Vermont Health Dept. Spends $161M on Computing Services via Non-Competed Delivery Order

Contract Overview

Contract Amount: $161,328 ($161.3K)

Contractor: Vermont Department of Health

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-14

End Date: 2027-05-01

Contract Duration: 382 days

Daily Burn Rate: $422/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: VSCP VERMONT

Place of Performance

Location: WATERBURY, WASHINGTON County, VERMONT, 05671

State: Vermont Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $161,328 to VERMONT DEPARTMENT OF HEALTH for work described as: VSCP VERMONT Key points: 1. Significant spending on computing infrastructure and web hosting services. 2. Lack of competition raises concerns about potential overpayment and value. 3. Long-term contract (382 days) with a fixed price. 4. Sector: IT services supporting public health operations.

Value Assessment

Rating: questionable

The contract value of $161.3M for computing infrastructure and web hosting is substantial. Without competitive bidding, it's difficult to assess if this price is aligned with market rates for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not competed, indicating a limited competition approach. This method may not yield the best pricing or terms for the government, as potential providers did not have an opportunity to bid.

Taxpayer Impact: The lack of competition suggests taxpayers may not be receiving the best possible value for this significant expenditure.

Public Impact

Public health data processing and web hosting services are critical for state operations. The substantial investment in IT infrastructure could impact the efficiency of health services. Transparency in government IT procurement is essential for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High contract value
Potential for price gouging

Positive Signals

Supports critical public health infrastructure
Fixed price contract limits cost uncertainty

Sector Analysis

This contract falls within the IT sector, specifically focusing on computing infrastructure, data processing, and web hosting. Benchmarks for similar government contracts in this area are highly variable based on scope and duration.

Small Business Impact

The data does not indicate whether small businesses were involved in this procurement. Non-competed contracts often limit opportunities for small business participation.

Oversight & Accountability

The non-competed nature of this award warrants further oversight to ensure the justification for limited competition is sound and that the pricing is fair.

Related Government Programs

Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Department of Health and Human Services Contracting
Centers for Disease Control and Prevention Programs

Risk Flags

Lack of competitive bidding
High dollar value
Potential for overpayment
Limited transparency in pricing
Vendor lock-in risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $161,328 to VERMONT DEPARTMENT OF HEALTH. VSCP VERMONT

Who is the contractor on this award?

The obligated recipient is VERMONT DEPARTMENT OF HEALTH.

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 $161,328.

What is the period of performance?

Start: 2026-04-14. End: 2027-05-01.

What was the specific justification for not competing this significant IT services contract?

The justification for not competing this contract is crucial for understanding the procurement process. Typically, non-competed awards are made under specific circumstances, such as urgent needs, sole-source availability of the service, or when only one responsible source can provide the required services. Without this information, it's impossible to fully assess the validity of the procurement method.

How does the $161.3M cost compare to industry benchmarks for similar computing and web hosting services?

Directly comparing this $161.3M cost without detailed service specifications, performance metrics, and contract duration is challenging. However, for such a large sum, industry benchmarks would typically involve detailed analysis of service level agreements, data storage, processing power, security measures, and uptime guarantees. A lack of competition makes it difficult to ascertain if this price reflects competitive market rates.

What are the potential risks associated with a non-competed, long-term contract for essential IT services?

The primary risks include paying above-market rates due to the absence of competitive pressure, potentially receiving suboptimal service quality, and facing vendor lock-in. Furthermore, a non-competed award can stifle innovation and prevent the government from benefiting from new technologies or more cost-effective solutions that might emerge from a competitive bidding process.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 108 CHERRY ST, BURLINGTON, VT, 05401

Business Categories: Category Business, Government, U.S. National Government, Not Designated a Small Business, U.S. Regional/State Government

Financial Breakdown

Contract Ceiling: $161,328

Exercised Options: $161,328

Current Obligation: $161,328

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75D30122D13173

IDV Type: IDC

Timeline