HHS Awards $31.1M for RACDW IT Services to ARLLUK Technology Solutions
Contract Overview
Contract Amount: $31,130,250 ($31.1M)
Contractor: Arlluk Technology Solutions LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2025-03-02
End Date: 2027-03-01
Contract Duration: 729 days
Daily Burn Rate: $42.7K/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: WITHIN THIS CONTEXT, CPI SEEKS TO OBTAIN PROFESSIONAL IT SERVICES FOR MAINTENANCE AND DEVELOPMENT TO SUPPORT THE CURRENT RACDW TO FURTHER ADVANCE THE CAPABILITIES OF THE SYSTEM AND THE PROGRAM.
Place of Performance
Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $31.1 million to ARLLUK TECHNOLOGY SOLUTIONS LLC for work described as: WITHIN THIS CONTEXT, CPI SEEKS TO OBTAIN PROFESSIONAL IT SERVICES FOR MAINTENANCE AND DEVELOPMENT TO SUPPORT THE CURRENT RACDW TO FURTHER ADVANCE THE CAPABILITIES OF THE SYSTEM AND THE PROGRAM. Key points: 1. Contract focuses on maintenance and development for the RACDW system. 2. ARLLUK Technology Solutions LLC is the awardee. 3. The contract is for Computer Systems Design Services. 4. A firm-fixed-price contract type is utilized.
Value Assessment
Rating: fair
The contract value of $31.1M over 729 days appears reasonable for IT services. Benchmarking against similar contracts for system maintenance and development is needed for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests a limited competition, potentially impacting price discovery and overall value.
Taxpayer Impact: Taxpayer funds are being used for IT modernization, which can improve government efficiency if managed effectively.
Public Impact
Enhances critical healthcare IT infrastructure supporting Medicare and Medicaid. Aims to advance capabilities of the RACDW system. Supports ongoing operations and future development of a key program.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to suboptimal pricing.
- Potential for scope creep in development tasks.
Positive Signals
- Focus on system enhancement and maintenance.
- Firm-fixed-price contract can control costs.
Sector Analysis
This contract falls within the IT sector, specifically Computer Systems Design Services. Spending in this area is substantial across federal agencies, with significant investment in maintaining and upgrading legacy systems while developing new capabilities.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award.
Oversight & Accountability
The contract is a delivery order under a larger award, suggesting some level of prior oversight. Further review of the parent contract and the specific justification for excluding other sources is recommended.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Limited competition
- Lack of detailed justification for source exclusion
- Potential for cost overruns if scope is not tightly managed
- Need for clear performance metrics
Tags
computer-systems-design-services, department-of-health-and-human-services, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $31.1 million to ARLLUK TECHNOLOGY SOLUTIONS LLC. WITHIN THIS CONTEXT, CPI SEEKS TO OBTAIN PROFESSIONAL IT SERVICES FOR MAINTENANCE AND DEVELOPMENT TO SUPPORT THE CURRENT RACDW TO FURTHER ADVANCE THE CAPABILITIES OF THE SYSTEM AND THE PROGRAM.
Who is the contractor on this award?
The obligated recipient is ARLLUK TECHNOLOGY SOLUTIONS 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 $31.1 million.
What is the period of performance?
Start: 2025-03-02. End: 2027-03-01.
What is the specific justification for excluding other sources in this full and open competition?
The provided data states 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' but does not detail the specific justification. Typically, this requires a compelling reason, such as unique capabilities or a critical need that only one source can meet. Understanding this rationale is crucial for assessing the fairness of the procurement process and potential impact on cost.
How does the pricing compare to industry benchmarks for similar IT maintenance and development contracts?
A direct comparison to industry benchmarks is not possible with the given data. A thorough analysis would involve evaluating the hourly rates, project scope, and deliverables against market data for comparable IT services. This would help determine if the $31.1M award represents a fair and reasonable price for the services rendered over the 729-day period.
What are the key performance indicators (KPIs) for this contract to ensure effective system advancement?
The data does not specify the KPIs for this contract. Effective oversight would require clearly defined metrics related to system uptime, performance improvements, successful feature deployments, and user satisfaction. These KPIs should be tied to the contract's objectives of maintaining and advancing the RACDW system's capabilities.
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 › 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: 3800 CENTERPOINT DR STE 700, ANCHORAGE, AK, 99503
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $81,350,508
Exercised Options: $31,130,250
Current Obligation: $31,130,250
Actual Outlays: $13,695,168
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 47QTCB22D0302
IDV Type: GWAC
Timeline
Start Date: 2025-03-02
Current End Date: 2027-03-01
Potential End Date: 2030-03-01 00:00:00
Last Modified: 2026-03-31
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