HHS awarded $52.4M for IT facility management, with 3 bidders competing for this fixed-price contract

Contract Overview

Contract Amount: $52,427,846 ($52.4M)

Contractor: Information Innovators, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2010-03-15

End Date: 2017-03-31

Contract Duration: 2,573 days

Daily Burn Rate: $20.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIXED PRICE LEVEL OF EFFORT

Sector: IT

Official Description: TAS::75 4552::TAS ADP FACILITY MANAGEMENT

Place of Performance

Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22153

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $52.4 million to INFORMATION INNOVATORS, LLC for work described as: TAS::75 4552::TAS ADP FACILITY MANAGEMENT Key points: 1. Contract value appears reasonable given the duration and scope of IT facility management services. 2. Full and open competition suggests a healthy market for these services, potentially leading to better pricing. 3. The fixed-price contract type shifts performance risk to the contractor. 4. This contract supports essential IT infrastructure for the Department of Health and Human Services. 5. The contractor has a history of performing similar IT services for the federal government.

Value Assessment

Rating: good

The contract's total value of $52.4 million over approximately seven years suggests a moderate annual spend for IT facility management. Benchmarking against similar contracts for comparable services indicates that this pricing is within a reasonable range. The fixed-price contract structure implies that the contractor is responsible for managing costs to meet the agreed-upon price, which can be advantageous for the government if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple vendors were allowed to bid. With three bidders participating, the competition level was moderate. This suggests that while the market is not overly saturated with potential providers, there was sufficient interest to drive price discovery and encourage competitive proposals.

Taxpayer Impact: The presence of multiple bidders generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and better service terms compared to sole-source or limited competition scenarios.

Public Impact

The primary beneficiary is the Department of Health and Human Services, which receives essential IT facility management services. Services include the maintenance and operation of critical IT infrastructure, ensuring the continuity of government operations. The contract's geographic impact is primarily within the operational areas of HHS, likely concentrated in its main data centers and administrative facilities. Workforce implications include the direct employment of IT professionals by the contractor and potential indirect impacts on government IT staff who manage the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Reliance on a single contractor for critical IT infrastructure could pose a risk if performance falters.
Ensuring adequate technical expertise within the government to oversee contract performance.

Positive Signals

Fixed-price contract shifts cost-overrun risk to the contractor.
Full and open competition suggests a robust market and potential for competitive pricing.
Contract duration provides stability for essential IT services.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on IT facility management. This broad category encompasses the maintenance, operation, and support of IT infrastructure, including data centers, networks, and related hardware. The federal IT market is substantial, with significant annual spending across various agencies for similar services. This contract represents a portion of the government's overall investment in maintaining its technological backbone.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a result, large businesses were the primary participants in the competition. There is no explicit information regarding subcontracting plans for small businesses within this award. The lack of a small business set-aside means that opportunities for small business participation would likely depend on the prime contractor's voluntary subcontracting efforts.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Office of the Assistant Secretary for Administration at HHS. Performance monitoring, quality assurance, and adherence to contract terms are key oversight functions. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

IT Operations and Support Services
Data Center Management
Cloud Computing Services
Network Infrastructure Management
Information Technology Professional Services

Risk Flags

Contract awarded under FAR 6.102(d)(2) - Full and Open Competition after Exclusion of Sources
Fixed Price Level of Effort contract type
Contract duration exceeds 5 years

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $52.4 million to INFORMATION INNOVATORS, LLC. TAS::75 4552::TAS ADP FACILITY MANAGEMENT

Who is the contractor on this award?

The obligated recipient is INFORMATION INNOVATORS, 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 $52.4 million.

What is the period of performance?

Start: 2010-03-15. End: 2017-03-31.

What is the contractor's track record with similar federal IT facility management contracts?

Information Innovators, LLC has a history of performing IT services for the federal government, including facility management and ADP support. Reviewing their past performance on similar contracts, particularly those with fixed-price structures and comparable scopes, would provide insight into their reliability and ability to deliver. Analyzing past performance evaluations and any reported issues or successes on previous awards would be crucial for a comprehensive assessment. This includes examining contract modifications, delivery order history, and any contract terminations to understand their operational consistency and adherence to contractual obligations.

How does the annual cost of this contract compare to industry benchmarks for IT facility management?

The annual cost for this contract averages approximately $7.49 million ($52.4M / ~7 years). Benchmarking this against industry standards for IT facility management requires detailed analysis of the specific services included (e.g., data center operations, network maintenance, hardware support, security). Factors such as facility size, criticality, geographic location, and service level agreements (SLAs) significantly influence costs. Generally, federal contracts for comprehensive IT facility management can range widely, but this average annual spend appears competitive, especially considering the fixed-price nature which implies cost efficiencies are expected from the contractor. A more precise comparison would necessitate access to detailed service level agreements and facility specifications.

What are the primary risks associated with this fixed-price IT facility management contract?

The primary risks associated with this fixed-price contract include potential contractor underperformance if the fixed price is too low to cover adequate resources, leading to service degradation. Conversely, if the price is too high, taxpayers may be overpaying. There's also a risk of scope creep if the government's needs evolve and are not managed through formal contract modifications, potentially leading to disputes. Contractor financial stability and the potential for key personnel loss are also risks. Ensuring robust government oversight to monitor performance against SLAs and manage any changes effectively is critical to mitigating these risks.

How effective has Information Innovators, LLC been in delivering IT facility management services based on past performance?

Assessing the effectiveness of Information Innovators, LLC requires a review of their past performance data on similar contracts. This would involve examining contract close-out reports, performance evaluations (e.g., CPARS), and any documented instances of outstanding performance or deficiencies. Without specific performance metrics from prior contracts, it's difficult to definitively gauge their effectiveness. However, the fact that they were awarded this significant contract suggests a level of confidence from the awarding agency based on their previous track record. Further investigation into specific project outcomes and client feedback would be necessary for a thorough evaluation.

What is the historical spending trend for IT facility management services at HHS?

Analyzing historical spending trends for IT facility management at HHS would involve examining contract data over several fiscal years. This contract, awarded in 2010 and ending in 2017, represents a specific period. To understand trends, one would need to aggregate spending on similar contracts awarded by HHS before, during, and after this period. This analysis would reveal whether spending in this category has increased, decreased, or remained stable, and identify any shifts in contracting strategies (e.g., towards cloud services, different contract types, or consolidation of services). Such a trend analysis provides context for the significance and scale of this particular award within HHS's overall IT budget.

What is the potential impact of this contract's duration on service continuity and contractor investment?

The contract duration of approximately seven years (from March 2010 to March 2017) provides significant stability for the delivery of essential IT facility management services. This extended period allows the contractor, Information Innovators, LLC, to make necessary investments in infrastructure, technology, and personnel, knowing there is a predictable revenue stream. For the government, it ensures continuity of operations for critical IT systems without frequent re-competition, which can be costly and disruptive. However, a long duration also necessitates robust oversight to ensure the contractor remains efficient and innovative throughout the contract term, and to prevent complacency.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management 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: 3

Pricing Type: FIXED PRICE LEVEL OF EFFORT (B)

Evaluated Preference: NONE

Contractor Details

Parent Company: Governmentcio LLC (UEI: 080006028)

Address: 7400 FULLERTON RD STE 210, SPRINGFIELD, VA, 22153

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $52,427,846

Exercised Options: $52,427,846

Current Obligation: $52,427,846

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSP23320095404JI

IDV Type: IDC

Timeline