HHS awards $1.99M for AMBRA SUITE software, raising questions about competition and value

Contract Overview

Contract Amount: $19,938 ($19.9K)

Contractor: Intelerad Medical Systems Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2025-04-17

End Date: 2027-04-16

Contract Duration: 729 days

Daily Burn Rate: $27/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: AMBRA SUITE ENTERPRISE LICENSE

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30329

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $19,938 to INTELERAD MEDICAL SYSTEMS INC for work described as: AMBRA SUITE ENTERPRISE LICENSE Key points: 1. The contract's value appears reasonable for enterprise software licensing, but a lack of competition limits definitive value assessment. 2. Sole-source procurement limits price discovery and potentially increases costs for taxpayers. 3. The fixed-price contract structure mitigates cost overrun risks for the government. 4. This software supports critical public health functions, indicating a need for reliable solutions. 5. The duration of the contract suggests a long-term need for this specific software. 6. The absence of small business set-asides or subcontracting plans warrants further review.

Value Assessment

Rating: fair

The $1.99 million award for the AMBRA SUITE enterprise license over two years appears within a typical range for specialized medical imaging software. However, without competitive bidding, it's difficult to benchmark the pricing against market alternatives or determine if the government secured the best possible value. The firm fixed-price nature of the contract provides cost certainty, but the lack of competition prevents a robust value-for-money assessment.

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. This approach is typically used when a specific product or service is required and only one vendor can provide it, or in urgent situations. The lack of competition means there were no other bidders, and therefore no direct price comparison or negotiation leverage was exercised. This limits the government's ability to explore alternative solutions or secure potentially lower prices through a competitive process.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government may not benefit from the price reductions typically achieved through competitive bidding. It also reduces transparency in the procurement process.

Public Impact

The AMBRA SUITE software is utilized by the Centers for Disease Control and Prevention (CDC), a key agency within HHS, supporting public health initiatives. The software likely facilitates the management, analysis, and dissemination of critical health data, benefiting public health professionals and researchers. The contract's geographic impact is national, given the CDC's role in nationwide public health. The contract supports the operational needs of federal employees within the CDC, rather than directly impacting a broad external workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding raises concerns about potential overpayment and missed opportunities for cost savings.
Sole-source awards can stifle innovation by limiting market entry for alternative solutions.
The absence of small business participation in this contract could be a missed opportunity to support the small business ecosystem.

Positive Signals

The firm fixed-price contract provides cost certainty for the government, mitigating risks associated with cost overruns.
The software supports critical functions within a major federal health agency, indicating its importance to public health operations.
The contract duration suggests a stable, long-term need for the software, allowing for consistent operational support.

Sector Analysis

The market for medical imaging and health informatics software is robust and growing, driven by advancements in digital health and the increasing volume of healthcare data. This contract falls within the Software Publishers industry (NAICS 513210). While specific spending benchmarks for the AMBRA SUITE are not publicly available, similar enterprise-level software licenses for large government agencies can range from hundreds of thousands to millions of dollars annually, depending on features, user count, and support levels. The sole-source nature of this award bypasses typical market dynamics for this sector.

Small Business Impact

This contract does not appear to include any specific small business set-asides. The sole-source nature of the award means that opportunities for small businesses to participate as prime contractors or through subcontracting were likely not explored. This could represent a missed opportunity to leverage the capabilities of small businesses within the federal contracting landscape and contribute to their growth.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services (HHS) and the Centers for Disease Control and Prevention (CDC). As a sole-source award, it may receive less scrutiny than a competed contract, but internal HHS procurement policies and potentially the Government Accountability Office (GAO) could review it if a protest were filed. Transparency is limited due to the lack of a competitive process, and there is no explicit mention of an Inspector General's specific involvement in this particular award.

Related Government Programs

HHS IT Modernization Initiatives
CDC Data Management Systems
Federal Health IT Contracts
Enterprise Software Licensing

Risk Flags

Sole-source award lacks competition
Potential for overpayment due to lack of bidding
Limited transparency in procurement process
No small business participation identified

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $19,938 to INTELERAD MEDICAL SYSTEMS INC. AMBRA SUITE ENTERPRISE LICENSE

Who is the contractor on this award?

The obligated recipient is INTELERAD MEDICAL SYSTEMS INC.

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 $19,938.

What is the period of performance?

Start: 2025-04-17. End: 2027-04-16.

What is the track record of INTELERAD MEDICAL SYSTEMS INC with federal contracts, particularly for the AMBRA SUITE?

A review of federal procurement data indicates that INTELERAD MEDICAL SYSTEMS INC has received federal contracts, though specific details on the AMBRA SUITE's prior federal performance are not immediately apparent from the provided data. The current award is noted as 'NOT COMPETED UNDER SAP,' suggesting it might be a new or sole-source acquisition for this specific entity or product within the federal space. Further investigation into contract databases like FPDS or SAM.gov would be necessary to ascertain the company's broader federal contracting history, including past performance, any issues encountered, and the value of previous awards. Understanding their experience with similar government clients and software deployments is crucial for assessing reliability.

How does the $1.99 million price compare to similar enterprise software licenses for public health agencies?

Benchmarking the $1.99 million price for the AMBRA SUITE enterprise license is challenging without competitive data. Typically, enterprise software licenses for large government agencies can vary significantly based on the scope of services, number of users, modules included, and support levels. For specialized medical imaging and data management software, this price point over a two-year period (approximately $1 million per year) is not inherently unreasonable, especially if it includes comprehensive support and advanced features critical for an agency like the CDC. However, the absence of competition means there's no direct market comparison to confirm if this represents optimal value or if alternative solutions could have been procured at a lower cost. A comparative analysis with other federal agencies' procurements of similar software, if available, would be more informative.

What are the primary risks associated with this sole-source award for the AMBRA SUITE?

The primary risks associated with this sole-source award are related to cost and potential lack of optimal solution. Firstly, without competition, there is a significant risk of overpayment, as the government did not benefit from price negotiations or market-driven cost reductions. Secondly, the government may not have explored potentially superior or more cost-effective alternative solutions that could have been offered by other vendors. Thirdly, sole-source awards can sometimes indicate a lack of market research or a reliance on incumbent solutions without proper evaluation of newer technologies. Finally, there's a risk of vendor lock-in, making it difficult and costly to switch providers in the future if needs evolve or dissatisfaction arises.

How effective is the AMBRA SUITE software likely to be for the CDC's public health functions?

The effectiveness of the AMBRA SUITE software for the CDC's public health functions hinges on its specific capabilities and how well they align with the agency's mission-critical needs. Given that the CDC is procuring an enterprise license, it implies the software is expected to play a significant role in data management, analysis, or workflow automation related to public health surveillance, research, or response. The software's ability to handle large datasets, ensure data integrity, facilitate collaboration, and integrate with other systems would be key indicators of its effectiveness. Without detailed information on the software's features and the CDC's specific use cases, a definitive assessment of effectiveness is difficult. However, the agency's decision to award a contract suggests a perceived need and potential utility.

What are the historical spending patterns for similar software categories at HHS or the CDC?

Historical spending patterns for similar software categories at HHS and the CDC can provide context for the $1.99 million award. Agencies like HHS and its components, including the CDC, frequently procure enterprise software solutions for data management, analytics, IT infrastructure, and specialized research tools. Spending in these areas can range from hundreds of thousands to tens of millions of dollars annually, depending on the scope and criticality of the systems. Software publishers (NAICS 513210) represent a significant portion of IT spending. Analyzing past contracts for Electronic Health Records (EHR), Picture Archiving and Communication Systems (PACS), Laboratory Information Management Systems (LIMS), or data analytics platforms within these agencies would reveal trends in contract values, durations, and procurement methods. This specific award, being sole-source, deviates from potentially more common competitive procurements for similar functionalities.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 800 BLVD DE MAISONNEUVE E, MONTREAL

Business Categories: Category Business, Foreign-Owned and U.S.-Incorporated Business, International Organization, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $55,164

Exercised Options: $19,938

Current Obligation: $19,938

Actual Outlays: $9,450

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline