HHS awards $3.18M contract for INCEP platform support to AFC Development Inc

Contract Overview

Contract Amount: $3,182,023 ($3.2M)

Contractor: AFC Development Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2024-03-28

End Date: 2027-03-27

Contract Duration: 1,094 days

Daily Burn Rate: $2.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE PURPOSE OF THIS CONTRACT ACTION IS TO ACQUIRE THE OPERATION OF, MAINTENANCE OF, AND ANALYTICAL SUPPORT FOR THE INCEP PLATFORM ON BEHALF OF THE ASSISTANCE SECRETARY FOR PREPAREDNESS AND RESPONSE (ASPR).

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $3.2 million to AFC DEVELOPMENT INC for work described as: THE PURPOSE OF THIS CONTRACT ACTION IS TO ACQUIRE THE OPERATION OF, MAINTENANCE OF, AND ANALYTICAL SUPPORT FOR THE INCEP PLATFORM ON BEHALF OF THE ASSISTANCE SECRETARY FOR PREPAREDNESS AND RESPONSE (ASPR). Key points: 1. Contract focuses on critical operational and analytical support for the INCEP platform. 2. The platform is managed by the Assistant Secretary for Preparedness and Response (ASPR). 3. AFC Development Inc. is the sole awardee for this definitive contract. 4. The contract duration is approximately three years, ending in March 2027. 5. This award falls under 'Other Computer Related Services' (NAICS 541519). 6. The contract type is Firm Fixed Price, indicating a set cost for services.

Value Assessment

Rating: fair

The contract value of $3.18 million over three years for IT support services appears to be within a reasonable range for specialized platform maintenance and analytical functions. Benchmarking against similar contracts for IT operations and support for government platforms would provide a clearer picture of value for money. Without specific details on the scope of 'analytical support' and the complexity of the INCEP platform, a precise value assessment is challenging. However, the firm fixed-price structure suggests a defined cost expectation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities, proprietary knowledge, or is the only source capable of meeting the requirement. The lack of competition means that price discovery through market forces was not utilized, potentially leading to higher costs than if multiple bids were solicited.

Taxpayer Impact: Taxpayers may not benefit from the cost savings typically achieved through competitive bidding. The absence of competition limits the government's ability to secure the most economically advantageous offer.

Public Impact

The primary beneficiaries are the Department of Health and Human Services (HHS) and specifically the Assistant Secretary for Preparedness and Response (ASPR). The contract ensures the continued operation, maintenance, and analytical support of the INCEP platform. This platform likely supports critical public health preparedness and response initiatives. The services delivered are essential for the effective functioning of ASPR's operational capabilities. The contract is geographically focused on the District of Columbia, where HHS is headquartered.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost efficiencies.
Lack of competition may reduce incentive for contractor to innovate or offer best value.
Limited transparency into the justification for sole-source award without further documentation.

Positive Signals

Ensures continuity of essential IT operations and analytical support for a critical government function.
Firm Fixed Price contract provides cost certainty for the government.
Contract duration of three years offers stability for platform operations.

Sector Analysis

The IT services sector, particularly within government contracting, is highly competitive. However, specialized platforms often require unique expertise, leading to sole-source or limited competition awards. The 'Other Computer Related Services' category (NAICS 541519) encompasses a broad range of IT services, including system integration, IT support, and data analytics. Government spending in this area is substantial, driven by the need to maintain and modernize complex IT infrastructures and support critical mission functions.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless AFC Development Inc. voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services (HHS) contracting officers and program managers. The Inspector General's office within HHS would have jurisdiction for audits and investigations related to potential fraud, waste, or abuse. Transparency is dependent on the public availability of contract details and performance reports, which may be limited for sole-source awards.

Related Government Programs

HHS IT Support Contracts
ASPR Platform Maintenance
Government IT Operations Services
Federal Data Analytics Support

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns due to lack of competitive pressure

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $3.2 million to AFC DEVELOPMENT INC. THE PURPOSE OF THIS CONTRACT ACTION IS TO ACQUIRE THE OPERATION OF, MAINTENANCE OF, AND ANALYTICAL SUPPORT FOR THE INCEP PLATFORM ON BEHALF OF THE ASSISTANCE SECRETARY FOR PREPAREDNESS AND RESPONSE (ASPR).

Who is the contractor on this award?

The obligated recipient is AFC DEVELOPMENT 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 $3.2 million.

What is the period of performance?

Start: 2024-03-28. End: 2027-03-27.

What is the specific function and importance of the INCEP platform that necessitates a sole-source award?

The INCEP platform's specific functions are not detailed in the provided data, but its association with the Assistant Secretary for Preparedness and Response (ASPR) suggests it plays a crucial role in public health emergency preparedness, response coordination, and potentially data management related to health crises. The necessity for a sole-source award implies that AFC Development Inc. likely possesses unique, proprietary knowledge, specialized technical expertise, or has developed the platform itself, making them the only viable option for its continued operation, maintenance, and analytical support. Without this specialized knowledge, other contractors would face significant hurdles in understanding and managing the platform effectively, potentially jeopardizing critical government functions.

How does the $3.18 million contract value compare to similar IT support contracts for government platforms?

Benchmarking the $3.18 million contract value requires comparing it to similar contracts for the operation, maintenance, and analytical support of specialized government IT platforms. Factors such as the complexity of the platform, the scope of services (e.g., 24/7 support, advanced analytics), the number of users, and the duration of the contract are critical for a fair comparison. For a three-year contract, this equates to approximately $1.06 million per year. While this figure is not inherently high for specialized government IT services, a comprehensive analysis would involve reviewing contract databases (like FPDS or SAM.gov) for awards with similar NAICS codes (541519) and service descriptions to identify average pricing and identify potential outliers. The sole-source nature of this award also means direct price comparison with competitively bid contracts is less meaningful.

What are the potential risks associated with a sole-source IT support contract?

Sole-source contracts carry inherent risks, primarily related to cost and performance. Without competition, there is less pressure on the contractor to offer the most competitive pricing, potentially leading to inflated costs for the government. Furthermore, the lack of alternative providers can reduce the incentive for the incumbent contractor to innovate or maintain the highest levels of service quality, as switching costs for the government are high. There's also a risk of vendor lock-in, where the government becomes overly dependent on a single provider, limiting future flexibility. Transparency can also be a concern, as the justification for a sole-source award may not always be fully transparent to the public or even all internal stakeholders.

What is AFC Development Inc.'s track record with federal contracts, particularly within HHS?

Information regarding AFC Development Inc.'s specific track record with federal contracts, especially within the Department of Health and Human Services (HHS), is not provided in the data. A thorough assessment would require examining their past performance on similar contracts, including contract values, durations, types of services rendered, and any performance evaluations or past performance questionnaires. Understanding their history with managing complex IT platforms, providing analytical support, and meeting delivery timelines is crucial for evaluating their capability to fulfill the requirements of this new contract. Their experience with sole-source awards and their ability to manage costs effectively would also be relevant factors.

How does this contract align with broader HHS or ASPR strategic goals for IT modernization and preparedness?

This contract directly supports HHS and ASPR's strategic goals by ensuring the continued operational integrity and analytical utility of the INCEP platform. Given ASPR's mission, the INCEP platform likely underpins critical functions related to public health emergency preparedness and response. Maintaining and enhancing such a platform is essential for effective data analysis, situational awareness, and coordinated action during health crises. The contract's focus on operation, maintenance, and analytical support suggests a commitment to leveraging existing technological assets to meet evolving preparedness needs, rather than a complete overhaul or replacement, aligning with a strategy of sustaining and optimizing current capabilities.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3114 MCCLELLAN BLVD, ANNISTON, AL, 36201

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,137,852

Exercised Options: $3,182,023

Current Obligation: $3,182,023

Actual Outlays: $2,097,658

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: NO

Timeline