HHS awards $15.9M for advanced analyzer software, with a 364-day base period

Contract Overview

Contract Amount: $15,941 ($15.9K)

Contractor: Solventum Health Information Systems, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-03

End Date: 2027-04-02

Contract Duration: 364 days

Daily Burn Rate: $44/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PROCUREMENT OF 3M ADVANCED ANALYZER SOFTWARE - BASE PERIOD

Place of Performance

Location: BELCOURT, ROLETTE County, NORTH DAKOTA, 58316

State: North Dakota Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $15,940.88 to SOLVENTUM HEALTH INFORMATION SYSTEMS, INC. for work described as: PROCUREMENT OF 3M ADVANCED ANALYZER SOFTWARE - BASE PERIOD Key points: 1. The contract's value appears reasonable for specialized software procurement, though detailed benchmarking is needed. 2. Full and open competition suggests a healthy market for this type of service. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Performance will be assessed against delivery timelines and software functionality. 5. This contract falls within the 'Other Computer Related Services' NAICS code. 6. The single award delivery order indicates a specific need met by one vendor.

Value Assessment

Rating: good

The contract value of $15.9 million for a one-year period for advanced analyzer software seems within a reasonable range for specialized IT services. Benchmarking against similar procurements for advanced analytics platforms or health information systems would provide a more precise value-for-money assessment. The firm-fixed-price structure is advantageous, shifting risk to the contractor and ensuring cost certainty for the government. Without specific performance metrics or comparable contract data, a definitive value assessment is challenging, but the initial indication is positive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This approach generally fosters a competitive environment, leading to better pricing and service offerings. The data does not specify the number of bids received, but the 'full and open' designation suggests a robust bidding process. This level of competition is ideal for ensuring the government receives the best value.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces and encourages innovation among vendors vying for the contract.

Public Impact

The primary beneficiaries are likely the Department of Health and Human Services (HHS) operating units that require advanced data analysis capabilities. The services delivered include the provision and potential support of advanced analyzer software. The geographic impact is primarily within HHS facilities, with potential for remote access depending on software deployment. Workforce implications may include the need for trained personnel within HHS to utilize the software effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the software becomes deeply integrated into HHS workflows.
Risk of inadequate user training or support impacting software adoption and effectiveness.
Dependence on a single vendor for critical software updates and maintenance.

Positive Signals

Firm-fixed-price contract limits financial risk for the government.
Full and open competition suggests a competitive market and potential for good value.
Clear contract end date provides an opportunity to re-evaluate needs and competition.

Sector Analysis

This contract falls within the broader Information Technology sector, specifically under 'Other Computer Related Services'. The market for advanced analytics software and health information systems is dynamic, driven by increasing data volumes and the need for sophisticated analytical tools in healthcare and public health. Spending in this area is significant across federal agencies, with comparable contracts often involving substantial investments in software licenses, implementation, and ongoing support. Benchmarks would typically compare pricing models, feature sets, and support structures of similar analytics platforms.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses may not directly benefit from this award. However, the prime contractor, Solventum Health Information Systems, Inc., may engage small businesses for subcontracting opportunities, depending on their own business practices and the specific requirements of the software and its implementation. The absence of a small business set-aside means the primary focus was on obtaining the best solution through open competition.

Oversight & Accountability

Oversight for this contract would typically reside within the Office of the Assistant Secretary for Financial Resources at HHS, which awarded the contract. Performance monitoring, adherence to contract terms, and quality assurance would be managed by designated contracting officers and technical points of contact. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

HHS Health Information Technology Programs
Federal Health IT Spending
Government Software Procurement
Data Analytics Services Contracts

Risk Flags

Potential for vendor lock-in
Adequacy of user training and support
Software performance and reliability
Integration with existing HHS systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $15,940.88 to SOLVENTUM HEALTH INFORMATION SYSTEMS, INC.. PROCUREMENT OF 3M ADVANCED ANALYZER SOFTWARE - BASE PERIOD

Who is the contractor on this award?

The obligated recipient is SOLVENTUM HEALTH INFORMATION SYSTEMS, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Financial Resources).

What is the total obligated amount?

The obligated amount is $15,940.88.

What is the period of performance?

Start: 2026-04-03. End: 2027-04-02.

What is the track record of Solventum Health Information Systems, Inc. in delivering similar advanced analyzer software solutions to federal agencies?

Solventum Health Information Systems, Inc., formerly part of 3M's Health Information Systems business, has a history in providing healthcare IT solutions. Their expertise typically lies in areas such as clinical documentation improvement, revenue cycle management, and data analytics for healthcare providers. While specific details on their performance for 'advanced analyzer software' under federal contracts require deeper investigation into past performance reports and contract databases, their established presence in the health IT sector suggests a foundational understanding of the domain. Assessing their past federal contract performance would involve reviewing award histories, any reported issues or successes, and client feedback where available to gauge reliability and capability in delivering complex software solutions.

How does the $15.9 million contract value compare to similar advanced analyzer software procurements by federal agencies?

The $15.9 million contract value for a one-year period for advanced analyzer software needs to be benchmarked against comparable procurements. Federal agencies often procure analytics platforms, data warehousing solutions, and specialized software for data processing and interpretation. Typical contract values can range widely based on scope, features, user licenses, and duration. For instance, contracts for enterprise-level business intelligence tools or advanced predictive modeling software can easily reach millions of dollars annually. To provide a precise comparison, one would need to identify contracts with similar functionalities, user bases, and service level agreements within HHS or other agencies like CMS, NIH, or VA. The firm-fixed-price nature suggests a defined scope, which aids in comparison if the software's capabilities are well-documented.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential vendor lock-in, where HHS becomes heavily reliant on Solventum's software, making future transitions difficult or costly. Another risk is inadequate user adoption or training, which could diminish the software's effectiveness. Performance risks, such as the software not meeting specified analytical requirements or experiencing downtime, are also present. Mitigation strategies are likely embedded in the contract's performance standards, service level agreements, and the firm-fixed-price structure, which incentivizes the contractor to deliver functional software. The full and open competition process aims to select a vendor with a proven ability to meet requirements. Post-award oversight by HHS contracting officers and technical monitors is crucial for ongoing risk management.

What is the expected program effectiveness and impact of this advanced analyzer software for HHS?

The expected effectiveness of this advanced analyzer software for HHS is to enhance their capability to process, analyze, and derive insights from complex datasets. This could support a range of functions, such as improving public health surveillance, optimizing healthcare program administration, identifying trends in health outcomes, or detecting potential fraud and abuse. The impact could be more informed decision-making, leading to better resource allocation, improved service delivery, and potentially better health outcomes for the population served by HHS programs. The specific impact will depend on the software's features and how effectively HHS personnel are trained and utilize its analytical power.

How has HHS spending on 'Other Computer Related Services' (NAICS 541519) trended in recent years?

HHS spending on 'Other Computer Related Services' (NAICS 541519) has generally shown an increasing trend over recent years, mirroring broader federal government investments in IT modernization and data analytics. This category encompasses a wide array of services beyond standard software development or IT support, including specialized consulting, system integration, and the provision of unique IT solutions. Factors driving this trend include the growing complexity of healthcare data, the push for interoperability, the need for advanced analytics in public health initiatives, and the ongoing digital transformation efforts across federal agencies. Analyzing historical spending data for this NAICS code within HHS would reveal the scale and growth trajectory, highlighting the agency's reliance on specialized IT services to meet its mission objectives.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - PLATFORM

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: 3M Company

Address: 575 W MURRAY BLVD, MURRAY, UT, 84123

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $88,083

Exercised Options: $15,941

Current Obligation: $15,941

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F098GA

IDV Type: FSS

Timeline