HHS awards $11.8M for IT program management, raising value-for-money questions

Contract Overview

Contract Amount: $11,841,794 ($11.8M)

Contractor: Tantus Technologies, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2022-11-22

End Date: 2026-10-20

Contract Duration: 1,428 days

Daily Burn Rate: $8.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: PROGRAM MANAGEMENT OFFICE SUPPORT FOR THE HHS-ASFR

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $11.8 million to TANTUS TECHNOLOGIES, INC. for work described as: PROGRAM MANAGEMENT OFFICE SUPPORT FOR THE HHS-ASFR Key points: 1. Contract awarded via full and open competition after exclusion of sources, suggesting a potentially limited initial search. 2. The contract's Time and Materials pricing structure may pose a risk for cost control. 3. Performance period spans over four years, indicating a long-term need for these services. 4. The specific IT services are categorized under Computer Systems Design, a common area for federal IT support. 5. The award value is moderate, but the pricing model warrants scrutiny for potential overruns. 6. The contractor, TANTUS TECHNOLOGIES, INC., has a track record with federal agencies, requiring review of past performance.

Value Assessment

Rating: fair

The contract's Time and Materials (T&M) pricing model is a key concern for value assessment, as it can lead to unpredictable costs if not managed tightly. While the total award is $11.8 million over approximately four years, the lack of a fixed price or cost ceiling makes direct comparison difficult without detailed labor rates and hours. Benchmarking against similar IT program management support contracts would be necessary to determine if the hourly rates and overall expenditure are competitive. The absence of specific performance metrics in the provided data also hinders a comprehensive value-for-money evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This solicitation method implies that while the competition was ultimately open, there was an initial phase where certain sources were excluded, potentially limiting the initial pool of bidders. The number of bidders is not specified, but the 'after exclusion' clause suggests a more targeted approach than a completely unrestricted open competition. This could impact price discovery if innovative or smaller firms were excluded early on.

Taxpayer Impact: The 'after exclusion' aspect of the competition means taxpayers may not have benefited from the broadest possible range of bids, potentially leading to a less competitive price than if all eligible sources were considered from the outset.

Public Impact

The primary beneficiaries are the Department of Health and Human Services (HHS) and its specific operating division, the National Institutes of Health (NIH), which will receive program management support for their IT initiatives. The services delivered are crucial for the effective planning, execution, and oversight of IT projects within these agencies, ensuring alignment with strategic goals. The geographic impact is primarily within Virginia, where the contractor is located and likely where the services will be performed or managed. This contract supports the federal IT workforce by providing essential program management expertise, potentially augmenting internal capabilities and ensuring project success.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing model increases risk of cost overruns without strict oversight.
The 'after exclusion of sources' competition method may have limited the bidder pool, potentially impacting price competitiveness.
Lack of detailed performance metrics in the award data makes it difficult to assess contractor effectiveness and value.
The long duration of the contract (over 4 years) necessitates ongoing vigilance to ensure continued relevance and cost-efficiency.

Positive Signals

Awarded under a full and open competition framework, indicating an attempt to solicit from a broad base.
The contractor, TANTUS TECHNOLOGIES, INC., is an established entity within the federal contracting space.
The contract supports critical IT program management functions for a major federal health agency (HHS/NIH).

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on Computer Systems Design Services. This is a large and competitive market within the federal government, with agencies consistently seeking support for managing complex IT infrastructures and modernization efforts. Spending in this category often includes system integration, IT project management, and technical consulting. Comparable spending benchmarks would typically look at the average cost of IT program management support contracts across various agencies, considering factors like contract duration, scope of work, and contractor experience.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from a set-aside provision. The primary contractor, TANTUS TECHNOLOGIES, INC., is likely a mid-to-large sized business, and any subcontracting would be at their discretion, not mandated by a small business set-aside requirement.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and program managers within the Department of Health and Human Services (HHS) and the National Institutes of Health (NIH). Accountability measures would be tied to the contract's performance standards and deliverables, particularly given the Time and Materials pricing structure. Transparency could be enhanced by making detailed performance reports and expenditure data publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

HHS IT Modernization Initiatives
NIH IT Support Services
Federal IT Program Management Contracts
Computer Systems Design Services
Health Information Technology Services

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Limited competition pool due to 'after exclusion of sources' method.
Lack of detailed performance metrics hinders value assessment.
Contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $11.8 million to TANTUS TECHNOLOGIES, INC.. PROGRAM MANAGEMENT OFFICE SUPPORT FOR THE HHS-ASFR

Who is the contractor on this award?

The obligated recipient is TANTUS TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $11.8 million.

What is the period of performance?

Start: 2022-11-22. End: 2026-10-20.

What is the track record of TANTUS TECHNOLOGIES, INC. with federal contracts, particularly in IT program management?

TANTUS TECHNOLOGIES, INC. has a history of securing federal contracts, including those related to IT services and program management. A thorough review of their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) would be crucial. This includes examining their success in delivering similar services, adherence to schedules and budgets on previous projects, and any documented issues or disputes. Understanding their experience with Time and Materials contracts specifically would also provide insight into their ability to manage costs effectively and deliver value within this pricing structure. Their overall federal contracting footprint, including the agencies they have served and the types of awards received, offers context for their capabilities and reliability in fulfilling the current HHS contract.

How does the Time and Materials (T&M) pricing structure compare to other IT program management contracts at HHS or NIH?

Time and Materials (T&M) contracts, while offering flexibility, are often viewed with caution due to their potential for cost escalation. Compared to fixed-price or cost-plus-fixed-fee contracts, T&M contracts place a greater burden on the government to meticulously monitor labor hours and material costs to ensure fair pricing. For IT program management at HHS/NIH, agencies often prefer firm-fixed-price contracts for well-defined scopes or cost-plus-incentive-fee contracts to incentivize performance. The use of T&M here suggests either a highly evolving scope where precise definition was difficult at award, or a potential risk that costs could exceed initial projections if not rigorously managed. Benchmarking average hourly rates for similar IT program management roles against industry standards and other government contracts is essential to assess value.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

The provided award data does not explicitly detail the Key Performance Indicators (KPIs) or specific metrics used to measure the performance of TANTUS TECHNOLOGIES, INC. under this contract. Typically, for IT program management support, KPIs might include on-time project completion rates, adherence to budget targets (especially critical with T&M), quality of deliverables, stakeholder satisfaction, and successful implementation of IT solutions. The effectiveness of oversight by HHS/NIH program managers is paramount in ensuring these KPIs are met. Without this information, it's challenging to definitively assess the contractor's performance and the overall success of the program management support being provided.

What is the historical spending trend for IT program management support at HHS/NIH, and how does this award compare?

Historical spending on IT program management support at HHS and its agencies like NIH is substantial, reflecting the critical role of IT in modern healthcare and research. Agencies frequently procure services for system development, infrastructure management, cybersecurity, and data analytics. This $11.8 million award over approximately four years represents a moderate annual expenditure (around $3 million per year). To contextualize this, one would need to analyze HHS/NIH's total IT spending over recent fiscal years, identify comparable contracts for similar services, and examine trends in contract values, durations, and competition levels. Understanding whether this award is in line with, or deviates from, historical patterns can indicate shifts in strategy or market conditions.

What are the potential risks associated with the 'Full and Open Competition After Exclusion of Sources' award method?

The 'Full and Open Competition After Exclusion of Sources' method, while aiming for openness, introduces specific risks. The initial exclusion phase means that not all potentially capable vendors were considered from the outset. This could inadvertently limit the diversity of solutions proposed and potentially exclude smaller, innovative businesses that might offer better value or unique capabilities. The risk for taxpayers is that the competition may not have been as robust as possible, potentially leading to higher prices or less optimal solutions than could have been achieved through a truly unrestricted competition. It necessitates a clear justification for the exclusion criteria to ensure fairness and maximize competition.

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

Solicitation ID: C-91279-SB

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tantus Technologies Inc.

Address: 1735 N LYNN ST STE 650, ARLINGTON, VA, 22209

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,179,551

Exercised Options: $11,841,794

Current Obligation: $11,841,794

Actual Outlays: $8,826,307

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200177W

IDV Type: GWAC

Timeline