HHS awards $2.5M Lean Six Sigma training contract to Cannsult, Inc. for IHS-wide portal and support

Contract Overview

Contract Amount: $253,000 ($253.0K)

Contractor: Cannsult, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2025-09-26

End Date: 2026-09-30

Contract Duration: 369 days

Daily Burn Rate: $686/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IHS AGENCY-WIDE LEAN SIX SIGMA TRAINING PROGRAM. PLATFORM SUBSCRIPTION (IHS-WIDE PORTAL, TRACKING, REPORTING, HELP DESK) AND RELATED TRAINING AND TRAINING SUPPORT SERVICES.

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32940

State: Florida Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $253,000 to CANNSULT, INC. for work described as: IHS AGENCY-WIDE LEAN SIX SIGMA TRAINING PROGRAM. PLATFORM SUBSCRIPTION (IHS-WIDE PORTAL, TRACKING, REPORTING, HELP DESK) AND RELATED TRAINING AND TRAINING SUPPORT SERVICES. Key points: 1. The contract focuses on professional and management development training, specifically Lean Six Sigma methodologies. 2. The platform subscription includes portal access, tracking, reporting, and help desk support. 3. The contract duration is over one year, with a firm-fixed-price structure. 4. The award was made under the Simplified Acquisition Procedures (SAP), indicating a focus on smaller procurements. 5. The geographic location for performance is Florida. 6. The contract was competed, suggesting multiple bids were considered.

Value Assessment

Rating: fair

The contract value of $2.53 million for a 369-day duration appears to be within a reasonable range for specialized training and platform services. Benchmarking against similar government-wide training contracts would provide a clearer picture of value for money. The firm-fixed-price nature of the contract shifts risk to the contractor, which can be beneficial for the government if the scope is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a streamlined process for procurements under the federal micro-purchase threshold. While the exact number of bidders is not specified, the fact that it was competed suggests that multiple vendors had the opportunity to submit proposals. This competition is intended to foster price discovery and ensure the government receives competitive pricing.

Taxpayer Impact: The competition under SAP aims to ensure that taxpayer funds are used efficiently by encouraging multiple vendors to offer their best pricing and services.

Public Impact

The Indian Health Service (IHS) will benefit from enhanced process improvement capabilities through Lean Six Sigma training. The contract delivers a platform subscription for portal access, tracking, reporting, and help desk support. Training and support services will be provided to IHS personnel to improve operational efficiency. The primary geographic impact is expected within the Indian Health Service's operational areas, with performance specified in Florida.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if training needs are not precisely defined upfront.
Reliance on a single platform for critical training data requires robust security and uptime.
Ensuring effective knowledge transfer and application of Lean Six Sigma principles post-training.

Positive Signals

Firm-fixed-price contract structure provides cost certainty for the government.
Competed under SAP, suggesting an effort to leverage efficient procurement processes.
Focus on Lean Six Sigma aligns with government-wide initiatives for efficiency and cost savings.

Sector Analysis

The professional and management development training sector is a critical component of government operations, enabling agencies to improve efficiency and effectiveness. This contract, valued at $2.53 million, falls within the typical range for specialized training programs and platform subscriptions. The Indian Health Service's investment in Lean Six Sigma training reflects a broader trend in federal agencies seeking to optimize processes and reduce waste.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting plans. Further analysis would be needed to determine the extent of small business participation in this procurement.

Oversight & Accountability

Oversight for this contract would typically fall under the Indian Health Service's program management and contracting offices. The firm-fixed-price nature of the award places the onus on the contractor to deliver services within the agreed-upon budget. Transparency would be enhanced by public availability of contract performance reports and any associated Inspector General reviews.

Related Government Programs

IHS Agency-Wide Training Programs
Federal Lean Six Sigma Initiatives
Professional Development Contracts
Management Training Services

Risk Flags

Potential for performance issues if contractor lacks deep federal training experience.
Risk of low adoption or application of training if not integrated with agency goals.
Platform reliability and data security are critical for sustained use.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $253,000 to CANNSULT, INC.. IHS AGENCY-WIDE LEAN SIX SIGMA TRAINING PROGRAM. PLATFORM SUBSCRIPTION (IHS-WIDE PORTAL, TRACKING, REPORTING, HELP DESK) AND RELATED TRAINING AND TRAINING SUPPORT SERVICES.

Who is the contractor on this award?

The obligated recipient is CANNSULT, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Indian Health Service).

What is the total obligated amount?

The obligated amount is $253,000.

What is the period of performance?

Start: 2025-09-26. End: 2026-09-30.

What is the track record of Cannsult, Inc. in delivering similar federal training programs?

A review of federal procurement databases and contractor performance systems would be necessary to assess Cannsult, Inc.'s track record. Key indicators would include past performance ratings on similar contracts, any history of contract disputes or terminations, and the successful completion of projects involving Lean Six Sigma training and platform management. Understanding their experience with government-wide portals and reporting systems would also be crucial. Without specific past performance data, it is difficult to definitively assess their capability for this specific IHS contract.

How does the pricing of this contract compare to similar Lean Six Sigma training and platform services in the federal market?

Benchmarking the $2.53 million contract value against comparable federal awards for Lean Six Sigma training and platform subscriptions is essential for a value-for-money assessment. Factors to consider include the scope of services, duration, number of users, and the specific features of the platform. If similar contracts for comparable services were awarded at significantly lower prices, it could indicate potential overpricing or a lack of sufficient competition. Conversely, if the price is in line with or lower than benchmarks, it suggests reasonable value.

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

Key risks include potential contractor underperformance, inadequate knowledge transfer of Lean Six Sigma principles, and technical issues with the platform. Mitigation strategies likely involve clear performance work statements, defined metrics for training effectiveness, and robust oversight from the IHS. The firm-fixed-price structure also incentivizes the contractor to manage costs and deliver as promised. The contract's duration and the specific services outlined suggest a focus on operationalizing improvements rather than just theoretical training.

How effective is the IHS in leveraging Lean Six Sigma training to achieve measurable improvements in its operations?

The effectiveness of this contract hinges on the IHS's ability to integrate the Lean Six Sigma training and platform into its operational framework and achieve tangible results. Metrics such as reduced waste, improved process cycle times, cost savings, and enhanced patient care outcomes would be indicators of success. The contract itself provides the tools and training, but sustained commitment and application by IHS personnel are critical for realizing the full benefits of the program.

What has been the historical spending pattern for Lean Six Sigma training and related services by the Indian Health Service?

Analyzing historical spending data for the IHS in the area of Lean Six Sigma training and process improvement would provide context for this $2.53 million award. Understanding whether this represents an increase, decrease, or stable level of investment can reveal trends in the agency's focus on operational efficiency. If historical spending has been inconsistent or low, this contract might signify a renewed emphasis on these methodologies. Conversely, if spending has been consistently high, it suggests an ongoing commitment.

Industry Classification

NAICS: Educational Services › Business Schools and Computer and Management Training › Professional and Management Development Training

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2605 SUMMER BROOK ST, MELBOURNE, FL, 32940

Business Categories: Category Business, Educational Institution, Higher Education, Limited Liability Corporation, Partnership or Limited Liability Partnership, Higher Education (Private), Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $759,000

Exercised Options: $253,000

Current Obligation: $253,000

Actual Outlays: $87,750

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline