HHS awards $6.9M for IV&V services to Signature Consulting Group, LLC

Contract Overview

Contract Amount: $6,924,808 ($6.9M)

Contractor: THE Signature Consulting Group, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2022-03-18

End Date: 2026-12-17

Contract Duration: 1,735 days

Daily Burn Rate: $4.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INDEPENDENT VERIFICATION & VALIDATION (IV&V)

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $6.9 million to THE SIGNATURE CONSULTING GROUP, LLC for work described as: INDEPENDENT VERIFICATION & VALIDATION (IV&V) Key points: 1. The contract value represents a moderate investment in essential oversight services. 2. Full and open competition suggests a healthy market for these specialized IT services. 3. The fixed-price contract structure aims to control costs and manage contractor risk. 4. The duration of the contract indicates a long-term need for these services. 5. The contract is awarded to a single entity, highlighting the need for specialized expertise. 6. The geographic location of the contractor is Maryland.

Value Assessment

Rating: good

The contract value of $6.9 million for Independent Verification and Validation (IV&V) services appears reasonable given the 4-year duration. Benchmarking against similar IV&V contracts within the federal government for IT systems oversight would provide a more precise value-for-money assessment. However, the firm fixed-price nature of the award suggests that the government has negotiated a defined cost for the scope of work, which is a positive indicator for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of 6 bidders suggests a competitive marketplace for these specialized IT services. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down prices and ensured the government received competitive proposals for essential IV&V services.

Public Impact

The Centers for Medicare and Medicaid Services (CMS) benefits from enhanced oversight of its IT systems. Independent Verification and Validation (IV&V) services ensure the quality, security, and effectiveness of critical healthcare IT projects. The contract supports the delivery of reliable and secure IT infrastructure for healthcare programs. The contract has implications for the IT services sector, particularly for firms specializing in quality assurance and system validation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if IV&V expertise is highly specialized and difficult to transition.
Risk of scope creep if the IV&V requirements are not clearly defined and managed.
Dependence on a single contractor for critical oversight functions.

Positive Signals

Firm fixed-price contract helps mitigate cost overruns.
Full and open competition ensures a wide pool of qualified bidders.
Long contract duration allows for deep understanding of the systems being validated.
Award to a single, presumably experienced, vendor can lead to consistent quality.

Sector Analysis

The contract falls within the Computer Systems Design Services sector, a critical component of the broader Information Technology (IT) industry. This sector is characterized by a high demand for specialized expertise in areas such as software development, system integration, and quality assurance. Federal spending in this area is substantial, driven by the need to maintain and modernize complex government IT infrastructures. The $6.9 million award is a moderate-sized contract within this sector, reflecting a focused need for IV&V services.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, nor does it appear to have explicit subcontracting requirements for small businesses mentioned. The award went to The Signature Consulting Group, LLC. Further analysis would be needed to determine if the prime contractor has a history of subcontracting with small businesses or if small businesses are participating in the competitive bidding process for such contracts.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The firm fixed-price nature provides a degree of financial oversight by capping costs. The Centers for Medicare and Medicaid Services (CMS) will be responsible for monitoring performance and ensuring adherence to the contract terms. Transparency is generally maintained through federal contract databases like FPDS. Inspector General oversight would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Services
Independent Verification and Validation (IV&V)
Systems Design
Healthcare IT
Federal IT Procurement

Risk Flags

Contract duration is long, requiring sustained oversight.
Single awardee for critical function.
Potential for knowledge transfer gaps if contractor personnel change.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $6.9 million to THE SIGNATURE CONSULTING GROUP, LLC. INDEPENDENT VERIFICATION & VALIDATION (IV&V)

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 $6.9 million.

What is the period of performance?

Start: 2022-03-18. End: 2026-12-17.

What is the track record of The Signature Consulting Group, LLC with federal contracts, particularly in IV&V services?

A review of federal procurement data would be necessary to fully assess The Signature Consulting Group, LLC's track record. This would involve examining past contract awards, performance evaluations (if publicly available), and any history of contract modifications or disputes. Understanding their experience with similar-sized contracts and within the healthcare IT domain, specifically for CMS, would provide crucial context for evaluating their capability to deliver on this $6.9 million IV&V contract. Without specific historical data, it's difficult to definitively assess their past performance.

How does the awarded price compare to market rates for similar IV&V services?

Benchmarking the $6.9 million award against market rates for similar Independent Verification and Validation (IV&V) services requires access to detailed cost data and market analysis reports. Factors such as the specific scope of work, the complexity of the systems being validated, the required expertise, and the duration of the contract all influence pricing. While the firm fixed-price structure suggests a negotiated value, a direct comparison to industry benchmarks or rates paid by other federal agencies for comparable IV&V services would be needed to definitively assess if this represents excellent, good, or fair value for money.

What are the key performance indicators (KPIs) for this IV&V contract, and how will performance be measured?

The specific Key Performance Indicators (KPIs) for this Independent Verification and Validation (IV&V) contract are not detailed in the provided data. Typically, IV&V contracts include metrics related to the accuracy and completeness of validation reports, the identification of critical defects, adherence to testing schedules, and the overall contribution to project risk mitigation. Performance measurement would likely involve regular progress reviews, deliverable acceptance, and potentially formal performance assessments at key milestones or contractually defined intervals by the Centers for Medicare and Medicaid Services (CMS).

What is the historical spending trend for IV&V services at CMS or similar agencies?

Analyzing historical spending trends for Independent Verification and Validation (IV&V) services at the Centers for Medicare and Medicaid Services (CMS) or comparable agencies would provide valuable context for this $6.9 million award. Understanding whether spending in this area has been increasing, decreasing, or remaining stable can indicate shifts in IT project complexity, risk management strategies, or agency priorities. A trend analysis would help determine if this contract represents a typical investment or a significant deviation from past spending patterns for essential oversight functions.

What are the potential risks associated with relying on a single contractor for IV&V services over a multi-year period?

Relying on a single contractor for Independent Verification and Validation (IV&V) services over a multi-year period, as is the case with this 4-year contract, carries several potential risks. These include a diminished incentive for the contractor to innovate or maintain peak performance once a long-term relationship is established. There's also the risk of 'vendor lock-in,' where the government becomes highly dependent on the contractor's specific methodologies and personnel, making transitions difficult and costly. Furthermore, if the contractor experiences financial instability or key personnel depart, it could significantly disrupt the critical oversight function.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: 6

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: $7,236,788

Exercised Options: $6,924,808

Current Obligation: $6,924,808

Actual Outlays: $5,653,229

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