HHS Awards $119M for Computing Infrastructure to Commonwealth Healthcare Corp

Contract Overview

Contract Amount: $119,364 ($119.4K)

Contractor: Commonwealth Healthcare Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-14

End Date: 2027-05-01

Contract Duration: 382 days

Daily Burn Rate: $312/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: VSCP - NORTHERN MARIANA

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27703

State: North Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $119,364 to COMMONWEALTH HEALTHCARE CORPORATION for work described as: VSCP - NORTHERN MARIANA Key points: 1. Significant contract value of $119.36 million. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long contract duration of 382 days. 4. Focus on IT infrastructure and web hosting services.

Value Assessment

Rating: questionable

The contract value is substantial, but without competitive bidding, it's difficult to assess if the pricing is optimal compared to market rates for similar computing infrastructure services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition could lead to a higher overall cost for taxpayers, as market-driven price reductions are unlikely.

Public Impact

Citizens may pay more for essential health IT services due to lack of competition. Potential for improved healthcare data management and accessibility. Ensures continuity of critical computing services for the CDC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Long contract duration

Positive Signals

Essential IT services for public health
Clear end date

Sector Analysis

This contract falls within the IT sector, specifically focusing on computing infrastructure and web hosting. Benchmarks for similar large-scale IT infrastructure contracts vary widely, but competitive bidding typically drives costs down.

Small Business Impact

The data indicates that small businesses were not involved in this specific award, as it was a sole-source contract with a large healthcare corporation.

Oversight & Accountability

Oversight is crucial for sole-source contracts to ensure fair pricing and prevent potential waste. The CDC should have robust internal controls to monitor performance and costs.

Related Government Programs

Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Department of Health and Human Services Contracting
Centers for Disease Control and Prevention Programs

Risk Flags

Sole-source award lacks transparency.
Potential for overpayment due to lack of competition.
Long-term reliance on a single vendor.
Limited opportunity for small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $119,364 to COMMONWEALTH HEALTHCARE CORPORATION. VSCP - NORTHERN MARIANA

Who is the contractor on this award?

The obligated recipient is COMMONWEALTH HEALTHCARE CORPORATION.

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 $119,364.

What is the period of performance?

Start: 2026-04-14. End: 2027-05-01.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award is not provided in the data. Typically, such awards are made when only one source is capable of meeting the requirement, or in cases of urgent need. Further investigation into the specific circumstances surrounding this award is warranted to understand the rationale and ensure it aligns with federal procurement regulations.

What are the risks associated with a sole-source IT infrastructure contract of this magnitude?

The primary risk is inflated costs due to the absence of competitive pressure. There's also a risk of vendor lock-in, reduced innovation, and potential for service quality issues if performance is not rigorously monitored. Without competition, the government has less leverage to negotiate favorable terms or ensure the best value.

How will the effectiveness of these computing services be measured and ensured?

Effectiveness will likely be measured through Service Level Agreements (SLAs) outlined in the contract, focusing on uptime, performance metrics, security compliance, and response times. The CDC should have a dedicated team to monitor these SLAs, conduct regular performance reviews, and ensure the vendor meets all contractual obligations.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 LOWER NAVY HILL RD, SAIPAN MP, MP, 96950

Business Categories: Category Business, Government, Hospital, U.S. Local Government, U.S. National Government, Not Designated a Small Business, U.S. Regional/State Government, Special Designations

Financial Breakdown

Contract Ceiling: $119,364

Exercised Options: $119,364

Current Obligation: $119,364

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75D30122D13210

IDV Type: IDC

Timeline