HHS awards $17.2M for Section 508 support, with 3 bidders competing for a firm-fixed-price contract

Contract Overview

Contract Amount: $17,201,942 ($17.2M)

Contractor: Instaff Solutions LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2023-05-22

End Date: 2026-05-21

Contract Duration: 1,095 days

Daily Burn Rate: $15.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SECTION 508 SUPPORT SERVICES

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $17.2 million to INSTAFF SOLUTIONS LLC for work described as: SECTION 508 SUPPORT SERVICES Key points: 1. The contract value of $17.2 million over three years represents a significant investment in ensuring federal IT accessibility. 2. Competition dynamics indicate a healthy market for Section 508 support services, with multiple qualified vendors. 3. The firm-fixed-price contract type shifts performance risk to the contractor, potentially leading to cost efficiencies. 4. This award falls within the Computer Systems Design Services NAICS code, a common category for IT support. 5. The duration of 1095 days suggests a need for sustained support in accessibility compliance. 6. The contract's focus on Section 508 compliance highlights the government's commitment to digital inclusivity.

Value Assessment

Rating: good

Benchmarking the $17.2 million contract value against similar Section 508 support services requires detailed market analysis. However, the firm-fixed-price structure suggests an expectation of predictable costs. The number of bidders (3) provides a reasonable basis for price negotiation, though more bidders could potentially drive prices lower. Without specific per-unit cost data or comparison to similar contracts, a definitive value-for-money assessment is challenging, but the competitive nature is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that the solicitation was broadly advertised and all responsible sources were permitted to submit offers. With three bidders participating, there was a moderate level of competition. This suggests that while the government sought a broad range of potential contractors, the market may not be saturated with providers for this specific niche of Section 508 support.

Taxpayer Impact: A competitive process, even with three bidders, generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source or limited competition awards.

Public Impact

Federal employees and the public with disabilities will benefit from improved accessibility of digital information and services. The contract delivers essential support for ensuring compliance with Section 508 of the Rehabilitation Act. The geographic impact is primarily within the Centers for Medicare and Medicaid Services (CMS) operations, likely supporting their national digital presence. Workforce implications may include specialized roles in accessibility testing, remediation, and consultation within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if accessibility requirements are not clearly defined and managed.
Reliance on a single contractor for critical accessibility support could pose a risk if performance falters.
Ensuring consistent application of Section 508 standards across diverse CMS digital assets may be challenging.

Positive Signals

The firm-fixed-price contract incentivizes the contractor to manage costs effectively.
Multiple bidders indicate a healthy market and potential for vendor innovation in accessibility solutions.
The award supports a critical government mandate for digital inclusion, demonstrating commitment to accessibility.

Sector Analysis

The IT services sector, particularly within government contracting, sees significant spending on compliance and support functions. Section 508 compliance is a mandated requirement for all federal agencies, driving consistent demand for specialized services. The market for these services includes a range of small, medium, and large businesses offering expertise in accessibility testing, remediation, and strategic guidance. Comparable spending benchmarks would typically be found within IT support services contracts, with specific values varying based on scope and duration.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates the prime contractor, INSTAFF SOLUTIONS LLC, is not a small business. There is no explicit information regarding subcontracting plans for small businesses within this data. The absence of a small business set-aside means opportunities for small businesses to directly compete for this prime contract were limited. Future analysis could explore if INSTAFF SOLUTIONS LLC intends to utilize small business subcontractors to fulfill portions of this contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified services within agreed-upon costs and timelines. Transparency is generally maintained through contract award databases and public reporting, although specific performance metrics may not be publicly disclosed. The Inspector General for the Department of Health and Human Services may have jurisdiction for audits and investigations related to potential fraud or mismanagement.

Related Government Programs

Section 508 Compliance Services
IT Accessibility Support
Computer Systems Design Services
Federal IT Modernization Programs
Digital Services Contracts

Risk Flags

Potential for performance deficiencies
Risk of scope creep
Dependency on contractor expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $17.2 million to INSTAFF SOLUTIONS LLC. SECTION 508 SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is INSTAFF SOLUTIONS 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 $17.2 million.

What is the period of performance?

Start: 2023-05-22. End: 2026-05-21.

What is the track record of INSTAFF SOLUTIONS LLC in delivering Section 508 support services to federal agencies?

Assessing the track record of INSTAFF SOLUTIONS LLC requires a review of their past performance on similar federal contracts. This would involve examining contract databases for awards related to Section 508 compliance, IT accessibility, or computer systems design. Key indicators would include contract performance evaluations (e.g., CPARS reports), any history of contract disputes or terminations, and the successful completion of projects with comparable scope and complexity. Without access to specific performance data for INSTAFF SOLUTIONS LLC, it is difficult to definitively assess their expertise and reliability in this domain. However, being awarded this contract by CMS suggests they met the agency's pre-qualification criteria.

How does the $17.2 million contract value compare to other Section 508 support contracts awarded by HHS or similar agencies?

The $17.2 million contract value for three years of Section 508 support services needs to be benchmarked against similar procurements. A preliminary comparison suggests this is a substantial award, reflecting the comprehensive nature of accessibility support. Contracts for IT services, especially those involving compliance mandates like Section 508, can range widely. Factors influencing value include the scope of services (e.g., testing, remediation, training, policy development), the number of systems or applications covered, and the agency's specific needs. To provide a precise comparison, one would need to analyze contract databases for awards with similar NAICS codes (541512) and service descriptions within HHS and other large agencies like GSA or DoD over the past few fiscal years.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks associated with this contract include potential performance issues if the contractor fails to deliver adequate Section 508 compliance support, leading to accessibility gaps and potential legal challenges for the agency. Another risk is cost overruns, although the firm-fixed-price structure aims to mitigate this by placing the financial risk on the contractor. Scope creep is also a concern, where requirements may expand beyond the initial agreement. Mitigation strategies likely include robust contract management by CMS, clear definition of deliverables and performance standards, regular progress reviews, and potentially incorporating performance incentives or penalties into the contract terms. The competitive award process itself serves as an initial risk mitigation by selecting a vendor deemed capable.

How effective is the current approach to ensuring Section 508 compliance within CMS, and how does this contract contribute?

The effectiveness of CMS's Section 508 compliance efforts is directly supported by this contract. By outsourcing specialized support services to INSTAFF SOLUTIONS LLC, CMS aims to enhance its capacity to meet accessibility mandates. This contract likely contributes by providing expertise in areas such as accessibility testing, remediation of digital content, development of accessible documents and websites, and potentially training for CMS staff. The effectiveness will ultimately be measured by CMS's improved compliance posture, reduced number of accessibility-related complaints or issues, and the demonstrable usability of its digital services for individuals with disabilities. The contract's success hinges on clear performance metrics and diligent oversight by CMS.

What are the historical spending patterns for Section 508 support services within HHS or CMS?

Historical spending patterns for Section 508 support services within HHS and CMS would reveal the agency's long-term commitment and investment in digital accessibility. Analyzing past contracts under relevant NAICS codes (e.g., 541512) and service descriptions related to accessibility over several fiscal years would indicate trends in contract values, types of services procured, and the number of vendors engaged. Significant or increasing spending would suggest a growing emphasis on compliance. Conversely, fluctuating or declining spending might indicate shifts in priorities or reliance on internal resources. This $17.2 million award represents a specific point in these historical patterns, and understanding the broader context is crucial for strategic planning.

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 - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1606549

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 18191 NW 68 AVE STE 211, MIAMI, FL, 33015

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

Financial Breakdown

Contract Ceiling: $30,942,419

Exercised Options: $17,201,942

Current Obligation: $17,201,942

Actual Outlays: $15,407,061

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCB22D0538

IDV Type: GWAC

Timeline