Air Force awards $27.5M contract for continuous improvement support to HUMANIT SOLUTIONS LLC

Contract Overview

Contract Amount: $27,471,967 ($27.5M)

Contractor: Humanit Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2023-08-16

End Date: 2026-06-18

Contract Duration: 1,037 days

Daily Burn Rate: $26.5K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DCIDS CONTINUOUS IMPROVEMENT SUPPORT PHASE III SBIR

Place of Performance

Location: BEAVERCREEK TOWNSHIP, GREENE County, OHIO, 45431

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $27.5 million to HUMANIT SOLUTIONS LLC for work described as: DCIDS CONTINUOUS IMPROVEMENT SUPPORT PHASE III SBIR Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Duration of over 1000 days suggests a long-term need for these services. 3. The contract is for computer systems design services, a critical area for defense modernization. 4. The award value is significant, indicating a substantial investment in process improvement. 5. Performance is in Ohio, potentially impacting the local economy and workforce. 6. The firm fixed-price structure aims to control costs, but the lack of competition may inflate the price.

Value Assessment

Rating: fair

The contract value of $27.5 million over approximately 3 years represents a significant investment. Without a competitive bidding process, it is difficult to benchmark the value for money. The firm fixed-price structure provides some cost certainty, but the absence of competition raises concerns about whether the government is receiving the best possible price for these computer systems design services. Further analysis would require comparison to similar sole-source contracts for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, HUMANIT SOLUTIONS LLC, was solicited. This significantly limits price discovery and competitive pressure. While sole-source awards can be justified in specific circumstances, such as unique capabilities or urgent needs, the lack of competition here means the government did not benefit from multiple offers, potentially leading to a higher price than if it had been competed.

Taxpayer Impact: Taxpayers may be paying a premium for these services due to the absence of a competitive bidding process. The government missed an opportunity to leverage market forces to secure a more favorable price.

Public Impact

The Department of the Air Force benefits from continuous improvement support, aiming to enhance operational efficiency and effectiveness. Services delivered include computer systems design, crucial for modernizing defense infrastructure. The geographic impact is concentrated in Ohio, where the contractor is located. Workforce implications may include job creation or utilization of specialized skills within HUMANIT SOLUTIONS LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. The federal IT services market is vast, with significant spending allocated to modernization, cybersecurity, and operational support. Benchmarking this contract's value would require comparing it to other sole-source or competed contracts for similar system design and improvement services within the Department of Defense or other federal agencies. The SBIR (Small Business Innovation Research) designation suggests a focus on innovative solutions, though the prime contractor is not identified as a small business.

Small Business Impact

The data indicates this contract was not competed and the small business set-aside flag is false. Therefore, there is no direct indication of small business participation through a set-aside. Subcontracting opportunities for small businesses are not explicitly detailed in the provided data. The impact on the small business ecosystem is likely minimal unless HUMANIT SOLUTIONS LLC voluntarily engages small businesses for subcontracting.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) and the contracting officer (CO) within the Department of the Air Force. Accountability measures are inherent in the firm fixed-price contract type, requiring delivery of specified services. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Risk Flags

Tags

it-services, computer-systems-design, department-of-defense, department-of-the-air-force, sole-source, firm-fixed-price, delivery-order, ohio, continuous-improvement, sbir

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.5 million to HUMANIT SOLUTIONS LLC. DCIDS CONTINUOUS IMPROVEMENT SUPPORT PHASE III SBIR

Who is the contractor on this award?

The obligated recipient is HUMANIT SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $27.5 million.

What is the period of performance?

Start: 2023-08-16. End: 2026-06-18.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source can provide the required supplies or services, such as when there is a unique capability, a critical need that cannot be met through competition, or in certain follow-on scenarios. A thorough review of the contract file and associated documentation would be necessary to ascertain the precise rationale. Without this information, it is difficult to assess whether the sole-source determination was appropriate and in the best interest of the government.

How does the awarded price compare to market rates for similar computer systems design services?

Directly comparing the awarded price to market rates is challenging without more specific details about the services rendered and the contractor's labor mix. The contract is for 'Computer Systems Design Services' under a firm fixed-price structure. To perform a robust comparison, one would need to analyze the scope of work, the level of expertise required, and benchmark against similar sole-source or competitively awarded contracts for comparable services. Given the sole-source nature, there's an inherent risk that the price may not reflect the most competitive market rate. Further analysis would involve accessing contract databases and industry reports for comparable data points.

What are the key performance indicators (KPIs) and deliverables for this contract?

The provided data does not specify the key performance indicators (KPIs) or detailed deliverables for this contract. As a 'Computer Systems Design Services' contract, typical deliverables might include system architecture designs, software development plans, integration strategies, testing protocols, and documentation. Performance would likely be assessed based on the quality, timeliness, and effectiveness of these deliverables in supporting the Air Force's continuous improvement initiatives. The contracting officer's representative (COR) would be responsible for monitoring performance against the contract's statement of work and any established KPIs.

What is the track record of HUMANIT SOLUTIONS LLC in performing similar federal contracts?

Information regarding HUMANIT SOLUTIONS LLC's track record with similar federal contracts is not provided in the data snippet. To assess their performance history, one would need to consult federal procurement databases such as SAM.gov (System for Award Management) or FPDS (Federal Procurement Data System) to review past awards, contract performance evaluations (e.g., CPARS - Contractor Performance Assessment Reporting System), and any reported issues or successes. A positive performance history would lend more confidence to the current award, while a history of issues might raise concerns.

What is the historical spending trend for continuous improvement support services within the Department of the Air Force?

The provided data focuses on a single contract award and does not offer historical spending trends for continuous improvement support services within the Department of the Air Force. To analyze historical spending, one would need to aggregate data from multiple contract awards over several fiscal years, filtering for relevant service categories (e.g., IT consulting, process improvement, systems design) and agencies. This would allow for the identification of patterns, fluctuations in spending, and the overall investment in such services over time.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4058 COLONEL GLENN HWY, BEAVERCREEK TOWNSHIP, OH, 45431

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $55,471,057

Exercised Options: $28,758,878

Current Obligation: $27,471,967

Actual Outlays: $3,196,361

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $5,304,394

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA877023DB001

IDV Type: IDC

Timeline

Start Date: 2023-08-16

Current End Date: 2026-06-18

Potential End Date: 2028-12-18 00:00:00

Last Modified: 2025-12-15

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