HHS awards $113M contract for destroyer-related services to HP Enterprise Services

Contract Overview

Contract Amount: $113,258,321 ($113.3M)

Contractor: HP Enterprise Services, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2005-08-01

End Date: 2010-07-31

Contract Duration: 1,825 days

Daily Burn Rate: $62.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: DESTROYERS

Place of Performance

Location: PLANO, COLLIN County, TEXAS, 75024

State: Texas Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $113.3 million to HP ENTERPRISE SERVICES, LLC for work described as: DESTROYERS Key points: 1. The contract value of $113.3 million is substantial, indicating a significant investment in these services. 2. HP Enterprise Services is a major player, suggesting a competitive landscape for such large-scale IT contracts. 3. The contract's duration (2005-2010) predates many modern IT advancements, raising questions about current relevance and potential obsolescence. 4. The 'Other Computer Related Services' NAICS code is broad, making it difficult to pinpoint the exact nature of the services provided.

Value Assessment

Rating: questionable

The contract was awarded in 2005 and ended in 2010. Without current benchmarks or details on the specific services rendered, assessing its pricing against similar contemporary contracts is challenging. The cost-plus award fee structure can lead to cost overruns if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the specific details of the bidding process and the number of bidders are not provided, making it difficult to fully assess the price discovery achieved.

Taxpayer Impact: The $113.3 million expenditure represents taxpayer funds. While competition was intended to ensure value, the long duration and potential for cost-plus structures warrant scrutiny for efficient use of these funds.

Public Impact

Taxpayers funded over $113 million for IT services related to 'destroyers', a term that requires clarification in this context. The contract's age raises concerns about whether the services provided are still relevant and cost-effective in today's technological landscape. The lack of specific details on the services and the 'destroyer' designation makes it difficult for the public to understand the purpose and value of this spending.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Ambiguous service description ('destroyer')
Long contract duration (5 years)
Cost Plus Award Fee structure
Lack of current relevance assessment

Positive Signals

Awarded under full and open competition

Sector Analysis

The IT services sector is vast. This contract falls under 'Other Computer Related Services', a broad category. Benchmarking is difficult without knowing the specific services, but $113 million over five years for a single contract is a significant investment, suggesting a need for robust oversight.

Small Business Impact

The data indicates the awardee is HP Enterprise Services, LLC, a large corporation. There is no information provided to suggest that small businesses were involved as subcontractors or partners in this contract.

Oversight & Accountability

The contract was awarded in 2005 and concluded in 2010. Oversight effectiveness would depend on the specific monitoring mechanisms in place during that period, particularly given the cost-plus award fee structure, which requires diligent management to control costs.

Related Government Programs

Other Computer Related Services
Department of Health and Human Services Contracting
Centers for Medicare and Medicaid Services Programs

Risk Flags

Ambiguous service description ('destroyer')
Potential for outdated technology/services
Cost-plus award fee structure can lead to overspending
Lack of transparency on specific deliverables
Contract awarded over 10 years ago

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $113.3 million to HP ENTERPRISE SERVICES, LLC. DESTROYERS

Who is the contractor on this award?

The obligated recipient is HP ENTERPRISE SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).

What is the total obligated amount?

The obligated amount is $113.3 million.

What is the period of performance?

Start: 2005-08-01. End: 2010-07-31.

What specific 'destroyer-related services' were procured under this contract, and how did they align with the Department of Health and Human Services' mission?

The term 'destroyer' is highly unusual in the context of the Department of Health and Human Services (HHS) and IT services. It is possible this refers to a legacy system name, a specific project codename, or a misclassification. Clarification is needed to understand the actual services rendered and their relevance to healthcare or public health initiatives.

Given the contract's age (2005-2010) and the rapid evolution of IT, what is the likelihood that the services provided remain relevant and cost-effective today?

The likelihood of services procured between 2005 and 2010 remaining fully relevant and cost-effective today is low, especially in the fast-paced IT sector. Technologies and best practices have advanced significantly. Without evidence of modernization or adaptation, the value derived from this contract may have diminished considerably over time.

How effectively did the 'full and open competition' process ensure optimal value for taxpayer money, considering the cost-plus award fee structure?

While 'full and open competition' is designed to foster competitive pricing, the 'cost-plus award fee' structure introduces inherent risks of cost escalation. Effective value realization depends heavily on stringent oversight, clear performance metrics, and robust negotiation by the government to ensure the award fee truly incentivizes efficiency and cost control, not just completion.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: RFPCMS20050001

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: HP, Inc.

Address: 5400 LEGACY DR, PLANO, TX, 75024

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $113,258,321

Exercised Options: $113,258,321

Current Obligation: $113,258,321

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline