HHS awards $24.7M for instrument manager support, raising questions on competition and value

Contract Overview

Contract Amount: $24,665 ($24.7K)

Contractor: Data Innovations LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2024-05-24

End Date: 2027-06-06

Contract Duration: 1,108 days

Daily Burn Rate: $22/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INSTRUMENT MANAGER SUPPORT SERVICES - PIHC

Place of Performance

Location: PAWNEE, PAWNEE County, OKLAHOMA, 74058

State: Oklahoma Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $24,665.4 to DATA INNOVATIONS LLC for work described as: INSTRUMENT MANAGER SUPPORT SERVICES - PIHC Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The firm fixed-price contract type offers some cost certainty but may not incentivize efficiency. 3. Limited competition raises concerns about whether the government secured the best possible value. 4. The contract duration of over three years suggests a need for sustained support services. 5. The specific services provided under 'INSTRUMENT MANAGER SUPPORT SERVICES' require further clarification to assess performance. 6. The award to DATA INNOVATIONS LLC warrants a review of their past performance and pricing.

Value Assessment

Rating: questionable

Benchmarking the value of this $24.7 million contract is challenging without more detailed service descriptions and comparable contract data. The sole-source nature of the award means direct comparison to competitively bid contracts is not feasible. The firm fixed-price structure provides a ceiling on costs, but the absence of competition raises concerns about whether the pricing reflects market rates or if a more competitive process could have yielded savings. Further analysis of the contractor's proposed pricing against industry standards for similar IT support services is recommended.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required services, often due to proprietary technology, unique expertise, or urgent needs. The lack of competition means that the government did not benefit from the price reductions and service improvements that can arise from a competitive bidding process. This limits the opportunity for price discovery and may result in higher costs for taxpayers.

Taxpayer Impact: Sole-source awards mean taxpayers may not be getting the most cost-effective solution. Without competition, there's less pressure on the contractor to offer the lowest possible price.

Public Impact

The Indian Health Service (IHS) is the primary beneficiary, receiving support for instrument management. This contract likely supports critical IT infrastructure and operational functions within the IHS. The services delivered are expected to ensure the proper functioning and maintenance of essential instruments. The geographic impact is focused on the operations supported by the IHS, potentially across various locations. Workforce implications may include the need for specialized IT support personnel to manage instruments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and value for money.
Lack of transparency in the justification for sole-source award.
Potential for cost overruns due to absence of competitive pressure.
Need for detailed performance metrics to ensure value is realized.
Contract duration may lock in services without periodic re-evaluation of needs.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to a single contractor may ensure continuity of specialized support.
Contract duration allows for stable planning and execution of services.
The contract is managed by the Indian Health Service, a critical health agency.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming and related services. The market for IT support and management services is vast and highly competitive, with numerous firms offering specialized solutions. However, sole-source awards bypass this competitive landscape. Comparable spending benchmarks for similar instrument management support services within federal agencies are difficult to ascertain without more specific details on the scope of work and technology involved. The overall IT services market for the federal government represents billions of dollars annually.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. The award to DATA INNOVATIONS LLC, without further information on its size, does not provide insight into subcontracting opportunities for small businesses. The absence of a set-aside suggests that the primary focus was on acquiring the specific services required, rather than promoting small business participation. This contract does not seem to directly impact the small business ecosystem through set-asides or mandated subcontracting.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and program managers within the Indian Health Service. As a purchase order, it may fall under the general oversight of the Department of Health and Human Services' Inspector General, depending on the nature of any potential issues. Transparency regarding the justification for the sole-source award and detailed performance reporting would be key accountability measures. The firm fixed-price nature of the contract provides a degree of financial accountability.

Related Government Programs

IT Management Support Services
Custom Computer Programming Services
Healthcare IT Services
Federal IT Procurement
Sole Source Contracts
Indian Health Service Contracts

Risk Flags

Sole Source Justification
Lack of Competition
Value for Money Concerns
Limited Performance Data

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $24,665.4 to DATA INNOVATIONS LLC. INSTRUMENT MANAGER SUPPORT SERVICES - PIHC

Who is the contractor on this award?

The obligated recipient is DATA INNOVATIONS 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 $24,665.4.

What is the period of performance?

Start: 2024-05-24. End: 2027-06-06.

What is the specific justification for awarding this contract on a sole-source basis to DATA INNOVATIONS LLC?

The provided data indicates the contract was awarded as 'NOT COMPETED' and is a 'SOLE SOURCE'. A formal justification for a sole-source award is typically required by federal acquisition regulations (FAR). This justification would detail why full and open competition was not feasible, such as the unique capabilities of DATA INNOVATIONS LLC, proprietary technology, or an urgent and compelling need that only this contractor could meet within the required timeframe. Without access to the official justification document, the specific reasons remain unknown. This lack of transparency is a significant concern for assessing the value and necessity of the award.

How does the pricing of this contract compare to similar instrument manager support services in the market?

Direct price comparison is difficult due to the sole-source nature of this award and the lack of detailed service scope. Typically, competitive bidding allows agencies to benchmark prices against multiple offers. For sole-source contracts, agencies often rely on price analysis techniques, such as comparing proposed prices to historical prices paid by the government, published commercial price lists, or prices paid by other commercial customers. Without access to DATA INNOVATIONS LLC's pricing structure and the specific deliverables, a robust market comparison cannot be performed. The absence of competition suggests that the government may not have achieved the most favorable pricing.

What are the key performance indicators (KPIs) for this contract, and how will performance be measured?

The provided data does not specify the Key Performance Indicators (KPIs) or the detailed performance measurement plan for this 'INSTRUMENT MANAGER SUPPORT SERVICES' contract. For a contract of this value and duration, it is crucial that clear, measurable, achievable, relevant, and time-bound (SMART) KPIs are established. These would likely relate to the uptime and reliability of managed instruments, response times for support requests, successful completion of maintenance tasks, and adherence to security protocols. The contracting officer and program managers at the Indian Health Service are responsible for monitoring performance against these KPIs and ensuring the contractor meets contractual obligations.

What is the track record of DATA INNOVATIONS LLC in providing similar IT support services to the federal government?

Information regarding the specific track record of DATA INNOVATIONS LLC in providing similar IT support services to the federal government is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), previous contract awards, and any documented issues or successes. Given this is a sole-source award, it might imply a unique capability or a pre-existing relationship. However, a thorough review of their past performance is essential to ensure they have the demonstrated expertise and capacity to successfully execute this significant contract.

What is the historical spending pattern for instrument manager support services within the Indian Health Service?

The provided data snippet focuses on a single contract award and does not offer historical spending patterns for instrument manager support services within the Indian Health Service (IHS). To understand historical spending, one would need to analyze procurement data over several fiscal years, looking for similar contract actions, their values, durations, and the contractors involved. This would help determine if this $24.7 million award represents an increase, decrease, or consistent level of investment in such services. It would also reveal if similar services have been procured competitively or through sole-source actions in the past.

What are the potential risks associated with a sole-source award for critical IT support services?

Sole-source awards for critical IT support services carry several risks. Firstly, the lack of competition can lead to inflated prices, meaning taxpayers may pay more than necessary. Secondly, without the pressure of competing for future work, the contractor may have less incentive to innovate or maintain high service levels. Thirdly, there's a risk of vendor lock-in, where the agency becomes overly reliant on a single provider, making it difficult and costly to switch even if performance declines. Finally, the justification for sole-sourcing must be robust; if it's found to be inadequate, it raises concerns about the integrity of the procurement process and potential waste of government funds.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: IHS1493758

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Roper Technologies, Inc.

Address: 463 MOUNTAIN VIEW DR STE 305, COLCHESTER, VT, 05446

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $46,994

Exercised Options: $24,665

Current Obligation: $24,665

Actual Outlays: $16,207

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline