HHS awards $5.35M for IT modernization program management support to Summome Native Ventures LLC

Contract Overview

Contract Amount: $5,351,573 ($5.4M)

Contractor: Summome Native Ventures LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2024-09-27

End Date: 2025-09-26

Contract Duration: 364 days

Daily Burn Rate: $14.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: LABOR HOURS

Sector: IT

Official Description: HSB115 C 5223 OPTN MODERNIZATION PROGRAM MANAGEMENT SUPPORT IDIQ TO06

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $5.4 million to SUMMOME NATIVE VENTURES LLC for work described as: HSB115 C 5223 OPTN MODERNIZATION PROGRAM MANAGEMENT SUPPORT IDIQ TO06 Key points: 1. Contract provides essential program management support for IT modernization efforts. 2. The contract is a delivery order under an existing IDIQ, indicating a pre-vetted vendor. 3. The duration of 364 days suggests a focused, short-term need for specific support. 4. The contract type is labor hours, which can offer flexibility but requires careful monitoring of effort. 5. The awardee, Summome Native Ventures LLC, is a small business, potentially aligning with federal small business goals. 6. The specific NAICS code (541611) points to management consulting services.

Value Assessment

Rating: fair

The contract value of $5.35 million for a one-year period for program management support appears within a reasonable range for specialized IT modernization efforts. However, without specific benchmarks for similar program management support contracts within HHS or for IT modernization projects of this scale, a definitive value-for-money assessment is challenging. The labor hours contract type allows for flexibility but necessitates close oversight to ensure efficient use of resources and prevent cost overruns. Benchmarking against industry standards for IT program management consulting would provide a clearer picture of cost-effectiveness.

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 among multiple vendors. While the data indicates it's a delivery order under an existing IDIQ, the specific reason for the sole-source award (e.g., unique capabilities, urgent need, or previous performance) is not detailed. Sole-source awards can sometimes lead to higher prices due to a lack of competitive pressure. The absence of a competitive process limits the government's ability to explore a wider range of solutions and potentially secure more favorable pricing.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the lack of competition. Without a competitive bidding process, there is less incentive for the contractor to offer the most cost-effective solution.

Public Impact

The primary beneficiaries are the Health Resources and Services Administration (HRSA) within HHS, which will receive program management support for its IT modernization initiatives. The services delivered will focus on enhancing the efficiency and effectiveness of IT systems crucial for HRSA's operations. The geographic impact is primarily within the agency's operational centers, likely concentrated in Maryland where the contractor is based. Workforce implications may include the direct employment of consultants from Summome Native Ventures LLC, contributing to specialized IT program management expertise within the federal IT landscape.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and suboptimal solution selection.
The labor hours contract type requires diligent oversight to manage costs and ensure efficient resource allocation.
Limited transparency into the justification for the sole-source award hinders a full assessment of procurement fairness.

Positive Signals

Award to a small business (Summome Native Ventures LLC) supports federal small business contracting goals.
The contract is a delivery order under an existing IDIQ, suggesting a streamlined process and potentially pre-qualified vendor.
The focus on IT modernization is critical for improving government service delivery and operational efficiency.

Sector Analysis

The Information Technology (IT) consulting and program management sector is a significant area of federal spending, driven by the continuous need to update legacy systems, enhance cybersecurity, and adopt new technologies. This contract fits within the broader category of IT services, specifically focusing on the management and oversight of modernization programs. Comparable spending benchmarks for IT program management support can vary widely based on project complexity, duration, and the specific expertise required. The federal government consistently invests billions annually in IT services, with management consulting being a key component to ensure successful project execution and strategic alignment.

Small Business Impact

The award to Summome Native Ventures LLC, a small business, aligns with federal mandates to support small business participation in government contracting. As a small business, the contractor may have specific expertise or a unique approach to program management. The contract does not explicitly mention subcontracting requirements, but if the scope of work is extensive, there may be opportunities for other small businesses to participate indirectly. The award demonstrates a commitment to leveraging small business capabilities for critical IT modernization efforts.

Oversight & Accountability

Oversight for this contract will likely be managed by the Health Resources and Services Administration (HRSA) contracting officers and program managers. Accountability measures would include performance reviews, adherence to delivery schedules, and quality of deliverables as outlined in the contract statement of work. Transparency is facilitated through contract databases like FPDS, which provide basic award information. The Inspector General for the Department of Health and Human Services may have jurisdiction for audits and investigations if any concerns regarding fraud, waste, or abuse arise.

Related Government Programs

HHS IT Modernization Initiatives
Health IT Programs
Federal IT Consulting Services
Program Management Support Contracts
Small Business IT Awards

Risk Flags

Sole-source award limits competition.
Labor hours contract requires diligent oversight.
Limited public information on contractor's specific past performance for similar roles.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $5.4 million to SUMMOME NATIVE VENTURES LLC. HSB115 C 5223 OPTN MODERNIZATION PROGRAM MANAGEMENT SUPPORT IDIQ TO06

Who is the contractor on this award?

The obligated recipient is SUMMOME NATIVE VENTURES LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Health Resources and Services Administration).

What is the total obligated amount?

The obligated amount is $5.4 million.

What is the period of performance?

Start: 2024-09-27. End: 2025-09-26.

What is the track record of Summome Native Ventures LLC in performing similar IT program management support contracts for the federal government?

Information regarding the specific track record of Summome Native Ventures LLC in performing similar IT program management support contracts is not detailed in the provided data. As a sole-source award under an IDIQ, it suggests prior positive performance or a specific pre-qualification. A deeper dive into the contractor's past performance history, including any past performance evaluations or awards for similar services, would be necessary to fully assess their capabilities and reliability for this critical IT modernization program management support role. Reviewing their contract history with federal agencies, particularly within HHS, would offer insights into their experience and success rates.

How does the awarded amount of $5.35 million compare to the typical cost of similar IT modernization program management support contracts?

The awarded amount of $5.35 million for a one-year contract for IT modernization program management support is a significant figure, but its comparability depends heavily on the scope, complexity, and specific services required. Without detailed information on the deliverables, the number of personnel involved, and the specific IT systems being modernized, it is difficult to establish a precise benchmark. Generally, IT program management support for modernization efforts can range from hundreds of thousands to tens of millions of dollars annually, influenced by factors like the size of the agency, the criticality of the systems, and the level of expertise needed. A comparison to other HHS or federal IT modernization program management contracts of similar duration and scope would be needed for a robust value assessment.

What are the primary risks associated with a sole-source award for critical IT program management support?

The primary risks associated with a sole-source award for critical IT program management support include a lack of competitive pricing, potentially leading to higher costs for taxpayers. Without competition, there is reduced incentive for the awarded contractor to innovate or provide the most cost-effective solutions. Furthermore, a sole-source award limits the government's ability to explore a broader range of potential vendors and their unique capabilities, which might offer superior solutions or better value. There's also a potential risk of vendor lock-in and a diminished ability to negotiate favorable terms in the future. Ensuring robust oversight and performance management becomes even more crucial in sole-source situations to mitigate these risks.

How effective is the labor hours contract type for managing IT modernization program management support, and what are the associated oversight challenges?

The labor hours contract type offers flexibility, allowing the government to adjust the level of effort based on evolving project needs during IT modernization. This can be advantageous when the exact scope of program management support is not fully defined at the outset or is expected to fluctuate. However, it presents significant oversight challenges. The government must meticulously track hours worked, ensure personnel are performing at the agreed-upon rates, and validate that the effort is directly contributing to contract objectives. Without stringent monitoring, there is a risk of inefficient resource utilization and cost overruns. Effective oversight requires detailed timesheets, regular progress reviews, and clear communication channels to manage the scope and cost effectively.

What is the historical spending pattern for IT program management support within the Health Resources and Services Administration (HRSA)?

Historical spending patterns for IT program management support within the Health Resources and Services Administration (HRSA) are not provided in the current data. To analyze this, one would typically examine FPDS or other federal procurement databases for previous contracts awarded by HRSA for similar services (e.g., NAICS 541611). This analysis would involve looking at the total dollar amounts awarded over several fiscal years, the types of contracts used (e.g., IDIQ, fixed-price, labor hours), the number of vendors receiving awards, and the duration of those contracts. Understanding historical spending can help identify trends, assess whether current spending is consistent with past investments, and provide context for the $5.35 million award.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 100 BROOKWOOD RD, ATMORE, AL, 36502

Business Categories: Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,351,573

Exercised Options: $5,351,573

Current Obligation: $5,351,573

Actual Outlays: $5,351,573

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $5,472,813

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75R60223D00001

IDV Type: IDC

Timeline