HHS awards $47.5M contract for IT services to Lantana Consulting Group, Inc

Contract Overview

Contract Amount: $47,535,881 ($47.5M)

Contractor: Lantana Consulting Group, Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2023-07-20

End Date: 2028-07-14

Contract Duration: 1,821 days

Daily Burn Rate: $26.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DATA VALIDATION

Place of Performance

Location: EAST THETFORD, ORANGE County, VERMONT, 05043

State: Vermont Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $47.5 million to LANTANA CONSULTING GROUP, INC for work described as: DATA VALIDATION Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is for 'Other Computer Related Services', a broad category. 3. The duration of the contract is over 1800 days, indicating a long-term need. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. The award was made by the Centers for Disease Control and Prevention (CDC). 6. The contractor, Lantana Consulting Group, Inc., has secured this significant award.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details. The $47.5 million award over approximately five years averages to about $9.5 million annually. This figure needs to be compared against the cost of similar IT services procured by the CDC or other health agencies. The firm fixed-price nature of the contract is a positive indicator for cost control, as it caps the government's liability. However, the absence of detailed performance metrics or a clear breakdown of services makes a definitive value assessment difficult.

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 a bid. The data does not specify the number of bids received, which is crucial for assessing the level of competition. A high number of bidders typically leads to better price discovery and potentially lower costs for the government. Without knowing the number of competitors, it's difficult to definitively state how effectively this contract leveraged competition to achieve optimal pricing.

Taxpayer Impact: A full and open competition process generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. This approach ensures that the government is not limited to a single provider, increasing the likelihood of securing services at a fair market value.

Public Impact

The Centers for Disease Control and Prevention (CDC) will benefit from these IT services, likely supporting its mission to protect public health. The services provided are categorized as 'Other Computer Related Services,' which could encompass a wide range of IT support, software development, or data management. The geographic impact is likely national, given the CDC's role, though specific locations of service delivery are not detailed. The contract may have implications for the IT workforce, potentially creating or sustaining jobs within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific service details makes it hard to assess if the price is competitive.
The broad 'Other Computer Related Services' category could mask inefficiencies or scope creep.
No information on the number of bidders limits the assessment of competitive pressure on pricing.
The long contract duration could lead to vendor lock-in if not managed carefully.

Positive Signals

Awarded under full and open competition, suggesting a broad search for qualified vendors.
Firm Fixed Price contract type shifts cost risk to the contractor.
The contract is awarded to a specific entity, Lantana Consulting Group, Inc., indicating a selection based on qualifications.
The contract duration suggests a stable, long-term requirement for these services.

Sector Analysis

The IT services sector is a vast and critical component of federal spending. Contracts for computer-related services, particularly those supporting public health agencies like the CDC, are essential for data management, system maintenance, and technological advancement. The market for these services is highly competitive, with numerous firms offering specialized expertise. Benchmarking this $47.5 million contract requires comparing it to similar IT support or development contracts within the health sector, considering factors like service scope, duration, and complexity.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The award to Lantana Consulting Group, Inc., a presumably larger entity given the contract value, suggests that the competition likely favored larger, established IT service providers. Further analysis would be needed to determine if Lantana Consulting Group, Inc. has a history of subcontracting with small businesses on federal contracts.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services (HHS) and specifically the Centers for Disease Control and Prevention (CDC). As a Firm Fixed Price contract, performance monitoring and deliverable acceptance are key oversight mechanisms. Transparency is facilitated by the contract award being publicly available. The specific Inspector General jurisdiction would be that of HHS, responsible for investigating fraud, waste, and abuse within the department's programs and contracts.

Related Government Programs

HHS IT Modernization Initiatives
CDC Public Health Informatics
Federal Health IT Services
IT Support Services Contracts
Computer Related Services

Risk Flags

Broad service category ('Other Computer Related Services') may obscure specific performance metrics.
Lack of detail on the number of bidders limits assessment of competitive pressure.
Potential for vendor lock-in due to the long contract duration (approx. 5 years).

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $47.5 million to LANTANA CONSULTING GROUP, INC. DATA VALIDATION

Who is the contractor on this award?

The obligated recipient is LANTANA CONSULTING GROUP, INC.

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 $47.5 million.

What is the period of performance?

Start: 2023-07-20. End: 2028-07-14.

What is Lantana Consulting Group, Inc.'s track record with federal contracts, particularly with HHS or CDC?

A thorough review of federal procurement databases (like FPDS or SAM.gov) would be necessary to detail Lantana Consulting Group, Inc.'s complete federal contract history. This would include the total value of contracts awarded, the agencies they've served, the types of services rendered, and their performance ratings, if available. Understanding their past performance, especially with similar IT services or within the health sector, is crucial for assessing the risk and potential success of this new $47.5 million award. A history of successful, on-time, and within-budget contract completions would be a positive indicator, while a pattern of issues could raise concerns.

How does the $47.5 million value compare to similar IT services contracts awarded by the CDC or HHS?

To benchmark this $47.5 million contract, one would need to identify comparable IT services contracts awarded by the CDC and HHS over the past few years. Key comparison points would include the scope of services (e.g., software development, network management, data analytics), contract duration, and the number of bidders. If this contract's value per year (approximately $9.5 million) is significantly higher than similar contracts with comparable scopes and durations, it might indicate potential overpricing or a more complex service requirement. Conversely, if it aligns with or is lower than benchmarks, it suggests reasonable value.

What are the specific 'Other Computer Related Services' covered under this contract, and what is the associated risk?

The classification 'Other Computer Related Services' (NAICS code 541519) is very broad and encompasses a wide array of IT functions beyond specialized areas like software publishing or data processing. This could include IT consulting, systems integration, IT support, and custom computer programming. The risk associated with such a broad category is that the specific requirements might not be clearly defined, potentially leading to scope creep, cost overruns if not tightly managed, or the delivery of services that don't fully meet the CDC's evolving needs. Detailed statements of work and robust oversight are critical to mitigate these risks.

What is the significance of the Firm Fixed Price (FFP) contract type for this $47.5M award?

The Firm Fixed Price (FFP) contract type is generally considered advantageous for the government when the scope of work is well-defined and the risks are understood. Under an FFP contract, the contractor agrees to a total price for a well-defined product or service, and this price is not subject to adjustment based on the contractor's cost experience. This shifts the risk of cost overruns entirely to Lantana Consulting Group, Inc. For the CDC, this provides cost certainty and predictability. However, it also means that the initial price must be carefully negotiated to ensure it reflects a fair market value, as the contractor stands to gain more if they can perform the work more efficiently.

What does the contract duration of 1821 days imply for the CDC's IT needs and potential vendor lock-in?

A contract duration of 1821 days (approximately five years) indicates a long-term, stable requirement for the IT services being procured by the CDC. This suggests that these services are integral to the agency's ongoing operations and strategic goals. While long-term contracts can provide stability and allow for deeper integration of services, they also carry the risk of vendor lock-in. If the CDC becomes heavily reliant on Lantana Consulting Group, Inc.'s specific systems or expertise, transitioning to a new vendor in the future could be complex and costly. Regular performance reviews and maintaining flexibility in contract options are important to mitigate this risk.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 75D301-23-R-72585

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3611 ROUTE 5, EAST THETFORD, VT, 05043

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $47,535,881

Exercised Options: $47,535,881

Current Obligation: $47,535,881

Actual Outlays: $19,081,901

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA21D001V

IDV Type: FSS

Timeline