HHS awards $40M for IT services to Digital Management LLC under full and open competition
Contract Overview
Contract Amount: $40,065,563 ($40.1M)
Contractor: Digital Management LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2011-09-15
End Date: 2016-09-14
Contract Duration: 1,826 days
Daily Burn Rate: $21.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 6
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: GRANTS.GOV INFORMATION TECHNOLOGY SERVICES
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $40.1 million to DIGITAL MANAGEMENT LLC for work described as: GRANTS.GOV INFORMATION TECHNOLOGY SERVICES Key points: 1. Significant contract value of $40M for IT services. 2. Digital Management LLC is the sole awardee. 3. Contract type is Time and Materials, which can pose cost control risks. 4. The sector is Information Technology, specifically Computer Systems Design Services.
Value Assessment
Rating: fair
The contract value of $40M over five years is substantial. Without specific per-unit cost data or benchmarks for similar 'Computer Systems Design Services' contracts, a precise value assessment is difficult. The Time and Materials pricing structure warrants scrutiny for potential cost overruns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a competitive process was initiated but potentially narrowed. This method aims for competition but the 'exclusion of sources' aspect requires understanding why other sources were excluded to ensure optimal price discovery.
Taxpayer Impact: The competitive award process, despite potential source exclusions, aims to secure reasonable pricing. However, the Time and Materials structure could lead to higher taxpayer costs if not managed diligently.
Public Impact
Citizens benefit from IT services supporting the Department of Health and Human Services. The contract supports a private sector company, Digital Management LLC. Potential for improved government efficiency through contracted IT expertise. Transparency in government contracting is maintained through public data availability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing structure
- Potential for cost overruns
- Exclusion of sources in competition
Positive Signals
- Full and open competition initiated
- Significant contract value awarded
- Supports critical government functions
Sector Analysis
This contract falls within the Information Technology sector, specifically Computer Systems Design Services (NAICS 541512). Spending in this area is crucial for government operations. Benchmarks for similar contracts would typically consider the scope of services, duration, and complexity.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if small business participation was sought or subcontracted.
Oversight & Accountability
The contract was awarded by the Department of Health and Human Services, Office of the Assistant Secretary for Administration. Oversight would involve monitoring performance, adherence to contract terms, and managing the Time and Materials pricing to ensure accountability.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- Office of the Assistant Secretary for Administration Programs
Risk Flags
- Time and Materials pricing can lead to uncontrolled costs.
- Potential for cost overruns due to T&M structure.
- Exclusion of sources may have limited competition.
- Lack of small business participation noted.
- Contract duration is substantial (5 years).
Tags
computer-systems-design-services, department-of-health-and-human-services, md, purchase-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $40.1 million to DIGITAL MANAGEMENT LLC. GRANTS.GOV INFORMATION TECHNOLOGY SERVICES
Who is the contractor on this award?
The obligated recipient is DIGITAL MANAGEMENT LLC.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).
What is the total obligated amount?
The obligated amount is $40.1 million.
What is the period of performance?
Start: 2011-09-15. End: 2016-09-14.
What specific IT services were provided under this contract, and how did they align with HHS's strategic goals?
The contract was for 'Computer Systems Design Services' (NAICS 541512). These services likely encompassed a range of IT support, including system design, integration, and potentially maintenance, aimed at enhancing the operational capabilities and efficiency of the Department of Health and Human Services. The specific alignment with strategic goals would require a deeper dive into HHS's IT modernization plans and objectives during the contract period.
What was the rationale for excluding certain sources during the 'full and open competition after exclusion of sources' process?
The rationale for excluding sources typically relates to specific technical requirements, past performance, or unique capabilities that only a limited number of vendors possess. Understanding this exclusion is critical to assessing whether the competition was truly optimized for value or if it inadvertently limited the pool of potential bidders, potentially impacting the final price and innovation.
How effectively was the Time and Materials pricing structure managed to control costs and ensure value for taxpayers?
Managing a Time and Materials (T&M) contract requires rigorous oversight to prevent cost overruns. Effective management involves detailed tracking of labor hours and material costs, clear task definitions, and regular performance reviews. Without specific data on cost variances or efficiency metrics, it's difficult to definitively assess the effectiveness of cost control and taxpayer value realized under this T&M agreement.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 6
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 6701 DEMOCRACY BLVD STE 500, BETHESDA, MD, 20817
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $40,065,563
Exercised Options: $40,065,563
Current Obligation: $40,065,563
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $614,169
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2011-09-15
Current End Date: 2016-09-14
Potential End Date: 2016-09-14 00:00:00
Last Modified: 2021-04-21
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