HHS awards $7.26M contract for digital and internal communications support to BIXAL SOLUTIONS INCORPORATED

Contract Overview

Contract Amount: $7,257,930 ($7.3M)

Contractor: Bixal Solutions Incorporated

Awarding Agency: Department of Health and Human Services

Start Date: 2022-09-30

End Date: 2026-09-29

Contract Duration: 1,460 days

Daily Burn Rate: $5.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DIGITAL AND INTERNAL COMMUNICATIONS SUPPORT

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22030

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $7.3 million to BIXAL SOLUTIONS INCORPORATED for work described as: DIGITAL AND INTERNAL COMMUNICATIONS SUPPORT Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. The contract duration of 1460 days suggests a long-term need for these services. 3. Competition level was full and open, implying a potentially competitive bidding process. 4. The North American Industry Classification System (NAICS) code 541613 points to marketing consulting services. 5. The award was a delivery order, suggesting it's part of a larger contract vehicle. 6. The contract is managed by the Office of the Assistant Secretary for Financial Resources within HHS. 7. The contractor, BIXAL SOLUTIONS INCORPORATED, has secured this award. 8. The contract is valued at over $7 million.

Value Assessment

Rating: good

The contract value of $7.26 million over approximately four years for digital and internal communications support appears reasonable for a federal agency of HHS's size. Benchmarking against similar marketing and public relations contracts within the federal government would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs, but the overall value is contingent on the quality and effectiveness of the services delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. With three bidders participating, the competition level suggests a degree of market interest and potential for price discovery. However, the specific number of bidders is relatively low for a federal contract of this nature, which could indicate either a niche market or potential barriers to entry for other firms.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality. The presence of multiple bidders suggests that taxpayer funds are being utilized in a manner that seeks to maximize value.

Public Impact

The primary beneficiary is the Department of Health and Human Services (HHS), which will receive enhanced digital and internal communication capabilities. Services delivered will likely include strategy development, content creation, digital campaign management, and internal communication support to improve agency messaging and employee engagement. The geographic impact is primarily within the Washington D.C. metropolitan area, where HHS is headquartered, but digital communications can have a nationwide reach. Workforce implications may include support for HHS's internal communications teams and potentially the creation of external communication materials.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements are not clearly defined.
Dependence on contractor performance for critical communication functions.
Ensuring alignment with evolving federal communication policies and standards.

Positive Signals

Firm-fixed-price contract helps manage cost certainty.
Full and open competition suggests a competitive process was utilized.
Long contract duration allows for sustained support and relationship building.
Award to a single contractor can streamline management and accountability.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically marketing consulting. The federal market for these services is substantial, with agencies consistently seeking support for public outreach, internal engagement, and digital presence. Comparable spending benchmarks would involve analyzing other federal contracts for similar marketing, communications, and public relations support across various agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, BIXAL SOLUTIONS INCORPORATED, will be responsible for fulfilling the contract requirements. Opportunities for small businesses would typically arise if the prime contractor voluntarily includes them in their subcontracting plan, which is not specified here.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the program office within the Office of the Assistant Secretary for Financial Resources at HHS. Accountability measures are typically embedded in the contract terms, including performance standards, reporting requirements, and payment schedules tied to deliverables. Transparency is facilitated through federal contract databases like FPDS, where award details are publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

HHS Public Affairs Contracts
Federal Marketing and Advertising Services
Government Internal Communications Support
Digital Strategy and Implementation Contracts
Public Relations Consulting Services

Risk Flags

Potential for contractor underperformance
Risk of scope creep
Dependence on contractor expertise
Ensuring alignment with evolving agency needs

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $7.3 million to BIXAL SOLUTIONS INCORPORATED. DIGITAL AND INTERNAL COMMUNICATIONS SUPPORT

Who is the contractor on this award?

The obligated recipient is BIXAL SOLUTIONS INCORPORATED.

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 $7.3 million.

What is the period of performance?

Start: 2022-09-30. End: 2026-09-29.

What is the track record of BIXAL SOLUTIONS INCORPORATED in performing similar federal contracts?

Assessing the track record of BIXAL SOLUTIONS INCORPORATED requires a review of their past performance on federal contracts, particularly those involving digital and internal communications support. This would involve examining contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any reported issues or successes. A strong track record would indicate a higher likelihood of successful contract performance, while a history of poor performance or disputes could raise concerns about value and risk. Without specific past performance data readily available in this summary, a deeper dive into their contract history is necessary for a comprehensive assessment.

How does the awarded amount compare to similar federal contracts for marketing and communications services?

The $7.26 million award for digital and internal communications support over approximately four years represents an average annual value of roughly $1.815 million. To benchmark this value, one would compare it to other firm-fixed-price contracts awarded by agencies like HHS or other large federal departments for similar services, considering factors such as contract scope, duration, complexity, and the number of bidders. If similar contracts for comparable services have been awarded at significantly lower or higher price points, it could indicate whether this award represents excellent, fair, or questionable value for money. The firm-fixed-price nature provides cost certainty, but the true value is realized through effective service delivery.

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

Key risks for this contract include potential underperformance by the contractor, leading to ineffective communication strategies or missed deadlines. There's also a risk of scope creep if requirements are not precisely defined, potentially increasing costs or delaying delivery. Furthermore, changes in federal communication priorities or regulations could necessitate contract adjustments. Mitigation strategies likely involve robust contract management by HHS, clear performance metrics, regular progress reviews, and a well-defined statement of work. The firm-fixed-price structure also mitigates financial risk for the government, provided the scope is well-managed.

How effective is the chosen competition strategy (full and open) in ensuring optimal value for this type of service?

A full and open competition strategy is generally considered the most effective approach for ensuring optimal value for marketing and communications services, as it allows the widest possible pool of qualified vendors to compete. This broad competition can drive down prices and encourage innovation. However, the effectiveness is also dependent on the number of actual bidders. With three bidders in this case, while indicating some competition, it's not an exceptionally large number. The government's ability to attract a larger, more diverse set of bidders could further enhance value. The specific evaluation criteria used in the selection process also play a crucial role in determining the ultimate value obtained.

What is the historical spending trend for digital and internal communications support at HHS or similar agencies?

Analyzing historical spending trends for digital and internal communications support at HHS and comparable agencies would provide context for the $7.26 million award. This involves examining past contract awards for similar services over several fiscal years to identify patterns in spending levels, contract types, and dominant contractors. Significant increases or decreases in spending could signal shifts in agency priorities or market dynamics. Understanding these trends helps determine if the current award is consistent with historical investment in these capabilities or represents a notable change, potentially indicating new initiatives or evolving needs.

What are the implications of the NAICS code 541613 (Marketing Consulting Services) for the scope and expected outcomes of this contract?

The classification under NAICS code 541613, Marketing Consulting Services, indicates that the contract's primary focus is on strategic advice and implementation related to marketing efforts. This typically encompasses market research, branding, advertising strategy, campaign development, and digital marketing execution. For HHS, this suggests the contract aims to improve how the agency communicates its mission, programs, and health information to various target audiences, both internally and externally. The expected outcomes would include enhanced brand perception, increased public engagement with health initiatives, and more effective internal communication to employees.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Marketing Consulting 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

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3050 CHAIN BRIDGE RD STE 305, FAIRFAX, VA, 22030

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $8,512,615

Exercised Options: $7,257,930

Current Obligation: $7,257,930

Actual Outlays: $5,817,164

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $4,809,305

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F439GA

IDV Type: FSS

Timeline