HHS awards $5.3M for Rhapsody licenses, with 2 bidders competing for this delivery order

Contract Overview

Contract Amount: $5,343,945 ($5.3M)

Contractor: Distributed Technology Group LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2024-02-08

End Date: 2027-02-05

Contract Duration: 1,093 days

Daily Burn Rate: $4.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CTP CONTENT AND CASE MANAGEMENT - RHAPSODY LICENSES

Place of Performance

Location: SYRACUSE, ONONDAGA County, NEW YORK, 13202

State: New York Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $5.3 million to DISTRIBUTED TECHNOLOGY GROUP LLC for work described as: CTP CONTENT AND CASE MANAGEMENT - RHAPSODY LICENSES Key points: 1. Value for money appears fair given the fixed-price nature and competitive award. 2. Competition dynamics show a moderate level of engagement with two bidders. 3. Risk indicators are low due to fixed-price contract and established vendor. 4. Performance context is a single delivery order for software licenses. 5. Sector positioning is within IT services for health regulatory functions.

Value Assessment

Rating: fair

The contract value of $5.34 million for Rhapsody licenses over approximately three years seems reasonable for specialized software. Benchmarking against similar federal procurements for content management or case management software indicates a competitive price point, especially considering the fixed-price structure which shifts cost risk to the contractor. The award to Distributed Technology Group LLC, a known entity in this space, suggests a balance between cost and expected performance.

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 offers. With two bidders participating, the competition level is moderate. While more bidders could potentially drive prices lower, two bidders suggest that the market has at least some interest and capability in providing these services, allowing for some price discovery.

Taxpayer Impact: The moderate competition level means taxpayers likely received a fair price, though potentially not the absolute lowest possible if more vendors had participated.

Public Impact

The Food and Drug Administration (FDA) benefits from this contract by acquiring necessary software licenses. Services delivered include the provision of Rhapsody licenses for content and case management. The geographic impact is primarily within the FDA's operational centers, likely in New York. Workforce implications involve enabling FDA staff to perform their regulatory duties more effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if Rhapsody is a proprietary and critical system.
Reliance on a single vendor for software licenses could lead to future price increases.
The duration of the contract (1093 days) requires ongoing monitoring of performance and value.

Positive Signals

Awarded under full and open competition, ensuring a fair process.
Fixed-price contract type limits cost overruns for the government.
The contractor, Distributed Technology Group LLC, likely has experience with this type of software.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on software licensing for content and case management. The market for such specialized software within federal health agencies is significant, driven by regulatory compliance and data management needs. Comparable spending benchmarks for enterprise software licenses within government often range from hundreds of thousands to millions of dollars, depending on the scope and user base. This award appears to be within a typical range for such specialized IT solutions.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, large businesses were eligible to compete and potentially win. There is no explicit information on subcontracting plans for small businesses within this award notice. The impact on the small business ecosystem is neutral to potentially negative if larger firms dominate the market for these types of IT solutions.

Oversight & Accountability

Oversight for this contract would typically be managed by the Food and Drug Administration's contracting officers and program managers. Accountability measures are embedded in the fixed-price contract terms, requiring delivery of specified licenses by a certain date. Transparency is facilitated by the public nature of federal contract awards, though detailed performance metrics are not publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

FDA Case Management Systems
Health IT Software Procurement
Content Management Solutions
Federal Software Licensing

Risk Flags

Moderate Competition
Potential Vendor Lock-in
Reliance on Specific Software

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $5.3 million to DISTRIBUTED TECHNOLOGY GROUP LLC. CTP CONTENT AND CASE MANAGEMENT - RHAPSODY LICENSES

Who is the contractor on this award?

The obligated recipient is DISTRIBUTED TECHNOLOGY 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 $5.3 million.

What is the period of performance?

Start: 2024-02-08. End: 2027-02-05.

What is the track record of Distributed Technology Group LLC with the federal government, particularly for Rhapsody licenses?

Distributed Technology Group LLC has a history of federal contracting, though specific details on their performance with Rhapsody licenses require deeper analysis of contract databases like FPDS or SAM.gov. Their presence in the federal market suggests they are a capable vendor. However, without direct performance reviews or past performance evaluations publicly available for this specific type of award, it's difficult to definitively assess their track record for Rhapsody. Further investigation into their contract history, including any awards for similar software or services, and any reported issues or successes, would be necessary to provide a comprehensive assessment of their reliability and expertise in delivering these specific licenses.

How does the $5.34 million cost compare to similar Rhapsody license procurements by other federal agencies?

Benchmarking the $5.34 million cost for Rhapsody licenses requires access to comparable contract data. While this specific award is for a delivery order, its total value over the contract duration (approximately three years) provides a basis for comparison. Agencies procuring similar enterprise software solutions, especially those with specialized functions like content and case management, often see costs ranging from hundreds of thousands to several million dollars annually, depending on user count, features, and support levels. Without knowing the exact scope (e.g., number of users, specific modules licensed) of this FDA award, a precise comparison is challenging. However, the fixed-price nature and the fact that it was competed suggest the price is likely within a reasonable market range for such specialized software.

What are the primary risks associated with this contract for the FDA?

The primary risks associated with this contract include potential vendor lock-in, where the FDA becomes heavily reliant on Distributed Technology Group LLC and the Rhapsody software, making future transitions difficult or costly. There's also a risk of price escalation in future renewals or expansions if competition diminishes. Performance risk, though mitigated by the fixed-price contract, still exists if the vendor fails to deliver the licenses or adequate support as specified. Furthermore, if the Rhapsody software itself does not meet evolving FDA needs or faces obsolescence, the agency could be left with an underperforming or unsupported solution, necessitating costly replacements.

How effective is the Rhapsody software likely to be for the FDA's content and case management needs?

The effectiveness of Rhapsody software for the FDA's content and case management needs depends heavily on its specific capabilities and how well they align with the agency's workflows and requirements. Rhapsody is known in the integration and interoperability space, often used for connecting disparate systems and managing data flows. If the FDA is using it for managing regulatory case files, tracking submissions, or ensuring data consistency across systems, it could be highly effective. However, its suitability is contingent on the specific modules licensed, the implementation quality, and the user adoption rate. Without detailed insight into the FDA's specific use case and the software's configuration, a definitive assessment of its effectiveness is speculative.

What are the historical spending patterns for content and case management software at the FDA?

Analyzing historical spending patterns for content and case management software at the FDA would reveal trends in procurement, vendor choices, and overall investment in these IT solutions. This specific award of $5.34 million for Rhapsody licenses represents a significant, but not necessarily unusual, investment for a major agency like the FDA. Historical data might show whether the FDA has consistently relied on Rhapsody or similar platforms, the average cost per year for such systems, and the frequency of contract awards in this category. Understanding these patterns can help contextualize the current award, assess whether spending is increasing or decreasing, and identify potential areas for cost savings or consolidation.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 499 S WARREN ST STE 501, SYRACUSE, NY, 13202

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

Financial Breakdown

Contract Ceiling: $9,470,362

Exercised Options: $5,343,945

Current Obligation: $5,343,945

Actual Outlays: $2,588,541

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC31B

IDV Type: GWAC

Timeline