HHS awards $43.5M for IT services to Digital Management LLC under full and open competition
Contract Overview
Contract Amount: $43,491,069 ($43.5M)
Contractor: Digital Management LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2016-09-29
End Date: 2021-11-09
Contract Duration: 1,867 days
Daily Burn Rate: $23.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: IGF::OT::IGF 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 $43.5 million to DIGITAL MANAGEMENT LLC for work described as: IGF::OT::IGF GRANTS.GOV INFORMATION TECHNOLOGY SERVICES Key points: 1. The contract value of $43.5M for IT services is substantial, indicating significant agency needs. 2. Digital Management LLC is the sole awardee, but the contract was competed. 3. The risk appears moderate given the established IT services sector and competition method. 4. Spending is within the IT sector, specifically Computer Systems Design Services.
Value Assessment
Rating: good
The contract value of $43.5M over approximately 5 years suggests a competitive pricing strategy was likely employed. Benchmarking against similar IT services contracts would provide a clearer picture of value.
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 that allowed multiple vendors to bid. This method generally promotes price discovery and fair market value.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair value for the IT services rendered.
Public Impact
Ensures continued IT support for the Department of Health and Human Services. Supports the operational needs of the Office of the Assistant Secretary for Administration. Provides essential computer systems design services to a major federal agency.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Positive Signals
- Full and open competition utilized
- Established IT services sector
- Awarded to a single entity, potentially indicating specialized capabilities
Sector Analysis
This contract falls within the Information Technology sector, specifically Computer Systems Design Services. Spending in this area is common across federal agencies to support critical infrastructure and operations.
Small Business Impact
The data does not indicate if small businesses were involved as subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract was awarded by the Department of Health and Human Services, implying standard federal procurement oversight. The duration and value warrant ongoing monitoring.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- Office of the Assistant Secretary for Administration Programs
Risk Flags
- Lack of detailed performance metrics
- Limited insight into small business participation
- No specific data on cost savings or efficiencies achieved
Tags
computer-systems-design-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 $43.5 million to DIGITAL MANAGEMENT LLC. IGF::OT::IGF 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 $43.5 million.
What is the period of performance?
Start: 2016-09-29. End: 2021-11-09.
What specific IT services were provided under this contract, and how did they align with the agency's strategic goals?
The contract was for Computer Systems Design Services (NAICS 541512). These services are fundamental for maintaining and improving the technological infrastructure of the Department of Health and Human Services, supporting its mission-critical operations and administrative functions. Alignment with strategic goals would depend on the specific projects undertaken.
Were there any performance issues or contract modifications that impacted the final cost or delivery?
The provided data does not detail performance issues or modifications. The contract duration was 1867 days (approx. 5 years) with 2 delivery orders. A review of contract modification history and performance reports would be necessary to assess any deviations from the original plan.
How does the per-unit cost of these Computer Systems Design Services compare to industry benchmarks for similar government contracts?
A precise per-unit cost benchmark is not available without more granular data on the specific services rendered (e.g., hours of labor, types of systems designed). However, the total contract value of $43.5M over five years for a single vendor suggests a significant investment, warranting comparison with similar IT service contracts awarded by other agencies.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 16233SOL00230
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 6550 ROCK SPRING DR FLR 7, BETHESDA, MD, 20817
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Not Designated a Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $51,410,262
Exercised Options: $43,491,069
Current Obligation: $43,491,069
Actual Outlays: $1,298,621
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $3,667,904
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSN316201200078W
IDV Type: GWAC
Timeline
Start Date: 2016-09-29
Current End Date: 2021-11-09
Potential End Date: 2021-11-09 00:00:00
Last Modified: 2021-05-18
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