HHS awards $6.6M for workflow software, with a 709-day duration and firm fixed price

Contract Overview

Contract Amount: $6,584,000 ($6.6M)

Contractor: NEW Tech Solutions, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2025-04-15

End Date: 2027-03-25

Contract Duration: 709 days

Daily Burn Rate: $9.3K/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: WORKFLOW PREMIUM FLEX SOFTWARE LICENSES AND MAINTENANCE

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20903

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $6.6 million to NEW TECH SOLUTIONS, INC. for work described as: WORKFLOW PREMIUM FLEX SOFTWARE LICENSES AND MAINTENANCE Key points: 1. The contract value of $6.6 million for workflow software over approximately two years suggests a moderate investment in operational efficiency tools. 2. Competition was full and open after exclusion of sources, indicating a potentially competitive bidding process, though the specific exclusion details warrant review. 3. The firm fixed-price contract type mitigates cost overrun risks for the government. 4. The contract's duration of 709 days (nearly two years) aligns with typical software licensing and maintenance cycles. 5. The North American Industry Classification System (NAICS) code 541519 (Other Computer Related Services) places this contract within the broader IT services sector. 6. The award to NEW TECH SOLUTIONS, INC. represents a single vendor engagement for this specific requirement.

Value Assessment

Rating: fair

The contract value of $6.6 million for workflow software over 709 days results in an approximate annual cost of $3.3 million. Benchmarking this against similar workflow software licenses and maintenance contracts is challenging without more specific details on the software's functionality and user base. However, the firm fixed-price nature suggests the government has negotiated a defined cost for the services, which can be a positive indicator of value if the price is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be broad, specific sources may have been excluded prior to the solicitation. The number of bidders is not provided, which limits the assessment of the actual competitive landscape. A full and open competition generally promotes price discovery and allows a wider range of vendors to propose solutions.

Taxpayer Impact: The 'full and open' aspect suggests that taxpayers benefit from a potentially wider pool of offers, which can lead to more competitive pricing. However, the exclusion of sources means that the full potential of the market may not have been realized, potentially impacting the best possible price for taxpayers.

Public Impact

The primary beneficiaries are likely the internal staff within the Department of Health and Human Services (HHS) who will utilize the workflow premium flex software. The services delivered include software licenses and ongoing maintenance, ensuring the functionality and support of the workflow system. The geographic impact is primarily within the operational locations of HHS, likely concentrated in Maryland where the contract is registered. Workforce implications are related to the efficiency gains expected from improved workflow management software for HHS employees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The exclusion of sources in a 'full and open' competition raises questions about the breadth of competition and potential missed opportunities for other qualified vendors.
Lack of specific details on the 'workflow premium flex software' makes it difficult to assess if the chosen solution is the most cost-effective or feature-rich available.
The contract value, while not excessively high, warrants scrutiny to ensure it aligns with market rates for similar enterprise software solutions.

Positive Signals

The firm fixed-price contract type provides cost certainty for the government, protecting against unexpected price increases.
The 'full and open' competition, even with exclusions, suggests an effort to engage the market and secure competitive offers.
The contract duration of nearly two years allows for stable access to essential software and maintenance.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under IT professional services. The market for workflow automation and management software is substantial and growing, driven by the need for organizational efficiency across all industries, including government. Comparable spending benchmarks would typically involve analyzing IT service contracts for software licensing and maintenance awarded to agencies of similar size and scope to HHS. The NAICS code 541519 indicates a broad category of computer-related services, suggesting this contract could encompass various aspects of IT support beyond just software.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside for this contract. Therefore, there are no direct subcontracting implications or mandated small business set-asides associated with this award. The primary focus appears to be on securing the required software solution through the most advantageous means available under the competition structure.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Health and Human Services' contracting officers and program managers. Accountability measures are inherent in the firm fixed-price structure, which obligates the contractor to deliver the specified software and maintenance within the agreed-upon cost. Transparency is facilitated by the public nature of federal contract awards, allowing for general observation. Specific Inspector General (IG) jurisdiction would depend on whether the contract falls under any specific audit initiatives or investigations related to IT procurement or HHS operations.

Related Government Programs

HHS IT Modernization Initiatives
Federal Civilian Agency Software Procurement
Workflow Automation Software Contracts
IT Services for Health Agencies

Risk Flags

Potential for limited competition due to source exclusion
Lack of detailed software functionality information
Unknown track record of the awarded contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $6.6 million to NEW TECH SOLUTIONS, INC.. WORKFLOW PREMIUM FLEX SOFTWARE LICENSES AND MAINTENANCE

Who is the contractor on this award?

The obligated recipient is NEW TECH SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Financial Resources).

What is the total obligated amount?

The obligated amount is $6.6 million.

What is the period of performance?

Start: 2025-04-15. End: 2027-03-25.

What specific functionalities does 'WORKFLOW PREMIUM FLEX SOFTWARE' provide, and how do these align with HHS's operational needs?

The provided data does not detail the specific functionalities of the 'WORKFLOW PREMIUM FLEX SOFTWARE.' To assess its alignment with HHS's operational needs, a review of the contract's Statement of Work (SOW) or Performance Work Statement (PWS) would be necessary. This document would outline the required features, performance standards, and objectives the software is intended to achieve. Without this information, it's difficult to determine if the software is tailored to enhance specific HHS workflows, improve data management, streamline administrative processes, or support critical health-related operations. Understanding these functionalities is crucial for evaluating the software's potential impact on efficiency and effectiveness within the agency.

How does the $6.6 million contract value compare to market rates for similar workflow software licenses and maintenance over a 709-day period?

Benchmarking the $6.6 million contract value against market rates for similar workflow software licenses and maintenance over 709 days (approximately 23 months) requires detailed market research. Factors influencing market rates include the software's complexity, number of users, vendor reputation, included support levels, and any customization required. Given the NAICS code 541519 (Other Computer Related Services), the software could range from off-the-shelf solutions to more specialized platforms. A preliminary assessment suggests that for enterprise-level workflow solutions with comprehensive support, this value is within a plausible range, but a definitive comparison would necessitate identifying comparable software products and their pricing structures from commercial vendors. The firm fixed-price nature, however, indicates a negotiated rate that should ideally reflect competitive market conditions.

What were the specific reasons for excluding certain sources in this 'full and open competition after exclusion of sources' award?

The data indicates the contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' The specific reasons for excluding certain sources are not detailed in the provided information. Typically, such exclusions might occur if certain vendors were deemed not to meet minimum qualifications, if there were prior performance issues, or if specific technological requirements necessitated a narrower initial pool. The contracting agency (HHS) would have documented these exclusion justifications. Understanding these reasons is important for assessing whether the competition was genuinely as broad as possible or if potential cost-saving opportunities from excluded vendors were missed. Further investigation into the solicitation documents would be required to uncover the precise rationale.

What is the track record of NEW TECH SOLUTIONS, INC. in delivering similar IT services and software solutions to federal agencies?

The provided data identifies NEW TECH SOLUTIONS, INC. as the contractor but does not offer details on their track record. To assess their performance history, one would need to consult federal procurement databases like SAM.gov or FPDS-NG for past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any reported issues or successes. A vendor's history with similar software solutions, contract types (like firm fixed price), and agency types (like HHS) would be key indicators of their capability and reliability in fulfilling this current contract. Without this historical data, it is difficult to gauge the risk associated with this specific awardee.

What are the potential risks associated with a firm fixed-price contract for software licenses and maintenance, and how are they mitigated?

Firm fixed-price (FFP) contracts are generally favored for their cost certainty, but they can introduce risks, particularly for complex IT services. For software licenses and maintenance, the primary risk is that the vendor may cut corners on support or updates to maintain profitability if the initial price was set too low or if unforeseen technical challenges arise. Conversely, if the price was set too high, the government may overpay. Mitigation strategies include a well-defined Statement of Work (SOW) that clearly outlines deliverables, service levels, and acceptance criteria. Robust government oversight, regular performance reviews, and clear communication channels are essential to ensure the contractor meets all obligations. The government also benefits from the vendor assuming most of the cost risk.

Industry Classification

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

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4179 BUSINESS CENTER DR, FREMONT, CA, 94538

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,584,000

Exercised Options: $6,584,000

Current Obligation: $6,584,000

Actual Outlays: $3,260,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC82B

IDV Type: GWAC

Timeline