HHS Awards $6.37M for VTRCKS O&M to Berry Technology Solutions, LLC

Contract Overview

Contract Amount: $6,372,582 ($6.4M)

Contractor: Berry Technology Solutions, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2021-04-05

End Date: 2022-03-23

Contract Duration: 352 days

Daily Burn Rate: $18.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: VTRCKS OPERATION AND MAINTENANCE

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30329

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $6.4 million to BERRY TECHNOLOGY SOLUTIONS, LLC for work described as: VTRCKS OPERATION AND MAINTENANCE Key points: 1. Contract awarded to Berry Technology Solutions, LLC for $6.37M. 2. Service category is 'Other Computer Related Services' (NAICS 541519). 3. Contract was not competed, raising potential competition concerns. 4. Firm Fixed Price contract type suggests defined scope and cost control.

Value Assessment

Rating: fair

The contract value of $6.37M for a 352-day period appears reasonable for IT operations and maintenance services. Benchmarking against similar contracts for 'Other Computer Related Services' would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source or limited competition award. This limits price discovery and potentially leads to higher costs compared to a competitive environment.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these services.

Public Impact

Public health operations rely on the effective maintenance of systems like VTRCKS. Transparency in contracting is crucial for public trust in government spending. Ensuring value for money in IT services is a key concern for federal agencies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment due to sole-source award

Positive Signals

Firm Fixed Price contract
Defined contract duration

Sector Analysis

This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Federal spending in this area is substantial, and competitive bidding is typically encouraged to ensure cost-effectiveness.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation is needed to determine if small business participation was considered.

Oversight & Accountability

The 'GA' status (Georgia) and 'ST' (State) suggest this contract may be subject to specific state-level oversight or reporting requirements, in addition to federal oversight.

Related Government Programs

Other Computer Related Services
Department of Health and Human Services Contracting
Centers for Disease Control and Prevention Programs

Risk Flags

Lack of competition
Potential for cost overruns
Limited transparency in award justification
No clear small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $6.4 million to BERRY TECHNOLOGY SOLUTIONS, LLC. VTRCKS OPERATION AND MAINTENANCE

Who is the contractor on this award?

The obligated recipient is BERRY TECHNOLOGY SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $6.4 million.

What is the period of performance?

Start: 2021-04-05. End: 2022-03-23.

What was the justification for not competing this contract, and what steps were taken to ensure fair pricing?

The justification for not competing this contract is not provided in the data. Typically, sole-source awards require a documented justification, such as a unique capability or urgent need. Without this justification, it's difficult to assess the fairness of the pricing. Further review of agency procurement records would be necessary to understand the rationale and any price negotiation efforts.

What are the specific risks associated with a sole-source IT O&M contract of this value?

The primary risk is the potential for inflated costs due to the absence of competitive pressure. The government may overpay for services. Additionally, there's a risk of vendor lock-in, where the agency becomes dependent on the sole provider, making future transitions difficult and potentially costly. Performance risks also exist if the vendor is not adequately incentivized to perform well.

How does the 'Other Computer Related Services' category compare to more specific IT service contracts in terms of cost and effectiveness?

The 'Other Computer Related Services' category is broad and can encompass a wide range of activities. Without specific details on the services provided under VTRCKS O&M, it's hard to benchmark. However, broader categories can sometimes mask inefficiencies or allow for less precise cost controls compared to highly specialized IT service contracts where performance metrics are clearer.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - IT MANAGEMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 75D301-21-R-71769

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Berry Technology Solutions LLC

Address: 525 WESTPARK DR, SUITE 310, PEACHTREE CITY, GA, 30269

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

Financial Breakdown

Contract Ceiling: $8,131,688

Exercised Options: $8,131,688

Current Obligation: $6,372,582

Actual Outlays: $3,177,234

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline