HHS awards $20.4M contract to Tanaq Management Services for digital innovation support

Contract Overview

Contract Amount: $20,364,488 ($20.4M)

Contractor: Tanaq Management Services LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2022-09-17

End Date: 2026-09-16

Contract Duration: 1,460 days

Daily Burn Rate: $13.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: LEVERAGING DIGITAL INNOVATION TO SUPPORT ONELAB AND LABLIFE INITIATIVES

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99503

State: Alaska Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $20.4 million to TANAQ MANAGEMENT SERVICES LLC for work described as: LEVERAGING DIGITAL INNOVATION TO SUPPORT ONELAB AND LABLIFE INITIATIVES Key points: 1. Contract focuses on leveraging digital innovation for critical health initiatives. 2. The award is a definitive contract, indicating a specific, long-term need. 3. The duration of the contract is 4 years, suggesting sustained support requirements. 4. The contract is not subject to small business set-asides. 5. The primary service area is professional, scientific, and technical services. 6. The contract is awarded to a single vendor, raising questions about competition. 7. The contract is for labor hours, allowing flexibility in resource allocation.

Value Assessment

Rating: fair

The contract value of $20.4 million over four years averages to approximately $5.1 million annually. Benchmarking this against similar contracts for digital innovation support within federal health agencies is challenging without more specific service details. However, the pricing structure, based on labor hours, can be variable. Without a competitive bidding process, it is difficult to definitively assess if the pricing represents optimal value for money. Further analysis would require comparing Tanaq's proposed labor rates against industry standards for comparable skill sets and experience.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source justification, meaning it was not competed openly. This typically occurs when a specific vendor possesses unique capabilities or when circumstances prevent a full and open competition. The lack of multiple bidders means that the government did not benefit from a range of proposals and price points, potentially leading to a higher cost than if it had been competed. The rationale for the sole-source award needs to be thoroughly documented to ensure it was justified.

Taxpayer Impact: A sole-source award limits opportunities for other businesses to compete for federal dollars and may result in taxpayers paying a premium due to the absence of competitive pressure on pricing.

Public Impact

The contract aims to enhance the capabilities of the OneLab and LabLife initiatives within the CDC. Beneficiaries include public health professionals and researchers who will utilize the improved digital tools and platforms. The services delivered are expected to streamline laboratory operations and data management. The geographic impact is primarily within the Centers for Disease Control and Prevention's operational scope, with potential broader implications for public health infrastructure. Workforce implications may include the need for specialized IT and data science personnel to implement and manage the digital solutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing.
Sole-source award raises concerns about justification and potential for limited innovation.
Contract duration and value require careful monitoring for performance and cost-effectiveness.

Positive Signals

Focus on digital innovation aligns with modernizing federal IT infrastructure.
Support for critical health initiatives like OneLab and LabLife is vital for public health.
Definitive contract structure suggests a clear, ongoing need for these services.

Sector Analysis

The federal IT services sector is vast and highly competitive, encompassing a wide range of specialized services. This contract falls within the 'All Other Professional, Scientific, and Technical Services' NAICS code, suggesting a broad scope that could include IT consulting, data analytics, and specialized scientific support. The market for digital transformation and health IT solutions is growing, with significant government investment. Comparable spending benchmarks would depend on the specific nature of the 'digital innovation' being leveraged, but federal spending on IT services consistently represents a substantial portion of the overall budget.

Small Business Impact

This contract does not appear to include a small business set-aside, as indicated by 'sb': false. Consequently, there is no direct allocation for small businesses to perform the primary work. Subcontracting opportunities for small businesses are not explicitly detailed in the provided data. The absence of a set-aside means that larger, established firms are the primary recipients of this federal funding, potentially limiting the direct economic impact on the small business ecosystem for this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services and the Centers for Disease Control and Prevention. Accountability measures would be defined within the contract's terms and conditions, including performance metrics and reporting requirements. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available. The Inspector General for HHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

CDC IT Modernization Efforts
HHS Digital Health Initiatives
Public Health Data Infrastructure
OneLab Program Support
LabLife Initiative Enhancement

Risk Flags

Sole-source award lacks competitive pricing pressure.
Scope of 'digital innovation' is broad and requires clear definition of deliverables.
Performance metrics are not detailed, necessitating close monitoring.
Contract duration of 4 years requires ongoing assessment of value and relevance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $20.4 million to TANAQ MANAGEMENT SERVICES LLC. LEVERAGING DIGITAL INNOVATION TO SUPPORT ONELAB AND LABLIFE INITIATIVES

Who is the contractor on this award?

The obligated recipient is TANAQ MANAGEMENT SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $20.4 million.

What is the period of performance?

Start: 2022-09-17. End: 2026-09-16.

What is the specific nature of the 'digital innovation' being leveraged for OneLab and LabLife initiatives?

The provided data does not specify the exact nature of the 'digital innovation.' However, given the context of OneLab and LabLife initiatives within the CDC, it likely pertains to advancements in laboratory information management systems (LIMS), data analytics platforms, cloud computing solutions, artificial intelligence for disease surveillance, or enhanced digital communication and collaboration tools for public health professionals. The 'All Other Professional, Scientific, and Technical Services' NAICS code suggests a broad application, potentially encompassing software development, systems integration, data science, and IT consulting to modernize and improve the efficiency and effectiveness of these critical health programs.

How does the $20.4 million contract value compare to historical spending on similar digital innovation support for CDC initiatives?

Without specific historical data on 'digital innovation support' for OneLab and LabLife, a direct comparison is difficult. However, the annual value of approximately $5.1 million ($20.4M / 4 years) can be benchmarked against other IT and professional services contracts awarded by the CDC or HHS. Federal spending on IT modernization and digital transformation has been a priority, with many agencies allocating significant budgets to such efforts. To provide a precise comparison, one would need to identify contracts with similar objectives (e.g., enhancing laboratory systems, improving data analytics) and similar scope (e.g., professional, scientific, and technical services) awarded over the past few fiscal years to gauge if this award is within a typical range or represents an outlier.

What are the key performance indicators (KPIs) or metrics used to evaluate Tanaq Management Services' performance under this contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or metrics for this contract. Typically, for a contract focused on 'leveraging digital innovation,' KPIs would be established within the contract's Statement of Work (SOW) or Performance Work Statement (PWS). These might include metrics related to system uptime, data processing speed, successful implementation of new features, user adoption rates of new digital tools, reduction in manual processing times, or improvements in data accuracy and accessibility. Regular performance reviews and milestone achievements would be assessed against these defined metrics to ensure the contractor is meeting the government's objectives.

What is the justification for awarding this contract on a sole-source basis instead of through full and open competition?

The data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which typically implies a sole-source justification. Common reasons for sole-source awards include unique capabilities possessed by only one vendor, urgent and compelling needs where competition is not feasible, or when the contract is a follow-on to a previous award where only one vendor demonstrated capability. For this specific contract, the justification would need to be formally documented by the agency, likely detailing why Tanaq Management Services is the only responsible source capable of meeting the government's requirements for leveraging digital innovation for the OneLab and LabLife initiatives within the specified timeframe and technical parameters.

What is Tanaq Management Services' track record with the federal government, particularly with the Department of Health and Human Services?

The provided data identifies Tanaq Management Services LLC as the awardee but does not detail their specific track record. A comprehensive assessment would require reviewing their past performance on federal contracts, including any previous awards from HHS or the CDC. This would involve examining contract history for on-time delivery, quality of work, adherence to budget, and any past performance issues or commendations. Understanding their experience with similar digital innovation or health IT projects would be crucial in evaluating their capability to successfully execute this $20.4 million contract.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 75D301-22-R-72367

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 3201 C ST, ANCHORAGE, AK, 99503

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,415,300

Exercised Options: $20,364,488

Current Obligation: $20,364,488

Actual Outlays: $17,278,795

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline