HHS awards $3M contract for IL Data Portal O&M to Q90 Corporation, a sole-source action

Contract Overview

Contract Amount: $300,000 ($300.0K)

Contractor: Q90 Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-13

End Date: 2027-04-12

Contract Duration: 364 days

Daily Burn Rate: $824/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: INDEPENDENT LIVING PERFORMANCE PROGRESS REPORTING SYSTEM OPERATIONS AND MAINTENANCE (IL DATA PORTAL)

Place of Performance

Location: PAYSON, UTAH County, UTAH, 84651

State: Utah Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $300,000 to Q90 CORPORATION for work described as: INDEPENDENT LIVING PERFORMANCE PROGRESS REPORTING SYSTEM OPERATIONS AND MAINTENANCE (IL DATA PORTAL) Key points: 1. Contract awarded on a sole-source basis, limiting potential for competitive pricing. 2. The contract duration of one year (364 days) suggests a focus on essential maintenance. 3. Administrative Management and General Management Consulting Services (NAICS 541611) is a broad category. 4. The firm-fixed-price contract type shifts risk to the contractor. 5. No small business set-aside was utilized for this procurement. 6. The contract is for operations and maintenance, indicating ongoing support for an existing system.

Value Assessment

Rating: questionable

Benchmarking the value of this $3 million contract is challenging without more detailed service descriptions or comparable contract data. As a sole-source award, there was no opportunity for competitive bidding to establish a market-driven price. The firm-fixed-price structure is generally favorable for the government in terms of cost certainty, but the absence of competition raises concerns about whether the price reflects optimal value for money. Further analysis would require understanding the scope of work and the contractor's historical performance and pricing on similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded on a sole-source basis. This means that only one vendor, Q90 Corporation, was solicited and awarded the contract. The lack of competition means that the government did not explore options with other potential providers, which could lead to higher prices and potentially less innovative solutions. The rationale for the sole-source award is not provided, but it typically implies a unique capability or urgent need that only one contractor can fulfill.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of competitive bidding. The government missed an opportunity to leverage market forces to drive down costs and ensure optimal value.

Public Impact

The Independent Living Performance Progress Reporting System (IL Data Portal) likely benefits individuals and organizations involved in independent living programs. The contract ensures the continued operation and maintenance of a critical data reporting system. The geographic impact is primarily within the Department of Health and Human Services (HHS) and its associated programs. Workforce implications are likely limited to the personnel at Q90 Corporation responsible for O&M services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential value for taxpayers.
Lack of transparency regarding the justification for sole-source award.
Broad NAICS code may obscure the specific nature and cost drivers of the services.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Contract ensures continuity of essential IT operations and maintenance.
Award to an established entity (implied by sole-source) may indicate prior successful performance.

Sector Analysis

The IT services sector, particularly for government operations and maintenance, is a significant market. This contract falls within the administrative management and general management consulting services category, often encompassing IT support functions. Comparable spending benchmarks for similar O&M contracts for government data portals can vary widely based on system complexity, user base, and service level agreements. The $3 million award for a one-year period suggests a moderately sized system requiring dedicated support.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. The sole-source nature of the award further reduces opportunities for small businesses to participate in this specific procurement. The impact on the small business ecosystem is therefore minimal for this particular contract, as it was awarded directly to a single entity without a competitive process that might have included small business participation goals.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services (HHS), specifically the Office of the Assistant Secretary for Financial Resources. Accountability measures are inherent in the firm-fixed-price contract type, requiring Q90 Corporation to deliver specified services. Transparency is limited due to the sole-source nature of the award; details on the justification and evaluation process are not publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Health Information Technology Services
Federal IT Operations and Maintenance Contracts
Department of Health and Human Services IT Spending
Data Management and Reporting Systems

Risk Flags

Sole-source award
Lack of competition
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $300,000 to Q90 CORPORATION. INDEPENDENT LIVING PERFORMANCE PROGRESS REPORTING SYSTEM OPERATIONS AND MAINTENANCE (IL DATA PORTAL)

Who is the contractor on this award?

The obligated recipient is Q90 CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Financial Resources).

What is the total obligated amount?

The obligated amount is $300,000.

What is the period of performance?

Start: 2026-04-13. End: 2027-04-12.

What is the specific scope of work for the Independent Living Performance Progress Reporting System Operations and Maintenance?

The provided data does not detail the specific scope of work for the Independent Living Performance Progress Reporting System (IL Data Portal) Operations and Maintenance (O&M). However, typical O&M services for such systems include ensuring system availability, performing routine maintenance, applying patches and updates, managing user access, providing technical support, monitoring system performance, and potentially developing minor enhancements or bug fixes. The contract's classification under NAICS 541611 (Administrative Management and General Management Consulting Services) suggests that the services may extend beyond pure IT maintenance to include aspects of system management, process improvement, or operational consulting related to the data portal's function.

What is the justification for awarding this contract on a sole-source basis to Q90 Corporation?

The provided data indicates that the contract was awarded on a sole-source basis, meaning only one vendor was solicited. However, the specific justification for this sole-source award is not included in the data. Common reasons for sole-source awards include unique capabilities possessed by only one contractor, urgent and compelling needs where competition is not feasible, or when the contract is a follow-on to a previous sole-source award where the original justification still applies. Without further information from the contracting agency (HHS), the precise rationale remains unknown. This lack of transparency is a key concern for assessing value and competition.

How does the $3 million contract value compare to similar IT O&M contracts within HHS or other federal agencies?

Directly comparing the $3 million contract value for the IL Data Portal O&M to similar contracts is difficult without more specific details on the system's complexity, user base, and the scope of services. However, for a one-year duration, $3 million is a substantial amount, suggesting a system of moderate to high complexity or one supporting a critical function. Federal IT O&M contracts can range from tens of thousands to hundreds of millions of dollars annually. The firm-fixed-price nature indicates a defined set of deliverables, and the sole-source award means this price wasn't validated through competition. Benchmarking would ideally involve comparing it to contracts for similar reporting systems or data portals within HHS or other agencies with comparable user loads and technical requirements.

What are the potential risks associated with a sole-source IT O&M contract of this size?

The primary risk associated with a sole-source IT O&M contract of this size is the potential for inflated costs due to the lack of competitive pressure. Without competing bids, Q90 Corporation may not have had an incentive to offer the most competitive pricing. Another risk is vendor lock-in, where the government becomes dependent on a single provider, potentially hindering future transitions or negotiations. Furthermore, the absence of competition can sometimes lead to complacency in service quality or innovation. Ensuring robust performance metrics and clear deliverables within the contract is crucial to mitigate these risks, alongside thorough oversight from the agency.

What is Q90 Corporation's track record with federal IT contracts, particularly O&M services?

The provided data identifies Q90 Corporation as the awardee but does not offer details on their track record with federal IT contracts or O&M services. To assess their performance, one would need to examine their contract history, including past performance evaluations, any awards or penalties, and the types of services they have previously provided to the government. Given this is a sole-source award, it's possible Q90 Corporation has a pre-existing relationship or demonstrated unique capabilities relevant to the IL Data Portal. A deeper dive into federal procurement databases (like SAM.gov or FPDS) would be necessary to evaluate their history.

What are the implications of the firm-fixed-price (FFP) contract type for this O&M service?

The firm-fixed-price (FFP) contract type means that Q90 Corporation is obligated to perform the work for a predetermined price, regardless of the actual costs incurred. This shifts the financial risk from the government to the contractor. For IT O&M services, an FFP contract provides cost certainty for the government, as the total expenditure is known upfront. However, it requires a very clearly defined scope of work to avoid disputes. If the scope is not well-defined or if unforeseen technical issues arise that are not covered by the contract's terms, the contractor may seek change orders, potentially increasing the overall cost. Conversely, if Q90 Corporation can perform the services efficiently, they stand to make a higher profit margin.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 95 S 100 E, PAYSON, UT, 84651

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $927,270

Exercised Options: $300,000

Current Obligation: $300,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline