HHS awards $3.45M IT contract to RAFT LLC for TANF Data Portal services

Contract Overview

Contract Amount: $3,452,334 ($3.5M)

Contractor: Raft LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2024-08-12

End Date: 2026-06-11

Contract Duration: 668 days

Daily Burn Rate: $5.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: TANF DATA PORTAL INFORMATION TECHNOLOGY PROFESSIONAL SERVICES

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $3.5 million to RAFT LLC for work described as: TANF DATA PORTAL INFORMATION TECHNOLOGY PROFESSIONAL SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for IT professional services, specifically custom computer programming. 3. The duration of the contract is approximately 2 years, ending in June 2026. 4. The award type is a delivery order, indicating it's part of a larger contract vehicle. 5. The contractor, RAFT LLC, is a new entity in federal contracting based on available data. 6. The contract is a Time and Materials type, which can pose cost control challenges. 7. The contract is not set aside for small businesses, indicating a focus on larger firms.

Value Assessment

Rating: fair

The contract's value of $3.45 million over approximately two years for IT professional services appears within a reasonable range for custom programming. However, without specific details on the scope of work and deliverables, a precise value-for-money assessment is difficult. The Time and Materials pricing structure warrants close monitoring to ensure costs remain controlled and do not exceed initial estimates. Benchmarking against similar custom programming contracts for federal agencies would provide a clearer picture of its competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 13 bidders suggests a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as multiple vendors vied for the contract, driving down prices and encouraging innovation.

Public Impact

The primary beneficiaries are the Administration for Children and Families (ACF) within HHS, who will receive custom computer programming services. The services delivered will support the TANF Data Portal, crucial for managing and analyzing Temporary Assistance for Needy Families program data. The geographic impact is primarily within Virginia, where the contractor is located, but the data services will have national implications for TANF program administration. The contract will likely impact a team of IT professionals employed by RAFT LLC, contributing to the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely managed.
RAFT LLC appears to be a relatively new contractor, raising questions about their track record with large federal IT projects.
The specific scope of work and deliverables are not detailed, making it hard to fully assess performance expectations.
The contract is not a small business set-aside, potentially limiting opportunities for smaller, specialized firms.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contract supports a critical federal program (TANF Data Portal), suggesting alignment with government priorities.
The duration of the contract provides a stable period for service delivery and potential relationship building.
The number of bidders (13) suggests significant market interest and a competitive environment.

Sector Analysis

This contract falls within the Information Technology professional services sector, specifically custom computer programming. The federal IT services market is vast and highly competitive, with agencies increasingly relying on specialized contractors for software development, system integration, and data management. The $3.45 million award is moderate in size within this sector, but its focus on a critical data portal for a major social services program highlights its importance. Comparable spending benchmarks for similar custom programming services for federal agencies would typically range from hundreds of thousands to several million dollars, depending on complexity and duration.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific small business subcontracting requirements based on the provided data. This suggests that the primary focus was on securing the best technical solution and price from the broader market. While this may not directly benefit small businesses through set-asides, it does not preclude RAFT LLC from subcontracting with small businesses if it aligns with their project execution strategy.

Oversight & Accountability

Oversight for this contract will likely be managed by the Administration for Children and Families (ACF) contracting officers and program managers. The Time and Materials nature of the contract necessitates diligent oversight of labor hours and costs to ensure adherence to the contract ceiling and prevent overspending. Transparency will be maintained through regular reporting requirements and contract performance reviews. The Inspector General's office for HHS may conduct audits or investigations if any concerns regarding waste, fraud, or abuse arise.

Related Government Programs

TANF Program Administration
Federal IT Services
Custom Software Development
Data Management Systems
HHS IT Contracts
ACF IT Services

Risk Flags

Time and Materials Contract Type
New Contractor Performance Risk
Scope Definition Clarity
Data Security and Privacy Compliance

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $3.5 million to RAFT LLC. TANF DATA PORTAL INFORMATION TECHNOLOGY PROFESSIONAL SERVICES

Who is the contractor on this award?

The obligated recipient is RAFT LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Administration for Children and Families).

What is the total obligated amount?

The obligated amount is $3.5 million.

What is the period of performance?

Start: 2024-08-12. End: 2026-06-11.

What is RAFT LLC's prior experience with federal IT contracts, particularly those involving data portals or custom programming for social services agencies?

Based on the provided data, RAFT LLC appears to be a relatively new entity in the federal contracting space. There is no readily available information indicating significant prior experience with large-scale federal IT contracts, especially those involving complex data portals or social services program support. Further investigation into their contract history, past performance reviews, and any subcontracting roles they may have held would be necessary to fully assess their capabilities and track record. The award of this contract suggests that the agency found their proposal sufficient, but their limited public federal contracting history warrants close monitoring of performance.

How does the $3.45 million contract value compare to similar custom computer programming services for federal agencies?

The $3.45 million contract value for approximately two years of custom computer programming services for the TANF Data Portal is within a moderate range for federal IT procurements. Similar contracts for developing or maintaining complex data systems can range from several hundred thousand to tens of millions of dollars, depending on the scope, complexity, and duration. The fact that this was awarded under full and open competition with 13 bidders suggests that the pricing was competitive within the market. However, a precise benchmark would require detailed comparison of the specific technical requirements, labor categories, and service level agreements associated with this contract against others in the federal IT services landscape.

What are the primary risks associated with a Time and Materials (T&M) contract for custom programming services, and how are they mitigated in this case?

The primary risk with Time and Materials contracts is the potential for cost overruns, as the government pays for the actual labor hours and materials used, rather than a fixed price. This can be exacerbated if the scope of work is not well-defined or if project management is weak. For this contract, the mitigation strategies would rely heavily on robust oversight by the Administration for Children and Families. This includes detailed tracking of all hours billed, rigorous review of invoices, clear definition of contract ceiling, and potentially establishing fixed-price milestones within the T&M framework. Effective communication and collaboration between RAFT LLC and the government contracting officer are crucial to manage scope creep and ensure efficient resource utilization.

What is the expected impact of this contract on the effectiveness and efficiency of the TANF Data Portal?

This contract is expected to enhance the effectiveness and efficiency of the TANF Data Portal by providing necessary custom computer programming services. These services likely involve developing new features, maintaining existing functionalities, integrating data from various sources, and ensuring the portal's reliability and security. By supporting the portal, the contract directly contributes to the Administration for Children and Families' ability to monitor, analyze, and report on the Temporary Assistance for Needy Families program. Improved data management and accessibility can lead to better program administration, more informed policy decisions, and ultimately, more effective support for families receiving TANF benefits.

How does the historical spending on IT professional services for the TANF Data Portal or similar ACF initiatives compare to this award?

Without specific historical spending data for the TANF Data Portal or similar ACF initiatives, a direct comparison is challenging. However, the $3.45 million award represents a significant investment in IT professional services for this specific function. Federal agencies often have ongoing needs for IT support, development, and maintenance, with spending fluctuating based on project lifecycles, system upgrades, and evolving program requirements. To assess historical patterns, one would need to examine prior contracts awarded by ACF for IT services, particularly those related to data management and program support, and analyze their total value, duration, and scope over several fiscal years.

What are the potential performance challenges given RAFT LLC's apparent limited federal contracting history?

The primary performance challenge stemming from RAFT LLC's limited federal contracting history is the uncertainty regarding their ability to navigate the complexities of federal procurement regulations, reporting requirements, and established performance standards. While they may possess strong technical capabilities, adapting to the unique demands of government contracts, such as strict adherence to security protocols, detailed documentation, and specific deliverable formats, can be a learning curve. This could potentially lead to delays, compliance issues, or a need for increased government oversight. The agency's decision to award the contract suggests confidence, but proactive management and clear communication from both sides will be essential to mitigate these potential challenges and ensure successful project execution.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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: 75ACF124Q00020

Offers Received: 13

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1660 INTERNATIONAL DR STE 800, MC LEAN, VA, 22102

Business Categories: 8(a) Program Participant, Category Business, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $9,999,544

Exercised Options: $3,452,334

Current Obligation: $3,452,334

Actual Outlays: $2,736,732

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA18D003V

IDV Type: FSS

Timeline