HHS Awards $3.96M for QMIS Software & Services to CWC GROUP LLC

Contract Overview

Contract Amount: $3,956,063 ($4.0M)

Contractor: CWC Group LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2020-09-25

End Date: 2024-09-29

Contract Duration: 1,465 days

Daily Burn Rate: $2.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: QMIS SOFTWARE AND SERVICES CDER

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20903

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $4.0 million to CWC GROUP LLC for work described as: QMIS SOFTWARE AND SERVICES CDER Key points: 1. Contract awarded to CWC GROUP LLC for QMIS Software and Services. 2. Total award value is $3,956,063.20. 3. The contract was not competed, raising potential concerns about price discovery. 4. The sector is Software Publishers (NAICS 511210).

Value Assessment

Rating: questionable

The contract value of $3.96M over approximately 4 years for software and services needs careful benchmarking against similar government or commercial contracts. Without competitive bidding, it's difficult to ascertain if this price represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition award. This approach can limit price discovery and potentially lead to higher costs for taxpayers compared to a fully competitive process.

Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if the contract had been awarded through a more open and competitive bidding process.

Public Impact

Taxpayers may be paying a premium due to the absence of competitive bidding. The FDA's reliance on a single vendor for critical software and services could pose a risk if the vendor fails to perform or significantly increases prices. Transparency in government spending is reduced when contracts are not competed, making it harder for the public to assess value for money.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment
Vendor lock-in risk

Positive Signals

Definitive contract provides clear scope and duration
Firm Fixed Price contract limits cost overrun risk for the government

Sector Analysis

The Software Publishers sector (NAICS 511210) encompasses companies that publish, develop, and distribute software. Government spending in this area is crucial for IT infrastructure and specialized applications. Benchmarks for similar software and services contracts are essential for evaluating this award.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as the prime contractor or as subcontractors. Further analysis would be needed to determine if opportunities were missed for small business participation.

Oversight & Accountability

Oversight of this contract by the Food and Drug Administration is critical, especially given its non-competitive nature. Regular performance reviews and cost analysis are necessary to ensure the government receives value and that the vendor meets all contractual obligations.

Related Government Programs

Software Publishers
Department of Health and Human Services Contracting
Food and Drug Administration Programs

Risk Flags

Lack of competition
Potential for inflated pricing
Limited transparency in award process
No clear small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $4.0 million to CWC GROUP LLC. QMIS SOFTWARE AND SERVICES CDER

Who is the contractor on this award?

The obligated recipient is CWC GROUP LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Food and Drug Administration).

What is the total obligated amount?

The obligated amount is $4.0 million.

What is the period of performance?

Start: 2020-09-25. End: 2024-09-29.

What specific QMIS software and services are being procured, and what is the justification for a sole-source award?

The specific QMIS (Quality Management Information System) software and services are not detailed in the provided data. A sole-source award typically requires a strong justification, such as the unique capability of the vendor, urgent need, or lack of viable alternatives. Without this justification, it's difficult to assess the necessity of this procurement approach and its impact on value.

What are the risks associated with a sole-source contract for critical software and services?

Sole-source contracts carry risks of inflated pricing, reduced innovation, and potential vendor lock-in. The government may pay more than necessary without competitive pressure. Furthermore, reliance on a single vendor can create vulnerabilities if the vendor experiences financial difficulties, undergoes mergers, or fails to provide adequate support or updates, potentially disrupting critical operations.

How does the firm fixed price contract structure mitigate risks for the government in this non-competed award?

A Firm Fixed Price (FFP) contract structure is beneficial for the government as it caps the total cost of the contract, shifting the risk of cost overruns to the contractor. This is particularly important for a non-competed award where initial price validation is challenging. It provides budget certainty for the $3.96M award, although it doesn't guarantee the price is the lowest possible.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 16701 MELFORD BLVD STE 400, BOWIE, MD, 20715

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $3,956,063

Exercised Options: $3,956,063

Current Obligation: $3,956,063

Actual Outlays: $3,259,177

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline