HHS PSC shuts down assisted acquisition services offerings outside HHS, industry partners weigh impact on new AI IDIQ

“The Department of Health and Human Services’ Program Support Center handles more than $1.4 billion in contracts for other agencies as part of its assisted acquisition services offering.”

“Program Support Center customer agencies include the Office of Personnel Management, the Office of Special Counsel, the Environmental Protection Agency and most notably the Defense Department. In fact, DoD accounts for about $1 billion of that total.”

“Unfortunately for those and many other agencies, HHS is pulling the rug out from under them at possibly the worst time.”

“Internal memos obtained by Federal News Network show HHS decided to stop offering assisted acquisition services on June 14 just as agencies were gearing up for the fourth quarter buying season, one which many experts say will be even busier than normal because of the 35-day government shutdown.”

“This means all new acquisitions are stopped, including a $150 million multiple-award contract PSC was close to awarding for EPA and numerous in-process contracts for DoD.”

“It also means that any award made over the last four years must be moved to other agencies or absorbed by the home agency by Sept. 30, 2020. This basically gives agencies 15 months to move existing contracts.”

“Sources said HHS placed the three top executives at PSC on administrative leave in the spring. PSC Executive Director Al Sample, CFO Bill McCabe and Patrick Joy, the head of PSC’s contracting activity, were all temporarily removed from their positions and possibly even escorted out. Sample has been PSC’s executive director for more than four years…”

“Sample declined to comment on his situation. Emails through LinkedIn to McCabe and Joy were not returned.

A HHS spokesperson declined to comment on the status of Sample, McCabe and Joy, citing the fact the agency is unable to comment on personnel matters.

The HHS spokesperson, in fact, provided little insight into the PSC situation. There is nothing on PSC’s website about the change and, in fact, HHS took down the acquisition section of PSC’s site…”

Read the full article here.

Source: HHS puts more than $1B in contracts at risk by shutting down assisted acquisition services – By Jason Miller, July 22, 2019. Federal News Network.

G2X TAKE: While rumors of personnel issues had been swirling for weeks, the news out yesterday that HHS Program Support Center has officially canceled acquisition services will leave many IDIQ Prime partners wondering how this will impact the near-term and long-term value of the related IDIQs.

While PSC is expected to continue to support and service HHS, the value of the many contract vehicles that PSC maintains, to include the $500M PSC IDIQ and the shiny new Intelligent Automation/Artificial Intelligence (IAAI) IDIQ, do, at minimum, take a hit as these vehicles can no longer be marketed outside of HHS’ walls.  

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