DoD's $44.3M contract for IT support at 10 military bases awarded to HUI HULIAU TECHNOLOGY SERVICES LLC

Contract Overview

Contract Amount: $44,279,373 ($44.3M)

Contractor: HUI Huliau Technology Services LLC

Awarding Agency: Department of Defense

Start Date: 2022-07-01

End Date: 2023-12-04

Contract Duration: 521 days

Daily Burn Rate: $85.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MILITARY HEALTH SYSTEM GENESIS SUSTAINMENT & SUPPORT FOR TRAVIS, NELLIS, CARSON, PENDLETON, SAN DIEGO, HAWAII, BAMC/LACKLAND, HOOD/BRAGG, AND BLISS/GORDON

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $44.3 million to HUI HULIAU TECHNOLOGY SERVICES LLC for work described as: MILITARY HEALTH SYSTEM GENESIS SUSTAINMENT & SUPPORT FOR TRAVIS, NELLIS, CARSON, PENDLETON, SAN DIEGO, HAWAII, BAMC/LACKLAND, HOOD/BRAGG, AND BLISS/GORDON Key points: 1. The contract value represents a significant investment in maintaining critical IT infrastructure across multiple major military installations. 2. Competition for this contract was limited, raising questions about potential price efficiencies and the breadth of available solutions. 3. The fixed-price contract type suggests a defined scope, but potential for cost overruns exists if unforeseen technical challenges arise. 4. Performance is benchmarked against similar IT support contracts for federal agencies, with a focus on value for money. 5. This contract falls within the broader IT services sector, supporting essential operational functions for the Defense Health Agency. 6. The duration of the contract (521 days) indicates a need for sustained support rather than a short-term project.

Value Assessment

Rating: fair

The contract's value of approximately $44.3 million over roughly 17 months for IT sustainment and support across 10 locations appears within a reasonable range for large-scale federal IT services. However, without specific details on the scope of services and the number of users supported at each location, a precise value-for-money assessment is challenging. Benchmarking against similar multi-site IT support contracts for federal agencies would be necessary to determine if the pricing is competitive. The fixed-price nature of the contract provides cost certainty for the government, but it relies heavily on accurate initial scope definition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source justification, indicating that only one vendor was deemed capable of fulfilling the requirement. This significantly limits competition and may result in higher prices than if the contract had been competed more broadly. The lack of multiple bidders means there was no direct price comparison or incentive for vendors to offer their most competitive rates. The specific reasons for the sole-source award, such as unique capabilities or existing infrastructure integration, would need further investigation to understand the necessity.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government lacks the leverage of competitive bidding to drive down prices. This limits the opportunity to explore potentially more cost-effective solutions from a wider range of providers.

Public Impact

Military personnel and their families at 10 specified bases will benefit from reliable IT services, ensuring access to essential systems for healthcare, administration, and daily operations. The contract delivers crucial IT sustainment and support, encompassing network management, hardware/software maintenance, and technical assistance. Geographic impact is broad, covering Travis AFB, Nellis AFB, Fort Carson, Camp Pendleton, Naval Base San Diego, bases in Hawaii, BAMC/Lackland, Fort Hood/Fort Bragg, and Fort Bliss/Fort Gordon. Workforce implications include the potential for direct employment by HUI HULIAU TECHNOLOGY SERVICES LLC and its subcontractors to fulfill the IT support roles at these installations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially restricts access to innovative solutions.
Lack of detailed performance metrics in the provided data makes it difficult to assess the quality of service.
The broad scope across multiple diverse locations could present logistical and management challenges.
Fixed-price contract may not fully account for unforeseen technical complexities or scope creep.

Positive Signals

Contract awarded to a specific technology services provider, indicating a potentially specialized capability.
Fixed-price contract provides budget certainty for the government.
Sustained IT support across numerous critical military installations ensures operational continuity.
Contract duration suggests a commitment to long-term system stability.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design and related services (NAICS 541519). The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. This contract supports the Defense Health Agency's mission, highlighting the critical role of IT in modern military healthcare operations. Comparable spending benchmarks would involve analyzing other large-scale IT support contracts awarded to manage infrastructure across multiple federal facilities or defense installations.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, HUI HULIAU TECHNOLOGY SERVICES LLC, may engage small businesses as subcontractors to fulfill parts of the contract, depending on their own subcontracting plans and the nature of the services required. The absence of a small business set-aside means opportunities for small businesses to compete directly for this prime contract were not prioritized.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Health Agency (DHA) and the Department of Defense (DoD). Mechanisms likely include contract performance reviews, regular reporting requirements from the contractor, and potentially site visits by government contracting officers or technical representatives. Accountability is managed through the terms of the firm-fixed-price contract, with penalties or remedies for non-performance. Transparency is generally facilitated through contract databases like FPDS, though detailed performance reports are often not publicly available.

Related Government Programs

Defense Health Agency IT Support Contracts
Military Base IT Infrastructure Services
Federal IT Sustainment and Maintenance
Sole-Source IT Service Awards
Computer Systems Design Services

Risk Flags

Sole-source award
Limited competition
Potential for price inefficiency
Lack of public performance data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.3 million to HUI HULIAU TECHNOLOGY SERVICES LLC. MILITARY HEALTH SYSTEM GENESIS SUSTAINMENT & SUPPORT FOR TRAVIS, NELLIS, CARSON, PENDLETON, SAN DIEGO, HAWAII, BAMC/LACKLAND, HOOD/BRAGG, AND BLISS/GORDON

Who is the contractor on this award?

The obligated recipient is HUI HULIAU TECHNOLOGY SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Health Agency).

What is the total obligated amount?

The obligated amount is $44.3 million.

What is the period of performance?

Start: 2022-07-01. End: 2023-12-04.

What is the specific nature of the IT sustainment and support services provided under this contract?

The contract, valued at approximately $44.3 million, is for 'MILITARY HEALTH SYSTEM GENESIS SUSTAINMENT & SUPPORT' across ten military installations. While the specific NAICS code (541519 - Other Computer Related Services) suggests a broad range of IT services, the term 'sustainment and support' typically encompasses activities such as maintaining existing IT infrastructure, providing technical assistance and help desk services, managing networks, ensuring cybersecurity, performing hardware and software updates, and potentially managing system integrations. For the Military Health System, this likely includes supporting electronic health record systems (like MHS GENESIS), administrative systems, and communication networks critical for healthcare delivery and operations at these bases.

How does the pricing of this contract compare to similar IT support contracts for federal agencies?

A direct, precise comparison of pricing is difficult without access to detailed scope-of-work documents and specific performance metrics for this $44.3 million contract. However, the contract's value over its 521-day duration (approximately 17 months) suggests an average annual spend of roughly $26 million. This figure needs to be contextualized by the number of users, systems supported, and the complexity of the IT environment at the ten specified military bases. Generally, large-scale, multi-site IT support contracts for federal agencies can range from tens to hundreds of millions of dollars annually. The sole-source nature of this award raises concerns that the price may not be as competitive as it could be if the contract had undergone full and open competition, potentially leading to a higher cost per user or per system supported compared to benchmarked contracts.

What are the primary risks associated with this sole-source IT support contract?

The primary risk associated with this sole-source contract is the lack of competitive pressure, which can lead to inflated pricing and potentially suboptimal service quality. Without competing vendors, the government has less leverage to negotiate favorable terms or ensure the most cost-effective solution is chosen. Another risk is vendor lock-in; if HUI HULIAU TECHNOLOGY SERVICES LLC is the sole provider with unique integration knowledge, transitioning to another vendor in the future could be complex and costly. Furthermore, sole-source awards can sometimes indicate a lack of market research or a failure to identify potential competitors, which could represent missed opportunities for innovation and cost savings. The government must rely heavily on the contractor's integrity and the effectiveness of its internal oversight to mitigate these risks.

What is the historical spending pattern for IT sustainment and support at these specific military bases?

Analyzing historical spending patterns for IT sustainment and support at these ten specific military bases would require accessing detailed contract databases (like FPDS) and filtering for previous contracts awarded to various vendors for similar services at these locations. Without this specific data, it's impossible to provide a precise historical context. However, it is generally understood that military bases require continuous IT support and sustainment, implying consistent, often substantial, annual spending on these services. The transition to MHS GENESIS, a major electronic health record system, likely influenced recent and future IT support needs and associated spending. Understanding if this $44.3 million contract represents an increase, decrease, or stable level of spending compared to previous support arrangements would be a key analytical question.

How does the contractor, HUI HULIAU TECHNOLOGY SERVICES LLC, perform on other federal contracts?

To assess the track record of HUI HULIAU TECHNOLOGY SERVICES LLC, one would need to examine their past performance on federal contracts, particularly those with the Department of Defense or the Defense Health Agency. This involves reviewing contract databases for awards, performance ratings (if available), and any instances of contract disputes, terminations, or corrective actions. A positive track record would include successful completion of similar IT support or sustainment contracts, adherence to schedules and budgets, and positive feedback from government contracting officers. Conversely, a history of poor performance, cost overruns, or missed deadlines would raise concerns about their ability to successfully execute this current $44.3 million contract. Without specific performance data on this contractor, a definitive assessment cannot be made.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HT001122R0031

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 85-876 FARRINGTON HWY STE 204, WAIANAE, HI, 96792

Business Categories: 8(a) Program Participant, Category Business, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Native Hawaiian Organization Owned Firm, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $44,279,373

Exercised Options: $44,279,373

Current Obligation: $44,279,373

Actual Outlays: $5,344,837

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HT001122D0057

IDV Type: IDC

Timeline