HHS awards $2.65M for FDA HRIT modernization, focusing on program support and data remediation

Contract Overview

Contract Amount: $2,649,856 ($2.6M)

Contractor: RJ IT Solutions, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2025-02-03

End Date: 2026-08-02

Contract Duration: 545 days

Daily Burn Rate: $4.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HRIT PROGRAM/PROJECT SUPPORT SERVICES AND DATA REMEDIATION INITIATIVE. PROVIDE HRIT PROGRAM AND PROJECT MANAGEMENT SUPPORT, HRIT SUBJECT MATTER EXPERTISE AIMED AT CONTINUING THE MODERNIZATION OF THE FDA HRIT INFRASTRUCTURE, WHILE ENSURING PROPER REME

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.6 million to RJ IT SOLUTIONS, INC. for work described as: HRIT PROGRAM/PROJECT SUPPORT SERVICES AND DATA REMEDIATION INITIATIVE. PROVIDE HRIT PROGRAM AND PROJECT MANAGEMENT SUPPORT, HRIT SUBJECT MATTER EXPERTISE AIMED AT CONTINUING THE MODERNIZATION OF THE FDA HRIT INFRASTRUCTURE, WHILE ENSURING PROPER REME Key points: 1. Contract aims to modernize FDA's HRIT infrastructure through expert program management and data remediation. 2. Focus on continuing modernization efforts suggests an ongoing need for specialized IT and HR support. 3. The definitive contract structure indicates a commitment to a specific service provider for a defined period. 4. Fixed-price contract type suggests cost certainty for the government, shifting performance risk to the contractor. 5. The contract's duration of 545 days points to a medium-term project with clear deliverables. 6. Small business participation is not explicitly detailed, warranting further investigation into subcontracting opportunities.

Value Assessment

Rating: fair

The contract value of $2.65 million for 545 days of HRIT program support and data remediation appears reasonable given the specialized nature of the services. Benchmarking against similar IT modernization and HR consulting contracts within the federal government would provide a clearer picture of value for money. The fixed-price nature of the contract helps control costs, but the absence of detailed performance metrics makes a definitive value assessment challenging without further context on expected outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. While the specific justification for the sole-source award is not provided, such awards are typically made when a particular contractor possesses unique capabilities, proprietary technology, or when urgency precludes a full and open competition. The lack of competition may limit price discovery and potentially lead to higher costs compared to a competitively bid contract.

Taxpayer Impact: Sole-source awards can mean taxpayers may not benefit from the cost savings typically achieved through competitive bidding processes. It also raises questions about whether alternative solutions or more cost-effective approaches were fully explored.

Public Impact

Federal employees within the FDA will benefit from improved HRIT systems, leading to more efficient human resources management. The contract delivers essential program management and subject matter expertise to support the ongoing modernization of critical HRIT infrastructure. Modernized HRIT systems can enhance data accuracy and accessibility, supporting better decision-making across the FDA. Workforce implications include the potential for enhanced employee self-service capabilities and streamlined HR processes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpayment and limited innovation.
The sole-source nature requires strong justification to ensure taxpayer funds are used efficiently.
Transparency regarding the specific services and expected outcomes could be improved.

Positive Signals

Focus on modernization indicates a commitment to improving essential government IT infrastructure.
The definitive contract structure provides stability for the project's duration.
Fixed-price contract type offers cost predictability for the agency.

Sector Analysis

This contract falls within the broader IT consulting and services sector, specifically focusing on Human Resources Information Technology (HRIT). The federal IT services market is substantial, with agencies continually investing in modernizing legacy systems and improving data management. This contract aligns with the government-wide push for digital transformation and efficient service delivery. Comparable spending benchmarks would typically involve IT program management, system modernization, and data remediation projects within large federal agencies.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) is marked as false. This suggests that the contract was not set aside for small businesses, nor is there an explicit indication of subcontracting goals for small businesses. Further investigation would be needed to determine if any small business subcontracting plan is in place or if opportunities exist for small businesses to participate indirectly.

Oversight & Accountability

Oversight for this contract would primarily reside with the Food and Drug Administration (FDA) contracting officers and program managers within the Department of Health and Human Services (HHS). The contract's fixed-price nature shifts some performance risk to the contractor, but the agency remains responsible for monitoring progress, ensuring deliverables meet requirements, and managing contractor performance. Transparency could be enhanced through public reporting of key performance indicators and milestones achieved.

Related Government Programs

FDA IT Modernization Initiatives
HHS HR Systems Modernization
Federal Human Resources Information Technology Programs
Government IT Program Management Support
Data Remediation Services

Risk Flags

Sole-source award may limit competition and potentially increase costs.
Lack of detailed performance metrics makes value assessment difficult.
Small business participation is not explicitly detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.6 million to RJ IT SOLUTIONS, INC.. HRIT PROGRAM/PROJECT SUPPORT SERVICES AND DATA REMEDIATION INITIATIVE. PROVIDE HRIT PROGRAM AND PROJECT MANAGEMENT SUPPORT, HRIT SUBJECT MATTER EXPERTISE AIMED AT CONTINUING THE MODERNIZATION OF THE FDA HRIT INFRASTRUCTURE, WHILE ENSURING PROPER REME

Who is the contractor on this award?

The obligated recipient is RJ IT SOLUTIONS, INC..

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 $2.6 million.

What is the period of performance?

Start: 2025-02-03. End: 2026-08-02.

What specific HRIT modernization goals is this contract intended to achieve for the FDA?

This contract aims to support the continuing modernization of the FDA's HRIT infrastructure. This includes providing program and project management support, as well as HRIT subject matter expertise. The objective is to ensure the ongoing improvement and efficiency of the FDA's human resources information technology systems. Specific goals likely involve enhancing data accuracy, improving system performance, streamlining HR processes, and potentially integrating disparate HR systems to create a more unified and modern HRIT environment. The 'data remediation' aspect suggests a focus on cleaning, correcting, and organizing existing HR data to ensure its integrity and usability within the modernized systems.

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

The justification for a sole-source award typically stems from unique capabilities, proprietary knowledge, or urgent needs that cannot be met through full and open competition. For this contract, RJ IT SOLUTIONS, INC. may possess specialized expertise in the FDA's specific HRIT environment, proprietary tools or methodologies crucial for data remediation, or have been involved in prior phases of the modernization effort, making them the only viable option. Without the specific justification document (e.g., a Justification and Approval - J&A), it's difficult to ascertain the precise reasons. However, sole-source awards require rigorous documentation to ensure they are necessary and that taxpayer funds are still being used responsibly.

How does the $2.65 million contract value compare to similar HRIT modernization projects in the federal government?

The $2.65 million contract value for approximately 1.5 years of HRIT program support and data remediation is within a common range for specialized federal IT projects. However, direct comparisons are challenging without knowing the exact scope, complexity, and specific deliverables. Larger-scale HRIT modernizations can run into tens or hundreds of millions of dollars. This contract appears to be focused on specific program support and data remediation rather than a full system replacement. Benchmarking against contracts for IT program management, system integration, and data quality services within agencies like HHS or other large departments would provide a more accurate context for assessing value for money.

What are the potential risks associated with a sole-source award for critical HRIT functions?

Sole-source awards for critical functions like HRIT modernization carry several potential risks. Firstly, the lack of competition can lead to higher costs for taxpayers, as the government does not benefit from the price reductions typically driven by competitive bidding. Secondly, it can stifle innovation, as the incumbent contractor may have less incentive to explore novel or more efficient solutions. Thirdly, there's a risk of vendor lock-in, making it difficult and costly to switch providers in the future. Finally, without robust oversight, the quality and timeliness of the services delivered might be compromised if the contractor faces challenges, as there are fewer immediate alternatives.

What performance metrics or deliverables are expected under this contract?

The provided data does not detail specific performance metrics or deliverables. However, given the contract's description ('HRIT PROGRAM/PROJECT SUPPORT SERVICES AND DATA REMEDIATION INITIATIVE'), expected deliverables likely include project management plans, status reports, risk assessments, technical documentation, data quality reports, and potentially modernized data sets or system components. Performance would likely be evaluated based on adherence to project timelines, budget management, quality of deliverables, and the successful execution of program support tasks. The fixed-price nature implies that the contractor is responsible for delivering the agreed-upon scope within the set price, making clear definition of deliverables crucial.

What is the historical spending pattern for HRIT program support and data remediation at the FDA or HHS?

Historical spending patterns for HRIT program support and data remediation at the FDA or HHS are not detailed in the provided data. To assess this, one would need to analyze past contracts awarded by these agencies for similar services. Trends might indicate whether this is a recurring need, if spending has been increasing or decreasing, and the typical contract values and durations. Understanding historical spending can help contextualize the current $2.65 million award, revealing if it represents a significant increase, a continuation of established investment, or a new initiative. Analyzing past contract vehicles and awardees could also shed light on competition levels and pricing trends over time.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Human Resources Consulting Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 75F40125R00040

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6701 DEMOCRACY BLVD STE 300, BETHESDA, MD, 20817

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,463,655

Exercised Options: $2,649,856

Current Obligation: $2,649,856

Actual Outlays: $1,760,768

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline