HHS awards $234K for I-35 Warehouse AMAG System Installation to GC&E FEDERAL, LLC

Contract Overview

Contract Amount: $234,403 ($234.4K)

Contractor: GC&E Federal, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-01

End Date: 2027-03-31

Contract Duration: 364 days

Daily Burn Rate: $644/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: I-35 WAREHOUSE AMAG SYSTEM INSTALLATION FOR IHS OKC NSSC

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73114

State: Oklahoma Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $234,402.64 to GC&E FEDERAL, LLC for work described as: I-35 WAREHOUSE AMAG SYSTEM INSTALLATION FOR IHS OKC NSSC Key points: 1. Contract awarded on a non-competitive basis, raising questions about potential cost savings. 2. The firm fixed-price contract type suggests a defined scope and budget, but the lack of competition limits price discovery. 3. The duration of 364 days for a system installation appears reasonable, but specific performance metrics are not detailed. 4. The contract is for 'Other Computer Related Services,' a broad category that could encompass various IT functions. 5. The small business status of the contractor is not specified, impacting potential set-aside considerations. 6. Geographic focus on Oklahoma for the Indian Health Service suggests a localized implementation.

Value Assessment

Rating: fair

The contract value of $234,402.64 for a warehouse AMAG system installation is difficult to benchmark without more specific details on the system's scope and features. Given it was not competed under SAP (Simplified Acquisition Procedures), it suggests a value that might warrant broader competition. The firm fixed-price nature provides cost certainty for the government, but the lack of competitive bidding prevents a direct comparison of pricing against market alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT COMPETED UNDER SAP,' which typically indicates a sole-source or limited competition procurement. Without further details on the justification for not competing, it is challenging to assess the level of competition. The absence of multiple bidders means that the government did not benefit from a competitive bidding process to drive down costs or explore innovative solutions.

Taxpayer Impact: The lack of competition means taxpayers may not have received the best possible price for this system installation, as there was no pressure from competing offers to optimize costs.

Public Impact

The Indian Health Service (IHS) in Oklahoma will benefit from the installation of a warehouse AMAG system. This system is intended to enhance security and access control within a warehouse facility. The primary beneficiaries are likely IHS personnel and operations at the Oklahoma facility. The contract supports IT services within the healthcare sector, specifically for a federal agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Limited transparency into the procurement process due to non-competitive award.
Potential for vendor lock-in if the system is proprietary and requires ongoing specialized support.

Positive Signals

Firm fixed-price contract provides budget certainty.
Contract duration is clearly defined.
Awarded to a specific entity, GC&E FEDERAL, LLC, indicating a clear point of responsibility.

Sector Analysis

The contract falls within the 'Other Computer Related Services' NAICS code (541519), which is a broad category encompassing IT consulting, system integration, and support services. The market for such services is vast and competitive, with numerous providers ranging from small businesses to large corporations. However, the specific nature of a 'warehouse AMAG system' suggests a niche within physical security and access control technology, which may have a more limited, specialized vendor pool. The contract value is relatively small, indicating a focused implementation rather than a large-scale enterprise solution.

Small Business Impact

The provided data does not indicate whether this contract was set aside for small businesses, nor does it specify if GC&E FEDERAL, LLC is a small business. If it was not a small business set-aside and the contractor is a large business, there are no direct subcontracting implications for small businesses stemming from this award. Further investigation would be needed to determine if small business participation was a consideration or requirement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services (HHS) and the Indian Health Service (IHS). As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency is limited by the non-competitive nature of the award. The Inspector General's office for HHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

IHS IT Modernization Initiatives
Federal Warehouse Management Systems
Physical Security Systems Procurement
Department of Health and Human Services IT Contracts

Risk Flags

Non-competitive award
Lack of detailed scope
Limited performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $234,402.64 to GC&E FEDERAL, LLC. I-35 WAREHOUSE AMAG SYSTEM INSTALLATION FOR IHS OKC NSSC

Who is the contractor on this award?

The obligated recipient is GC&E FEDERAL, 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 $234,402.64.

What is the period of performance?

Start: 2026-04-01. End: 2027-03-31.

What specific functionalities does the 'I-35 WAREHOUSE AMAG SYSTEM INSTALLATION' entail, and how do these align with the IHS's operational needs?

The provided data identifies the contract as being for an 'I-35 WAREHOUSE AMAG SYSTEM INSTALLATION' under the NAICS code '541519 - Other Computer Related Services.' AMAG systems typically refer to access control and security management solutions, often integrating with video surveillance and alarm systems. For the Indian Health Service (IHS) in Oklahoma, such a system would likely be intended to secure a warehouse facility, controlling entry and exit, monitoring activity, and potentially managing inventory access. The specific functionalities would depend on the chosen AMAG product suite, but could include badge reader integration, visitor management, real-time event monitoring, and reporting capabilities. The alignment with IHS operational needs would hinge on whether the system enhances the security of sensitive medical supplies, equipment, or records stored in the warehouse, and whether it improves operational efficiency by streamlining access for authorized personnel.

What is the justification for awarding this contract on a non-competitive basis, and what is the estimated cost difference compared to a competitive procurement?

The data states the contract was 'NOT COMPETED UNDER SAP.' This designation implies that the procurement was either conducted under full and open competition procedures but resulted in a sole-source award, or it was specifically justified as a sole-source acquisition from the outset. Common justifications for sole-source awards include the availability of only one responsible source, urgent and compelling needs, or specific follow-on work to a previous contract where only that contractor possesses the necessary knowledge or proprietary technology. Without the specific justification document (e.g., a Justification and Approval - J&A), it is impossible to determine the precise reason. Consequently, estimating the cost difference compared to a competitive procurement is speculative. However, a general principle in government contracting is that competitive bidding typically leads to lower prices due to market forces and vendor incentives to offer competitive terms. Therefore, it is reasonable to assume that a competitive process might have yielded a lower price for this system installation, though the exact savings cannot be quantified without comparative bids.

How does the pricing of $234,402.64 for a 364-day system installation compare to similar contracts for warehouse security or access control systems within the federal government?

Benchmarking the price of $234,402.64 for a 364-day warehouse AMAG system installation is challenging without more granular details about the system's scope, features, and the specific services included (e.g., hardware, software licenses, installation labor, training, ongoing support). However, for context, federal contracts for IT services and physical security systems can vary widely in cost. A firm fixed-price contract for a system installation over approximately one year suggests a significant undertaking. If this includes comprehensive hardware, software, and extensive on-site installation and configuration for a medium-sized warehouse, the price might be within a reasonable range, especially if specialized equipment or integration is required. Conversely, if it's a more basic access control system, the price could be on the higher side, particularly given the lack of competition. A thorough comparison would require analyzing contract databases for similar NAICS codes (like 541519 or potentially security-related codes) and specific product types, factoring in contract duration, agency, and geographic location.

What is the track record of GC&E FEDERAL, LLC in delivering similar IT or security system installation services to federal agencies?

Information regarding the specific track record of GC&E FEDERAL, LLC in delivering similar IT or security system installation services to federal agencies is not detailed in the provided data. To assess their capabilities and past performance, one would typically consult the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) for contract history, performance evaluations, and any reported issues. Without access to these databases or further background on the company, it's difficult to ascertain their experience level, the quality of their past work, or their reliability in executing similar projects. Given this is a non-competed award, a robust pre-award assessment of their capabilities and past performance would have been crucial to ensure a successful outcome for the IHS.

What are the potential risks associated with a sole-source award for an AMAG system installation, and what mitigation strategies are in place?

The primary risks associated with a sole-source award for an AMAG system installation include potential overpricing due to the absence of competitive pressure, limited innovation as the contractor may not be incentivized to propose the most cost-effective or advanced solutions, and a lack of vendor accountability if performance issues arise, as alternatives are not readily available. Furthermore, there's a risk of vendor lock-in, where the agency becomes dependent on the sole provider for future upgrades, maintenance, and support, potentially at inflated prices. Mitigation strategies typically involve rigorous negotiation of the contract terms and pricing, establishing clear performance metrics and deliverables, and potentially conducting market research post-award to identify alternative solutions for future procurements. The government contracting officer should have conducted thorough price analysis and due diligence before awarding on a sole-source basis to ensure fair and reasonable pricing.

How does this contract fit into the broader IT modernization or security enhancement efforts of the Indian Health Service?

This contract for an I-35 Warehouse AMAG System Installation appears to be a specific, localized project focused on enhancing physical security and access control at a particular IHS facility in Oklahoma. It may not represent a large-scale IT modernization initiative but rather a targeted upgrade to address security needs at a warehouse. The Indian Health Service, like many federal agencies, is engaged in ongoing efforts to modernize its IT infrastructure and enhance data security and physical security measures across its facilities. This contract contributes to that broader goal by ensuring the secure management of assets and potentially sensitive materials stored in the warehouse. Its integration into larger modernization plans would depend on whether this system is part of a phased rollout of security upgrades or a standalone requirement for the specific facility.

Industry Classification

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

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 75H71126R00004

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 111 W 16TH AVE, ANCHORAGE, AK, 99501

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $347,688

Exercised Options: $234,403

Current Obligation: $234,403

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline