HHS awards $710K for Mammography Tracking Program support to Applied Software Inc

Contract Overview

Contract Amount: $71,064 ($71.1K)

Contractor: Applied Software Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2025-03-24

End Date: 2027-03-31

Contract Duration: 737 days

Daily Burn Rate: $96/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MAMMOGRAPHY TRACKING PROGRAM AND SERVICE SUPPORT FOR THE WHITE EARTH HEALTH CENTER

Place of Performance

Location: OGEMA, BECKER County, MINNESOTA, 56569

State: Minnesota Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $71,064.1 to APPLIED SOFTWARE INC for work described as: MAMMOGRAPHY TRACKING PROGRAM AND SERVICE SUPPORT FOR THE WHITE EARTH HEALTH CENTER Key points: 1. Contract awarded for essential health IT services to support the White Earth Health Center. 2. The contract duration of 737 days suggests a need for sustained operational support. 3. Fixed-price contract type aims to control costs and provide budget certainty. 4. The award was made under Simplified Acquisition Procedures, indicating a focus on efficiency for smaller procurements. 5. The specific NAICS code (518210) points to a need for robust data processing and hosting capabilities. 6. The geographic location in Minnesota may indicate a focus on serving specific tribal health needs.

Value Assessment

Rating: good

The contract value of $710,641.10 over approximately two years appears reasonable for specialized IT support services. Benchmarking against similar contracts for health IT infrastructure and data management within the Indian Health Service (IHS) would provide a more precise value-for-money assessment. However, the fixed-price nature of the award suggests a degree of cost control and predictability for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), which allows for a broader range of competition than micro-purchases but is less formal than full and open competition for larger contracts. While the specific number of bidders is not provided, SAP aims to ensure fair and open competition for procurements below certain thresholds, promoting price discovery and value.

Taxpayer Impact: Using SAP for this procurement likely resulted in a more competitive environment than a sole-source award, potentially leading to better pricing for taxpayers. The process aims to balance efficiency with ensuring a fair market opportunity.

Public Impact

Patients at the White Earth Health Center will benefit from improved mammography tracking and associated health services. The contract ensures the continuity of critical IT infrastructure and data processing services for healthcare operations. The services delivered will support the operational efficiency of the Indian Health Service in Minnesota. Workforce implications include the potential for IT professionals to support this specialized healthcare technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge is developed solely by Applied Software Inc.
Dependence on a single vendor for critical IT infrastructure could pose a risk if performance issues arise.
Ensuring data security and privacy compliance for sensitive health information is paramount.

Positive Signals

Fixed-price contract provides cost certainty and limits the government's exposure to cost overruns.
Competition under SAP suggests an effort to obtain competitive pricing and a suitable vendor.
The contract duration indicates a commitment to sustained support for a vital health program.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on data processing, web hosting, and related services. The market for such services is highly competitive, with numerous providers offering cloud-based and on-premise solutions. The value of this contract is relatively small within the overall federal IT spending landscape, but it addresses a critical niche within healthcare IT for the Indian Health Service.

Small Business Impact

The data does not indicate if this contract included a small business set-aside. However, the procurement was conducted under Simplified Acquisition Procedures, which can sometimes favor small businesses. Further analysis would be needed to determine if subcontracting opportunities were mandated or if small businesses were primary bidders.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services and the Indian Health Service contracting officers. The fixed-price nature of the award provides a degree of financial oversight. Transparency is facilitated by public contract databases, and any specific Inspector General jurisdiction would depend on the nature of any potential issues arising during contract performance.

Related Government Programs

Indian Health Service IT Modernization Efforts
Federal Health IT Infrastructure Support
Mammography Screening Programs

Risk Flags

Potential for performance issues impacting critical health services.
Risk of data breaches with sensitive patient health information.
Ensuring adequate competition within the Simplified Acquisition Procedures framework.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $71,064.1 to APPLIED SOFTWARE INC. MAMMOGRAPHY TRACKING PROGRAM AND SERVICE SUPPORT FOR THE WHITE EARTH HEALTH CENTER

Who is the contractor on this award?

The obligated recipient is APPLIED SOFTWARE INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Indian Health Service).

What is the total obligated amount?

The obligated amount is $71,064.1.

What is the period of performance?

Start: 2025-03-24. End: 2027-03-31.

What is the track record of Applied Software Inc. with the federal government, particularly within the Department of Health and Human Services?

A review of federal procurement data indicates that Applied Software Inc. has a history of receiving federal contracts. To assess their track record specifically with HHS and the IHS, a deeper dive into contract databases like FPDS or SAM.gov would be necessary. This would reveal the types of services they have provided, their performance ratings on past contracts, and any significant issues or successes. Understanding their past performance is crucial for evaluating their capability to deliver on this current mammography tracking program support contract, especially given the sensitive nature of healthcare data and services.

How does the awarded price compare to market rates for similar mammography tracking and IT support services?

Benchmarking the $710,641.10 award against market rates requires detailed analysis of comparable contracts. Factors such as the scope of services (software development, hosting, maintenance, user support), the specific technologies used, and the geographic location of the health center are critical. Without access to a comprehensive database of similar IHS or tribal health center IT contracts, a precise comparison is difficult. However, for specialized IT support in a healthcare setting, this value appears within a reasonable range for a two-year period, assuming the scope of work is well-defined and the vendor possesses the necessary expertise.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential performance issues from the contractor, data security breaches of sensitive patient information, and vendor lock-in. Mitigation strategies are inherent in the contract structure and oversight. The fixed-price nature helps mitigate cost overrun risks. The competition under SAP suggests a selection process aimed at finding a capable vendor. Ongoing oversight by HHS/IHS contracting officers, performance monitoring, and adherence to strict data security protocols (like HIPAA) are crucial for mitigating performance and security risks. Clear contract deliverables and service level agreements also play a role.

How effective is the chosen procurement method (SAP) in ensuring value for money for this specific requirement?

Simplified Acquisition Procedures (SAP) are designed for procurements below certain thresholds (currently $250,000, but can be higher for certain categories) to streamline the process and achieve efficiency. For a contract valued at approximately $710,000, it's possible this falls into a category where SAP is applicable or that it was awarded in phases. SAP generally allows for broader competition than micro-purchases, promoting price discovery. However, the level of competition and the resulting price discovery might be less rigorous than under full and open competition for larger contracts. The effectiveness in ensuring value depends on the specific implementation and the number of responsive bids received.

What is the historical spending pattern for mammography tracking and related IT support services within the Indian Health Service?

Analyzing historical spending patterns for mammography tracking and IT support within the IHS is essential for context. This would involve examining past contracts awarded for similar services, their values, durations, and the contractors involved. Significant year-over-year increases or decreases in spending could indicate shifts in program priorities, technological adoption, or changes in service delivery models. Understanding this history helps in assessing whether the current $710,641.10 award is consistent with past investments or represents a new initiative or a significant change in scope or cost.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8171 MAPLE LAWN BLVD STE 300, FULTON, MD, 20759

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $107,000

Exercised Options: $71,064

Current Obligation: $71,064

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline