HHS awards $10.4M sole-source follow-on for NPPES O&M to RELI GROUP INC

Contract Overview

Contract Amount: $10,448,338 ($10.4M)

Contractor: Reli Group Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2025-06-30

End Date: 2026-06-29

Contract Duration: 364 days

Daily Burn Rate: $28.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NATIONAL PLAN AND PROVIDER ENUMERATION SYSTEM (NPPES) OPERATIONS & MAINTENANCE (O&M). THE GOVERNMENT IS ISSUING A SOLE SOURCE FOLLOW ON UNDER THE STRATEGIC PARTNERS ACQUISITION READINESS CONTRACT (SPARC) INDEFINITE DELIVERY/INDEFINITE QUANTITY (IDIQ)

Place of Performance

Location: CATONSVILLE, BALTIMORE County, MARYLAND, 21228

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $10.4 million to RELI GROUP INC for work described as: NATIONAL PLAN AND PROVIDER ENUMERATION SYSTEM (NPPES) OPERATIONS & MAINTENANCE (O&M). THE GOVERNMENT IS ISSUING A SOLE SOURCE FOLLOW ON UNDER THE STRATEGIC PARTNERS ACQUISITION READINESS CONTRACT (SPARC) INDEFINITE DELIVERY/INDEFINITE QUANTITY (IDIQ) Key points: 1. Contract awarded as a sole-source follow-on, raising questions about competition and potential cost savings. 2. The contract supports the National Plan and Provider Enumeration System (NPPES), crucial for healthcare provider identification. 3. Operations and Maintenance (O&M) focus suggests a need for continuity and specialized knowledge. 4. The firm fixed-price contract type aims to control costs, but the sole-source nature limits price discovery. 5. The duration of 364 days indicates a short-term need for ongoing services. 6. The contract is a delivery order under an existing IDIQ, suggesting a pre-established relationship and framework.

Value Assessment

Rating: questionable

Benchmarking the value of this sole-source follow-on contract is challenging without comparable sole-source awards for similar O&M services. The firm fixed-price structure provides some cost certainty, but the lack of competition prevents a robust assessment of whether the pricing reflects market rates or offers optimal value for taxpayers. Further analysis would require understanding the original competition for the SPARC IDIQ and the justification for the sole-source award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source follow-on, meaning it was not competed. The government has identified a specific contractor, RELI GROUP INC., deemed to be the only source capable of fulfilling the requirement. This approach bypasses the competitive process, which typically leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: Sole-source awards limit opportunities for other businesses to compete and can potentially lead to higher prices for taxpayers compared to a fully competed contract.

Public Impact

Benefits healthcare providers by ensuring the continued operation of the NPPES, which is essential for billing and identification. Delivers critical IT operations and maintenance services for a foundational healthcare data system. Geographic impact is national, as NPPES serves all healthcare providers in the United States. Workforce implications are primarily for the contractor's staff, ensuring continued employment in IT support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potential cost savings.
Follow-on nature may indicate a lack of market research for alternative solutions.
Reliance on a single contractor for critical O&M could pose a risk if performance degrades.

Positive Signals

Contractor likely possesses specialized knowledge of the NPPES system from prior work.
Firm fixed-price contract provides cost certainty for the awarded amount.
Awarded under an existing IDIQ, suggesting a streamlined process and established relationship.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical component of the broader IT services market. The NPPES O&M is a specialized niche within this sector, focusing on maintaining essential government IT infrastructure. Comparable spending benchmarks for IT O&M services for large-scale government systems can vary widely based on complexity and scope, but this award represents a modest investment in maintaining a vital healthcare data resource.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses based on the information provided. The sole-source nature of the award further limits the potential for small business participation. This approach does not actively contribute to the small business ecosystem for this specific requirement.

Oversight & Accountability

Oversight for this contract would typically fall under the Centers for Medicare and Medicaid Services (CMS) program officials and contracting officers. Transparency is limited due to the sole-source nature. Accountability measures are inherent in the contract terms and performance expectations, with potential recourse for non-performance. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Healthcare IT Services
Federal IT Operations and Maintenance
Provider Data Management Systems
Centers for Medicare and Medicaid Services (CMS) Contracts
Strategic Partners Acquisition Readiness Contract (SPARC) IDIQ

Risk Flags

Sole-source award
Potential for cost overruns due to lack of competition
Vendor lock-in risk
Limited transparency in procurement process

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $10.4 million to RELI GROUP INC. NATIONAL PLAN AND PROVIDER ENUMERATION SYSTEM (NPPES) OPERATIONS & MAINTENANCE (O&M). THE GOVERNMENT IS ISSUING A SOLE SOURCE FOLLOW ON UNDER THE STRATEGIC PARTNERS ACQUISITION READINESS CONTRACT (SPARC) INDEFINITE DELIVERY/INDEFINITE QUANTITY (IDIQ)

Who is the contractor on this award?

The obligated recipient is RELI GROUP 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 $10.4 million.

What is the period of performance?

Start: 2025-06-30. End: 2026-06-29.

What is the specific justification for awarding this contract as a sole-source follow-on?

The provided data indicates this is a sole-source follow-on award. Typically, sole-source awards are justified when only one responsible source is available or capable of meeting the government's needs. This could be due to unique capabilities, proprietary knowledge, or the need for continuity with a contractor who has already developed specialized expertise on the system. For this specific contract, the justification would likely stem from RELI GROUP INC.'s prior involvement with the NPPES system under the SPARC IDIQ, suggesting they possess the necessary institutional knowledge and technical skills to maintain and operate the system without interruption. A formal Justification for Other Than Full and Open Competition (JOFOC) would contain the detailed rationale.

How does the $10.4M award compare to historical spending on NPPES O&M?

Without historical spending data specifically for NPPES O&M, a direct comparison is not possible. However, the award amount of $10.4 million for a 364-day period suggests a significant annual investment in maintaining this critical system. To provide a comprehensive comparison, one would need to access historical contract awards for NPPES O&M, ideally from the same or similar contracting vehicles, to identify trends in spending, contract durations, and the number of competitors involved. This would help determine if the current award represents an increase, decrease, or stable level of investment.

What are the key performance indicators (KPIs) for this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, for an Operations and Maintenance (O&M) contract supporting a critical system like the National Plan and Provider Enumeration System (NPPES), typical KPIs would likely include system uptime and availability, response times for issue resolution, data accuracy and integrity, security compliance, and adherence to service level agreements (SLAs). Performance would be monitored by CMS program officials to ensure the continued functionality and reliability of the NPPES.

What is the track record of RELI GROUP INC. with the NPPES system?

RELI GROUP INC. has a track record with the NPPES system as indicated by this being a 'follow-on' award under the SPARC IDIQ. This suggests they have previously performed services related to the NPPES, likely including operations and maintenance, or development that has led to their current O&M role. Their continued selection implies satisfactory performance in their prior engagements. A deeper dive into their contract history with HHS and CMS, specifically related to NPPES, would reveal the scope and duration of their previous work and any performance evaluations or awards received.

What are the risks associated with a sole-source follow-on contract for critical IT infrastructure?

The primary risks associated with a sole-source follow-on contract for critical IT infrastructure like the NPPES include a lack of competitive pressure, which can lead to higher costs and reduced innovation. There's also a risk of vendor lock-in, where the government becomes overly dependent on a single provider, making it difficult and costly to switch vendors in the future. Furthermore, without regular competition, the incumbent contractor may have less incentive to maintain high performance standards or proactively seek efficiencies. Finally, if the sole-source justification is weak, it could represent a missed opportunity for better value from a more competitive market.

How does the SPARC IDIQ framework influence this contract?

The Strategic Partners Acquisition Readiness Contract (SPARC) IDIQ provides the overarching framework for this delivery order. IDIQs allow agencies to issue multiple task or delivery orders against a pre-competed contract. By awarding this as a delivery order under SPARC, the Centers for Medicare and Medicaid Services (CMS) is leveraging a contract vehicle that has already undergone a competitive selection process for its awardees. This streamlines the acquisition process for subsequent needs, allowing CMS to quickly obtain services from pre-qualified vendors like RELI GROUP INC. for specific requirements such as NPPES O&M.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 75FCMC25QJ0300001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5520 RESEARCH PARK DRIVE, SUITE 105, CATONSVILLE, 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: $10,448,338

Exercised Options: $10,448,338

Current Obligation: $10,448,338

Actual Outlays: $5,870,804

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSM500201700045I

IDV Type: IDC

Timeline