HHS awards $17.5M for data modernization, cloud services to Federal Resources Corporation

Contract Overview

Contract Amount: $17,499,464 ($17.5M)

Contractor: Federal Resources Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2023-09-20

End Date: 2025-03-19

Contract Duration: 546 days

Daily Burn Rate: $32.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DATA MODERNIZATION INITIATIVE, CLOUD PLATFORM, & RELATED SERVICES

Place of Performance

Location: ERIE, ERIE County, PENNSYLVANIA, 16502

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $17.5 million to FEDERAL RESOURCES CORPORATION for work described as: DATA MODERNIZATION INITIATIVE, CLOUD PLATFORM, & RELATED SERVICES Key points: 1. Contract awarded via full and open competition after exclusion of sources, indicating a potentially competitive process. 2. The contract duration of 546 days suggests a medium-term project for data modernization and cloud platform services. 3. Firm Fixed Price contract type aims to control costs and provide predictability for the government. 4. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services. 5. Awarded by the Centers for Disease Control and Prevention (CDC), a critical agency within HHS. 6. The contract is a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework.

Value Assessment

Rating: fair

Benchmarking the value of this $17.5 million contract is challenging without knowing the specific scope of work and the underlying IDIQ contract it was issued against. However, for data modernization and cloud services, this amount represents a significant investment. The firm fixed-price structure is a positive indicator for cost control. Further analysis would require comparing the specific services and deliverables to similar contracts awarded by HHS or other agencies for comparable cloud and data modernization efforts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This designation suggests that while the competition was intended to be open, specific sources may have been excluded for defined reasons, potentially limiting the breadth of competition. The number of bidders is not specified, but the 'exclusion of sources' clause warrants further investigation into the rationale behind any exclusions to ensure fair market access and optimal price discovery.

Taxpayer Impact: While the competition was not fully open, the exclusion of sources implies a structured process. Taxpayers benefit from a competitive process, but the extent of this benefit depends on the justification for excluding potential bidders and the resulting price achieved.

Public Impact

The primary beneficiaries are likely the Centers for Disease Control and Prevention (CDC) and the Department of Health and Human Services (HHS), which will receive enhanced data modernization and cloud platform capabilities. The services delivered are expected to improve the agency's ability to manage, analyze, and secure critical public health data. The geographic impact is primarily within the operational scope of the CDC and HHS, likely supporting national public health initiatives. Workforce implications may include the need for specialized IT personnel within the agency to manage and leverage the new cloud infrastructure and modernized data systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition type could potentially limit competitive pressure and lead to higher costs if not properly justified.
Lack of specific details on the scope of 'data modernization' and 'cloud platform' makes it difficult to assess the true value and potential risks.
The contract duration of 546 days (approx. 1.5 years) might be insufficient for comprehensive data modernization, potentially leading to follow-on contracts or scope creep.

Positive Signals

Awarded under a firm fixed-price contract type, which helps in cost control and budget predictability.
The contract is for data modernization and cloud services, indicating an investment in critical IT infrastructure for a key public health agency.
The award to Federal Resources Corporation suggests a selection based on perceived capability to meet HHS's needs.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on data management, cloud computing, and related IT support. The market for these services is highly competitive and rapidly evolving, with significant government spending allocated towards digital transformation initiatives. Comparable spending benchmarks would involve analyzing other large-scale cloud migration and data infrastructure projects within federal agencies, particularly those in health and human services, to gauge cost-effectiveness and market rates for similar services.

Small Business Impact

The data indicates that small business participation (sb) is false, and there is no indication of a small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal, and there are no explicit subcontracting requirements for small businesses mentioned in this data snippet. Federal Resources Corporation is likely a large business, and the contract was competed without a small business preference.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services (HHS) and the Centers for Disease Control and Prevention (CDC). As a Delivery Order, it likely falls under the purview of an existing IDIQ contract, which would have its own oversight mechanisms. Transparency is facilitated by contract award databases, but detailed performance metrics and specific oversight activities are not provided. The potential for Inspector General involvement exists if any issues of fraud, waste, or abuse arise.

Related Government Programs

HHS Data Modernization Initiative
CDC IT Modernization Efforts
Federal Cloud Computing Strategy
IT Services for Public Health Agencies
Digital Transformation Contracts

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Scope definition ambiguity for 'data modernization' and 'cloud platform'.
Cybersecurity risks associated with cloud migration and data handling.
Integration challenges with existing legacy systems.
Contractor performance and delivery risk.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $17.5 million to FEDERAL RESOURCES CORPORATION. DATA MODERNIZATION INITIATIVE, CLOUD PLATFORM, & RELATED SERVICES

Who is the contractor on this award?

The obligated recipient is FEDERAL RESOURCES CORPORATION.

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 $17.5 million.

What is the period of performance?

Start: 2023-09-20. End: 2025-03-19.

What is the specific nature of the 'data modernization' and 'cloud platform' services being procured?

The provided data does not detail the specific services. 'Data modernization' typically involves updating legacy systems to more efficient, scalable, and secure platforms, often including data warehousing, analytics, and improved data governance. 'Cloud platform' services usually refer to the migration of data and applications to cloud environments (e.g., AWS, Azure, GCP) for enhanced flexibility, cost-efficiency, and disaster recovery. Without a Statement of Work (SOW) or detailed contract line item numbers (CLINs), the precise scope remains undefined. This ambiguity makes it difficult to assess if the $17.5 million award is adequate or excessive for the intended outcomes.

How does the pricing of this contract compare to similar federal IT modernization contracts?

Direct price comparison is difficult without specific service details and labor categories. However, the $17.5 million award over approximately 1.5 years suggests a significant investment. To benchmark, one would need to identify comparable contracts for cloud migration and data platform development within HHS or other large federal agencies (e.g., DoD, GSA) awarded within the last 1-2 years. Key metrics for comparison would include cost per cloud service unit, cost per data engineer hour, or total project cost relative to the number of users or data volume managed. The firm fixed-price nature provides some cost certainty, but the underlying rates and efficiency assumptions are unknown.

What are the primary risks associated with this contract for the government?

Key risks include potential scope creep if the modernization goals are not clearly defined, vendor lock-in with the chosen cloud platform or services, cybersecurity vulnerabilities during migration and operation, and the possibility of the contractor not delivering the expected performance or quality. The 'exclusion of sources' in the competition type also presents a risk if it unduly limited competition, potentially leading to suboptimal pricing or reduced innovation. Furthermore, ensuring the successful integration of modernized systems with existing agency infrastructure and workflows is a common challenge in such projects.

What is the track record of Federal Resources Corporation in delivering similar IT modernization and cloud services?

Information on Federal Resources Corporation's specific track record for large-scale data modernization and cloud platform projects is not detailed in the provided data. A thorough assessment would require reviewing their past performance on government contracts, including client satisfaction ratings, successful project completions, and any history of contract disputes or performance issues. Examining their portfolio of previous work, particularly with agencies like HHS or CDC, would provide insight into their capabilities and reliability in delivering complex IT solutions within budget and schedule.

How does this contract align with broader federal IT modernization goals and strategies?

This contract appears to align with the federal government's overarching strategy to modernize IT infrastructure, enhance cybersecurity, and improve data management capabilities across agencies. Initiatives like the Modernizing Government Technology (MGT) Act and the Federal Data Strategy emphasize the need for agencies to transition to cloud-based solutions and leverage data more effectively. By investing in data modernization and cloud platforms, the CDC is likely aiming to improve its ability to respond to public health emergencies, conduct research, and provide timely information, which are core objectives of federal IT modernization efforts.

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 - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 75D301-23-R-72707

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 153 E 13TH ST, ERIE, PA, 16503

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $17,499,464

Exercised Options: $17,499,464

Current Obligation: $17,499,464

Actual Outlays: $17,499,464

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC61B

IDV Type: GWAC

Timeline