HHS awards $3.1M for SQL Server data masking, extending services through March 2027

Contract Overview

Contract Amount: $30,960 ($31.0K)

Contractor: Ogis Communication Group Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2026-03-31

End Date: 2027-03-30

Contract Duration: 364 days

Daily Burn Rate: $85/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: REDGATE SQL AND DATA MASKER FOR SQL SERVER

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20010

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $30,960 to OGIS COMMUNICATION GROUP INC for work described as: REDGATE SQL AND DATA MASKER FOR SQL SERVER Key points: 1. Contract value appears reasonable for specialized data security software and services. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Potential risk indicators include the specific nature of the software and its integration needs. 4. Performance context is tied to ongoing data protection requirements within HHS. 5. This contract falls within the broader IT services sector, specifically data management and security. 6. The duration of the contract provides a stable period for service delivery.

Value Assessment

Rating: good

The contract value of $3.1 million for Redgate SQL and Data Masker software and services over approximately 364 days (delivery order duration) seems within a reasonable range for specialized IT solutions. Benchmarking against similar contracts for enterprise-level data masking and security software would provide a more precise value-for-money assessment. However, given the critical nature of data protection for a federal agency like HHS, the investment is likely justified if it effectively mitigates data breach risks and ensures compliance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while initial exclusions might have occurred, the final award was made through a broad competitive process. The number of bidders is not specified, but this type of competition generally aims to solicit offers from all responsible sources. This approach is expected to foster price discovery and potentially lead to more competitive pricing for the government.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of obtaining the best value by encouraging multiple vendors to submit bids, driving down costs and improving service quality.

Public Impact

The primary beneficiaries are the Department of Health and Human Services (HHS) and its various operating divisions, ensuring the security of sensitive health and financial data. The services delivered include the provision of Redgate SQL and Data Masker software, likely accompanied by support, maintenance, and potentially implementation services. The geographic impact is primarily within the District of Columbia, where the contracting agency is located, but the data protected may have national implications. Workforce implications may involve IT security personnel within HHS who will utilize and manage the software, requiring specific skill sets for data masking and protection.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Dependence on a single software vendor (Redgate) could lead to vendor lock-in and potential future price increases.
The effectiveness of data masking relies heavily on proper configuration and ongoing maintenance, requiring skilled personnel.
Integration with existing HHS database infrastructure could present technical challenges and risks if not managed effectively.

Positive Signals

The use of specialized data masking software addresses a critical need for protecting sensitive information, aligning with federal data security mandates.
The full and open competition process suggests a commitment to achieving competitive pricing and best value.
The contract duration provides stability for HHS to implement and benefit from the data masking solution over a defined period.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on data management, database software, and cybersecurity solutions. The market for data masking and database security tools is robust, with several established vendors offering competing products. Federal spending in this area is significant, driven by increasing data volumes and stringent regulatory requirements like HIPAA. Comparable spending benchmarks would involve analyzing other federal contracts for similar database security software and services, considering factors like user licenses, support levels, and implementation scope.

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 or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary contractor, OGIS COMMUNICATION GROUP INC, is likely a larger entity, and the focus remains on the overall competition and service delivery rather than small business participation through set-asides.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services (HHS) contracting officers and program managers. Accountability measures are typically embedded within the contract terms, including performance standards, delivery schedules, and payment milestones. Transparency is facilitated through contract databases like FPDS, which record award details. The Inspector General's office for HHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

HHS Data Security and Privacy Programs
Federal Information Security Management Act (FISMA) Compliance
Health Insurance Portability and Accountability Act (HIPAA) Enforcement
IT Software and Licensing Procurement
Database Management Systems
Cybersecurity Solutions

Risk Flags

Vendor Lock-in Potential
Implementation Complexity
Data Integrity Risk
Reliance on Specialized Skills

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $30,960 to OGIS COMMUNICATION GROUP INC. REDGATE SQL AND DATA MASKER FOR SQL SERVER

Who is the contractor on this award?

The obligated recipient is OGIS COMMUNICATION GROUP INC.

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 $30,960.

What is the period of performance?

Start: 2026-03-31. End: 2027-03-30.

What is the track record of OGIS COMMUNICATION GROUP INC in delivering similar IT services to federal agencies?

A review of federal procurement data would be necessary to fully assess OGIS COMMUNICATION GROUP INC's track record. Without specific contract history details, it's difficult to provide a comprehensive analysis. However, their ability to secure this contract with the Department of Health and Human Services suggests they have met the agency's requirements for this specific service. Further investigation into past performance evaluations, contract awards, and any reported issues or successes on previous federal contracts would offer a clearer picture of their reliability and expertise in delivering IT solutions, particularly in the realm of data security and management.

How does the $3.1 million award compare to the typical cost of Redgate SQL and Data Masker solutions for large organizations?

The $3.1 million award for Redgate SQL and Data Masker, covering approximately one year of service, needs to be benchmarked against market rates for enterprise-level data security software. Redgate's products are known for their specialized capabilities, and pricing can vary significantly based on the number of users, databases, features, and support levels required. For a large federal agency like HHS, which likely manages a vast amount of sensitive data across numerous systems, this figure could represent a fair price for comprehensive licensing, maintenance, and potentially professional services. However, without detailed information on the specific Redgate modules, user counts, and service level agreements included in this contract, a precise comparison to market rates is challenging. Independent market research or analysis of similar government contracts for comparable software would be needed for a definitive value assessment.

What are the primary risks associated with implementing and utilizing data masking software within a federal health agency?

The primary risks associated with implementing and utilizing data masking software within a federal health agency like HHS are multifaceted. Firstly, there's the risk of inadequate masking, where sensitive data fields are not sufficiently anonymized, potentially leading to data breaches or privacy violations, which would have severe regulatory and reputational consequences under HIPAA. Secondly, improper implementation or configuration could disrupt existing database operations, impacting the availability and integrity of critical health information systems. Thirdly, reliance on a single vendor's technology, like Redgate, can create vendor lock-in, limiting future flexibility and potentially leading to escalating costs. Finally, the effectiveness of data masking is highly dependent on skilled personnel to manage and maintain the system, and a lack of expertise could undermine the entire security posture.

What is the historical spending pattern for data security and database management software at HHS?

Analyzing historical spending patterns for data security and database management software at HHS is crucial for contextualizing the current $3.1 million award. Federal procurement databases would reveal trends in IT spending, including the types of software procured, the agencies or offices making these purchases, and the average contract values over time. Understanding whether HHS has consistently invested in similar solutions, the volume of such procurements, and the typical duration and cost of these contracts would provide valuable insights. For instance, a history of significant investment in data masking and security tools might indicate a proactive approach to data protection, while a sudden increase could signal a response to emerging threats or new regulatory requirements. Benchmarking this award against past HHS expenditures on comparable technologies is essential for assessing its significance and potential value.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' contracting method impact price and innovation compared to other methods?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method aims to balance the benefits of broad competition with the need to address specific circumstances that might initially limit the pool of potential offerors. By allowing for an initial exclusion of sources (perhaps due to specific technical requirements or prior relationships), the agency can ensure that the subsequent full and open competition is focused on relevant and capable vendors. This can potentially lead to more targeted innovation if the initial exclusion criteria steer the competition towards specialized solutions. For taxpayers, this method can be advantageous if it ultimately results in competitive pricing and high-quality solutions by ensuring that the final competition is robust, even if it started with a narrowed scope. However, the justification for the initial exclusion must be sound to avoid perceptions of undue restriction.

Industry Classification

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

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 110 BOGGS LN STE 175, CINCINNATI, OH, 45246

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

Financial Breakdown

Contract Ceiling: $30,960

Exercised Options: $30,960

Current Obligation: $30,960

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD13B

IDV Type: GWAC

Timeline