HHS Renews Palo Alto Maintenance for $5.46M, Awarded via Full and Open Competition
Contract Overview
Contract Amount: $5,455,816 ($5.5M)
Contractor: Anacapa Micro Products, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2025-09-29
End Date: 2026-09-29
Contract Duration: 365 days
Daily Burn Rate: $14.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: TASK ORDER: FY2025 ODT-OIS PALO ALTO MAINTENANCE RENEWAL
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $5.5 million to ANACAPA MICRO PRODUCTS, INC. for work described as: TASK ORDER: FY2025 ODT-OIS PALO ALTO MAINTENANCE RENEWAL Key points: 1. Spending is for IT maintenance, a recurring need for government operations. 2. Anacapa Micro Products, Inc. is the incumbent contractor. 3. The contract is firm-fixed-price, providing cost certainty. 4. This is a task order under a larger contract vehicle.
Value Assessment
Rating: good
The $5.46M renewal for one year appears reasonable for specialized IT maintenance. Benchmarking against similar maintenance contracts for complex systems is needed for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition after exclusion of sources, indicating a competitive process. This method generally promotes price discovery and fair market value.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the maintenance services.
Public Impact
Ensures continued operation of critical IT systems within HHS. Supports the Office of the Assistant Secretary for Financial Resources' functions. Maintains the availability of essential digital infrastructure for the agency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if not managed proactively.
- Reliance on a single vendor for critical maintenance.
Positive Signals
- Firm-fixed-price contract provides budget predictability.
- Competitive award process suggests fair pricing.
Sector Analysis
This spending falls within the IT services sector, specifically 'Other Computer Related Services'. Government spending on IT maintenance is substantial and essential for maintaining aging infrastructure and supporting new technologies.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and the incumbent is not listed as a small business. Further analysis would be needed to determine if small businesses could have competed.
Oversight & Accountability
The task order structure suggests oversight exists through the parent contract vehicle. Monitoring performance and ensuring adherence to the firm-fixed-price terms are key accountability measures.
Related Government Programs
- Other Computer Related Services
- Department of Health and Human Services Contracting
- Office of the Assistant Secretary for Financial Resources Programs
Risk Flags
- Potential for price creep in future renewals.
- Dependence on a single vendor for critical IT support.
- Limited transparency on specific maintenance deliverables.
- Risk of obsolescence if technology is not updated.
Tags
other-computer-related-services, department-of-health-and-human-services, md, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $5.5 million to ANACAPA MICRO PRODUCTS, INC.. TASK ORDER: FY2025 ODT-OIS PALO ALTO MAINTENANCE RENEWAL
Who is the contractor on this award?
The obligated recipient is ANACAPA MICRO PRODUCTS, 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 $5.5 million.
What is the period of performance?
Start: 2025-09-29. End: 2026-09-29.
What is the historical performance of Anacapa Micro Products, Inc. on similar contracts?
Assessing Anacapa Micro Products, Inc.'s past performance is crucial. Reviewing previous contract awards, performance reviews, and any past issues or successes with HHS or other agencies will provide insight into their reliability and capability. This historical data helps validate their suitability for this renewal and informs future procurement decisions.
Are there alternative solutions or technologies that could reduce long-term maintenance costs?
Exploring alternative solutions is vital for long-term cost efficiency. Investigating whether newer technologies, open-source alternatives, or different maintenance approaches could be adopted by HHS might reveal opportunities to reduce reliance on specific vendors and potentially lower overall spending. This proactive approach can mitigate future cost increases.
How does the per-unit cost of this maintenance compare to industry benchmarks for similar IT systems?
Comparing the per-unit cost against industry benchmarks is essential for value assessment. If the cost per unit is significantly higher than comparable services in the private sector or for other government agencies, it could indicate potential overpricing or inefficiencies. This comparison helps ensure taxpayer funds are used effectively.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - SECURITY AND COMPLIANCE
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Anacapa Micro Products Inc.
Address: 1901 SOLAR DR STE 150, OXNARD, CA, 93036
Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $5,455,816
Exercised Options: $5,455,816
Current Obligation: $5,455,816
Actual Outlays: $5,455,816
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SD08B
IDV Type: GWAC
Timeline
Start Date: 2025-09-29
Current End Date: 2026-09-29
Potential End Date: 2026-09-29 00:00:00
Last Modified: 2026-04-09
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