HHS ACF OHS contract for digital services awarded to ARCH SYSTEMS LLC for $2.37M over 180 days
Contract Overview
Contract Amount: $2,367,402 ($2.4M)
Contractor: Arch Systems LLC
Awarding Agency: Department of the Interior
Start Date: 2025-09-29
End Date: 2026-03-28
Contract Duration: 180 days
Daily Burn Rate: $13.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 30
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: HHS ACF OHS MONITORING - DIGITAL SERVICES
Place of Performance
Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21230
State: Maryland Government Spending
Plain-Language Summary
Department of the Interior obligated $2.4 million to ARCH SYSTEMS LLC for work described as: HHS ACF OHS MONITORING - DIGITAL SERVICES Key points: 1. Value for money appears fair given the 180-day duration and time-and-materials pricing, though detailed performance metrics are needed for a definitive assessment. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Risk indicators include the time-and-materials pricing structure, which can lead to cost overruns if not closely managed. 4. Performance context is limited without specific deliverables or performance standards outlined. 5. This contract falls within the IT services sector, specifically custom computer programming. 6. The award amount of $2.37M for 180 days translates to approximately $13,152 per day.
Value Assessment
Rating: fair
The daily rate of approximately $13,152 for digital services, based on the total award of $2.37M over 180 days, needs to be benchmarked against similar custom computer programming contracts. Without specific details on the services rendered or the complexity of the digital solutions, it's challenging to definitively assess value. However, the time-and-materials (T&M) pricing model introduces inherent risk for cost control, suggesting that close monitoring of labor hours and rates is crucial to ensure value for money.
Cost Per Unit: $13,152 per day
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters price discovery and allows the government to select from a range of qualified contractors. The competitive nature should theoretically drive down costs and improve service quality.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it promotes a level playing field, encourages innovation among bidders, and increases the likelihood of securing services at competitive market rates.
Public Impact
The primary beneficiaries are likely the HHS ACF OHS program, which will receive digital services to support its operations. The services delivered are expected to be custom computer programming, aimed at enhancing or developing digital solutions. The geographic impact is primarily within the agency's operational sphere, likely supporting federal functions. Workforce implications may include the utilization of specialized IT professionals by the contractor, ARCH SYSTEMS LLC.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time-and-materials pricing can lead to unpredictable costs if not managed diligently.
- Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the services.
- The short duration (180 days) might indicate a project with a defined scope or a temporary need, requiring careful planning for continuity.
Positive Signals
- Awarded under full and open competition, suggesting a robust selection process.
- The contractor, ARCH SYSTEMS LLC, is providing specialized digital services, indicating expertise in the required domain.
- The contract has a clear end date, providing a defined period for service delivery and evaluation.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically under the category of Custom Computer Programming Services (NAICS 541511). This is a significant market within federal procurement, encompassing a wide range of services from software development to system integration. Federal spending in this area is substantial, driven by the need for agencies to modernize systems, enhance cybersecurity, and improve digital service delivery. Comparable spending benchmarks would typically involve analyzing the average cost per hour or per project for similar custom programming services across various federal agencies.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal. However, the prime contractor, ARCH SYSTEMS LLC, may engage small businesses as subcontractors, which would then provide opportunities within the small business community.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Health and Human Services (HHS) and the specific program office (ACF OHS). The Department of the Interior is the awarding agency, but HHS would be responsible for program-level oversight. Accountability measures would be tied to the contract's performance standards and deliverables. Transparency is facilitated by the contract award notice, but detailed performance reports and financial expenditures may not be publicly available. Inspector General jurisdiction would depend on whether the funds were ultimately disbursed by HHS or DOI, with potential oversight from either agency's IG.
Related Government Programs
- HHS IT Modernization Initiatives
- ACF Digital Transformation Projects
- Custom Software Development Services
- Federal IT Services Procurement
Risk Flags
- Time and Materials Pricing
- Lack of Detailed Performance Metrics
- Potential for Cost Overruns
Tags
it, hhs, acf, ohs, custom-computer-programming, digital-services, time-and-materials, full-and-open-competition, delivery-order, arch-systems-llc, department-of-the-interior, maryland
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $2.4 million to ARCH SYSTEMS LLC. HHS ACF OHS MONITORING - DIGITAL SERVICES
Who is the contractor on this award?
The obligated recipient is ARCH SYSTEMS LLC.
Which agency awarded this contract?
Awarding agency: Department of the Interior (Departmental Offices).
What is the total obligated amount?
The obligated amount is $2.4 million.
What is the period of performance?
Start: 2025-09-29. End: 2026-03-28.
What is the track record of ARCH SYSTEMS LLC in delivering similar digital services to federal agencies?
Information regarding the specific track record of ARCH SYSTEMS LLC in delivering similar digital services to federal agencies is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and client feedback for ARCH SYSTEMS LLC, particularly on contracts involving custom computer programming and digital services for agencies like HHS. This would help gauge their reliability, quality of work, and ability to meet deadlines and budget constraints on projects of comparable scope and complexity. Without this historical data, evaluating their suitability and potential risks associated with this specific contract is limited.
How does the daily rate of $13,152 compare to market rates for custom computer programming services?
The daily rate of approximately $13,152 for custom computer programming services, derived from the $2.37M award over 180 days, needs to be benchmarked against prevailing market rates. This rate is relatively high and suggests either a high level of specialization required for the digital services, a premium for rapid delivery, or potentially an area where further cost analysis is warranted. Market research reports for IT services, particularly for custom development and digital solutions, would provide a clearer comparison. Factors such as the seniority of the personnel, the complexity of the technology stack, and the specific deliverables will influence whether this rate represents good value or is above average for the services rendered.
What are the specific digital services to be delivered under this contract?
The provided data indicates that the contract is for 'Custom Computer Programming Services' supporting 'HHS ACF OHS MONITORING - DIGITAL SERVICES'. However, the specific nature of these digital services is not detailed. This could encompass a wide range of activities, such as developing new software applications, enhancing existing digital platforms, implementing data analytics tools, improving user interfaces, or building monitoring dashboards. A thorough understanding of the deliverables, including functional requirements, technical specifications, and expected outcomes, is essential for assessing the contract's value, risks, and overall impact on the agency's mission.
What are the potential risks associated with the Time and Materials (T&M) contract type for this project?
The primary risk associated with a Time and Materials (T&M) contract type, such as this one, is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual time and materials used. If not closely monitored and managed, this can lead to increased costs beyond initial estimates, especially if the scope of work is not well-defined or if the project timeline extends. For taxpayers, this means a less predictable expenditure. Effective oversight, including detailed timesheet reviews, labor rate verification, and clear task definitions, is crucial to mitigate these risks and ensure that the government only pays for necessary and efficient work.
What is the historical spending pattern for HHS ACF OHS digital services or similar IT contracts?
Historical spending patterns for HHS ACF OHS digital services or similar IT contracts are not provided in the current data. To establish a baseline and assess the current award's context, one would need to analyze previous contract awards for digital services, custom programming, or IT support within HHS ACF OHS, as well as comparable agencies. This analysis would reveal trends in contract values, durations, types of services procured, and the contractors frequently engaged. Understanding historical spending can help identify potential increases or decreases in investment, evaluate the consistency of procurement strategies, and provide benchmarks for negotiating future contracts.
How will the performance of ARCH SYSTEMS LLC be measured and evaluated?
The provided contract details do not specify the performance measurement and evaluation criteria for ARCH SYSTEMS LLC. Typically, government contracts include a Performance Work Statement (PWS) or Statement of Work (SOW) that outlines specific deliverables, quality standards, and timelines. Key Performance Indicators (KPIs) are often established to objectively measure the contractor's success. Without these details, it is difficult to assess how the government will ensure the contractor meets expectations and delivers the required digital services effectively. Post-award reviews and contract close-out reports would normally contain this evaluation information.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 140D0425Q0124
Offers Received: 30
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 1800 WASHINGTON BLVD, BALTIMORE, MD, 21230
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Other Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $17,999,074
Exercised Options: $2,367,402
Current Obligation: $2,367,402
Actual Outlays: $1,367,980
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS35F284CA
IDV Type: FSS
Timeline
Start Date: 2025-09-29
Current End Date: 2026-03-28
Potential End Date: 2030-09-28 00:00:00
Last Modified: 2026-03-17
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