HHS awards $15.5M for HRIT Integration to Konag Professional Services, LLC
Contract Overview
Contract Amount: $15,498,774 ($15.5M)
Contractor: Koniag Professional Services, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2025-09-30
End Date: 2027-03-29
Contract Duration: 545 days
Daily Burn Rate: $28.4K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: HUMAN RESOURCE INFORMATION TECHNOLOGY (HRIT) INTEGRATION
Place of Performance
Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $15.5 million to KONIAG PROFESSIONAL SERVICES, LLC for work described as: HUMAN RESOURCE INFORMATION TECHNOLOGY (HRIT) INTEGRATION Key points: 1. Spending of $15.5M on HRIT integration services. 2. Contract awarded to Konag Professional Services, LLC. 3. Procurement falls under Computer Systems Design Services. 4. Potential risk due to lack of competition.
Value Assessment
Rating: questionable
The contract value of $15.5M for HRIT integration is not directly comparable without specific service details. However, the duration of 545 days suggests a significant project scope.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract is listed as 'NOT AVAILABLE FOR COMPETITION', indicating a limited competition approach. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competitive bidding may result in a higher cost to taxpayers than if the contract were competed openly.
Public Impact
Impacts the Department of Health and Human Services' ability to manage human resources effectively. Potential for disruption if HRIT integration is not successful. Taxpayer funds are allocated for this critical IT infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of transparency in pricing
Positive Signals
- Definitive contract provides a clear agreement
- Firm Fixed Price contract offers cost certainty
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Benchmarks for similar HRIT integration projects vary widely based on complexity and agency size.
Small Business Impact
The contract was not awarded to a small business. Further analysis is needed to determine if small businesses had an opportunity to compete.
Oversight & Accountability
The contract is a definitive contract, suggesting a clear scope and terms. Oversight will be crucial to ensure successful HRIT integration and value for money.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- Office of the Assistant Secretary for Financial Resources Programs
Risk Flags
- Lack of competition
- Potential for cost overruns due to limited bidding
- Risk of vendor lock-in
- Dependency on a single vendor for critical HRIT functions
Tags
computer-systems-design-services, department-of-health-and-human-services, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $15.5 million to KONIAG PROFESSIONAL SERVICES, LLC. HUMAN RESOURCE INFORMATION TECHNOLOGY (HRIT) INTEGRATION
Who is the contractor on this award?
The obligated recipient is KONIAG PROFESSIONAL SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Financial Resources).
What is the total obligated amount?
The obligated amount is $15.5 million.
What is the period of performance?
Start: 2025-09-30. End: 2027-03-29.
What specific HRIT functionalities are being integrated, and how does this align with HHS's strategic goals?
The specific HRIT functionalities are not detailed in the provided data. However, the contract's purpose is HRIT integration, which typically involves consolidating or enhancing systems for managing employee data, payroll, benefits, and performance. This alignment is crucial for operational efficiency and strategic workforce planning within HHS.
What is the justification for limiting competition on this significant IT contract?
The justification for limiting competition is not provided. Typically, limited competition is used when only one or a few sources can fulfill the requirement due to specialized capabilities, urgent needs, or specific circumstances. A thorough review of the justification is necessary to ensure it is valid and serves the government's best interest.
How will the effectiveness of the HRIT integration be measured and ensured post-award?
Effectiveness will likely be measured through performance metrics outlined in the contract's statement of work. This could include system uptime, user satisfaction, data accuracy, and successful integration with other HHS systems. Regular progress reviews and acceptance testing by HHS will be critical to ensure successful implementation and ongoing effectiveness.
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 - IT MANAGEMENT
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 75P00125R00051
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3800 CENTERPOINT DR STE 700, ANCHORAGE, AK, 99503
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $15,498,774
Exercised Options: $15,498,774
Current Obligation: $15,498,774
Actual Outlays: $4,012,640
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2025-09-30
Current End Date: 2027-03-29
Potential End Date: 2027-03-29 00:00:00
Last Modified: 2026-03-23
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