HHS awards $34M for maternal health data analysis to Premier Healthcare Solutions, a sole-source contract

Contract Overview

Contract Amount: $34,043,529 ($34.0M)

Contractor: Premier Healthcare Solutions, Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2022-09-30

End Date: 2026-09-29

Contract Duration: 1,460 days

Daily Burn Rate: $23.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MATERNAL MORBIDITY AND MORTALITY DATA AND ANALYSIS

Place of Performance

Location: CHARLOTTE, MECKLENBURG County, NORTH CAROLINA, 28277

State: North Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $34.0 million to PREMIER HEALTHCARE SOLUTIONS, INC for work described as: MATERNAL MORBIDITY AND MORTALITY DATA AND ANALYSIS Key points: 1. The contract value of $34 million over four years represents a significant investment in maternal health data. 2. As a sole-source award, the lack of competition raises questions about potential overpayment and value for money. 3. The contract's duration of four years suggests a long-term need for these data analysis services. 4. The specific services procured fall under computing infrastructure and data processing, indicating a focus on technological solutions. 5. The absence of small business set-asides means opportunities for smaller firms in this area are not explicitly prioritized. 6. The contract's performance period extends into 2026, implying ongoing data needs for maternal health initiatives.

Value Assessment

Rating: questionable

Benchmarking the value of this sole-source contract is challenging without competitive bids. The $34 million award over four years, averaging $8.5 million annually, appears substantial for data analysis services. Without comparable contracts or market research data, it's difficult to definitively assess if this represents fair pricing or if Premier Healthcare Solutions is receiving an optimal rate. The lack of competition prevents a direct comparison to identify potential cost savings that might have been achieved through a competitive bidding process.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when only one vendor is capable of providing the required services, or in situations deemed urgent or necessary for national security. The lack of multiple bidders means there was no opportunity for price discovery through a competitive process, potentially leading to higher costs for the government compared to a competed award.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure. Without competing offers, the government cannot be assured it received the best possible price for these critical data analysis services.

Public Impact

The primary beneficiaries are the Department of Health and Human Services (HHS) and potentially the public through improved maternal health outcomes. The services delivered involve data analysis, computing infrastructure, and web hosting to support maternal morbidity and mortality initiatives. The geographic impact is national, as maternal health is a concern across the United States. Workforce implications may include the need for specialized data scientists and public health analysts within HHS or contracted through Premier Healthcare Solutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially value for money.
Lack of transparency in the justification for sole-source procurement.
Contract duration of four years may lock in costs without periodic re-evaluation.
No explicit small business participation noted, potentially limiting broader economic impact.

Positive Signals

Addresses a critical public health issue: maternal morbidity and mortality.
Focuses on data analysis, which is essential for evidence-based policy and interventions.
Awarded to a single entity, potentially allowing for focused expertise and streamlined execution.
Contract duration suggests a sustained commitment to addressing the issue.

Sector Analysis

The contract falls within the IT and professional services sector, specifically focusing on data processing and hosting. The federal government spends billions annually on IT services, with significant portions dedicated to data management and analysis. This contract's value of $34 million is moderate within the broader context of federal IT spending but substantial for a specific public health data initiative. Comparable spending benchmarks would typically involve analyzing other large federal contracts for data analytics and cloud hosting services, particularly those related to health and human services.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Consequently, there are no explicit requirements for subcontracting to small businesses. This means that opportunities for small businesses to participate in this significant federal contract are not guaranteed and would depend on Premier Healthcare Solutions' own subcontracting decisions. The absence of a set-aside may limit the direct economic benefits to the small business ecosystem in this specific procurement.

Oversight & Accountability

Oversight for this contract would primarily reside within the Department of Health and Human Services (HHS), specifically the Office of the Assistant Secretary for Administration. As a definitive contract, it is subject to standard federal procurement regulations and oversight mechanisms. Transparency regarding the specific justification for the sole-source award and ongoing performance monitoring will be crucial. The Inspector General's office within HHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Maternal and Child Health Bureau Programs
National Center for Health Statistics
Centers for Disease Control and Prevention Initiatives
Federal Health IT Spending
Public Health Data Modernization Efforts

Risk Flags

Sole-source award raises concerns about competition and potential value.
Lack of transparency regarding the justification for sole-source procurement.
Potential for cost overruns due to absence of competitive bidding.
Cybersecurity and data privacy risks associated with handling sensitive health data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $34.0 million to PREMIER HEALTHCARE SOLUTIONS, INC. MATERNAL MORBIDITY AND MORTALITY DATA AND ANALYSIS

Who is the contractor on this award?

The obligated recipient is PREMIER HEALTHCARE SOLUTIONS, INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $34.0 million.

What is the period of performance?

Start: 2022-09-30. End: 2026-09-29.

What is the specific justification provided by HHS for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source procurements are justified under specific circumstances outlined in the Federal Acquisition Regulation (FAR), such as when only one responsible source is available, or in cases of urgent and compelling need. Without access to the official justification document, it is impossible to determine the precise rationale. This lack of transparency is a common concern with sole-source contracts, as it limits the public's ability to understand why competition was bypassed and whether it was truly necessary.

How does the annual cost of this contract compare to similar federal data analysis or IT hosting contracts?

The contract averages approximately $8.5 million per year ($34 million / 4 years). Benchmarking this against similar federal contracts is difficult without more specific details on the scope of services and the agencies involved. However, federal IT services and data analytics contracts can range widely in cost. For instance, large-scale cloud hosting contracts or complex data analytics platforms for agencies like the Department of Defense or the IRS can run into tens or hundreds of millions annually. To provide a precise comparison, one would need to identify contracts with similar service descriptions (e.g., data processing, web hosting, specific analytical tools) and similar contract types (e.g., definitive contracts) awarded by comparable agencies. The sole-source nature of this award also complicates direct value-for-money comparisons.

What are the key performance indicators (KPIs) or deliverables expected under this contract?

The provided data summary does not specify the key performance indicators (KPIs) or detailed deliverables for this contract. Typically, contracts of this nature would include requirements for data accuracy, timeliness of analysis, system uptime for hosting services, and the production of specific reports or insights related to maternal morbidity and mortality. The effectiveness of the contract would be measured against these defined metrics. Without access to the contract's statement of work (SOW) or performance work statement (PWS), a detailed assessment of expected outcomes and performance standards is not possible.

What is Premier Healthcare Solutions, Inc.'s track record with federal contracts, particularly with HHS?

Premier Healthcare Solutions, Inc. has been awarded federal contracts, including this one from HHS. A comprehensive review of their track record would involve examining their past performance on other government contracts, including their history with HHS and other agencies. This would entail looking at contract values, types of services provided, past performance reviews (if publicly available), and any history of contract disputes or terminations. Without a detailed contract history database search, it's difficult to provide a full assessment. However, being awarded a $34 million sole-source contract suggests a level of established capability and potentially a prior relationship or demonstrated expertise valued by the agency.

What historical spending has HHS allocated towards maternal morbidity and mortality data analysis?

The provided data only pertains to this specific $34 million contract awarded in 2022. It does not offer historical spending context for maternal morbidity and mortality data analysis by HHS. To understand historical spending patterns, one would need to analyze HHS's budget allocations and contract awards over several preceding fiscal years related to public health data, maternal health initiatives, and data analytics. This would involve searching federal procurement databases (like FPDS or USASpending.gov) for relevant keywords and agencies over time to identify trends, total investment, and the types of contracts utilized.

Are there any known risks associated with the specific services being procured (computing infrastructure, data processing, web hosting)?

Risks associated with computing infrastructure, data processing, and web hosting services are common and include cybersecurity threats (data breaches, ransomware), system outages or downtime impacting service availability, data integrity issues, vendor lock-in, and challenges with scalability or performance. For a contract focused on sensitive health data, ensuring robust data security, privacy compliance (e.g., HIPAA), and business continuity is paramount. The sole-source nature of this award could also introduce risks if the contractor underperforms, as switching vendors mid-contract might be complex and costly. Effective oversight and clear performance standards are crucial to mitigate these risks.

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: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13034 BALLANTYNE CORPORATE PL, CHARLOTTE, NC, 28277

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

Financial Breakdown

Contract Ceiling: $39,559,867

Exercised Options: $34,043,529

Current Obligation: $34,043,529

Actual Outlays: $27,972,116

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline