HHS awards $26.2M for IT support, with 5 bids indicating competitive pricing

Contract Overview

Contract Amount: $26,197,413 ($26.2M)

Contractor: Emergint Technologies, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2007-09-11

End Date: 2011-09-10

Contract Duration: 1,460 days

Daily Burn Rate: $17.9K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 5

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: IT

Official Description: INFORMATION SYSTEM SUPPORT SERVICES

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30341

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $26.2 million to EMERGINT TECHNOLOGIES, LLC for work described as: INFORMATION SYSTEM SUPPORT SERVICES Key points: 1. The contract was competitively awarded, suggesting a reasonable price point. 2. The fixed-price structure with economic adjustments aims to manage cost fluctuations. 3. The duration of the contract (4 years) provides stability for service delivery. 4. The award falls under custom computer programming services, a common IT need. 5. The geographic location of the contractor is Georgia. 6. The total award value is substantial, reflecting significant IT support requirements.

Value Assessment

Rating: good

The contract value of $26.2 million over four years for IT support services appears reasonable given the scope. Benchmarking against similar custom computer programming services contracts would provide a more precise value-for-money assessment. The fixed-price with economic price adjustment (FPEPA) contract type is typical for IT services to account for potential cost increases in labor or materials over the contract term. Without specific performance metrics or detailed cost breakdowns, a definitive assessment of cost efficiency is challenging, but the competitive nature of the award is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that it was competed under full and open competition. With five bids received, the level of competition suggests that multiple vendors were interested and capable of providing the required IT support services. This competitive environment generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition awards.

Taxpayer Impact: The competitive bidding process for this contract likely resulted in a more cost-effective outcome for taxpayers by driving down prices through market forces.

Public Impact

The Centers for Disease Control and Prevention (CDC) benefits from enhanced information system support. Essential IT services are delivered to support the CDC's public health mission. The contract's impact is primarily within the federal government's IT infrastructure. The contract supports the IT workforce through the contractor's personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to economic price adjustments if market conditions fluctuate significantly.
Reliance on a single contractor for critical IT support services could pose a risk if performance issues arise.
The fixed-price nature might incentivize cost-cutting that could impact service quality if not closely monitored.

Positive Signals

The competitive award process suggests a fair market price was likely achieved.
The contract duration provides continuity of essential IT services for the agency.
The FPEPA contract type offers flexibility to adapt to changing economic conditions.

Sector Analysis

This contract falls within the Information Technology sector, specifically under custom computer programming services. The IT services market is vast and highly competitive, with numerous companies offering specialized support. The value of this contract, approximately $26.2 million over four years, is moderate within the context of federal IT spending, which can range into billions annually for large agencies like HHS. This award represents a typical procurement for essential IT infrastructure and operational support.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited unless the prime contractor voluntarily engages small businesses for subcontracting. Further analysis of the contract's subcontracting plan would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Centers for Disease Control and Prevention. Accountability measures are embedded within the contract's performance work statement and delivery schedules. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Information Technology Professional Services
Custom Computer Programming Services
IT Infrastructure Support
Federal IT Contracts
HHS IT Spending

Risk Flags

Potential for cost increases due to Economic Price Adjustment.
Contract performance monitoring is crucial for ensuring service quality.
Reliance on contractor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $26.2 million to EMERGINT TECHNOLOGIES, LLC. INFORMATION SYSTEM SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is EMERGINT TECHNOLOGIES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $26.2 million.

What is the period of performance?

Start: 2007-09-11. End: 2011-09-10.

What is the track record of EMERGINT TECHNOLOGIES, LLC in performing federal IT support contracts?

A review of EMERGINT TECHNOLOGIES, LLC's federal contract history would be necessary to assess their track record. This would involve examining past performance evaluations, any reported contract disputes or terminations, and the types and values of previous contracts they have held. Understanding their experience with similar IT support services, particularly for agencies like the CDC, would provide insight into their capability and reliability. Without specific past performance data for this contractor, it is difficult to definitively assess their track record for this particular award.

How does the awarded price compare to similar IT support contracts awarded by the CDC or other federal agencies?

To benchmark the value, one would compare the per-year cost of this $26.2 million, 4-year contract (approximately $6.55 million annually) against similar custom computer programming services contracts. This comparison should consider the scope of services, labor categories, geographic location, and contract type. Data from federal procurement databases (e.g., FPDS) can be queried for comparable contracts. If similar contracts for comparable services were awarded at significantly lower rates or with better terms, it might indicate that this contract's pricing is not optimal. Conversely, if rates are in line with or lower than benchmarks, it suggests good value.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential performance deficiencies by the contractor, cost overruns due to the economic price adjustment clause, and vendor lock-in if transitioning services is difficult. Mitigation strategies typically involve robust performance monitoring by the government, clear contract deliverables and service level agreements (SLAs), and regular performance reviews. The contracting officer and technical team are responsible for ensuring the contractor meets requirements. The competitive nature of the award also serves as a baseline mitigation, as poor performance could lead to non-renewal or future difficulties in winning government contracts.

How effective has EMERGINT TECHNOLOGIES, LLC been in delivering the IT support services under this contract?

Assessing the effectiveness requires access to performance reports, user feedback, and key performance indicators (KPIs) established within the contract. Without this specific performance data, a judgment on effectiveness cannot be made. Typically, federal agencies monitor contractor performance through metrics related to system uptime, response times for support requests, project completion rates, and adherence to security protocols. Positive performance reviews or lack of documented issues would suggest effectiveness, while negative feedback or documented failures would indicate ineffectiveness.

What are the historical spending patterns for IT support services at the CDC, and how does this contract fit within them?

Analyzing historical spending requires examining CDC's IT budgets and procurement data over several fiscal years. This contract represents a specific allocation for custom computer programming and information system support. Understanding if this award amount is consistent with, higher than, or lower than previous similar procurements would provide context. Significant deviations might warrant further investigation into whether the scope has changed, market prices have increased, or if there are efficiencies gained or lost. This contract appears to be a standard procurement for ongoing IT operational needs.

What is the potential impact of the economic price adjustment (EPA) clause on the total contract cost over its duration?

The Economic Price Adjustment (EPA) clause allows for adjustments to the contract price based on fluctuations in specific economic factors, typically labor costs or material prices, as defined in the contract. The potential impact depends heavily on the index used for adjustment and the volatility of the underlying market. If inflation is high or specific input costs rise sharply, the total cost could exceed the initial fixed-price estimate. Conversely, if economic conditions are stable, the EPA might have minimal impact. The specific terms of the EPA in this contract would dictate the precise mechanism and potential range of cost increases.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 5

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc (UEI: 045534641)

Address: 455 SOUTH FOURTH STREET, LOUISVILLE, KY, 40202

Business Categories: 8(a) Program Participant, Category Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $300,669,211

Exercised Options: $133,426,792

Current Obligation: $26,197,413

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS06F0426Z

IDV Type: GWAC

Timeline