HHS awards $4.4M contract for computer systems design services to Affix Digital LLC

Contract Overview

Contract Amount: $4,444,683 ($4.4M)

Contractor: Affix Digital LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2024-01-19

End Date: 2026-03-01

Contract Duration: 772 days

Daily Burn Rate: $5.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CYBERGEEK

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20036

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $4.4 million to AFFIX DIGITAL LLC for work described as: CYBERGEEK Key points: 1. Contract value appears reasonable for the scope of computer systems design services. 2. Limited competition due to a sole-source award raises concerns about potential overpricing. 3. The contract duration of 772 days suggests a need for sustained support. 4. Performance context is limited without specific deliverables outlined. 5. This contract falls within the IT services sector, a common area for federal spending. 6. The award to a single vendor warrants scrutiny of the justification for sole-source procurement.

Value Assessment

Rating: fair

Benchmarking the value of this $4.4 million contract is challenging without detailed service descriptions. However, for computer systems design services, the price appears within a plausible range for a two-year engagement. The lack of competition, however, prevents a robust assessment of whether this represents the best possible value for the government. Further analysis would require comparing specific deliverables and labor categories to similar contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Affix Digital LLC, was solicited. The justification for this limited competition is not provided in the data. Sole-source awards can sometimes lead to higher prices and reduced innovation as there is no pressure from competing bids to offer the most cost-effective solution. The government must have a compelling reason, such as unique capabilities or urgent need, to bypass a competitive process.

Taxpayer Impact: Sole-source awards mean taxpayers may not be getting the most competitive pricing available. Without a competitive bidding process, there's a risk that the selected vendor's price is not the lowest possible, potentially leading to less efficient use of taxpayer funds.

Public Impact

The Centers for Medicare and Medicaid Services (CMS) is the primary beneficiary, receiving essential computer systems design services. The contract supports the ongoing operations and potential modernization of CMS's IT infrastructure. The geographic impact is centered in Washington D.C., where the contractor is located. Workforce implications may include employment opportunities within Affix Digital LLC and potentially within CMS for oversight and integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially value for money.
Lack of transparency regarding the justification for sole-source procurement.
Contract duration of over two years requires careful performance monitoring.

Positive Signals

Award to a single vendor may indicate specialized capabilities required by CMS.
Firm Fixed Price contract type provides cost certainty for the government.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically computer systems design. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their systems. This contract likely supports critical healthcare IT infrastructure for CMS, a significant player in the health sector. Comparable spending benchmarks would typically involve analyzing other contracts for similar IT design and integration services within federal health agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false) and there is no specific mention of subcontracting plans for small businesses (sb: false). This suggests that the primary awardee, Affix Digital LLC, is likely not a small business, and there is no explicit mechanism in this award to ensure small business participation. This could mean missed opportunities for small businesses to contribute to this federal contract and potentially limit their growth within the federal contracting ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency is limited by the sole-source nature of the award, as the justification is not publicly detailed. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

CMS IT Modernization Initiatives
Federal Health IT Contracts
Computer Systems Design Services
Sole-Source IT Procurements

Risk Flags

Sole-source award lacks competitive justification.
Limited transparency on specific services and deliverables.
Potential for non-competitive pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $4.4 million to AFFIX DIGITAL LLC. CYBERGEEK

Who is the contractor on this award?

The obligated recipient is AFFIX DIGITAL 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 $4.4 million.

What is the period of performance?

Start: 2024-01-19. End: 2026-03-01.

What specific computer systems design services are being provided under this contract?

The provided data indicates the contract is for 'Computer Systems Design Services' (NAICS code 541512) awarded to Affix Digital LLC by the Centers for Medicare and Medicaid Services (CMS). However, the specific nature of these services is not detailed. Typically, such services can encompass a wide range of activities including system analysis, design, integration, and implementation of computer hardware and software. Given the agency (CMS), these services could relate to healthcare data management systems, patient portals, claims processing software, or other critical IT infrastructure supporting Medicare and Medicaid programs. Without a detailed Statement of Work (SOW) or contract line item details, the precise deliverables remain unspecified.

What is the justification for awarding this contract on a sole-source basis?

The provided data explicitly states the contract was 'NOT COMPETED' (ct: NOT COMPETED), indicating a sole-source award. Federal procurement regulations (e.g., FAR Part 6) generally require full and open competition. Sole-source awards are exceptions, typically justified when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. For this contract, the specific justification is not included in the data. Agencies must document and justify sole-source awards, often through a Justification and Approval (J&A) document. Without this documentation, it is impossible to assess the validity of the sole-source determination and whether it was appropriate for the government to bypass competitive procedures.

How does the contract value of $4.4 million compare to similar IT services contracts at CMS?

Comparing the $4.4 million contract value for computer systems design services requires context that is not fully provided. The contract duration is 772 days (approximately 2.1 years), making the annual value roughly $2.1 million. This figure needs to be benchmarked against similar IT services contracts at CMS or other federal health agencies for comparable scope and complexity. Factors such as the specific technologies involved, the level of expertise required, and the criticality of the systems being designed would influence pricing. Given the sole-source nature, a direct comparison to competitively awarded contracts for similar services would be most informative to assess value for money, but such data is absent here.

What are the potential risks associated with a sole-source IT services contract of this duration?

A sole-source IT services contract, especially one spanning over two years, carries several risks. Firstly, the lack of competition can lead to inflated pricing, as the contractor faces no pressure to offer the most cost-effective solution. Secondly, without competitive benchmarking, it's harder to ensure the contractor is delivering optimal performance and innovation. Thirdly, the government may become overly reliant on a single vendor, potentially facing challenges if the vendor's performance declines or if the government needs to transition to a different solution later. Finally, the absence of a competitive process might mean that alternative, potentially more suitable or cost-effective solutions from other vendors were not considered.

What is the track record of Affix Digital LLC in performing federal IT contracts?

Information regarding the track record of Affix Digital LLC in performing federal IT contracts is not provided in the given data. To assess their past performance, one would typically need to review contract award histories, past performance evaluations (e.g., CPARS reports), and any reported issues or successes on previous government engagements. Without this information, it is difficult to gauge their reliability, technical capabilities, and ability to successfully execute this $4.4 million contract for the Centers for Medicare and Medicaid Services. A thorough review would involve searching federal databases for past performance data.

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 - SECURITY AND COMPLIANCE

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1200 18TH ST NW STE 700, WASHINGTON, DC, 20036

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $4,444,683

Exercised Options: $4,444,683

Current Obligation: $4,444,683

Actual Outlays: $4,281,545

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline