HHS awards $4.6M IT enterprise services BPA call to Zolon PCS, LLC under full and open competition

Contract Overview

Contract Amount: $4,622,329 ($4.6M)

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: $3.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: OASH IT ENTERPRISE SERVICES

Place of Performance

Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $4.6 million to ZOLON PCS, LLC for work described as: OASH IT ENTERPRISE SERVICES Key points: 1. Contract awarded via a Blanket Purchase Agreement (BPA) Call, suggesting a pre-competed framework. 2. Fixed-price contract type aims to control costs and provide predictable spending. 3. The contract duration of over three years indicates a need for sustained IT support. 4. Awarded under 'Other Computer Related Services' NAICS code, a broad category. 5. The contractor, Zolon PCS, LLC, is a new entity in federal contracting for this specific service. 6. Virginia is the performance location, potentially impacting local IT workforce dynamics.

Value Assessment

Rating: fair

The contract value of $4.6 million over approximately 3.5 years is moderate for enterprise IT services. Benchmarking against similar IT enterprise support contracts is challenging without more specific service details. The firm fixed-price structure provides cost certainty, but the value for money will depend on the quality and scope of services delivered by Zolon PCS, LLC. Given the limited information on performance metrics and comparison to market rates for these specific services, the value is assessed as fair.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition under a Blanket Purchase Agreement (BPA) Call. This indicates that the underlying BPA was likely competed previously, and this call-off was also subject to competitive procedures allowing all eligible vendors to bid. The specific number of bidders for this BPA Call is not provided, but the 'full and open' designation suggests a robust competitive process was intended.

Taxpayer Impact: A full and open competition generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source or limited competition awards.

Public Impact

Benefits the Office of the Assistant Secretary for Administration (OASH) within HHS by providing essential IT enterprise services. Services delivered likely include IT support, maintenance, and potentially system development or integration. Geographic impact is primarily within Virginia, where the contractor will perform the work. Workforce implications may include the creation or utilization of IT jobs in the Virginia area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited public information on Zolon PCS, LLC's track record for delivering complex IT enterprise services.
The broad NAICS code (541519) makes it difficult to assess if the pricing is competitive for the specific services rendered.
Performance metrics and service level agreements are not publicly detailed, hindering assessment of service quality.
The contract is a BPA Call, meaning the underlying BPA's competition and terms are critical context not fully detailed here.

Positive Signals

Awarded under a full and open competition, indicating a competitive bidding process.
Firm fixed-price contract type provides cost certainty for the government.
The contract duration suggests a stable, long-term need for these IT services.
Performance location in Virginia may leverage existing regional IT talent pools.

Sector Analysis

The IT services sector is vast and highly competitive. This contract falls under 'Other Computer Related Services,' a broad category encompassing a wide range of IT support functions. The federal government is a significant consumer of IT services, with spending often concentrated in areas like IT enterprise management, cybersecurity, and cloud computing. Benchmarking this $4.6 million contract requires comparison to similar-sized IT support contracts within HHS or other civilian agencies, considering the specific service deliverables.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While Zolon PCS, LLC's size status is not explicitly stated, the award does not appear to be part of a small business set-aside program. There is no direct information on subcontracting plans or their impact on the small business ecosystem from this award alone.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services (HHS), specifically the Office of the Assistant Secretary for Administration (OASH). As a BPA Call, oversight may also involve the agency that manages the parent BPA. Accountability measures are typically embedded in the contract's performance work statement and service level agreements. Transparency is facilitated by contract award databases, though detailed performance data may be less accessible.

Related Government Programs

HHS IT Enterprise Services
Department of Health and Human Services IT Contracts
Other Computer Related Services Contracts
Blanket Purchase Agreements (BPAs)
IT Support Services

Risk Flags

Limited public performance data for contractor.
Broad NAICS code obscures specific service costs.
Lack of detailed KPIs/SLAs in public award notice.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $4.6 million to ZOLON PCS, LLC. OASH IT ENTERPRISE SERVICES

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 $4.6 million.

What is the period of performance?

Start: 2023-08-09. End: 2027-02-08.

What is the specific nature of the 'Other Computer Related Services' being provided under this contract?

The NAICS code 541519, 'Other Computer Related Services,' is a broad category that can encompass a wide array of IT services not classified elsewhere. This typically includes IT support, help desk services, network management, IT consulting, data processing, and potentially specialized IT project implementation. Without a more detailed description of the Performance Work Statement (PWS) for this specific BPA Call, it is difficult to ascertain the exact services. However, given it's for 'IT Enterprise Services' within OASH, it likely involves comprehensive support for HHS's internal IT infrastructure, user support, and potentially system maintenance or upgrades critical to administrative functions.

How does the $4.6 million contract value compare to similar IT enterprise services contracts awarded by HHS or other civilian agencies?

Comparing the $4.6 million contract value requires context regarding the duration and scope of services. This contract spans approximately 3.5 years (1279 days). For enterprise IT support, this value is moderate. Larger agencies like HHS often award multi-year, multi-million dollar contracts for comprehensive IT infrastructure management, cybersecurity, and application development. Smaller, more focused IT support contracts might range from a few hundred thousand to a few million dollars annually. This BPA Call appears to be a mid-tier award for sustained IT enterprise services, suggesting it covers a significant but perhaps not agency-wide scope, or it's one of several contracts supporting OASH's IT needs.

What is Zolon PCS, LLC's track record and experience in delivering IT enterprise services of this nature?

Information regarding Zolon PCS, LLC's specific track record in delivering IT enterprise services, particularly under NAICS code 541519, is limited in publicly accessible databases. As this is a BPA Call award, it's possible the company was vetted during the original BPA competition or has prior relevant experience not immediately apparent from this single award notice. Further investigation into the company's contract history, past performance evaluations (if available), and certifications would be necessary to fully assess their capabilities and experience for this type of service. The 'fair' value assessment reflects this uncertainty.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) are crucial for evaluating the performance and value of IT service contracts. However, these details are typically outlined in the Performance Work Statement (PWS) or contract clauses, which are not publicly disclosed in the award notice. For an IT enterprise services contract, common KPIs might include system uptime percentages, response times for help desk tickets, resolution rates for IT issues, and project completion timelines. The effectiveness of this contract and its value for money are directly tied to how well Zolon PCS, LLC meets these unstated performance benchmarks.

What is the historical spending pattern for IT enterprise services within the Office of the Assistant Secretary for Administration (OASH)?

Analyzing historical spending patterns for IT enterprise services within OASH would provide context for the $4.6 million award. This involves examining previous contracts awarded for similar services, their values, durations, and the contractors involved. Trends might reveal whether OASH's IT spending is increasing, decreasing, or remaining stable, and whether there's a shift towards specific types of IT services (e.g., cloud migration, cybersecurity enhancements). Understanding this history helps determine if the current award represents a continuation of established support, an expansion of services, or a change in strategy, and whether the current award amount is consistent with past investments.

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: $6,173,973

Exercised Options: $4,622,329

Current Obligation: $4,622,329

Actual Outlays: $2,892,467

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 75P00121A00014

IDV Type: BPA

Timeline