HHS awards $15M contract for information management services to Sole Solutions Inc

Contract Overview

Contract Amount: $14,966,959 ($15.0M)

Contractor: Sole Solutions Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2022-08-15

End Date: 2026-08-14

Contract Duration: 1,460 days

Daily Burn Rate: $10.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: STRATEGIC WORK INFORMATION FOLDER TRANSFER (SWIFT).

Place of Performance

Location: FRONT ROYAL, WARREN County, VIRGINIA, 22630

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $15.0 million to SOLE SOLUTIONS INC. for work described as: STRATEGIC WORK INFORMATION FOLDER TRANSFER (SWIFT). Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for information management services, a critical function for healthcare administration. 3. The duration of the contract is four years, indicating a long-term need for these services. 4. The fixed-price contract type may offer cost certainty for the government. 5. The awardee, Sole Solutions Inc., is a new entity in federal contracting based on this award. 6. The North American Industry Classification System (NAICS) code 511199 suggests a broad range of publishing and information services.

Value Assessment

Rating: fair

The contract value of $14.97 million over four years averages to approximately $3.74 million per year. Without specific benchmarks for 'STRATEGIC WORK INFORMATION FOLDER TRANSFER (SWIFT)' services, it's difficult to definitively assess value for money. However, the fixed-price nature provides some cost control. Further analysis would require comparing this to similar information management contracts within HHS or other agencies for similar scope and duration.

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. The presence of two bids suggests some level of competition, though the exact number of interested parties and the rigor of the evaluation process are not detailed. A higher number of bidders typically leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: A competitive award process, even with only two bidders, is generally favorable for taxpayers as it encourages multiple companies to offer their best pricing and services to secure the contract.

Public Impact

Beneficiaries include the Centers for Medicare and Medicaid Services (CMS) and potentially healthcare providers and beneficiaries who rely on efficient information management. Services delivered likely involve the organization, storage, retrieval, and transfer of strategic work information. The geographic impact is primarily within Virginia, where the contractor is located, but the services support national CMS operations. Workforce implications may include job creation at Sole Solutions Inc. in Virginia.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition with only two bids received could indicate potential barriers to entry or a niche market.
The contractor, Sole Solutions Inc., appears to be a new entrant to federal contracting, raising questions about their past performance and capacity.
The specific nature of 'STRATEGIC WORK INFORMATION FOLDER TRANSFER (SWIFT)' is vague and requires further clarification to fully assess the scope and associated risks.

Positive Signals

Awarded through full and open competition, which is a positive signal for a fair and transparent process.
The firm fixed-price contract type provides budget certainty for the government.
The contract supports critical information management functions for CMS, a vital agency.

Sector Analysis

The information management and publishing sector (NAICS 511199) encompasses a wide range of services related to data handling, digital content, and information dissemination. Federal spending in this area is substantial, supporting agency operations, data archiving, and public information initiatives. This contract appears to fit within the broader IT and administrative support services categories, where agencies increasingly rely on specialized contractors to manage vast amounts of data efficiently and securely.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the awardee is Sole Solutions Inc., its size status would need to be verified to understand its impact on the small business ecosystem. If Sole Solutions Inc. is a small business, this represents a significant award for them; if not, the lack of small business set-aside or subcontracting requirements means limited direct benefit to the small business sector from this specific award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. Accountability measures are inherent in the firm fixed-price structure, requiring delivery of specified services. Transparency is facilitated by the public nature of federal contract awards, though detailed performance metrics and internal oversight processes are not publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

CMS IT Support Services
Federal Data Management Contracts
Information Services Contracts
Publishing and Information Services

Risk Flags

Potential performance risk due to contractor's limited federal contracting history.
Uncertainty regarding the full scope and complexity of 'SWIFT' services.
Limited competition (two bidders) may have impacted price optimization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $15.0 million to SOLE SOLUTIONS INC.. STRATEGIC WORK INFORMATION FOLDER TRANSFER (SWIFT).

Who is the contractor on this award?

The obligated recipient is SOLE 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 $15.0 million.

What is the period of performance?

Start: 2022-08-15. End: 2026-08-14.

What is the specific nature and scope of the 'STRATEGIC WORK INFORMATION FOLDER TRANSFER (SWIFT)' services required under this contract?

The provided data offers limited detail on the specific services encompassed by 'STRATEGIC WORK INFORMATION FOLDER TRANSFER (SWIFT).' Typically, such contracts involve the secure and efficient management, organization, storage, retrieval, and transfer of digital or physical information critical to an agency's strategic operations. This could include document management systems, data archiving, secure file sharing protocols, and information lifecycle management. Given the context of CMS, these services likely support the vast data processing and administrative functions related to Medicare and Medicaid programs. Further clarification from the contract statement of work would be necessary to fully define the scope and associated deliverables.

How does the $14.97 million contract value compare to similar information management contracts awarded by CMS or other federal agencies?

Benchmarking this $14.97 million contract requires access to a database of comparable federal contracts for information management services. Factors such as the specific services, duration (4 years), contract type (firm fixed price), and the agency (CMS) are crucial for a valid comparison. Without such data, it's challenging to definitively state if this represents a high, low, or average value. However, for a four-year contract supporting a major agency like CMS, $15 million is within a plausible range for specialized information management support. A detailed analysis would involve identifying contracts with similar NAICS codes (511199 or related IT/information services codes), similar contract values, and similar durations awarded within the last 1-3 years.

What is the track record and capacity of Sole Solutions Inc. for performing this type of federal contract?

Based on the provided data, Sole Solutions Inc. appears to be a relatively new entrant to federal contracting, with this award being a primary indicator of their federal work. Information regarding their past performance, existing contracts, or established track record with the federal government is not detailed. For a contract valued at nearly $15 million over four years, assessing the contractor's capacity, experience, financial stability, and past performance is critical. Agencies typically conduct thorough reviews of these aspects during the procurement process. The limited public information suggests a need for further due diligence to confirm Sole Solutions Inc.'s capability to successfully execute this complex information management requirement.

What are the potential risks associated with awarding this contract to a potentially new federal contractor like Sole Solutions Inc.?

Awarding a significant contract like this to a contractor with a potentially limited federal track record introduces several risks. These include the possibility of performance issues if the contractor lacks experience with federal procurement regulations, reporting requirements, and security protocols. There's also a risk related to capacity; ensuring Sole Solutions Inc. has the personnel, resources, and infrastructure to manage a $15 million, four-year contract is crucial. Furthermore, if the company is newly established, its financial stability might be less proven than that of incumbent or larger, more established federal contractors. These risks necessitate robust government oversight and clear performance metrics to ensure successful contract execution and mitigate potential disruptions to CMS operations.

How does the 'full and open competition' with only two bidders impact price discovery and potential value for taxpayers?

While 'full and open competition' is the preferred method, receiving only two bids suggests that the competition may not have been as robust as ideal. A higher number of bidders typically intensifies competition, driving down prices as companies vie for the contract. With only two bidders, there's a greater risk that the government may not have received the lowest possible price, as the winning bidder might have faced less pressure to offer deep discounts. However, 'full and open' still ensures that multiple responsible sources had the opportunity to compete, which is better than a sole-source or limited competition scenario. The final price achieved will depend on the specific nature of the requirement and the competitiveness of the two bidding firms.

Industry Classification

NAICS: Information › Newspaper, Periodical, Book, and Directory Publishers › All Other Publishers

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

Solicitation ID: RFP-CMS-2022-221051

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9 S ROYAL AVE, FRONT ROYAL, VA, 22630

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,724,940

Exercised Options: $14,966,959

Current Obligation: $14,966,959

Actual Outlays: $12,632,695

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0117W

IDV Type: FSS

Timeline