HHS Spends $24.6M on PKI Support Services with Smartronix, LLC via Full and Open Competition
Contract Overview
Contract Amount: $24,613,695 ($24.6M)
Contractor: Smartronix, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2015-06-12
End Date: 2019-10-31
Contract Duration: 1,602 days
Daily Burn Rate: $15.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF USMC PUBLIC KEY INFRASTRUCTURE SUPPORT SERVICES
Place of Performance
Location: HOLLYWOOD, SAINT MARYS County, MARYLAND, 20636
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $24.6 million to SMARTRONIX, LLC for work described as: IGF::OT::IGF USMC PUBLIC KEY INFRASTRUCTURE SUPPORT SERVICES Key points: 1. Contract awarded to SMARTRONIX, LLC for Public Key Infrastructure (PKI) Support Services. 2. Total contract value of $24.6 million over approximately 4 years. 3. Procured through full and open competition, indicating a competitive bidding process. 4. Services fall under NAICS code 541519 (Other Computer Related Services).
Value Assessment
Rating: good
The contract value of $24.6M for PKI support services appears reasonable given the duration and scope. Benchmarking against similar government contracts for IT infrastructure support suggests this pricing is within expected ranges.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, which typically leads to better price discovery and value for the government. This method allows all eligible vendors to bid, fostering a competitive environment.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair market value for the services rendered.
Public Impact
Ensures secure digital identity and communication for federal agencies. Supports critical infrastructure for government operations and data protection. Impacts the cybersecurity posture of the Department of Health and Human Services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if PKI expertise is highly specialized.
- Reliance on a single vendor for critical security infrastructure.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type helps control costs.
- Long-term contract provides stability for service delivery.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on cybersecurity infrastructure. Government spending on IT services, particularly cybersecurity, has been steadily increasing due to evolving threats and the digitization of government functions.
Small Business Impact
The contract was awarded to SMARTRONIX, LLC. Information regarding small business participation or subcontracting is not explicitly detailed in the provided data, but the primary awardee is not indicated as a small business.
Oversight & Accountability
The contract was awarded via a delivery order under a larger contract vehicle. Oversight would typically involve contract management by the Department of Health and Human Services to ensure performance and adherence to terms.
Related Government Programs
- Other Computer Related Services
- Department of Health and Human Services Contracting
- Office of the Assistant Secretary for Administration Programs
Risk Flags
- Vendor Lock-in Potential
- Reliance on Single Vendor for Critical Security
- Cybersecurity Threat Landscape Evolution
- Contract Duration and Scope Management
Tags
other-computer-related-services, department-of-health-and-human-services, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $24.6 million to SMARTRONIX, LLC. IGF::OT::IGF USMC PUBLIC KEY INFRASTRUCTURE SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is SMARTRONIX, 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 $24.6 million.
What is the period of performance?
Start: 2015-06-12. End: 2019-10-31.
What specific PKI services were provided under this contract?
The contract likely encompassed a range of Public Key Infrastructure services, including the management, operation, and maintenance of digital certificates, certificate authorities, and related security protocols. This could involve cryptographic key management, identity verification, and ensuring the integrity and confidentiality of electronic communications for HHS.
What are the primary risks associated with relying on a single vendor for PKI support?
Key risks include vendor lock-in, where switching providers becomes difficult and costly. There's also a risk of service disruption if the vendor faces financial or operational issues. Furthermore, a single point of failure in critical security infrastructure could be exploited by adversaries if not managed proactively.
How effectively does this contract contribute to HHS's overall cybersecurity posture?
This contract is crucial for maintaining HHS's cybersecurity posture by ensuring the secure authentication and encryption of sensitive data. Reliable PKI services are foundational for protecting health information and enabling secure digital interactions, directly supporting HHS's mission to protect health and well-being.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 15233SOL00157
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: Smartronix LLC (UEI: 117369182)
Address: 44150 SMARTRONIX WAY, HOLLYWOOD, MD, 20636
Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,613,695
Exercised Options: $24,613,695
Current Obligation: $24,613,695
Subaward Activity
Number of Subawards: 22
Total Subaward Amount: $14,979,558
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: GS35F0362J
IDV Type: FSS
Timeline
Start Date: 2015-06-12
Current End Date: 2019-10-31
Potential End Date: 2019-10-31 00:00:00
Last Modified: 2021-06-16
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