HHS Awards $6.5M for Next Generation Secure Cloud Services to Trussworks, Inc
Contract Overview
Contract Amount: $6,518,051 ($6.5M)
Contractor: Trussworks, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2025-03-20
End Date: 2027-03-21
Contract Duration: 731 days
Daily Burn Rate: $8.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: GENERAL DIGITAL INFRASTRUCTURE SERVICES (GDIS) LOGICAL FOLLOW-ON NEXT GENERATION SECURE CLOUD (NGSC)
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001
Plain-Language Summary
Department of Health and Human Services obligated $6.5 million to TRUSSWORKS, INC. for work described as: GENERAL DIGITAL INFRASTRUCTURE SERVICES (GDIS) LOGICAL FOLLOW-ON NEXT GENERATION SECURE CLOUD (NGSC) Key points: 1. The contract focuses on secure cloud infrastructure, a critical area for government data. 2. Trussworks, Inc. is the awardee, with the contract type being a delivery order. 3. The contract is for a firm-fixed-price, full and open competition. 4. The duration is 731 days, ending in March 2027.
Value Assessment
Rating: good
The award amount of $6.5M for a 2-year cloud services contract appears reasonable given the scope of secure cloud infrastructure. Benchmarking against similar government cloud contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple vendors can bid.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers, as it encourages competitive bidding and potentially lower prices for government services.
Public Impact
Ensures secure cloud infrastructure for sensitive health data. Supports the Department of Health and Human Services' digital transformation efforts. Provides critical IT services for ongoing operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if follow-on contracts are not competitively bid.
- Ensuring ongoing security compliance in a rapidly evolving cloud landscape.
Positive Signals
- Leverages a competitive procurement process.
- Addresses a critical need for secure cloud services.
Sector Analysis
This contract falls within the IT services sector, specifically custom computer programming and cloud infrastructure. Government spending in this area is substantial and growing, driven by modernization efforts.
Small Business Impact
The contract was awarded under full and open competition and does not indicate any specific set-asides for small businesses. Further analysis would be needed to determine if small businesses had an opportunity to participate as subcontractors.
Oversight & Accountability
The Department of Health and Human Services is responsible for oversight. The contract's duration and firm-fixed-price nature provide some level of predictability, but ongoing monitoring of performance and security is crucial.
Related Government Programs
- Custom Computer Programming Services
- Department of Health and Human Services Contracting
- Office of the Assistant Secretary for Financial Resources Programs
Risk Flags
- Potential for cost overruns if scope creep occurs.
- Dependence on a single vendor for critical infrastructure.
- Risk of security breaches if not adequately managed.
- Ensuring long-term scalability and adaptability of the cloud solution.
Tags
custom-computer-programming-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 $6.5 million to TRUSSWORKS, INC.. GENERAL DIGITAL INFRASTRUCTURE SERVICES (GDIS) LOGICAL FOLLOW-ON NEXT GENERATION SECURE CLOUD (NGSC)
Who is the contractor on this award?
The obligated recipient is TRUSSWORKS, 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 $6.5 million.
What is the period of performance?
Start: 2025-03-20. End: 2027-03-21.
What is the projected cost savings or efficiency gain from migrating to this next-generation secure cloud?
The provided data does not explicitly detail projected cost savings or efficiency gains. However, the transition to a next-generation secure cloud is typically aimed at improving operational efficiency, enhancing data security, and potentially reducing long-term infrastructure costs compared to legacy systems. A detailed cost-benefit analysis would be required to quantify these benefits.
What are the key performance indicators (KPIs) for this contract, and how will they be measured?
Specific Key Performance Indicators (KPIs) are not detailed in the provided data. Typically, for secure cloud services, KPIs would include uptime/availability, security incident response times, data processing speeds, and compliance adherence. The contract likely outlines these metrics and the methods for measuring performance, with potential penalties or incentives tied to their achievement.
How does the pricing structure compare to industry benchmarks for similar secure cloud services?
The contract is firm-fixed-price, which provides cost certainty. While the total award of $6.5M for 731 days is noted, a direct comparison to industry benchmarks requires detailed analysis of the specific services, service level agreements (SLAs), and security features included. Without this granular detail, a precise benchmark assessment is challenging.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › 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
Parent Company: Trussworks Inc.
Address: 1 EMBARCADERO CTR STE 1200, SAN FRANCISCO, CA, 94111
Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $9,714,550
Exercised Options: $6,518,051
Current Obligation: $6,518,051
Actual Outlays: $2,541,998
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS35F174GA
IDV Type: FSS
Timeline
Start Date: 2025-03-20
Current End Date: 2027-03-21
Potential End Date: 2028-03-21 00:00:00
Last Modified: 2026-03-20
More Contracts from Trussworks, Inc.
- Office of Head Start Hosting and Shared Infrastructure Support Services — $9.9M (General Services Administration)
- NEW Contract to Maintain and Further Develop the HUD Exchange Website. IT IS a Website That Provides Program Information, Guidance, Services, and Tools to Hud's Community Partners — $7.9M (Department of Housing and Urban Development)
- Internal Revenue Service HAS a Need for Taxpayer Experience Engineering Support Services — $2.3M (Department of the Treasury)
Other Department of Health and Human Services Contracts
- Contact Center Operations (CCO) — $5.5B (Maximus Federal Services, Inc.)
- TAS::75 0849::TAS Oper of Govt R&D Goco Facilities — $4.8B (Leidos Biomedical Research Inc)
- THE Purpose of This Contract IS to Provide the Full Complement of Services Necessary to Care for UC in ORR Custody Including Facilities Set-Up, Maintenance, and Support Internal and Perimeter (IF Applicable) Security, Direct Care and Supervision Inc — $3.5B (Rapid Deployment Inc)
- Contact Center Operations — $2.6B (Maximus Federal Services, Inc.)
- Federal Contract — $2.4B (Leidos Biomedical Research Inc)
View all Department of Health and Human Services contracts →