HHS awards $4M contract for network engineering and support services to AUROTECH LLC

Contract Overview

Contract Amount: $3,997,176 ($4.0M)

Contractor: Aurotech LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2023-09-12

End Date: 2025-02-15

Contract Duration: 522 days

Daily Burn Rate: $7.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: IT

Official Description: NETWORK ENGINEERING AND SUPPORT SERVICES

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $4.0 million to AUROTECH LLC for work described as: NETWORK ENGINEERING AND SUPPORT SERVICES Key points: 1. Contract awarded via a Blanket Purchase Agreement (BPA) Call, indicating a pre-negotiated framework. 2. The contract duration of 522 days suggests a medium-term need for these services. 3. The NAICS code 541519 points to a broad category of 'Other Computer Related Services'. 4. The contract is for labor hours, allowing flexibility in service delivery. 5. The award was made under full and open competition, suggesting a competitive bidding process. 6. The contractor, AUROTECH LLC, is a new awardee for this type of service with this agency.

Value Assessment

Rating: fair

The contract value of approximately $4 million over 522 days is moderate. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging. Benchmarking against similar network engineering and support contracts would be necessary to determine if the pricing is competitive. The labor hour pricing model allows for flexibility but can also lead to cost overruns if not managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but the designation suggests a robust competitive environment. This level of competition is generally expected to drive better pricing and service offerings for the government.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and a wider pool of qualified vendors, which can lead to more cost-effective solutions for network engineering and support.

Public Impact

The Food and Drug Administration (FDA) is the primary beneficiary, receiving essential network engineering and support services. These services are critical for maintaining the operational integrity and security of the FDA's IT infrastructure. The contract's geographic impact is focused on Maryland, where the FDA's operations are likely centered. The contract supports a workforce skilled in network engineering and IT support, contributing to the federal IT labor market.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the effectiveness of the services provided.
The 'Other Computer Related Services' NAICS code is broad, potentially encompassing a wide range of activities without specific definition.
The contract is for labor hours, which can lead to cost uncertainty if not closely monitored and managed.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that should yield fair pricing.
The use of a BPA Call indicates that a pre-existing framework for procurement was leveraged, potentially streamlining the process.
The contract duration of over a year provides a stable period for service delivery and support.

Sector Analysis

The IT services sector is a significant area of federal spending. Network engineering and support are foundational components of any agency's IT infrastructure, crucial for maintaining connectivity, security, and operational efficiency. Spending in this category is often driven by the need to upgrade legacy systems, enhance cybersecurity, and support expanding digital services. Comparable contracts in this space can range widely in value depending on the scope, duration, and specific technologies involved.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary focus was on securing the most capable vendor through open competition, rather than specifically promoting small business participation in this particular award.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting officer and program managers within the FDA. The BPA framework may have its own set of oversight procedures. Transparency is facilitated by the public nature of contract awards, but detailed performance and cost oversight information is often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Network Services
Computer Systems Design Services
IT Support Services
Network Infrastructure Management
Federal IT Procurement

Risk Flags

Potential for cost overruns due to labor-hour pricing.
Broad NAICS code may lack specificity in service definition.
Limited public information on contractor's specific past performance in this niche.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $4.0 million to AUROTECH LLC. NETWORK ENGINEERING AND SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is AUROTECH 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: 2023-09-12. End: 2025-02-15.

What is AUROTECH LLC's track record with federal contracts, particularly for network engineering and support services?

Information on AUROTECH LLC's specific track record for network engineering and support services with the federal government is limited based on the provided data. As this is a new award for this type of service with the FDA, a deeper dive into their past performance on similar contracts, if any, with other agencies would be necessary. Reviewing their contract history for any performance issues, contract modifications, or successful project completions would provide a clearer picture of their capabilities and reliability. Understanding their experience in delivering complex IT solutions and their ability to meet stringent government requirements is crucial for assessing future performance.

How does the awarded price compare to similar network engineering and support contracts within the federal government?

A direct comparison of the awarded price of approximately $4 million for 522 days of network engineering and support services requires benchmarking against similar contracts. Factors such as the specific services rendered (e.g., hardware installation, software support, cybersecurity), the level of expertise required, and the geographic location of service delivery all influence pricing. Without access to a database of comparable federal contracts with detailed cost breakdowns and performance metrics, it is difficult to definitively state whether this price is competitive. However, the 'full and open competition' award mechanism suggests that the government sought to achieve a fair market price through a competitive bidding process.

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

Key risks associated with this contract include potential cost overruns due to the labor-hour pricing model, which lacks a fixed scope of work and can lead to scope creep if not managed diligently. Another risk is the potential for underperformance if AUROTECH LLC lacks sufficient experience in the specific network environments of the FDA. Mitigation strategies would likely involve robust contract management, including detailed task orders, regular performance reviews, and strict adherence to budget ceilings. The FDA's program managers would be responsible for closely monitoring service delivery and ensuring that the contractor meets all defined objectives and quality standards. The use of a BPA call may also imply that certain risk assessments were already conducted during the initial BPA establishment.

How effective is the current network engineering and support service likely to be given the contract's parameters?

The effectiveness of the network engineering and support services hinges on several factors not fully detailed in the award data. The contract's effectiveness will depend on the clarity and specificity of the task orders issued under the BPA call, the skill and experience of the personnel assigned by AUROTECH LLC, and the FDA's internal project management and oversight capabilities. While the 'full and open competition' suggests a capable vendor was selected, the broad NAICS code (541519) and labor-hour basis mean that the precise outcomes are contingent on ongoing management. Regular performance evaluations and feedback mechanisms will be critical to ensuring the services meet the FDA's evolving network needs and security requirements.

What are the historical spending patterns for network engineering and support services at the FDA or HHS?

Analyzing historical spending patterns for network engineering and support services at the FDA or the broader Department of Health and Human Services (HHS) would provide valuable context for this $4 million award. Understanding the typical contract values, durations, and types of services procured in the past can help identify trends, potential cost efficiencies, or areas of increased investment. For instance, a history of significant spending in this area might indicate a growing reliance on complex IT infrastructure or ongoing modernization efforts. Conversely, a sudden increase in spending could signal a new initiative or a response to emerging technological needs or security threats. Without specific historical data, it's challenging to determine if this contract represents a typical expenditure or a deviation from past patterns.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 8701 GEORGIA AVE, SILVER SPRING, MD, 20910

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,997,176

Exercised Options: $3,997,176

Current Obligation: $3,997,176

Actual Outlays: $3,997,176

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 75F40119A10009

IDV Type: BPA

Timeline