HHS awarded $371K for identity verification, with Blue Tech Inc. as the sole contractor

Contract Overview

Contract Amount: $371,903 ($371.9K)

Contractor: Blue Tech Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2017-09-24

End Date: 2020-09-27

Contract Duration: 1,099 days

Daily Burn Rate: $338/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF DERIVED PERSONAL IDENTITY VERIFICATION CREDENTIALS SERVICES

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92110

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $371,902.69 to BLUE TECH INC. for work described as: IGF::CT::IGF DERIVED PERSONAL IDENTITY VERIFICATION CREDENTIALS SERVICES Key points: 1. The contract value appears modest, suggesting a focused scope of services. 2. Limited competition dynamics may warrant further investigation into pricing fairness. 3. The fixed-price contract type offers cost certainty but limits flexibility. 4. Performance duration of nearly three years indicates a stable, ongoing need. 5. The service falls under IT consulting, a common area for federal procurement. 6. The contract was awarded under full and open competition after exclusion of sources, suggesting a specific reason for the limited pool.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without more specific service details. However, a total award of $371,902 over approximately three years for identity verification services suggests a moderate per-year expenditure. Compared to larger IT service contracts, this appears to be a smaller, more specialized engagement. The firm-fixed-price structure implies that the contractor assumed the risk for cost overruns, which can be a positive indicator of value if the price was competitive.

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.' This specific procurement method indicates that while the competition was intended to be open, certain sources were excluded, potentially due to specific technical requirements or prior relationships. The number of bidders is not explicitly stated, but the exclusion of sources suggests a narrowed field from the outset. This could impact price discovery, as a smaller pool of eligible bidders might lead to less aggressive pricing.

Taxpayer Impact: Taxpayers benefit from a structured competition process, even with exclusions, as it aims to ensure fair pricing. However, the exclusion of sources warrants scrutiny to confirm it was justified and did not unduly limit competition, potentially increasing costs.

Public Impact

Federal employees and potentially contractors requiring identity verification services benefit from this contract. The services delivered are crucial for maintaining secure access to federal systems and data. The geographic impact is likely national, supporting the Department of Health and Human Services' operations across various locations. Workforce implications are minimal, as this contract primarily procures a service rather than directly creating new federal jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause in the competition type requires further examination to ensure it was fully justified and did not unnecessarily restrict competition.
Lack of detailed performance metrics makes it difficult to assess the effectiveness and efficiency of the identity verification services provided.
The specific nature of the 'identity verification credentials' is not detailed, raising potential questions about the scope and sensitivity of the data handled.

Positive Signals

The use of a firm-fixed-price contract provides cost certainty for the government.
The contract duration of nearly three years suggests a stable and reliable service delivery.
Awarding to a single contractor (Blue Tech Inc.) can streamline management and accountability for this specific service.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under IT services and consulting. The market for identity verification solutions is robust, driven by increasing cybersecurity threats and regulatory compliance needs. Federal spending in this area is significant, encompassing a wide range of solutions from multi-factor authentication to biometric systems. This particular contract appears to be a niche procurement focused on credential verification, likely supporting internal HHS security protocols.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, large businesses were eligible to compete. There is no information provided regarding subcontracting plans or performance related to small businesses. This suggests that the primary contractor, Blue Tech Inc., is likely responsible for delivering the full scope of services, with potential implications for the small business ecosystem depending on Blue Tech's own size and subcontracting practices.

Oversight & Accountability

Oversight for this contract would typically reside within the Department of Health and Human Services' Office of the Assistant Secretary for Administration (SA). Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver specified services within the agreed-upon cost. Transparency is facilitated through federal procurement databases like FPDS, where contract awards are recorded. The Inspector General's office for HHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Identity, Credential, and Access Management (ICAM)
Cybersecurity Services
IT Professional Services
HHS IT Modernization Efforts

Risk Flags

Potential for limited competition due to source exclusion.
Lack of detailed performance metrics.
Need for clarity on specific technologies used.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $371,902.69 to BLUE TECH INC.. IGF::CT::IGF DERIVED PERSONAL IDENTITY VERIFICATION CREDENTIALS SERVICES

Who is the contractor on this award?

The obligated recipient is BLUE TECH INC..

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 $371,902.69.

What is the period of performance?

Start: 2017-09-24. End: 2020-09-27.

What specific identity verification technologies or methods were procured under this contract?

The provided data does not specify the exact identity verification technologies or methods procured. The contract is categorized under NAICS code 541519 (Other Computer Related Services) and the description mentions 'IGF DERIVED PERSONAL IDENTITY VERIFICATION CREDENTIALS SERVICES.' This suggests a focus on the issuance, management, or verification of digital credentials that confirm personal identity. Without further details, it's unclear if this involved multi-factor authentication, biometrics, digital certificates, or other advanced identity solutions. Understanding the specific technology is crucial for assessing its effectiveness, security, and alignment with current federal identity management standards.

How does the pricing of this contract compare to similar identity verification services procured by other federal agencies?

Direct price comparison is difficult without knowing the specific services rendered and the volume of verifications performed. The total contract value of $371,902 over approximately three years is relatively modest for federal IT services. However, the 'Full and Open Competition After Exclusion of Sources' suggests a potentially specialized requirement. To benchmark effectively, one would need to identify contracts with similar scopes (e.g., credential issuance, verification services) and compare their total values, duration, and per-unit costs, adjusting for inflation and differing service levels. The firm-fixed-price nature implies Blue Tech Inc. bore the cost risk, which can be a positive sign if the price was competitive.

What is the track record of Blue Tech Inc. in providing identity verification services to the federal government?

The provided data indicates Blue Tech Inc. was awarded this contract. To assess their track record, a deeper dive into their past performance on similar federal contracts is necessary. This would involve reviewing contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract modifications, disputes, or terminations. A positive track record would demonstrate their capability, reliability, and adherence to contractual obligations in delivering identity verification solutions, providing confidence in their ability to fulfill this current requirement.

What were the specific criteria for excluding sources in this 'Full and Open Competition After Exclusion of Sources' award?

The data does not specify the exact criteria used for excluding sources. This procurement method implies that while the competition was intended to be open, certain potential offerors were deemed ineligible to bid. Common reasons for excluding sources include highly specialized technical requirements, unique security clearances, specific past performance needs, or proprietary technology integration that only a limited number of vendors could meet. Understanding these criteria is vital to ensure the exclusion was justified, competitive, and did not unduly limit the government's options or potentially inflate the price.

What is the expected impact of these identity verification services on the security posture of the Department of Health and Human Services?

The identity verification services procured under this contract are expected to enhance the security posture of HHS by ensuring that only authorized individuals gain access to sensitive systems and data. By verifying personal identities through 'IGF DERIVED PERSONAL IDENTITY VERIFICATION CREDENTIALS SERVICES,' the contract aims to mitigate risks associated with unauthorized access, identity theft, and fraudulent activities. A robust identity verification process is a foundational element of a strong cybersecurity framework, helping to protect critical health information and maintain the integrity of government operations.

How does this contract align with broader federal initiatives related to identity management and cybersecurity?

This contract aligns with broader federal initiatives such as the Federal Identity, Credential, and Access Management (FICAM) strategy and various cybersecurity directives. FICAM aims to standardize and improve how federal agencies manage identities and control access to resources. By procuring identity verification credentials services, HHS is implementing a key component of identity assurance. This supports the government-wide effort to strengthen cybersecurity defenses, protect sensitive data, and ensure that digital interactions are secure and trustworthy, reflecting a commitment to national security and operational resilience.

Industry Classification

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

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4025 HANCOCK ST. STE. 100, SAN DIEGO, CA, 92110

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Manufacturer of Goods, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $308,597

Exercised Options: $308,597

Current Obligation: $371,903

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD00B

IDV Type: GWAC

Timeline