HHS Awards $16M for SAP Support to Sault Tribe Solution Services, LLC
Contract Overview
Contract Amount: $16,046,731 ($16.0M)
Contractor: Sault Tribe Solution Services, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2025-02-22
End Date: 2027-02-21
Contract Duration: 729 days
Daily Burn Rate: $22.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: OPERATIONS AND MAINTENANCE SUPPORT SERVICES FOR SAP-BASED SOLUTIONS
Place of Performance
Location: SAULT SAINTE MARIE, CHIPPEWA County, MICHIGAN, 49783
State: Michigan Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $16.0 million to SAULT TRIBE SOLUTION SERVICES, LLC for work described as: OPERATIONS AND MAINTENANCE SUPPORT SERVICES FOR SAP-BASED SOLUTIONS Key points: 1. Contract awarded to a single entity, raising questions about competition. 2. The contract value of $16M for 2 years requires scrutiny for value. 3. IT services sector, specifically computer systems design, is the focus. 4. Potential risk associated with limited competition and sole-source awards.
Value Assessment
Rating: questionable
The contract value of $16M for two years of SAP support needs comparison to similar IT service contracts. Without benchmark data, assessing the pricing's fairness is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited or sole-source approach. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these essential SAP support services.
Public Impact
Public health data systems rely on SAP solutions, making this support critical. Limited competition could impact the availability and cost of future IT services. Taxpayer funds are allocated for IT infrastructure maintenance and upgrades.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Potential for overpricing due to lack of competition
- Reliance on a single vendor for critical IT support
Positive Signals
- Ensures continuity of critical SAP-based solutions
- Supports essential public health functions
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Benchmarks for similar SAP support contracts are essential for evaluating cost-effectiveness.
Small Business Impact
The contract does not indicate any specific provisions or set-asides for small businesses. Further analysis is needed to determine if small businesses were considered or excluded.
Oversight & Accountability
Oversight is crucial to ensure the contractor delivers services effectively and that the pricing remains fair throughout the contract duration, especially given the limited competition.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- Centers for Disease Control and Prevention Programs
Risk Flags
- Limited competition award
- Lack of clear justification for sole-source
- Potential for inflated pricing
- Vendor lock-in risk
Tags
computer-systems-design-services, department-of-health-and-human-services, mi, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $16.0 million to SAULT TRIBE SOLUTION SERVICES, LLC. OPERATIONS AND MAINTENANCE SUPPORT SERVICES FOR SAP-BASED SOLUTIONS
Who is the contractor on this award?
The obligated recipient is SAULT TRIBE SOLUTION SERVICES, 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 $16.0 million.
What is the period of performance?
Start: 2025-02-22. End: 2027-02-21.
What is the justification for awarding this contract on a limited competition basis?
The justification for limited competition needs to be thoroughly reviewed. Typically, this is reserved for situations where only one source can fulfill the requirement due to unique capabilities or urgent needs. Without this justification, the award raises concerns about adherence to procurement regulations designed to ensure fair and open competition.
How does the per-unit cost of this SAP support compare to industry benchmarks?
A detailed analysis of the per-unit cost is necessary. Comparing the rates for specific SAP modules, support levels, and personnel to industry benchmarks for similar government or commercial contracts will reveal if the pricing is competitive or inflated due to the limited competition.
What are the risks associated with relying on a single vendor for critical IT infrastructure support?
Relying on a single vendor for critical IT infrastructure poses risks such as vendor lock-in, potential price increases upon contract renewal, and a lack of innovation driven by competitive pressures. It also creates a single point of failure if the vendor experiences performance issues or financial instability.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 75D30125R73209
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 531 ASHMUN ST, SAULT SAINTE MARIE, MI, 49783
Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,812,345
Exercised Options: $16,046,731
Current Obligation: $16,046,731
Actual Outlays: $6,605,106
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2025-02-22
Current End Date: 2027-02-21
Potential End Date: 2030-02-21 00:00:00
Last Modified: 2026-02-09
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