HHS awarded $27.7M for data management and programming support to Social & Scientific Systems, Inc

Contract Overview

Contract Amount: $27,700,453 ($27.7M)

Contractor: Social & Scientific Systems, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2004-08-01

End Date: 2009-12-31

Contract Duration: 1,978 days

Daily Burn Rate: $14.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: DATA MANAGEMENT AND COMPUTER PROGRAMMING SUPPORT

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910, UNITED STATES OF AMERICA

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $27.7 million to SOCIAL & SCIENTIFIC SYSTEMS, INC. for work described as: DATA MANAGEMENT AND COMPUTER PROGRAMMING SUPPORT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries inherent risks. 3. The duration of the contract is substantial at 1978 days, indicating a long-term need for these services. 4. The contractor, Social & Scientific Systems, Inc., has a track record with federal agencies. 5. The North American Industry Classification System (NAICS) code 541511 points to custom computer programming services. 6. The award was made by the Agency for Healthcare Research and Quality (AHRQ), a division of HHS.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed cost breakdowns and performance metrics. The Cost Plus Fixed Fee (CPFF) structure means the government pays the actual costs plus a fixed fee, which can sometimes lead to higher overall costs if not managed tightly. Comparing this to similar custom programming contracts would require access to detailed pricing data and scope of work for those contracts. The total award amount of $27.7 million over approximately five years suggests a significant investment in data management and programming capabilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of two bids suggests a moderate level of competition for this requirement. While full and open competition is generally preferred for maximizing price discovery and ensuring fair market value, the specific number of bidders can influence the intensity of that competition.

Taxpayer Impact: A competitive bidding process, even with two bidders, generally benefits taxpayers by encouraging more favorable pricing and service offerings compared to sole-source or limited competition scenarios.

Public Impact

The primary beneficiary is the Agency for Healthcare Research and Quality (AHRQ), which receives support for its data management and computer programming needs. The services delivered are crucial for AHRQ's mission of improving the quality and effectiveness of healthcare. The geographic impact is primarily within the contractor's operational area, likely supporting federal operations remotely or on-site. Workforce implications include employment opportunities for programmers, data analysts, and project managers within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not meticulously managed.
The long contract duration may present challenges in adapting to rapidly evolving technological needs.
Limited competition (two bidders) might not have driven the most aggressive pricing.

Positive Signals

Awarded through full and open competition, indicating a fair process.
The contractor has secured a significant federal contract, suggesting a level of established capability.
The contract supports a critical healthcare research agency, aligning with important public health goals.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically focusing on custom computer programming and data management. The IT services market is vast and highly competitive, with significant government spending allocated to software development, data analysis, and IT support. Contracts like this are essential for federal agencies to maintain and upgrade their technological infrastructure and capabilities to support their missions. Comparable spending benchmarks would typically be found within IT services categories for custom software development and IT support services.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Agency for Healthcare Research and Quality (AHRQ). Accountability measures would be tied to the contract's performance work statement and deliverables. Transparency is generally facilitated through contract award databases like FPDS-NG, which provide basic information on contract value, duration, and awardee. Specific Inspector General (IG) jurisdiction would depend on the nature of any potential issues or investigations arising from the contract's performance.

Related Government Programs

Health Information Technology Services
Custom Software Development
Data Management Services
Federal IT Support Contracts
Healthcare Research Support

Risk Flags

Potential for cost overruns due to CPFF structure.
Risk of technological obsolescence over the long contract duration.
Moderate competition may limit price negotiation leverage.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $27.7 million to SOCIAL & SCIENTIFIC SYSTEMS, INC.. DATA MANAGEMENT AND COMPUTER PROGRAMMING SUPPORT

Who is the contractor on this award?

The obligated recipient is SOCIAL & SCIENTIFIC SYSTEMS, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Agency for Healthcare Research and Quality).

What is the total obligated amount?

The obligated amount is $27.7 million.

What is the period of performance?

Start: 2004-08-01. End: 2009-12-31.

What is the track record of Social & Scientific Systems, Inc. with federal contracts, particularly within HHS?

Social & Scientific Systems, Inc. (SSS) has a history of performing federal contracts, including those with the Department of Health and Human Services (HHS). While this specific contract for data management and computer programming support is a significant award, SSS has experience in various health-related research and IT support services for federal agencies. A deeper analysis would involve reviewing their past performance evaluations, contract history across different agencies, and any reported issues or commendations to fully assess their track record. Their ability to secure a multi-year, multi-million dollar contract with AHRQ suggests a demonstrated capacity to meet federal requirements in the past.

How does the Cost Plus Fixed Fee (CPFF) contract structure compare to other common federal contract types in terms of value for money?

Cost Plus Fixed Fee (CPFF) contracts are used when the scope of work is not precisely defined, or when innovation and flexibility are paramount. The government agrees to pay the contractor's allowable costs plus a fixed fee, which represents the contractor's profit. While CPFF can be beneficial for R&D or complex projects where costs are uncertain, it carries a risk of cost overruns if not managed diligently, as the contractor is incentivized to incur costs to cover their base. Compared to Firm-Fixed-Price (FFP) contracts, where the contractor bears more risk for cost overruns, CPFF generally offers less certainty on final cost to the government. However, it can provide better value than other cost-reimbursement types if the fixed fee is negotiated appropriately and performance is closely monitored.

What are the potential risks associated with a contract duration of nearly 2000 days for IT services?

A contract duration of approximately 1978 days (over 5 years) for IT services, particularly in custom programming and data management, presents several risks. Technology evolves rapidly; a system or approach implemented early in the contract might become outdated or inefficient by its end. This long duration could also lead to vendor lock-in, making it difficult and costly to switch providers or technologies. Furthermore, maintaining consistent performance and engagement from the contractor over such an extended period can be challenging. There's also a risk that the initial cost estimates and fixed fee may not accurately reflect the market or technological shifts over the contract's life, potentially impacting the overall value for money.

How does the level of competition (two bidders) typically influence pricing and innovation for federal IT contracts?

When a federal IT contract receives only two bids, the level of competition is considered moderate rather than robust. In a highly competitive market with numerous bidders, the pressure to offer the lowest price and most innovative solutions is typically greater. With only two bidders, there's a reduced incentive for each to drastically undercut the other on price or offer groundbreaking approaches, as they may perceive a higher likelihood of winning regardless. This can potentially lead to less favorable pricing for the government and a slower pace of innovation compared to scenarios with five or more competing proposals. However, the quality of the two bidders and the specific evaluation criteria also play a significant role.

What is the significance of the NAICS code 541511 for this contract?

The North American Industry Classification System (NAICS) code 541511 designates 'Custom Computer Programming Services.' This code signifies that the primary purpose of this contract is to create, modify, test, and support custom software tailored to the specific needs of the Agency for Healthcare Research and Quality (AHRQ). It distinguishes this contract from general IT support, hardware procurement, or off-the-shelf software acquisition. Services under this code typically involve analyzing user requirements, designing and developing software, integrating software components, and providing ongoing maintenance and support for unique applications crucial to AHRQ's operations.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 8757 GEORGIA AVE FL 12, SILVER SPRING, MD, 20910

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $27,700,453

Exercised Options: $27,700,453

Current Obligation: $27,700,453

Timeline