HHS Awards $8.1M Contract for SAP Biis-C Services to Redhawk IT Solutions, LLC

Contract Overview

Contract Amount: $8,139,118 ($8.1M)

Contractor: Redhawk IT Solutions, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2024-06-23

End Date: 2026-12-22

Contract Duration: 912 days

Daily Burn Rate: $8.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SAP BIIS-C

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20201

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $8.1 million to REDHAWK IT SOLUTIONS, LLC for work described as: SAP BIIS-C Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. The contract duration of 912 days suggests a significant, ongoing need for these services. 3. Awarded under full and open competition, implying a broad search for qualified vendors. 4. The North American Industry Classification System (NAICS) code 541519 points to specialized IT services. 5. The contract is not set aside for small businesses, suggesting a focus on larger, established firms. 6. The contract is a delivery order, indicating it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract's firm-fixed-price structure provides cost certainty. Benchmarking the $8.1 million value against similar SAP BIIS-C implementation or support contracts across federal agencies would offer a clearer picture of value for money. Without specific performance metrics or detailed cost breakdowns, a precise value assessment is challenging, but the competitive award process suggests a reasonable price was negotiated.

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 indicates that the agency sought proposals from all responsible sources capable of meeting the requirements. The fact that it was competed broadly suggests that multiple vendors likely had the opportunity to bid, which typically leads to more competitive pricing and a wider selection of qualified contractors.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and ensure the government receives the best possible value for its investment.

Public Impact

The Department of Health and Human Services (HHS) benefits from enhanced SAP BIIS-C capabilities. Services delivered likely include IT support, system maintenance, and potential upgrades for SAP BIIS-C. The contract's impact is primarily within the federal IT infrastructure, supporting administrative functions. Workforce implications may include specialized IT professionals employed by REDHAWK IT SOLUTIONS, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if SAP BIIS-C is a highly specialized system.
Reliance on a single vendor for critical IT services could pose continuity risks.
The specific nature of 'Other Computer Related Services' may require ongoing monitoring for scope creep.

Positive Signals

Awarded through full and open competition, indicating a robust vetting process.
Firm-fixed-price contract provides cost predictability and limits financial risk.
The contractor, REDHAWK IT SOLUTIONS, LLC, has secured a federal contract, suggesting established capabilities.

Sector Analysis

The IT services sector is vast and highly competitive. Contracts for specialized enterprise resource planning (ERP) systems like SAP BIIS-C are common within large federal agencies. Spending in this area is driven by the need for efficient data management, financial reporting, and administrative process optimization. Comparable spending benchmarks would involve looking at other federal IT support contracts for similar ERP systems, which can range from hundreds of thousands to tens of millions of dollars annually, depending on the scope and complexity.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate any specific subcontracting requirements for small businesses. This suggests that the primary award went to a larger entity, and any small business participation would likely be through direct subcontracting opportunities offered by REDHAWK IT SOLUTIONS, LLC, rather than through a mandated set-aside program. The impact on the small business ecosystem is neutral to potentially positive if the prime contractor engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services' contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, requiring delivery of specified services. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

Federal IT Modernization Programs
HHS Enterprise Resource Planning (ERP) Systems
SAP Software Contracts
Government IT Services and Support

Risk Flags

Broad NAICS code may require close monitoring of scope.
Lack of specific performance metrics in summary data.
Delivery Order nature implies it's part of a larger IDIQ, requiring review of the parent contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $8.1 million to REDHAWK IT SOLUTIONS, LLC. SAP BIIS-C

Who is the contractor on this award?

The obligated recipient is REDHAWK IT SOLUTIONS, 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 $8.1 million.

What is the period of performance?

Start: 2024-06-23. End: 2026-12-22.

What is the specific function and importance of SAP BIIS-C within HHS?

SAP BIIS-C (Business Intelligence and Information Services - Central) is a critical component within the Department of Health and Human Services (HHS) for managing and analyzing vast amounts of data. It likely supports various administrative and operational functions, including financial management, human resources, procurement, and program performance monitoring. Its importance lies in enabling data-driven decision-making, ensuring regulatory compliance, and optimizing the efficiency of HHS operations. The system's ability to process and present complex information is vital for an agency of HHS's size and scope, impacting everything from budget allocation to public health initiatives.

How does the $8.1 million contract value compare to similar IT service contracts for ERP systems within HHS or other large federal agencies?

The $8.1 million contract value for SAP BIIS-C services over approximately three years (912 days) appears to be within a reasonable range for specialized IT support of an enterprise-level system within a large federal agency like HHS. However, a precise comparison requires detailed analysis of the specific services rendered (e.g., maintenance, upgrades, custom development, help desk support), the number of users supported, and the complexity of the SAP modules involved. Contracts for similar ERP systems (like Oracle or Workday) can range from a few million to tens of millions of dollars annually, depending on the scope. This award suggests a moderate level of investment for ongoing support and potential enhancements.

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

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for IT support services like those likely provided under this award, KPIs and SLAs would focus on system uptime, response times for issue resolution, patch management timeliness, user support availability, and the successful completion of defined project milestones if upgrades or enhancements are included. These metrics are crucial for ensuring the contractor meets performance expectations and for holding them accountable for service delivery. The absence of this information in the summary data limits a full assessment of performance risk.

What is REDHAWK IT SOLUTIONS, LLC's track record with federal contracts, particularly for SAP-related services?

REDHAWK IT SOLUTIONS, LLC has secured this $8.1 million contract with HHS, indicating a level of capability and trust from the agency. To fully assess their track record, a deeper dive into their contract history would be necessary. This would involve examining past performance on similar federal contracts, including their performance ratings, any past performance issues or disputes, and their experience with SAP systems specifically. Their ability to win a competitive bid for a significant contract like this suggests they possess relevant expertise and a history of satisfactory performance, though a comprehensive review of their past federal awards and performance evaluations would provide a more complete picture.

Are there any potential risks associated with the 'Other Computer Related Services' (NAICS 541519) classification for this contract?

The NAICS code 541519, 'Other Computer Related Services,' is broad and can encompass a wide range of IT activities beyond standard software maintenance or development. Potential risks associated with this classification include a lack of specificity in the contract's scope of work, which could lead to scope creep, cost overruns, or disputes over deliverables. It might also indicate services that are less standardized than core IT functions. For taxpayers, this broad classification necessitates careful oversight by HHS to ensure that the services procured are necessary, well-defined, and deliver tangible value, preventing the funding of undefined or unnecessary IT tasks.

What is the historical spending pattern for SAP BIIS-C support within HHS over the past five years?

The provided data does not include historical spending patterns for SAP BIIS-C support within HHS. To establish such a pattern, one would need to access HHS's historical contract databases or budget reports. Analyzing past expenditures would reveal trends in spending, identify periods of significant investment (e.g., for major upgrades or implementations), and show the typical contract values and durations for this service. Understanding historical spending provides context for the current $8.1 million award, helping to determine if it represents an increase, decrease, or consistent level of investment in SAP BIIS-C support.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2689 MAPLE RIDGE DR, WOODBRIDGE, VA, 22192

Business Categories: 8(a) Program Participant, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Other Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $11,410,582

Exercised Options: $8,139,118

Current Obligation: $8,139,118

Actual Outlays: $7,951,038

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD38B

IDV Type: GWAC

Timeline