HHS Awards $4.07M for Business Intelligence System Support to Ideal System Solutions

Contract Overview

Contract Amount: $4,071,941 ($4.1M)

Contractor: Ideal System Solutions, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2021-03-26

End Date: 2026-09-25

Contract Duration: 2,009 days

Daily Burn Rate: $2.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: BUSINESS INTELLIGENCE SYSTEM IMPLEMENTATION AND SUPPORT SERVICES

Place of Performance

Location: MAPLE GROVE, HENNEPIN County, MINNESOTA, 55369

State: Minnesota Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $4.1 million to IDEAL SYSTEM SOLUTIONS, INC. for work described as: BUSINESS INTELLIGENCE SYSTEM IMPLEMENTATION AND SUPPORT SERVICES Key points: 1. The contract focuses on IT services for a business intelligence system. 2. Ideal System Solutions, Inc. is the sole awardee for this delivery order. 3. The contract duration extends to September 2026, indicating a long-term need. 4. No small business participation is noted in this award. 5. The award falls under 'Other Computer Related Services' NAICS code.

Value Assessment

Rating: fair

The total award amount is $4.07 million over approximately 5 years. Without specific benchmarks for similar BI system implementation and support contracts, it's difficult to definitively assess pricing. However, the Time and Materials pricing structure can sometimes lead to higher costs if not closely managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, this specific award is a delivery order, and the details of the original solicitation and competition for the base contract are not provided. The Time and Materials (T&M) contract type can sometimes limit price discovery compared to fixed-price contracts.

Taxpayer Impact: The use of full and open competition is generally positive for taxpayer value. However, the T&M pricing structure requires diligent oversight to ensure costs remain reasonable and do not exceed expectations.

Public Impact

Enhances the Department of Health and Human Services' financial resource management capabilities. Supports critical business intelligence functions for informed decision-making. Ensures continuity of operations for essential IT systems. Potential for improved data analysis and reporting for HHS.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation.
Time and Materials pricing can inflate costs without strict controls.
Limited insight into the competitive landscape of the original solicitation.

Positive Signals

Awarded under full and open competition.
Long-term contract provides stability for essential services.
Supports a critical function within HHS.

Sector Analysis

This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Spending in this area is substantial across federal agencies, supporting a wide range of digital infrastructure and software needs. Benchmarks for similar BI system support contracts would be needed for a precise comparison.

Small Business Impact

This award does not indicate any specific set-aside for small businesses, nor does it mention any subcontracting goals. The prime contractor, Ideal System Solutions, Inc., is not identified as a small business. Further analysis would be needed to determine if small business participation is occurring through subcontracting.

Oversight & Accountability

The contract is a delivery order under a larger contract, suggesting existing oversight mechanisms. However, the Time and Materials pricing necessitates robust monitoring by the agency to ensure cost efficiency and prevent overruns. The duration of the contract also implies ongoing performance reviews.

Related Government Programs

Other Computer Related Services
Department of Health and Human Services Contracting
Office of the Assistant Secretary for Financial Resources Programs

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Lack of transparency regarding the original solicitation's competitive details.
No explicit small business participation noted.
Long contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $4.1 million to IDEAL SYSTEM SOLUTIONS, INC.. BUSINESS INTELLIGENCE SYSTEM IMPLEMENTATION AND SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is IDEAL SYSTEM SOLUTIONS, 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 $4.1 million.

What is the period of performance?

Start: 2021-03-26. End: 2026-09-25.

What was the competitive landscape for the original base contract, and how did the agency ensure fair pricing under the Time and Materials structure for this delivery order?

The data indicates 'FULL AND OPEN COMPETITION' for the contract vehicle. However, details regarding the specific number of bidders or the evaluation criteria for the original solicitation are not provided. For Time and Materials contracts, agencies typically ensure fair pricing through mechanisms like labor category rate ceilings, detailed cost reporting, and regular audits to verify that hours and materials are reasonable and allocable to the contract's objectives.

What are the specific performance metrics or KPIs used to evaluate the effectiveness of the Business Intelligence System Implementation and Support Services provided by Ideal System Solutions, Inc.?

The provided data does not specify the performance metrics or Key Performance Indicators (KPIs) used to evaluate the effectiveness of the services. Agencies typically establish these in the contract's Performance Work Statement (PWS) or Statement of Objectives (SOO). These metrics would likely focus on system uptime, data accuracy, response times for support requests, and successful implementation of new features or updates.

How does this $4.07 million investment in BI system support align with HHS's broader strategic goals for data utilization and financial management?

This investment likely supports HHS's strategic goals by providing the necessary technological infrastructure and expertise to manage its vast financial resources more effectively. Improved business intelligence can lead to better data-driven decision-making, enhanced operational efficiency, and potentially more accurate financial forecasting and reporting, all critical for a large agency like HHS.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 75ACF121Q00014

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 10900 73RD AVE N STE 132, MAPLE GROVE, MN, 55369

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Hispanic American Owned Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $4,071,941

Exercised Options: $4,071,941

Current Obligation: $4,071,941

Actual Outlays: $2,272,638

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $971,702

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA19D00L7

IDV Type: FSS

Timeline