competition and impact overall cost-effectiveness.

Public Impact

The primary beneficiaries are likely individuals and communities requiring support in areas covered by 'All Other Professional, Scientific, and Technical Services', potentially related to health and human services. The services delivered are broad, encompassing professional, scientific, and technical expertise, likely supporting program administration, research, or technical assistance. The geographic impact is not specified but is likely national, given the federal nature of the Department of Health and Human Services. Workforce implications could include employment for professionals in scientific, technical, and administrative fields, both within the contractor's organization and potentially through subcontracting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'COST PLUS AWARD FEE' contract type carries inherent risks of cost overruns if performance metrics and fee structures are not tightly controlled.
The broad NAICS code '541990' makes it difficult to ascertain the specific nature of services, potentially masking inefficiencies or scope creep.
The 'AFTER EXCLUSION OF SOURCES' clause requires careful scrutiny to ensure it did not unduly limit competition and lead to suboptimal pricing.

Positive Signals

The award to ADVOCATES FOR HUMAN POTENTIAL INC. suggests a contractor with demonstrated capabilities in the professional services domain.
The 'FULL AND OPEN COMPETITION' aspect, despite exclusions, indicates an effort to engage a competitive market.
The five-year duration suggests a stable, long-term need for the services, potentially leading to efficiencies through sustained effort.

Sector Analysis

The contract falls under the broad category of professional, scientific, and technical services, a significant sector within federal procurement. This sector encompasses a wide range of activities, from research and development to management consulting and technical support. Federal spending in this area is substantial, supporting various agency missions. Comparable spending benchmarks would depend heavily on the specific sub-sector and services rendered, but overall federal spending on professional services represents a significant portion of the federal budget.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this contract. This suggests that the contract was not specifically targeted towards small businesses. There is no explicit information on subcontracting plans for small businesses, which would be a key area to investigate for potential impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services (HHS) and the Substance Abuse and Mental Health Services Administration (SAMHSA). The 'COST PLUS AWARD FEE' structure necessitates robust performance monitoring and financial oversight to ensure that award fees are justified and costs remain reasonable. Transparency would depend on the agency's reporting practices and the public availability of contract performance details. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.

Related Government Programs

HHS Grants and Assistance Programs
Federal Professional Services Contracts
Substance Abuse and Mental Health Services Administration (SAMHSA) Initiatives
Government-wide Professional Services Schedules

Risk Flags

Potential for cost overruns due to CPAF structure
Lack of specific service details under broad NAICS code
Justification for source exclusion requires review
Limited visibility into small business subcontracting

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $24.2 million to ADVOCATES FOR HUMAN POTENTIAL INC. TAS::75 1362::TAS HOMELESS AND HOUSING RESOURCE NETWORK (HHRN)

Who is the contractor on this award?

The obligated recipient is ADVOCATES FOR HUMAN POTENTIAL 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 $24.2 million.

What is the period of performance?

Start: 2011-09-27. End: 2016-09-26.

What specific services were procured under this contract, and how do they align with SAMHSA's mission?

The contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This broad classification suggests the services could range widely, potentially including program evaluation, technical assistance, research support, data analysis, or management consulting, all aimed at supporting SAMHSA's mission to reduce the impact of substance abuse and mental illness on America's communities. Without more specific contract line item details or a Statement of Work, it is difficult to pinpoint the exact services. However, given SAMHSA's focus, these services likely contribute to the planning, implementation, and assessment of behavioral health programs and policies.

How does the 'COST PLUS AWARD FEE' structure compare to other contract types for similar services, and what are the implications for cost control?

The 'COST PLUS AWARD FEE' (CPAF) structure is often used when the scope of work is not precisely defined or when performance incentives are crucial. It reimburses the contractor for allowable costs plus a fee that is composed of a fixed base amount and an award amount, which is earned based on meeting or exceeding performance targets. Compared to fixed-price contracts, CPAF offers flexibility but can lead to higher costs if performance targets are easily met or if cost controls are weak. For similar professional services, fixed-price or cost-plus-fixed-fee contracts might offer more predictable costs. The key to cost control in CPAF lies in clearly defined performance metrics and rigorous oversight by the contracting agency to ensure award fees are earned legitimately and costs are reasonable.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' mean in practice for this contract, and were there valid justifications for exclusions?

'Full and open competition after exclusion of sources' indicates that the solicitation was made available to all responsible prospective contractors, but specific sources were excluded from consideration. This exclusion must be justified based on specific criteria outlined in federal acquisition regulations, such as the need for a unique capability, a critical need for standardization, or other compelling reasons. Without access to the justification documentation, it's impossible to definitively state whether the exclusions were valid. However, the process implies that the agency determined that the excluded sources could not meet the requirement or that including them would be detrimental to the government's interests, while still allowing a broad range of other potential bidders.

What is the track record of ADVOCATES FOR HUMAN POTENTIAL INC. with federal contracts, particularly within HHS?

ADVOCATES FOR HUMAN POTENTIAL INC. has a history of receiving federal contracts, including those with the Department of Health and Human Services. Their ability to secure a $24.2 million contract suggests a proven capacity to meet government requirements. A deeper analysis would involve examining their past performance evaluations, any past performance issues or disputes, and the types of services they have previously provided to federal agencies. Understanding their historical performance, particularly on similar large-scale contracts, is crucial for assessing the risk associated with this current award and their reliability as a contractor.

How does the annual spending on this contract compare to overall federal spending on 'All Other Professional, Scientific, and Technical Services'?

This contract represents approximately $4.84 million per year ($24.2 million / 5 years). Federal spending on NAICS code 541990 is substantial, encompassing a wide array of services across numerous agencies. To compare, one would need to access aggregated federal procurement data (e.g., from FPDS or USAspending.gov) for the relevant fiscal years. This contract's annual spending is likely a small fraction of the total federal expenditure in this broad category. However, its significance lies within SAMHSA's budget and its contribution to specific program objectives. A direct comparison would highlight whether this award is typical, large, or small relative to the agency's own spending patterns and the broader federal landscape for these services.

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: 283071000

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 490B BOSTON POST RD, SUDBURY, MA, 01776

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $25,186,183

Exercised Options: $24,187,505

Current Obligation: $24,187,505

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSS283200700038I

IDV Type: IDC

Timeline