HHS awards $4.5M for computer systems design, with limited competition and firm fixed-price terms

Contract Overview

Contract Amount: $4,499,860 ($4.5M)

Contractor: Vitg Corp

Awarding Agency: Department of Health and Human Services

Start Date: 2025-09-20

End Date: 2026-08-19

Contract Duration: 333 days

Daily Burn Rate: $13.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INDEPENDENTLY AND NOT AS AN AGENT OF THE GOVERNMENT, THE CONTRACTOR SHALL FURNISH ALL THE NECESSARY SERVICES, QUALIFIED PERSONNEL, MATERIAL, EQUIPMENT, AND/OR FACILITIES, NOT OTHERWISE PROVIDED BY THE GOVERNMENT, AS NEEDED TO PERFORM THE PERFORMANCE

Place of Performance

Location: CATONSVILLE, BALTIMORE County, MARYLAND, 21228

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $4.5 million to VITG CORP for work described as: INDEPENDENTLY AND NOT AS AN AGENT OF THE GOVERNMENT, THE CONTRACTOR SHALL FURNISH ALL THE NECESSARY SERVICES, QUALIFIED PERSONNEL, MATERIAL, EQUIPMENT, AND/OR FACILITIES, NOT OTHERWISE PROVIDED BY THE GOVERNMENT, AS NEEDED TO PERFORM THE PERFORMANCE Key points: 1. Contract value of $4.5 million for computer systems design services. 2. Limited competition indicates potential for higher pricing. 3. Firm fixed-price contract type shifts risk to the contractor. 4. Contract duration of 333 days suggests a focused scope of work. 5. Services are to be performed in Maryland. 6. Contractor is VITG CORP, with no prior contract history provided. 7. NAICS code 541512 points to a standard IT services engagement.

Value Assessment

Rating: fair

The contract value of $4.5 million for computer systems design services is moderate. Without specific deliverables or performance metrics, a direct value-for-money assessment is challenging. Benchmarking against similar contracts for computer systems design services would require more detailed scope information. The firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if the scope is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'NOT AVAILABLE FOR COMPETITION' status, indicating limited competition. This suggests that only one or a very small number of contractors were considered or solicited for this requirement. While the specific reasons for limited competition are not detailed, it can sometimes lead to less competitive pricing compared to full and open competition.

Taxpayer Impact: Limited competition may result in the government paying a premium for services, as there are fewer incentives for contractors to offer their lowest possible prices.

Public Impact

The Centers for Medicare and Medicaid Services (CMS) will benefit from enhanced computer systems design capabilities. Services delivered will support the operational needs of CMS. The geographic impact is focused on Maryland, where the services will be performed. Workforce implications include the potential for employment opportunities for IT professionals in Maryland.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the reasons for limited competition.
Potential for inflated costs due to reduced market pressure.
Absence of historical performance data for the contractor, VITG CORP.

Positive Signals

Firm fixed-price contract aligns incentives and limits government cost risk.
Contract awarded to a single entity, potentially streamlining management.
Defined period of performance (333 days) suggests a focused project.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically Computer Systems Design Services (NAICS 541512). This is a broad category encompassing the design, development, and integration of computer systems. The market for these services is highly competitive, with numerous providers ranging from small businesses to large corporations. Spending in this area is critical for government agencies to maintain and upgrade their technological infrastructure, support data management, and enhance operational efficiency.

Small Business Impact

The contract was not set aside for small businesses (ss: false, sb: false). There is no information provided regarding subcontracting plans. This award does not appear to directly benefit the small business ecosystem through set-asides, but it does not preclude the prime contractor from utilizing small businesses for subcontracting if they choose.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) at CMS, who is responsible for monitoring performance and ensuring compliance with contract terms. Transparency is limited by the 'NOT AVAILABLE FOR COMPETITION' status. Accountability rests with VITG CORP to deliver services as specified under the firm fixed-price agreement. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

IT Services
Computer Systems Design
Healthcare IT
CMS IT Modernization

Risk Flags

Limited competition
Lack of contractor past performance data
Potential for undefined scope impacting fixed-price certainty

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $4.5 million to VITG CORP. INDEPENDENTLY AND NOT AS AN AGENT OF THE GOVERNMENT, THE CONTRACTOR SHALL FURNISH ALL THE NECESSARY SERVICES, QUALIFIED PERSONNEL, MATERIAL, EQUIPMENT, AND/OR FACILITIES, NOT OTHERWISE PROVIDED BY THE GOVERNMENT, AS NEEDED TO PERFORM THE PERFORMANCE

Who is the contractor on this award?

The obligated recipient is VITG CORP.

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 $4.5 million.

What is the period of performance?

Start: 2025-09-20. End: 2026-08-19.

What is the track record of VITG CORP with federal contracts?

Based on the provided data, there is no information available regarding the track record of VITG CORP with federal contracts. The data does not include details on past performance, previous awards, or client feedback. To assess the contractor's reliability and past performance, a review of their contract history, including any past performance evaluations or awards from other agencies, would be necessary. Without this information, it is difficult to gauge their experience and success in fulfilling similar government requirements.

How does the contract value of $4.5 million compare to similar computer systems design services contracts?

The contract value of $4.5 million for computer systems design services is a moderate amount. However, without specific details on the scope of work, deliverables, and performance period, a direct comparison to similar contracts is challenging. Contracts for computer systems design can vary significantly in price based on complexity, duration, and the specific technologies involved. To provide a meaningful benchmark, one would need to analyze contracts with comparable objectives, such as system integration, software development, or network design, awarded by agencies like HHS or other federal entities, considering the prevailing market rates for such services.

What are the primary risks associated with this contract award?

The primary risks associated with this contract award stem from the limited competition and the lack of detailed information on the contractor's past performance. Limited competition ('NOT AVAILABLE FOR COMPETITION') can lead to suboptimal pricing and reduced incentive for innovation. The absence of data on VITG CORP's federal contracting history makes it difficult to assess their reliability, technical capabilities, and ability to deliver successfully. Furthermore, the firm fixed-price nature, while beneficial for cost control, carries a risk if the scope of work is not precisely defined, potentially leading to disputes or unmet requirements if unforeseen complexities arise.

How effective is the firm fixed-price contract type in managing costs for this engagement?

The firm fixed-price (FFP) contract type is generally effective in managing costs for well-defined projects, as it shifts the risk of cost overruns to the contractor. For this $4.5 million computer systems design services contract, the FFP structure provides budget certainty for the government, assuming the scope of work is clearly articulated and understood by both parties. The contractor is incentivized to perform efficiently to maintain profitability. However, the effectiveness hinges on the clarity and completeness of the contract's statement of work; any ambiguities could lead to change orders or disputes, potentially negating some of the cost control benefits.

What is the historical spending pattern for computer systems design services at CMS?

Historical spending patterns for computer systems design services at the Centers for Medicare and Medicaid Services (CMS) are not detailed in the provided data. To understand this, one would need to analyze historical contract databases, looking at the volume and value of awards for NAICS code 541512 and related IT services over several fiscal years. Such an analysis would reveal trends in agency investment in IT infrastructure, modernization efforts, and the types of contractors (e.g., large vs. small businesses) that have historically secured these types of contracts. This context is crucial for evaluating the current award's significance and alignment with past spending priorities.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 75FCMC25RJ038

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5520 RESEARCH PARK DR STE 100, BALTIMORE, MD, 21228

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

Financial Breakdown

Contract Ceiling: $4,499,860

Exercised Options: $4,499,860

Current Obligation: $4,499,860

Actual Outlays: $1,874,942

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline