HHS awards $485,800 for policy management software to PolicyStat LLC, bypassing competition

Contract Overview

Contract Amount: $48,580 ($48.6K)

Contractor: Policystat LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2021-11-04

End Date: 2023-05-31

Contract Duration: 573 days

Daily Burn Rate: $85/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FIRM FIXED-PRICE, COMMERCIAL ITEM, PURCHASE ORDER TO PROVIDE POLICY AND PROCEDURE MANAGEMENT SOFTWARE FOR THE GREAT PLAINS AREA IHS, ABERDEEN, SOUTH DAKOTA. PERIOD OF PERFORMANCE: 12/1/2021 - 11/30/2022.

Place of Performance

Location: ABERDEEN, BROWN County, SOUTH DAKOTA, 57401

State: South Dakota Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $48,580 to POLICYSTAT LLC for work described as: FIRM FIXED-PRICE, COMMERCIAL ITEM, PURCHASE ORDER TO PROVIDE POLICY AND PROCEDURE MANAGEMENT SOFTWARE FOR THE GREAT PLAINS AREA IHS, ABERDEEN, SOUTH DAKOTA. PERIOD OF PERFORMANCE: 12/1/2021 - 11/30/2022. Key points: 1. The contract is for policy and procedure management software for the Great Plains Area IHS. 2. PolicyStat LLC is the sole provider for this specific software solution. 3. The contract was awarded using a Firm Fixed Price, Commercial Item, Purchase Order. 4. The period of performance is 12/1/2021 - 11/30/2022, with an award date of 11/04/2021. 5. This award did not involve competition.

Value Assessment

Rating: fair

The contract value of $485,800 for a one-year period for specialized policy management software appears within a reasonable range for commercial items. However, without specific feature comparisons or market research, a precise pricing assessment against similar contracts is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive environment. The government may have relied on commercial item pricing, but the lack of competition prevents direct comparison.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding, although the use of commercial item pricing could mitigate this risk.

Public Impact

Ensures operational continuity for policy management within the Great Plains Area IHS. Supports regulatory compliance and internal procedure adherence for healthcare services. Potential for increased costs due to lack of competition. Limited transparency on the justification for sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment
Limited vendor options

Positive Signals

Firm Fixed Price contract type
Commercial Item acquisition
Specialized software solution

Sector Analysis

The Software Publishers sector (NAICS 511210) encompasses companies that develop and publish software. Spending in this sector can vary widely based on the complexity and criticality of the software. This award represents a small portion of overall government IT spending.

Small Business Impact

This contract was awarded to PolicyStat LLC, and there is no indication that small businesses were involved in the subcontracting process or as competitors for this award.

Oversight & Accountability

The award was made via a purchase order, which is a common method for acquiring commercial items. However, the lack of competition warrants scrutiny to ensure the government obtained fair value and that the sole-source justification was appropriate.

Related Government Programs

Software Publishers
Department of Health and Human Services Contracting
Indian Health Service Programs

Risk Flags

Sole-source award lacks competition.
Potential for inflated pricing.
Limited transparency on justification.
Risk of vendor lock-in.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $48,580 to POLICYSTAT LLC. FIRM FIXED-PRICE, COMMERCIAL ITEM, PURCHASE ORDER TO PROVIDE POLICY AND PROCEDURE MANAGEMENT SOFTWARE FOR THE GREAT PLAINS AREA IHS, ABERDEEN, SOUTH DAKOTA. PERIOD OF PERFORMANCE: 12/1/2021 - 11/30/2022.

Who is the contractor on this award?

The obligated recipient is POLICYSTAT LLC.

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 $48,580.

What is the period of performance?

Start: 2021-11-04. End: 2023-05-31.

What was the specific justification for awarding this contract sole-source, and was a market survey conducted to confirm the lack of alternatives?

The provided data indicates the contract was 'NOT COMPETED'. A thorough justification for a sole-source award, including market research to confirm the necessity of a single source and the absence of viable alternatives, is crucial for ensuring fair and reasonable pricing and adherence to procurement regulations. Without this justification, it's difficult to assess the value.

How does the $485,800 price compare to similar policy management software solutions in the commercial market or other government contracts?

Benchmarking the $485,800 price against similar commercial policy management software or other government contracts is challenging without more detailed information on the software's features, scope, and user base. However, given it's a commercial item, the government likely aimed for fair market price. The lack of competition prevents a direct comparison to identify potential overpricing.

What is the long-term impact of relying on a single vendor for critical policy management software for the Great Plains Area IHS?

Long-term reliance on a single vendor can lead to vendor lock-in, potentially increasing costs over time as the vendor may face less pressure to offer competitive pricing or innovative updates. It also poses a risk if the vendor discontinues the product or experiences financial instability, requiring a costly and disruptive transition to a new system.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - APLLICATIONS

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: 550 CONGRESSIONAL BLVD STE 100, CARMEL, IN, 46032

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $48,580

Exercised Options: $48,580

Current Obligation: $48,580

Actual Outlays: $41,574

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline