HHS Awards $171M for Licensed Software Management to Ventech Solutions Inc
Contract Overview
Contract Amount: $171,374,294 ($171.4M)
Contractor: Ventech Solutions Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2020-07-23
End Date: 2025-07-22
Contract Duration: 1,825 days
Daily Burn Rate: $93.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: COST NO FEE
Sector: IT
Official Description: LICENSED SOFTWARE MANAGEMENT (LSM)
Place of Performance
Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $171.4 million to VENTECH SOLUTIONS INC for work described as: LICENSED SOFTWARE MANAGEMENT (LSM) Key points: 1. Contract value of $171.37M over 5 years. 2. Ventech Solutions Inc. is the sole awardee. 3. Potential risk associated with limited competition. 4. IT sector spending for software management services.
Value Assessment
Rating: fair
The contract value of $171.37M over five years suggests a significant investment. Benchmarking against similar large-scale software management contracts is necessary to fully assess pricing reasonableness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition approach. This method may impact price discovery and potentially lead to higher costs compared to broader competition.
Taxpayer Impact: Taxpayer funds are being utilized for this significant software management contract. The limited competition raises questions about whether the best possible price was achieved.
Public Impact
Ensures proper management and licensing of software across CMS systems. Supports critical healthcare operations by maintaining software integrity. Potential for cost savings through optimized software licensing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Sole awardee
- Long contract duration
Positive Signals
- Essential service for CMS operations
- Clear contract end date
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on software management. Spending benchmarks for similar IT services contracts can vary widely based on scope and complexity.
Small Business Impact
The data indicates that small business participation is not a factor in this award (ss: false, sb: false).
Oversight & Accountability
Oversight will be crucial to ensure Ventech Solutions Inc. meets all contract requirements and that the pricing remains competitive throughout the period of performance.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Potential for overpayment due to limited competition.
- Vendor lock-in risk.
- Dependency on a single provider for critical IT functions.
- Lack of small business participation.
Tags
computer-systems-design-services, department-of-health-and-human-services, md, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $171.4 million to VENTECH SOLUTIONS INC. LICENSED SOFTWARE MANAGEMENT (LSM)
Who is the contractor on this award?
The obligated recipient is VENTECH SOLUTIONS INC.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).
What is the total obligated amount?
The obligated amount is $171.4 million.
What is the period of performance?
Start: 2020-07-23. End: 2025-07-22.
What specific software assets and licenses are covered under this contract?
The contract likely covers a broad range of licensed software used by the Centers for Medicare and Medicaid Services (CMS) to support its critical healthcare operations. This could include operating systems, database licenses, application software, and specialized tools. A detailed inventory and audit process would be essential to confirm the exact scope.
What are the risks associated with a limited competition award for software management?
Limited competition can lead to higher prices due to a lack of competitive pressure. It also reduces the agency's ability to explore innovative solutions from a wider pool of vendors. Furthermore, dependence on a single vendor can create risks if that vendor experiences financial difficulties or fails to meet performance expectations.
How will the effectiveness of the Licensed Software Management be measured?
Effectiveness will likely be measured through key performance indicators (KPIs) such as software license compliance rates, reduction in software-related security vulnerabilities, cost savings achieved through license optimization, and timely availability of necessary software. Regular performance reviews and audits will be critical.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 5
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: 21 GOVERNORS CT STE 250, WINDSOR MILL, MD, 21244
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, 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: $172,503,673
Exercised Options: $171,374,294
Current Obligation: $171,374,294
Actual Outlays: $149,795,960
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 75N98119D00076
IDV Type: GWAC
Timeline
Start Date: 2020-07-23
Current End Date: 2025-07-22
Potential End Date: 2025-07-22 00:00:00
Last Modified: 2025-11-24
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