DoD's Defense Health Agency Spends $16.8M on Management Consulting for Executive Support
Contract Overview
Contract Amount: $16,829,146 ($16.8M)
Contractor: Altarum Institute
Awarding Agency: Department of Defense
Start Date: 2021-03-17
End Date: 2026-01-16
Contract Duration: 1,766 days
Daily Burn Rate: $9.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: TO PROVIDE SUBJECT MATTER EXPERTISE SERVICES TO SUPPORT EXECUTIVE MANAGEMENT DECISIONS AND HEALTH PLAN POLICY DEVELOPMENT/IMPLEMENTATION THROUGH THESE SURVEYS, STUDIES AND ANALYSES.
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $16.8 million to ALTARUM INSTITUTE for work described as: TO PROVIDE SUBJECT MATTER EXPERTISE SERVICES TO SUPPORT EXECUTIVE MANAGEMENT DECISIONS AND HEALTH PLAN POLICY DEVELOPMENT/IMPLEMENTATION THROUGH THESE SURVEYS, STUDIES AND ANALYSES. Key points: 1. The contract focuses on providing subject matter expertise for executive management decisions and policy development within the Defense Health Agency. 2. Competition was full and open, suggesting a potentially competitive bidding process for these services. 3. The contract's duration extends to January 2026, indicating a long-term need for these consulting services. 4. The primary service category is Administrative Management and General Management Consulting Services, a broad area.
Value Assessment
Rating: good
The contract value of $16.8 million over approximately 4.8 years appears reasonable for specialized management consulting services supporting executive decision-making and policy development in a large agency like the Defense Health Agency. Benchmarking against similar contracts for high-level advisory services would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing and allows for a wide range of potential contractors to bid. This method is expected to yield fair market prices for the services rendered.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment that drives down costs for essential management consulting services.
Public Impact
Enhances executive decision-making capabilities within the Defense Health Agency. Supports the development and implementation of critical health plan policies. Provides specialized expertise to address complex management challenges. Contributes to the overall efficiency and effectiveness of healthcare policy execution. Ensures alignment of executive strategies with operational needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in consulting services.
- Ensuring continued relevance of expertise over the contract duration.
- Measuring the tangible impact of consulting on policy outcomes.
Positive Signals
- Full and open competition utilized.
- Long-term contract duration provides stability.
- Focus on critical executive and policy support functions.
Sector Analysis
The Defense Health Agency operates within the broader federal healthcare sector, which often requires specialized consulting for policy, management, and operational improvements. Spending on management and administrative consulting services within this sector is common for addressing complex challenges and driving strategic initiatives.
Small Business Impact
The data does not indicate specific participation or set-asides for small businesses in this contract. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
The contract is subject to standard federal procurement oversight. The Defense Health Agency is responsible for monitoring contractor performance and ensuring adherence to contract terms and objectives to maintain accountability.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Long contract duration may lead to evolving needs not fully captured.
- Measuring the direct impact of consulting on policy outcomes can be difficult.
- Potential for reliance on external expertise over internal capacity building.
- Ensuring consistent quality of expertise over the contract period.
Tags
administrative-management-and-general-ma, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.8 million to ALTARUM INSTITUTE. TO PROVIDE SUBJECT MATTER EXPERTISE SERVICES TO SUPPORT EXECUTIVE MANAGEMENT DECISIONS AND HEALTH PLAN POLICY DEVELOPMENT/IMPLEMENTATION THROUGH THESE SURVEYS, STUDIES AND ANALYSES.
Who is the contractor on this award?
The obligated recipient is ALTARUM INSTITUTE.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Health Agency).
What is the total obligated amount?
The obligated amount is $16.8 million.
What is the period of performance?
Start: 2021-03-17. End: 2026-01-16.
What specific metrics will be used to evaluate the effectiveness of the subject matter expertise provided in supporting executive management decisions and policy development?
The effectiveness of the subject matter expertise will likely be evaluated through a combination of qualitative and quantitative measures. This could include feedback from executive leadership on the utility and impact of the advice, the successful implementation of policies influenced by the expertise, and the achievement of specific project milestones or objectives outlined in the contract. Regular performance reviews and debriefings will be crucial for assessing value.
How will the Defense Health Agency ensure that the consulting services remain relevant and adapt to evolving healthcare policies and executive needs throughout the contract's duration?
Relevance will be maintained through proactive contract management, including regular communication channels between the DHA and the contractor. The contract likely includes provisions for change management and task order modifications to address evolving requirements. Periodic reviews of the strategic landscape and ongoing dialogue with executive stakeholders will inform adjustments to the consulting focus and expertise.
What is the anticipated return on investment (ROI) for the $16.8 million spent on these consulting services, considering the impact on policy implementation and executive decision-making?
Quantifying the precise ROI for management consulting can be challenging, as benefits often accrue indirectly through improved decision-making and policy effectiveness. However, the investment is expected to yield significant returns by enhancing the quality of executive decisions, streamlining policy development, potentially reducing implementation errors, and ultimately improving the efficiency and outcomes of the Defense Health Agency's operations.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HT001120R0037
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 26200 TOWN CENTER DR STE 350, NOVI, MI, 48375
Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $17,532,249
Exercised Options: $17,532,249
Current Obligation: $16,829,146
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $4,540,206
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 47QRAA18D001D
IDV Type: FSS
Timeline
Start Date: 2021-03-17
Current End Date: 2026-01-16
Potential End Date: 2026-04-16 00:00:00
Last Modified: 2026-01-15
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