HHS awards $40.7M for CDN product support, with Raventek Solution Partners managing services under firm-fixed-price contract

Contract Overview

Contract Amount: $40,686,821 ($40.7M)

Contractor: Raventek Solution Partners, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2020-06-03

End Date: 2024-06-02

Contract Duration: 1,460 days

Daily Burn Rate: $27.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE CDN PRODUCT VENDOR SHALL BE RESPONSIBLE FOR PROVIDING CDN PRODUCT SUPPORT AND MANAGEMENT SERVICES WHILE COMPLYING WITH CMSS SECURITY PRIVACY AND TECHNOLOGY STANDARDS.

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $40.7 million to RAVENTEK SOLUTION PARTNERS, LLC for work described as: THE CDN PRODUCT VENDOR SHALL BE RESPONSIBLE FOR PROVIDING CDN PRODUCT SUPPORT AND MANAGEMENT SERVICES WHILE COMPLYING WITH CMSS SECURITY PRIVACY AND TECHNOLOGY STANDARDS. Key points: 1. Contract value of $40.7M over 4 years suggests a significant investment in critical IT infrastructure. 2. The firm-fixed-price structure aims to control costs, but requires careful monitoring of scope creep. 3. Competition was full and open, indicating a potentially competitive bidding process that could drive value. 4. The contract supports the Centers for Medicare and Medicaid Services (CMS), a vital agency for healthcare. 5. Performance is benchmarked against similar IT support contracts, with a focus on value for money. 6. Risk indicators are monitored through performance metrics and adherence to CMS security standards.

Value Assessment

Rating: good

The total contract value of $40.7 million over four years averages to approximately $10.17 million annually. This figure appears reasonable for comprehensive IT support and management services for a major federal agency like CMS. Benchmarking against similar contracts for custom computer programming services (NAICS 541511) would provide a more precise value assessment, but the scale of the award suggests a substantial and necessary service offering. The firm-fixed-price nature of the contract helps in budget predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. With three bidders participating, the competition level suggests a healthy market interest for these services. This level of competition is generally favorable for price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: A competitive bidding process for this contract helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

Beneficiaries include the Centers for Medicare and Medicaid Services (CMS) staff who rely on stable IT infrastructure. Services delivered encompass product support and management for Content Delivery Network (CDN) products. Geographic impact is primarily within CMS operations, supporting its national healthcare programs. Workforce implications include the need for skilled IT professionals to manage and support CDN services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if scope is not managed tightly.
Reliance on a single vendor for critical IT support requires robust performance monitoring.
Ensuring continuous compliance with evolving CMS security and privacy standards is paramount.

Positive Signals

Full and open competition suggests a competitive market and potentially better pricing.
Firm-fixed-price contract provides cost certainty for the government.
Award to Raventek Solution Partners, LLC, indicates a selected vendor capable of meeting CMS requirements.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on custom computer programming and IT support. The market for CDN services is robust, driven by the increasing demand for efficient content delivery and online services. Federal spending in this area is substantial, supporting agency operations, data management, and public-facing platforms. Comparable spending benchmarks would involve analyzing other large federal IT support contracts, particularly those for critical infrastructure management.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, the direct impact on small businesses through set-asides is minimal. However, the prime contractor, Raventek Solution Partners, LLC, may engage small businesses as subcontractors, contributing to the broader small business ecosystem. Further analysis would be needed to determine subcontracting plans and their impact.

Oversight & Accountability

Oversight for this contract is likely managed by the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. Performance metrics and adherence to security and privacy standards would be key accountability measures. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

CMS IT Modernization Initiatives
Federal Cloud Computing Strategy
Cybersecurity Support Services
Custom Computer Programming Services

Risk Flags

Potential for scope creep in firm-fixed-price contracts.
Ensuring continuous compliance with evolving security and privacy standards.
Dependency on a single vendor for critical IT infrastructure support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $40.7 million to RAVENTEK SOLUTION PARTNERS, LLC. THE CDN PRODUCT VENDOR SHALL BE RESPONSIBLE FOR PROVIDING CDN PRODUCT SUPPORT AND MANAGEMENT SERVICES WHILE COMPLYING WITH CMSS SECURITY PRIVACY AND TECHNOLOGY STANDARDS.

Who is the contractor on this award?

The obligated recipient is RAVENTEK SOLUTION PARTNERS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).

What is the total obligated amount?

The obligated amount is $40.7 million.

What is the period of performance?

Start: 2020-06-03. End: 2024-06-02.

What is the track record of Raventek Solution Partners, LLC in delivering similar IT support services to federal agencies?

Assessing the track record of Raventek Solution Partners, LLC requires a review of their past performance on federal contracts, particularly those involving IT support, management, and compliance with stringent security standards. Information from sources like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) would be crucial. Key indicators to examine include on-time delivery, quality of service, adherence to budget, and customer satisfaction ratings from previous government clients. A history of successful contract completions, especially for agencies with complex IT needs similar to CMS, would indicate a lower performance risk for this current contract. Conversely, any documented performance issues or disputes could raise concerns about their capability to meet the demands of this significant award.

How does the annual cost of this contract compare to similar IT support contracts awarded by HHS or other agencies?

The annual cost for this contract averages approximately $10.17 million ($40.7M / 4 years). To benchmark this value, we would compare it against contracts for similar services, such as custom computer programming (NAICS 541511) or IT management and support, awarded by HHS or other large federal agencies over the past 2-3 years. Factors to consider in the comparison include contract duration, scope of services, specific technologies involved (e.g., CDN), and the level of competition. If similar contracts for comparable services are consistently awarded at lower annual rates, it might suggest that this contract's pricing is on the higher side. Conversely, if the scope is more extensive or the competition was less intense, the current pricing could be justified. A detailed analysis would involve normalizing for contract size and complexity.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks for this contract include potential vendor performance issues, cybersecurity vulnerabilities, and the risk of scope creep within the firm-fixed-price structure. Vendor performance risk is mitigated by the competitive bidding process and ongoing performance monitoring by CMS. Cybersecurity risks are addressed by the requirement for Raventek Solution Partners, LLC to comply with CMS security, privacy, and technology standards. Scope creep is a inherent risk in fixed-price contracts; mitigation involves clear contract definition, robust change control processes, and diligent oversight by CMS program managers to ensure that only necessary and approved changes are implemented. The contract's duration also presents a risk of technological obsolescence, requiring proactive management and potential adjustments.

How effective is the firm-fixed-price (FFP) contract type in ensuring value for money for this specific service?

The firm-fixed-price (FFP) contract type is generally effective in ensuring value for money by shifting the risk of cost overruns to the contractor. This incentivizes the contractor to manage costs efficiently and deliver the specified services within the agreed-upon price. For IT support and management services like those required here, FFP provides budget certainty for the government. However, its effectiveness hinges on a well-defined scope of work. If the scope is ambiguous or subject to frequent changes, it can lead to disputes or necessitate costly contract modifications. In this case, as long as CMS clearly defines the CDN product support and management requirements and maintains strong oversight, the FFP structure should promote cost control and deliver good value.

What is the historical spending trend for CDN product support and management services within CMS or HHS?

Analyzing historical spending trends for CDN product support and management services within CMS or HHS would provide context for the $40.7 million award. This would involve examining past contract awards for similar services over several fiscal years. Trends to look for include increasing or decreasing expenditure levels, changes in the number of contracts awarded, and shifts in the types of contractors engaged. Understanding this history can reveal whether this award represents a significant increase or decrease in investment, whether the agency is consolidating services, or if there's a growing reliance on external vendors for these capabilities. Without specific historical data, it's difficult to definitively assess the trend, but the current award suggests a sustained or growing need for these services.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 20405 EXCHANGE ST STE 300, ASHBURN, VA, 20147

Business Categories: American Indian Owned Business, Category Business, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $40,686,821

Exercised Options: $40,686,821

Current Obligation: $40,686,821

Actual Outlays: $28,087,775

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA19D001U

IDV Type: FSS

Timeline