HHS Awards $6.95M IT Services Contract to ZOLON PCS, LLC Under Full and Open Competition
Contract Overview
Contract Amount: $6,954,298 ($7.0M)
Contractor: Zolon PCS, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2023-08-09
End Date: 2027-02-08
Contract Duration: 1,279 days
Daily Burn Rate: $5.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CCHQ IT SERVICES SUPPORT
Place of Performance
Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $7.0 million to ZOLON PCS, LLC for work described as: CCHQ IT SERVICES SUPPORT Key points: 1. Contract Value: $6.95 million over its period of performance. 2. Competition: Awarded under full and open competition, indicating a competitive bidding process. 3. Risk: Low risk identified based on contract type and competition. 4. Sector: Information Technology services.
Value Assessment
Rating: good
The contract value of $6.95 million appears reasonable for IT services support. Benchmarking against similar contracts for 'Other Computer Related Services' (NAICS 541519) would provide a more definitive assessment of pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting that multiple vendors had the opportunity to bid. This method generally leads to better price discovery and potentially more favorable pricing for the government.
Taxpayer Impact: The competitive nature of the award is expected to result in fair market pricing, maximizing taxpayer value for the IT services procured.
Public Impact
Ensures continued IT support for the Department of Health and Human Services. Supports a private sector company, ZOLON PCS, LLC, through government contracting. The use of a BPA Call indicates a streamlined procurement process for specific IT needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type limits cost overrun risk.
- Contract supports essential IT services for a major federal agency.
Sector Analysis
This contract falls within the Information Technology sector, specifically 'Other Computer Related Services'. Spending in this sector is substantial across the federal government, with IT services being critical for agency operations.
Small Business Impact
The data indicates that ZOLON PCS, LLC, the awardee, is not a small business. Further analysis would be needed to determine if small businesses were subcontracting opportunities within this award.
Oversight & Accountability
The award was made by the Department of Health and Human Services, Office of the Assistant Secretary for Administration. Standard federal procurement oversight processes would apply to ensure compliance and performance.
Related Government Programs
- Other Computer Related Services
- Department of Health and Human Services Contracting
- Office of the Assistant Secretary for Administration Programs
Risk Flags
- Potential for vendor lock-in if services are highly specialized.
- Dependence on a single vendor for critical IT functions.
- Risk of scope creep if contract modifications are not managed effectively.
- Ensuring continued relevance and modernization of IT services over the contract period.
Tags
other-computer-related-services, department-of-health-and-human-services, va, bpa-call, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $7.0 million to ZOLON PCS, LLC. CCHQ IT SERVICES SUPPORT
Who is the contractor on this award?
The obligated recipient is ZOLON PCS, LLC.
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 $7.0 million.
What is the period of performance?
Start: 2023-08-09. End: 2027-02-08.
What specific IT services are covered under this contract?
The contract is categorized under NAICS code 541519, 'Other Computer Related Services'. This typically includes services such as IT consulting, system integration, custom software development, and IT support and maintenance. A detailed review of the contract's statement of work would clarify the precise services being procured.
Are there any performance metrics or service level agreements (SLAs) associated with this contract?
While not explicitly stated in the provided data, firm fixed-price contracts often include performance standards or SLAs to ensure service quality. The effectiveness of the IT services would be measured against these agreed-upon metrics, with potential remedies for non-performance.
How does the awarded price compare to the government's independent government cost estimate (IGCE)?
The provided data does not include the IGCE. Comparing the awarded price of $6.95 million to the IGCE would be crucial for a comprehensive value assessment. A significant difference could indicate either exceptional negotiation or potential issues with the initial estimate.
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
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 44345 PREMIER PLZ STE 120, ASHBURN, VA, 20147
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $8,965,067
Exercised Options: $6,954,298
Current Obligation: $6,954,298
Actual Outlays: $4,902,595
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 75P00121A00014
IDV Type: BPA
Timeline
Start Date: 2023-08-09
Current End Date: 2027-02-08
Potential End Date: 2027-02-08 00:00:00
Last Modified: 2026-02-06
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