HHS Awards $2.8M for Business Transformation Support to Areeva Solutions
Contract Overview
Contract Amount: $2,813,006 ($2.8M)
Contractor: Areeva Solutions, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2026-01-30
End Date: 2027-01-29
Contract Duration: 364 days
Daily Burn Rate: $7.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 24
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: OFFICE OF GRANTS' BUSINESS TRANSFORMATION SUPPORT OBJECTIVES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20201
Plain-Language Summary
Department of Health and Human Services obligated $2.8 million to AREEVA SOLUTIONS, LLC for work described as: OFFICE OF GRANTS' BUSINESS TRANSFORMATION SUPPORT OBJECTIVES Key points: 1. Contract awarded to Areeva Solutions, LLC for Computer Systems Design Services. 2. The contract has a total value of $2,813,006.40. 3. The period of performance is from January 30, 2026, to January 29, 2027. 4. This is a Time and Materials contract, which can pose cost risks if not managed carefully. 5. The contract was awarded under full and open competition after exclusion of sources.
Value Assessment
Rating: fair
The contract value of $2.8M for Computer Systems Design Services over one year appears within a reasonable range for similar government IT support contracts. However, without specific details on the scope of work and deliverables, a precise benchmark is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition after exclusion of sources, indicating a competitive process was intended. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary IT support services.
Public Impact
Supports critical business transformation objectives within the Office of Grants. Enhances IT infrastructure and services for the Department of Health and Human Services. Ensures continuity of essential IT support operations through a dedicated contract. Potential for improved efficiency and effectiveness in grant management processes.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to cost overruns if not closely monitored.
- Limited competition after exclusion of sources may warrant further scrutiny.
- Contract duration of 364 days is standard but could be extended.
Positive Signals
- Awarded under full and open competition.
- Supports essential business transformation objectives.
- Clear end date for contract performance.
Sector Analysis
This contract falls under Computer Systems Design Services, a common IT service category within the federal government. Spending in this sector is substantial, driven by the need for modernization and operational support across agencies. Benchmarks vary widely based on complexity and duration.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, small businesses did not have a specific set-aside opportunity for this particular award.
Oversight & Accountability
The award process, utilizing full and open competition after exclusion of sources, suggests a structured approach. Oversight will be crucial to manage the Time and Materials aspect and ensure deliverables align with the stated business transformation objectives.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- Office of the Assistant Secretary for Financial Resources Programs
Risk Flags
- Potential for cost overruns due to Time and Materials contract type.
- Need for clear definition and monitoring of 'business transformation support objectives'.
- The 'exclusion of sources' aspect warrants understanding the rationale.
- Lack of small business participation in this specific award.
Tags
computer-systems-design-services, department-of-health-and-human-services, dc, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $2.8 million to AREEVA SOLUTIONS, LLC. OFFICE OF GRANTS' BUSINESS TRANSFORMATION SUPPORT OBJECTIVES
Who is the contractor on this award?
The obligated recipient is AREEVA SOLUTIONS, LLC.
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 $2.8 million.
What is the period of performance?
Start: 2026-01-30. End: 2027-01-29.
What specific business transformation objectives will Areeva Solutions support, and how will success be measured?
The contract aims to support the Office of Grants' Business Transformation Support Objectives. Success measurement will likely involve key performance indicators (KPIs) related to process improvements, system enhancements, and user adoption of new technologies or workflows. Specific metrics should be detailed in the contract's statement of work and performance standards.
What were the reasons for excluding other sources, and how did this impact the final price?
The contract states 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This implies that while the initial solicitation was broad, specific criteria or circumstances led to the exclusion of certain potential offerors before the final award. The impact on price depends on the number and competitiveness of the remaining bidders.
How will the Time and Materials contract type be managed to ensure cost-effectiveness and prevent scope creep?
Effective management of a Time and Materials (T&M) contract requires robust oversight, including detailed tracking of labor hours and material costs, clear definition of tasks, and strict adherence to a ceiling price. Regular performance reviews and a strong government contracting officer representative (COR) are essential to control costs and prevent unauthorized work.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 24
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 25932 DONOVAN DR, CHANTILLY, VA, 20152
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $8,614,057
Exercised Options: $2,813,006
Current Obligation: $2,813,006
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 47QTCB21D0032
IDV Type: GWAC
Timeline
Start Date: 2026-01-30
Current End Date: 2027-01-29
Potential End Date: 2029-01-29 00:00:00
Last Modified: 2026-01-29
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