Idaho Health Dept. Spends $18.1M on Computing Infrastructure, Data Processing, and Web Hosting

Contract Overview

Contract Amount: $181,764 ($181.8K)

Contractor: Idaho Department of Health & Welfare

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: $476/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: VSCP - IDAHO

Place of Performance

Location: BOISE, ADA County, IDAHO, 83702

State: Idaho Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $181,764 to IDAHO DEPARTMENT OF HEALTH & WELFARE for work described as: VSCP - IDAHO Key points: 1. Significant investment in essential IT services for public health. 2. Lack of competition raises concerns about potential overspending. 3. Contract duration extends beyond a year, impacting long-term value. 4. Focus on critical infrastructure highlights reliance on external providers.

Value Assessment

Rating: questionable

The contract value of $18.1 million for computing infrastructure and web hosting appears high given the lack of competition. Without competitive bidding, it's difficult to ascertain if this price reflects fair market value compared to similar services procured through competitive means.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition procurement. This approach bypasses the competitive process, potentially leading to higher prices and reduced innovation as there is no market pressure to offer the best value.

Taxpayer Impact: The absence of competition suggests taxpayers may be paying a premium for these essential IT services, as the government did not leverage market forces to secure the most cost-effective solution.

Public Impact

Ensures continuity of critical public health IT systems in Idaho. Potential for increased costs impacts the efficiency of health services. Lack of transparency in pricing due to non-competitive award.

Waste & Efficiency Indicators

Waste Risk Score: 47 / 10

Warning Flags

Sole-source award
High contract value
Extended contract duration
Lack of transparency in pricing

Positive Signals

Provides essential computing and hosting services
Supports critical public health functions

Sector Analysis

The IT services sector, particularly data processing and web hosting, is highly competitive. Government agencies typically leverage this competition to secure favorable pricing. A non-competed award in this sector warrants scrutiny.

Small Business Impact

There is no indication that small businesses were considered or involved in this procurement. The lack of competition suggests opportunities for small business participation were likely missed.

Oversight & Accountability

The non-competed nature of this award requires robust oversight to ensure the services are necessary, priced appropriately, and that future procurements are competed to maximize value and accountability.

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 competitive pricing
Potential for overpayment due to lack of market pressure
Limited transparency on cost justification
Missed opportunities for small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $181,764 to IDAHO DEPARTMENT OF HEALTH & WELFARE. VSCP - IDAHO

Who is the contractor on this award?

The obligated recipient is IDAHO DEPARTMENT OF HEALTH & WELFARE.

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 $181,764.

What is the period of performance?

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

What specific factors necessitated a sole-source award for these critical IT services, and were alternatives explored?

The justification for a sole-source award is not provided in the data. Typically, sole-source awards are reserved for situations where only one vendor can provide the required service due to unique capabilities, urgent needs, or specific compatibility requirements. A thorough review would be needed to confirm if such conditions truly existed and if less restrictive methods were adequately considered.

How does the $18.1 million cost compare to industry benchmarks for similar computing infrastructure and web hosting services, especially considering the lack of competition?

Without competitive bids, establishing a precise benchmark is challenging. However, the absence of competition for a significant contract in a typically competitive IT market raises a red flag. Industry benchmarks for comparable services, obtained through competitive processes, would likely reveal if this $18.1 million represents a fair market price or an inflated cost due to the lack of bidding.

What mechanisms are in place to ensure the effectiveness and efficiency of the services provided under this non-competed contract?

Oversight mechanisms would typically involve performance metrics, regular reviews, and clear deliverables outlined in the contract. Given the sole-source nature, it's crucial that the Department of Health and Human Services actively monitors service quality, uptime, and adherence to the contract terms to mitigate risks associated with a lack of competitive pressure on the vendor.

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: 450 W STATE 10TH FL, BOISE, ID, 83702

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

Financial Breakdown

Contract Ceiling: $181,764

Exercised Options: $181,764

Current Obligation: $181,764

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75D30122D13212

IDV Type: IDC

Timeline