HHS awards $15.4M for HP Q2 Systems support, highlighting IT maintenance needs

Contract Overview

Contract Amount: $15,384 ($15.4K)

Contractor: Synergy Group JV, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-03

End Date: 2027-03-31

Contract Duration: 362 days

Daily Burn Rate: $42/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TECHNICAL AND MAINTENANCE SUPPORT SERVICES FOR HEWLETT-PACKARD (HP) Q2 SYSTEMS.

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $15,384.1 to SYNERGY GROUP JV, LLC for work described as: TECHNICAL AND MAINTENANCE SUPPORT SERVICES FOR HEWLETT-PACKARD (HP) Q2 SYSTEMS. Key points: 1. Contract focuses on essential IT system maintenance, indicating a need for specialized technical support. 2. The award to SYNERGY GROUP JV, LLC suggests a competitive procurement process for IT services. 3. A firm-fixed-price contract structure aims to control costs and define service scope. 4. The duration of over one year points to ongoing operational requirements for these systems. 5. This contract falls within the broader IT services sector, supporting critical government functions.

Value Assessment

Rating: good

The contract value of $15.4 million for over a year of technical and maintenance support for HP Q2 Systems appears reasonable given the specialized nature of IT system upkeep. Benchmarking against similar IT maintenance contracts for complex systems would provide a more precise value assessment. However, the firm-fixed-price structure suggests an effort to manage costs effectively. The absence of specific performance metrics in the provided data makes a definitive value-for-money assessment challenging without further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is generally favorable for price discovery and ensuring the government receives competitive pricing. The fact that it was a delivery order suggests it may be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, but the specific number of bidders is not provided.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment among potential service providers.

Public Impact

The Department of Health and Human Services (HHS) benefits from continued operational support for its critical HP Q2 Systems. Essential technical and maintenance services ensure the reliability and availability of vital IT infrastructure. The contract supports IT professionals and technicians involved in maintaining these specialized systems. The services are likely concentrated within the geographic area where HHS operates its Q2 systems, primarily Maryland.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if Q2 systems are proprietary and require specialized knowledge.
Dependence on a single vendor for critical system maintenance could pose risks if performance falters.
Ensuring adequate knowledge transfer and documentation from the vendor is crucial for long-term system health.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Firm-fixed-price contract helps control costs and provides budget certainty.
Long-term support contract indicates a commitment to maintaining essential IT infrastructure.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on maintenance and support for specialized hardware/software systems. The IT services market is vast and highly competitive, encompassing a wide range of services from software development to hardware maintenance. Contracts for system maintenance are crucial for government agencies to ensure the continuity of operations for their critical IT infrastructure. Comparable spending benchmarks would involve looking at other agencies' IT maintenance contracts for similar enterprise-level systems.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) was not a specific set-aside for this contract. Therefore, the direct impact on small business set-asides is minimal. However, the prime contractor, SYNERGY GROUP JV, LLC, may engage small businesses as subcontractors, contributing to the broader small business ecosystem. Further analysis of subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Health and Human Services. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specific services. Transparency is facilitated through contract databases like FPDS, where award details are publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

IT Support Services
Hardware Maintenance Contracts
Enterprise Resource Planning (ERP) System Support
Government IT Infrastructure Management
Health Information Technology Services

Risk Flags

Potential for vendor lock-in
Reliance on specialized system knowledge
Contract performance risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $15,384.1 to SYNERGY GROUP JV, LLC. TECHNICAL AND MAINTENANCE SUPPORT SERVICES FOR HEWLETT-PACKARD (HP) Q2 SYSTEMS.

Who is the contractor on this award?

The obligated recipient is SYNERGY GROUP JV, 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 $15,384.1.

What is the period of performance?

Start: 2026-04-03. End: 2027-03-31.

What is the track record of SYNERGY GROUP JV, LLC in providing similar IT maintenance and support services to federal agencies?

SYNERGY GROUP JV, LLC's track record in providing IT maintenance and support services to federal agencies would need to be assessed through detailed contract history analysis. This would involve reviewing past performance evaluations, the types and complexity of systems they have supported, and their success in meeting contractual obligations. Information on their experience with Hewlett-Packard (HP) Q2 systems specifically would be highly relevant. A review of their past performance on similar firm-fixed-price contracts would also indicate their ability to manage costs and deliver within defined scopes. Without specific past performance data, it is difficult to definitively assess their capabilities for this particular award.

How does the awarded value of $15.4 million compare to market rates for similar IT maintenance and support services?

The awarded value of $15.4 million for over a year of technical and maintenance support for HP Q2 Systems needs to be benchmarked against market rates for comparable IT services. This comparison should consider the specific nature of the Q2 systems, the level of expertise required, and the duration of the contract. Factors such as the vendor's overhead, profit margins, and the competitive landscape influence pricing. Without access to detailed market research or data on similar contracts awarded to other vendors for comparable systems, it is challenging to definitively state whether this price is above or below market. However, the full and open competition suggests an effort to achieve competitive pricing.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks associated with this contract include potential performance issues from the contractor, such as service disruptions or failure to meet technical specifications. There's also a risk of cost overruns if the firm-fixed-price contract doesn't adequately account for unforeseen technical challenges. Vendor lock-in could be a concern if the Q2 systems are highly proprietary. Mitigation strategies typically involve robust performance monitoring by the government, clearly defined service level agreements (SLAs), and contingency planning. The firm-fixed-price structure itself acts as a cost control measure. The contracting officer's representative (COR) plays a crucial role in overseeing performance and addressing issues proactively.

How effective is the firm-fixed-price contract type in ensuring value for money for these IT maintenance services?

The firm-fixed-price (FFP) contract type is generally effective in ensuring value for money for IT maintenance services when the scope of work is well-defined and understood. It shifts the risk of cost overruns to the contractor, incentivizing them to manage their resources efficiently. For routine maintenance and support where requirements are predictable, FFP provides budget certainty for the government. However, if unforeseen technical complexities arise that were not adequately scoped, the contractor might be disincentivized to address them thoroughly, or the government might face challenges in getting additional work done without modifications. The effectiveness hinges on the initial scope definition and the contractor's ability to execute within that scope.

What is the historical spending pattern for IT maintenance and support services at HHS, and how does this award fit in?

Historical spending patterns for IT maintenance and support services at HHS would reveal the agency's overall investment in maintaining its technological infrastructure. This specific $15.4 million award for HP Q2 Systems support needs to be viewed within that broader context. If HHS consistently spends significant amounts on IT maintenance, this award might represent a typical expenditure for critical system upkeep. Conversely, if this amount is unusually high or low compared to historical trends for similar systems, it warrants further investigation. Analyzing past contracts for similar HP systems or other enterprise-level IT support would provide valuable comparative data to understand if this award aligns with established spending patterns.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 304 HARRY S TRUMAN PKWY STE G, ANNAPOLIS, MD, 21401

Business Categories: Category Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $15,384

Exercised Options: $15,384

Current Obligation: $15,384

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: HHSN316201500036W

IDV Type: GWAC

Timeline