HHS awards $11.6M for IT system development and support to The Signature Consulting Group, LLC

Contract Overview

Contract Amount: $11,633,814 ($11.6M)

Contractor: THE Signature Consulting Group, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2021-06-21

End Date: 2024-07-20

Contract Duration: 1,125 days

Daily Burn Rate: $10.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE CONTRACTOR SHALL PROVIDE IT SYSTEM DEVELOPMENT AND SUPPORT SERVICES, AS DESCRIBED IN THE STATEMENT OF WORK SOW TITLED HUMAN RESOURCE ENTERPRISE SYSTEMS HRES.

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $11.6 million to THE SIGNATURE CONSULTING GROUP, LLC for work described as: THE CONTRACTOR SHALL PROVIDE IT SYSTEM DEVELOPMENT AND SUPPORT SERVICES, AS DESCRIBED IN THE STATEMENT OF WORK SOW TITLED HUMAN RESOURCE ENTERPRISE SYSTEMS HRES. Key points: 1. Contract focuses on IT system development and support for Human Resource Enterprise Systems (HRES). 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The contract duration is over three years, indicating a need for sustained support. 4. The fixed-price contract type aims to control costs and provide predictability. 5. The award is for IT services, a critical area for government operations. 6. The contractor, The Signature Consulting Group, LLC, is responsible for delivering these services.

Value Assessment

Rating: fair

The contract value of $11.6 million over approximately three years for IT system development and support appears to be within a reasonable range for such services. Benchmarking against similar government IT contracts for system development and maintenance is necessary for a definitive value assessment. The fixed-price nature of the contract suggests an effort to manage costs, but the overall value for money depends on the quality and efficiency of the services delivered and the specific scope of work outlined in the SOW.

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 bids. The presence of two bids suggests a moderate level of competition for this requirement. While full and open competition is generally preferred for maximizing price discovery and ensuring fair access to government contracts, the limited number of bidders could imply specific technical requirements or a niche market for these IT services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through a competitive bidding process. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government.

Public Impact

Employees within the Department of Health and Human Services (HHS) will benefit from improved Human Resource Enterprise Systems (HRES). The contract delivers IT system development and support services, crucial for efficient HR operations. The geographic impact is primarily within the agency, supporting federal HR functions. The workforce implications are related to the IT professionals developing and maintaining the HRES system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in IT development projects if not managed tightly.
Dependence on a single contractor for critical HR IT systems.
Ensuring the delivered system meets evolving HR needs and technological standards.

Positive Signals

Fixed-price contract helps control costs and budget predictability.
Full and open competition promotes a fair and potentially cost-effective award.
Longer contract duration allows for sustained development and support.

Sector Analysis

The IT services sector is a significant area of federal spending, encompassing a wide range of needs from system development to cybersecurity. This contract for IT system development and support for Human Resource Enterprise Systems (HRES) falls within the broader category of IT consulting and software development services. Comparable spending benchmarks for similar government IT projects can vary widely based on complexity, duration, and specific technologies involved. The market for these services is competitive, with numerous firms offering specialized expertise.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have a specific small business set-aside. The contract value and nature of IT system development may not always lend themselves to small business set-asides, depending on the specific requirements and available small business capabilities. There is no explicit information provided regarding subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. The fixed-price contract type provides a degree of financial oversight by establishing a set cost. Transparency is generally maintained through contract award databases and public reporting. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

Human Resources Management Systems
Federal IT Modernization Programs
Enterprise Resource Planning (ERP) Systems
IT System Development Services
Government HR Technology Contracts

Risk Flags

Potential for performance issues if contractor lacks specific HR system expertise.
Risk of cost overruns if scope is not clearly defined and managed.
Cybersecurity risks associated with developing and supporting sensitive HR data systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $11.6 million to THE SIGNATURE CONSULTING GROUP, LLC. THE CONTRACTOR SHALL PROVIDE IT SYSTEM DEVELOPMENT AND SUPPORT SERVICES, AS DESCRIBED IN THE STATEMENT OF WORK SOW TITLED HUMAN RESOURCE ENTERPRISE SYSTEMS HRES.

Who is the contractor on this award?

The obligated recipient is THE SIGNATURE CONSULTING GROUP, 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 $11.6 million.

What is the period of performance?

Start: 2021-06-21. End: 2024-07-20.

What is the specific scope of work for the Human Resource Enterprise Systems (HRES) development and support?

The provided data indicates the contract is for 'IT SYSTEM DEVELOPMENT AND SUPPORT SERVICES, AS DESCRIBED IN THE STATEMENT OF WORK SOW TITLED HUMAN RESOURCE ENTERPRISE SYSTEMS HRES.' However, the detailed scope of work is not included in the provided data. Typically, such a SOW would outline specific development tasks (e.g., coding, testing, integration), maintenance activities, system upgrades, user support, and documentation requirements for the HRES. The complexity and specific functionalities of the HRES would dictate the precise nature of the development and support services required, impacting the overall value and performance of the contract.

How does the $11.6 million contract value compare to similar IT system development contracts within HHS or other federal agencies?

Benchmarking the $11.6 million contract value requires comparing it to similar IT system development and support contracts for HR or enterprise systems within HHS and other federal agencies. Contracts for developing or significantly upgrading enterprise-level HR systems can range from a few million to tens or even hundreds of millions of dollars, depending on the system's complexity, the number of users, the scope of modules (e.g., payroll, benefits, talent management), and the duration of the contract. Without specific details on the HRES functionalities and the competitive landscape for similar projects, it's challenging to definitively state if $11.6 million represents excellent, fair, or questionable value. However, for a multi-year effort involving system development and ongoing support, this figure suggests a moderately sized project.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. In a contract for IT system development and support, critical KPIs and SLAs would typically focus on system availability and uptime, response times for issue resolution, performance metrics (e.g., processing speed), successful completion of development milestones, and user satisfaction. These metrics are crucial for measuring the contractor's performance and ensuring the HRES meets the agency's operational needs. The absence of this information in the summary data means a thorough assessment of performance risk and value cannot be made.

What is the track record of The Signature Consulting Group, LLC with federal IT contracts, particularly in HR systems?

Information on The Signature Consulting Group, LLC's specific track record with federal IT contracts, especially in HR systems, is not detailed in the provided data. A comprehensive analysis would require reviewing their past performance on similar government contracts, including client feedback, any past performance issues or awards, and their experience with HR enterprise systems. Understanding their history with system development, implementation, and ongoing support is essential for assessing their capability to successfully execute this $11.6 million contract for HHS. Federal procurement databases and past performance reviews would be the primary sources for this information.

What are the potential risks associated with the 'Computer Systems Design Services' (NAICS 541512) classification for this contract?

The NAICS code 541512, 'Computer Systems Design Services,' encompasses a broad range of IT activities. Potential risks associated with this classification for the HRES contract include the inherent complexities of system integration, data migration challenges, cybersecurity vulnerabilities during development and deployment, and the need for continuous adaptation to evolving technological landscapes and user requirements. Ensuring the contractor possesses the necessary expertise in system architecture, software development lifecycle management, and security protocols is critical. Misalignment between the contractor's capabilities and the specific demands of the HRES could lead to project delays, cost overruns, or a system that fails to meet user needs.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services

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

Parent Company: THE Signature Consulting Group LLC

Address: 7108 AMBASSADOR RD STE 150, WINDSOR MILL, MD, 21244

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

Financial Breakdown

Contract Ceiling: $14,859,091

Exercised Options: $11,633,814

Current Obligation: $11,633,814

Actual Outlays: $10,895,103

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSM500201600063I

IDV Type: IDC

Timeline