HHS awards $721M contract for Provider Network Support to Flashpoint Internet Solutions, Inc

Contract Overview

Contract Amount: $7,212,710 ($7.2M)

Contractor: Flashpoint Internet Solutions, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2022-04-01

End Date: 2027-01-31

Contract Duration: 1,766 days

Daily Burn Rate: $4.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PROVIDER NETWORK SUPPORT (PNS)

Place of Performance

Location: HAYMARKET, PRINCE WILLIAM County, VIRGINIA, 20169

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $7.2 million to FLASHPOINT INTERNET SOLUTIONS, INC. for work described as: PROVIDER NETWORK SUPPORT (PNS) Key points: 1. Contract value of $721.3M over 5 years suggests significant investment in network support services. 2. The contract was awarded under full and open competition, indicating a broad market search. 3. Fixed-price contract type aims to control costs and provide predictable spending. 4. The duration of 1766 days (approx. 4.8 years) allows for sustained service delivery. 5. The award amount of $4.08M for the base period indicates initial investment scale. 6. The NAICS code 541519 points to a focus on 'Other Computer Related Services'.

Value Assessment

Rating: good

The contract's total value of $721.3M over nearly five years represents a substantial investment. Benchmarking this against similar large-scale IT support contracts within the federal government is challenging without more specific service details. However, the firm fixed-price structure suggests an effort to manage costs effectively. The base award of $4.08M provides an initial data point for assessing the scale of services at the outset.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. This approach typically fosters a competitive environment, potentially leading to better pricing and service innovation. The fact that it was competed broadly suggests that multiple vendors were interested and capable of meeting the government's requirements.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wide range of bids, which can drive down costs and improve the quality of services received.

Public Impact

Beneficiaries include healthcare providers who rely on stable and efficient network support to deliver services. Services delivered are crucial for the operational integrity of the Centers for Medicare and Medicaid Services (CMS) network infrastructure. The contract has a national geographic impact, supporting CMS operations across the United States. Potential workforce implications include the creation or maintenance of jobs within the IT services sector, particularly for Flashpoint Internet Solutions, Inc. and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services become highly specialized and difficult to transition.
Risk of cost overruns if the scope of 'Other Computer Related Services' expands beyond initial projections.
Dependence on a single contractor for critical network infrastructure could pose a risk if performance falters.

Positive Signals

Firm fixed-price contract type provides cost certainty for the government.
Full and open competition suggests a robust selection process and potential for competitive pricing.
Long-term contract duration allows for stability and continuity of essential network support services.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically focusing on computer-related services. The federal IT services market is vast, with significant spending allocated to network infrastructure, maintenance, and support. Contracts of this magnitude are common for agencies like HHS, which manage complex and critical IT systems. Benchmarking against similar 'Other Computer Related Services' contracts would require detailed analysis of the specific tasks and deliverables.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by a set-aside. However, the prime contractor, Flashpoint Internet Solutions, Inc., may choose to subcontract portions of the work to small businesses as part of their overall business strategy or to meet broader federal small business utilization goals.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services, specifically the Centers for Medicare and Medicaid Services (CMS). Contract performance would be monitored against the terms and conditions of the firm fixed-price delivery order. Transparency is facilitated through federal procurement databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Provider Network Support Services
IT Infrastructure Management
Healthcare IT Services
Federal IT Contracts
Centers for Medicare and Medicaid Services (CMS) Operations

Risk Flags

Broad NAICS code may obscure specific service risks.
Large contract value requires robust performance monitoring.
Dependence on a single contractor for critical network functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $7.2 million to FLASHPOINT INTERNET SOLUTIONS, INC.. PROVIDER NETWORK SUPPORT (PNS)

Who is the contractor on this award?

The obligated recipient is FLASHPOINT INTERNET SOLUTIONS, INC..

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 $7.2 million.

What is the period of performance?

Start: 2022-04-01. End: 2027-01-31.

What is the historical performance record of Flashpoint Internet Solutions, Inc. with federal contracts, particularly those of similar size and scope?

Assessing the historical performance of Flashpoint Internet Solutions, Inc. requires a deep dive into federal contract databases (e.g., FPDS, SAM.gov) for past awards, performance evaluations (e.g., CPARS), and any documented disputes or terminations. Without specific historical data for this contractor, it's difficult to provide a definitive assessment. However, agencies typically conduct thorough pre-award reviews, including past performance, before awarding significant contracts. A review of their contract history would reveal their experience in delivering IT services, adherence to schedules and budgets, and overall customer satisfaction on previous government engagements. Any history of performance issues or contract disputes would be a significant risk indicator.

How does the awarded amount of $4.08M for the base period compare to similar 'Other Computer Related Services' contracts awarded by CMS or other HHS agencies?

Comparing the base period award of $4.08M requires identifying comparable contracts based on the NAICS code (541519 - Other Computer Related Services) and the agency (HHS/CMS). Benchmarking involves looking at the duration of the base period, the specific services outlined in the Statement of Work (SOW), and the number of bidders. If this base award is significantly higher or lower than similar contracts, it could indicate either exceptional value or potential overpricing/underbidding. A thorough analysis would involve examining the scope of work for the base period, such as initial setup, network diagnostics, or foundational support, and comparing it to the deliverables of other contracts of similar duration and complexity.

What are the key performance indicators (KPIs) that will be used to measure the success of this Provider Network Support contract?

Key Performance Indicators (KPIs) for a Provider Network Support (PNS) contract typically focus on network availability, response times for issue resolution, system uptime, data security compliance, and user satisfaction. For CMS, specific KPIs might include metrics related to the reliability of the network connecting healthcare providers to federal systems, the speed at which critical issues are addressed to minimize disruption to healthcare services, and adherence to data privacy regulations (like HIPAA). The contract's Statement of Work (SOW) would detail these KPIs, along with acceptable performance thresholds and any associated remedies or incentives for meeting or exceeding them. Regular performance reviews would track progress against these KPIs.

What is the projected spending trajectory for this contract beyond the base period, given the total award value of $721.3M?

The total award value of $721.3M suggests a significant ramp-up in spending beyond the initial base period award of $4.08M. This contract has a duration of 1766 days (approximately 4.8 years). Assuming the total value is distributed relatively evenly over the contract's life, the average annual spending would be roughly $150 million ($721.3M / 4.8 years). However, spending patterns can vary based on phased rollouts, increased service demands, or option periods. The contract type (Firm Fixed Price) implies that the government has committed to paying for the services rendered up to the total ceiling amount, but actual spending will be tied to the delivery orders issued and the services performed.

Are there any specific risks associated with the 'Other Computer Related Services' (NAICS 541519) category that warrant close monitoring for this contract?

The 'Other Computer Related Services' category (NAICS 541519) is broad and can encompass a wide range of IT functions, from IT management consulting to data processing and disaster recovery. This breadth presents a risk of scope creep if the specific services required are not clearly defined and managed. It can also make it challenging to benchmark costs accurately against more specialized IT service codes. For this contract, risks could include unclear deliverables, integration challenges with existing systems, or the need for highly specialized expertise that may be difficult to source. Close monitoring of the Statement of Work (SOW), regular progress reviews, and strict change control processes are essential to mitigate these risks.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1451 AMBER LAKE RD, MANAKIN SABOT, VA, 23103

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $7,241,350

Exercised Options: $7,212,710

Current Obligation: $7,212,710

Actual Outlays: $5,699,958

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0259S

IDV Type: FSS

Timeline