HHS awards $23.6M for SAP licenses and MaxSecure, with 3 bidders competing

Contract Overview

Contract Amount: $23,610,497 ($23.6M)

Contractor: Advantaged Solutions, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2025-01-06

End Date: 2027-01-05

Contract Duration: 729 days

Daily Burn Rate: $32.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SAP LICENSES AND MAXSECURE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20011

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $23.6 million to ADVANTAGED SOLUTIONS, LLC for work described as: SAP LICENSES AND MAXSECURE Key points: 1. Value for money appears reasonable given the firm-fixed-price structure and competitive bidding. 2. Competition dynamics show a healthy level of interest with three bidders. 3. Risk indicators are moderate, with a firm-fixed-price contract type generally limiting cost overruns. 4. Performance context is for IT services supporting health data management. 5. Sector positioning is within the broader IT services market for government agencies.

Value Assessment

Rating: good

The contract's value of $23.6 million over two years for SAP licenses and MaxSecure software appears competitive, especially considering it was awarded under full and open competition. The firm-fixed-price structure provides cost certainty. Benchmarking against similar large-scale software license and support contracts for federal agencies suggests this pricing is within expected ranges, though specific feature comparisons would be needed for a precise valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while initial solicitations may have had limitations, the final award was open to all eligible bidders. With three bidders participating, the competition level suggests a reasonable degree of market interest and potential for price discovery. This level of competition is generally favorable for achieving fair market prices.

Taxpayer Impact: The presence of multiple bidders helps ensure that taxpayer funds are used efficiently by driving competitive pricing. A competitive process reduces the risk of overpaying for essential IT services.

Public Impact

The Centers for Disease Control and Prevention (CDC) benefits from enhanced data management and security capabilities. Services delivered include critical IT infrastructure support for health-related data. Geographic impact is primarily within the District of Columbia, where the CDC operates. Workforce implications include support for IT professionals managing and utilizing these systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with specialized software like MaxSecure.
Reliance on a single vendor for critical software licenses could pose long-term risks.
Ensuring ongoing technical support and updates are adequately priced over the contract term.

Positive Signals

Firm-fixed-price contract limits cost uncertainty for the government.
Competitive award process suggests a fair market price was achieved.
Clear contract duration (2 years) allows for future re-evaluation of needs.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on software licensing and related support. The market for enterprise resource planning (ERP) software like SAP and specialized security solutions is substantial within the federal government. Comparable spending benchmarks would involve analyzing other large federal IT procurements for similar software suites and support services, which often run into tens of millions of dollars annually.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside consideration for this specific award (ss: false, sb: false). While the prime contractor, Advantaged Solutions, LLC, may be a small business, the nature of this procurement for large-scale software licenses and services often involves significant subcontracting opportunities. Analysis would be needed to determine if subcontracting goals were established and met to ensure small businesses benefit from this contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program managers within the CDC. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified licenses and services. Transparency is facilitated through federal procurement databases where contract awards are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Information Technology, Strategy, and Management
Health Information Technology Services
Software Licensing and Maintenance
Cybersecurity and Data Protection Services

Risk Flags

Potential for vendor lock-in
Reliance on specific software platforms
Need for ongoing technical support and upgrades

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $23.6 million to ADVANTAGED SOLUTIONS, LLC. SAP LICENSES AND MAXSECURE

Who is the contractor on this award?

The obligated recipient is ADVANTAGED 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 $23.6 million.

What is the period of performance?

Start: 2025-01-06. End: 2027-01-05.

What is the track record of Advantaged Solutions, LLC with federal contracts, particularly for IT services?

Advantaged Solutions, LLC has a history of federal contracting, though specific details on their performance for large-scale SAP and MaxSecure implementations would require a deeper dive into contract databases. Their past performance on similar IT service contracts, including adherence to schedules, budget, and quality standards, is crucial for assessing their capability to fulfill this $23.6 million award. Reviewing past contract awards, modifications, and any reported issues or successes would provide a clearer picture of their reliability and expertise in delivering complex IT solutions to government agencies.

How does the $23.6 million award compare to historical spending on SAP licenses and MaxSecure by the CDC or similar agencies?

To benchmark the $23.6 million award, historical spending data for SAP licenses and MaxSecure (or comparable data security/management software) by the CDC and other agencies like HHS, NIH, or FDA would be analyzed. This comparison would consider contract duration, scope of services, and number of users. For instance, if previous two-year contracts for similar functionalities cost upwards of $20 million, this award appears within a reasonable range. Conversely, if historical data shows significantly lower costs for comparable services, it might warrant further investigation into the specific features, support levels, or market changes influencing the current price.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential vendor lock-in with specialized software, ensuring adequate technical support and future upgrades are cost-effectively managed, and the possibility of scope creep if requirements evolve beyond the initial contract. Mitigation strategies are primarily addressed through the firm-fixed-price contract type, which caps the government's financial liability for the defined scope. The competitive bidding process helps ensure fair pricing for licenses and initial support. Ongoing oversight by the CDC's contracting officer and program managers will be critical for managing performance, addressing any emerging issues, and ensuring that future needs are procured efficiently, potentially through re-competition or contract modifications.

How effective is the 'Full and Open Competition After Exclusion of Sources' approach for this type of IT procurement?

The 'Full and Open Competition After Exclusion of Sources' (FOUA) approach, as indicated in the data, suggests that while there might have been an initial exclusion of certain sources (perhaps due to specific requirements or prior relationships), the final award was made through a process open to all eligible bidders. For IT procurements involving specialized software like SAP and MaxSecure, this method can be effective if the initial exclusion was justified (e.g., proprietary technology) and the subsequent open competition still yields multiple qualified bidders. It aims to balance the need for specific capabilities with the benefits of broad market competition, potentially leading to better pricing and innovation than a sole-source award, while avoiding the complexities of a purely unrestricted full and open competition if specific prerequisites exist.

What are the implications of this contract award on the broader IT services market for federal agencies?

This award signals continued government investment in robust data management and security solutions, particularly leveraging established platforms like SAP. It highlights the demand for specialized IT services that support critical public health functions. For the broader IT services market, it indicates opportunities for vendors capable of providing similar software, integration, and support services. The competitive nature of this award suggests that agencies are actively seeking value, potentially driving down costs for similar procurements across the federal landscape. It also underscores the importance of cybersecurity and data integrity in government operations.

Industry Classification

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

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 75D301-25-R-73217

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5001 5TH ST NW, WASHINGTON, DC, 20011

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $33,212,675

Exercised Options: $25,849,770

Current Obligation: $23,610,497

Actual Outlays: $16,782,165

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline