HHS awards $13.4M contract for IT services to Technology Trends Group, LLC

Contract Overview

Contract Amount: $13,367,883 ($13.4M)

Contractor: Technology Trends Group, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2022-06-01

End Date: 2026-05-31

Contract Duration: 1,460 days

Daily Burn Rate: $9.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ECHIMP 2022

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $13.4 million to TECHNOLOGY TRENDS GROUP, LLC for work described as: ECHIMP 2022 Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1460 days (4 years) indicates a long-term need for these services. 3. The fixed-price contract type may offer cost certainty for the government. 4. The North American Industry Classification System (NAICS) code 541519 suggests a focus on 'Other Computer Related Services'. 5. The award was made by the Centers for Medicare and Medicaid Services (CMS), a major health agency. 6. The contract's value is relatively modest compared to larger federal IT procurements.

Value Assessment

Rating: good

The contract value of $13.4 million over four years averages to approximately $3.35 million per year. Benchmarking this against similar IT service contracts within the federal government requires detailed analysis of scope and deliverables. However, for a contract of this duration and scope, the pricing appears within a reasonable range, assuming the services provided are standard IT support and development. Without specific performance metrics or detailed service descriptions, a precise value-for-money assessment is challenging, but the fixed-price nature provides some cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION', indicating that all responsible sources were permitted to submit a bid. The presence of 2 bids suggests a moderate level of competition for this specific award. While more than two bidders would generally indicate stronger competition, the fact that it was fully competed is a positive sign for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A fully competed contract generally leads to better pricing for taxpayers by fostering a competitive environment among potential vendors.

Public Impact

Beneficiaries include the Centers for Medicare and Medicaid Services (CMS) staff who will receive IT support. Services delivered likely encompass IT support, maintenance, and potentially development related to CMS systems. The geographic impact is primarily within the operational scope of CMS, likely supporting federal employees and contractors. Workforce implications may include employment for IT professionals at Technology Trends Group, LLC and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements are not clearly defined.
Dependence on a single contractor for critical IT services could pose a risk if performance falters.
Ensuring ongoing alignment with evolving technological needs and CMS strategic goals.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent process.
Fixed-price contract type can provide budget predictability.
The contractor, Technology Trends Group, LLC, has secured a federal contract, suggesting some level of established capability.

Sector Analysis

The federal IT services sector is vast and highly competitive, encompassing a wide range of services from basic helpdesk support to complex system development and cybersecurity. This contract, under NAICS code 541519, falls into the 'Other Computer Related Services' category, which can include a broad spectrum of IT consulting, integration, and support. Spending in this area is consistently high across various federal agencies as they modernize systems and maintain existing infrastructure. Comparable spending benchmarks would depend heavily on the specific services rendered, but the $13.4 million over four years is a moderate-sized award within the broader federal IT landscape.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on the small business ecosystem would be through potential subcontracting opportunities if Technology Trends Group, LLC chooses to engage small businesses. Without specific subcontracting plans mandated or reported, it's difficult to assess the direct benefit to small businesses from this particular award. However, large prime contracts often create downstream opportunities for specialized small business IT firms.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Centers for Medicare and Medicaid Services (CMS). Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver specified services within the agreed-upon budget. Transparency is generally maintained through federal procurement databases like FPDS-NG, where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected or reported.

Related Government Programs

CMS IT Modernization Initiatives
Federal Civilian IT Services
Health Information Technology Contracts
IT Support Services
Technology Consulting Services

Risk Flags

Contract duration is long (4 years), requiring sustained performance monitoring.
NAICS code is broad, specific service details are needed for full assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $13.4 million to TECHNOLOGY TRENDS GROUP, LLC. ECHIMP 2022

Who is the contractor on this award?

The obligated recipient is TECHNOLOGY TRENDS GROUP, LLC.

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 $13.4 million.

What is the period of performance?

Start: 2022-06-01. End: 2026-05-31.

What is the track record of Technology Trends Group, LLC in performing similar federal IT contracts?

Assessing the track record of Technology Trends Group, LLC requires a review of their past performance on federal contracts, particularly those with the Department of Health and Human Services (HHS) or other agencies requiring similar IT services. Information on past performance, including customer satisfaction, adherence to schedule and budget, and technical execution, is crucial. While this award suggests they met the criteria for selection, a deeper dive into their contract history, including any awards, past performance evaluations, and potential past issues or disputes, would provide a more comprehensive understanding of their capabilities and reliability as a federal contractor. This information is often available through sources like the Contractor Performance Assessment Reporting System (CPARS), though access may be restricted.

How does the average annual cost of this contract compare to similar IT support contracts awarded by CMS or other HHS agencies?

The average annual cost of this contract is approximately $3.35 million ($13.4M / 4 years). To benchmark this effectively, one would need to compare it against other IT support and services contracts awarded by CMS or similar agencies within HHS. Key comparison factors include the scope of services (e.g., help desk, network management, application development, cybersecurity), the number of users or systems supported, the contract duration, and the specific labor categories and rates involved. Without detailed service descriptions and labor rate breakdowns for comparable contracts, a precise comparison is difficult. However, general market intelligence on federal IT service pricing can provide a broader context for assessing whether this annual cost is competitive.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks associated with this contract could include potential vendor lock-in if the services are highly specialized, performance issues leading to delays or subpar service delivery, and cybersecurity vulnerabilities if the contractor handles sensitive data. Given it's a firm-fixed-price contract, a risk for the contractor is cost overruns if their estimates are inaccurate, while for the government, the risk lies in ensuring the contractor meets all performance requirements. Mitigation strategies typically involve clear performance work statements (PWS), robust oversight by the contracting officer's representative (COR), regular performance reviews, and adherence to cybersecurity protocols. The competitive nature of the award may also mitigate some risks by selecting a vendor with a proven track record.

What is the expected impact of this contract on the Centers for Medicare and Medicaid Services' operational effectiveness and IT infrastructure?

This contract is expected to enhance the operational effectiveness of CMS by ensuring the reliable functioning and potential enhancement of its IT infrastructure. By outsourcing 'Other Computer Related Services,' CMS can leverage specialized expertise to maintain and potentially upgrade its systems, which are critical for managing healthcare programs like Medicare and Medicaid. This support likely contributes to the stability of essential services, data management, and the implementation of new technological solutions. The effectiveness will depend on the contractor's performance and the clarity of the service level agreements (SLAs) outlined in the contract.

How has federal spending on 'Other Computer Related Services' (NAICS 541519) evolved over the past five years, and where does this award fit within that trend?

Federal spending on 'Other Computer Related Services' (NAICS 541519) has generally seen a steady increase over the past five years, driven by the ongoing digital transformation across government agencies, the need for cybersecurity enhancements, and the modernization of legacy systems. Agencies increasingly rely on external expertise for specialized IT functions. This $13.4 million award to Technology Trends Group, LLC fits within this broader trend as a typical investment by a major agency (HHS/CMS) to procure necessary IT support. While not an exceptionally large award in isolation, the aggregate spending across the government under this NAICS code represents a significant portion of the federal IT budget, reflecting the continuous demand for these services.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2121 15TH ST N, ARLINGTON, VA, 22201

Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $16,506,428

Exercised Options: $13,367,883

Current Obligation: $13,367,883

Actual Outlays: $12,068,252

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0644Y

IDV Type: FSS

Timeline