HHS awards $5.99M contract to Synergy Enterprises for alcohol policy information system support

Contract Overview

Contract Amount: $5,987,677 ($6.0M)

Contractor: Synergy Enterprises, Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2023-01-01

End Date: 2026-12-31

Contract Duration: 1,460 days

Daily Burn Rate: $4.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: NIAAA ALCOHOL POLICY INFORMATION SYSTEM (APIS)

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $6.0 million to SYNERGY ENTERPRISES, INC for work described as: NIAAA ALCOHOL POLICY INFORMATION SYSTEM (APIS) Key points: 1. Contract provides essential support for a critical public health information system. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The contract duration of four years allows for sustained program support. 4. Synergy Enterprises, Inc. is the sole awardee, indicating specific capabilities were sought. 5. The contract type is Cost Plus Fixed Fee, which can incentivize cost control. 6. The geographic location of the contractor is Maryland.

Value Assessment

Rating: good

The contract value of $5.99 million over four years for maintaining a specialized information system appears reasonable. Benchmarking against similar IT support contracts for federal databases suggests this is within expected ranges. The Cost Plus Fixed Fee structure, while allowing for cost flexibility, includes a fixed fee component that should provide some incentive for the contractor to manage costs effectively. Further analysis would require comparing specific labor rates and overhead costs to industry standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple vendors were likely solicited and evaluated. The presence of two bids suggests a moderate level of competition. While not a large number of bidders, the 'full and open' designation implies a fair process was followed, which generally supports better price discovery compared to sole-source awards.

Taxpayer Impact: The full and open competition process increases the likelihood that taxpayer funds were used efficiently by encouraging competitive pricing among potential offerors.

Public Impact

The public benefits from access to reliable information on alcohol policies, aiding researchers, policymakers, and public health officials. Services delivered include web search portals and information services, crucial for data dissemination and accessibility. The geographic impact is national, as the Alcohol Policy Information System (APIS) serves users across the United States. Workforce implications include the need for specialized IT and data management professionals to maintain and operate the system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely monitored.
Reliance on a single contractor for critical information system maintenance could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Contract duration of four years provides stability for a vital public health resource.
The contractor, Synergy Enterprises, Inc., is tasked with maintaining a crucial information system for public health.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on web portals and information services. The market for such services is vast, with numerous companies offering IT support, database management, and web development. Federal spending in this area is substantial, supporting a wide range of government functions from data dissemination to operational support. This contract represents a small but important component of the broader federal IT spending landscape, ensuring the continued availability of critical public health data.

Small Business Impact

The data does not indicate any specific small business set-aside provisions for this contract. As a full and open competition, it is possible that small businesses could have bid, but there is no explicit indication of subcontracting goals or direct awards to small businesses. Further review of the contract details would be needed to ascertain any subcontracting opportunities for small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the National Institutes of Health (NIH) within the Department of Health and Human Services (HHS). Mechanisms likely include regular performance reviews, financial audits, and adherence to contract terms. Transparency is generally maintained through contract award databases like FPDS. The Inspector General for HHS would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

National Institutes of Health IT Support Contracts
Public Health Information Systems
Web Portal Development and Maintenance
Data Management Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Limited number of bidders (2) in a full and open competition may warrant further investigation into market research adequacy.
Reliance on a single awardee for critical IT infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $6.0 million to SYNERGY ENTERPRISES, INC. NIAAA ALCOHOL POLICY INFORMATION SYSTEM (APIS)

Who is the contractor on this award?

The obligated recipient is SYNERGY ENTERPRISES, INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $6.0 million.

What is the period of performance?

Start: 2023-01-01. End: 2026-12-31.

What is the track record of Synergy Enterprises, Inc. with federal contracts, particularly within the Department of Health and Human Services?

Synergy Enterprises, Inc. has a history of receiving federal contracts, including those with the Department of Health and Human Services (HHS). A review of federal procurement data indicates prior awards for IT services and support. While specific details on past performance quality require deeper investigation into contract performance reports and any associated CPARS (Contractor Performance Assessment Reporting System) data, their presence as an awardee suggests they meet basic eligibility and capability requirements. Understanding their specific experience with public health information systems and the Alcohol Policy Information System (APIS) would be crucial for a comprehensive assessment of their suitability for this particular contract.

How does the awarded value of $5.99 million compare to similar contracts for maintaining federal public health information systems?

The awarded value of $5.99 million over four years for the NIAAA ALCOHOL POLICY INFORMATION SYSTEM (APIS) support is approximately $1.5 million per year. This figure appears to be within a reasonable range when compared to other federal contracts for the development, maintenance, and support of specialized public health information systems and web portals. Factors influencing cost include the complexity of the system, the scope of services (e.g., data updates, user support, system enhancements), and the level of security required. Without direct comparisons of service scope and system complexity, precise benchmarking is difficult, but the annual cost does not immediately suggest overpricing for a dedicated IT support function.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Primary risks include potential cost overruns due to the Cost Plus Fixed Fee (CPFF) contract type, performance issues leading to system downtime or data inaccuracies, and contractor dependency. CPFF contracts inherently carry a risk of costs exceeding initial estimates, although the fixed fee component provides some incentive for efficiency. Performance risks are mitigated through defined service level agreements (SLAs), regular performance monitoring, and potential penalties for non-compliance. Contractor dependency is managed through clear contract terms, knowledge transfer requirements, and contingency planning for potential contractor transitions. The government's oversight role is critical in identifying and mitigating these risks proactively.

How effective is the Alcohol Policy Information System (APIS) in achieving its stated goals, and how does this contract contribute to that effectiveness?

The effectiveness of APIS is measured by its utility to researchers, policymakers, and the public in understanding and developing alcohol-related policies. Its contribution lies in providing a centralized, accessible repository of information on state and federal alcohol laws and policies. This contract directly contributes to effectiveness by ensuring the system's continued operation, maintenance, and accessibility. Reliable IT support, as provided under this contract, is fundamental to preventing system failures, ensuring data integrity, and facilitating user access, all of which are critical for APIS to fulfill its public health mission.

What are the historical spending patterns for the Alcohol Policy Information System (APIS) or similar NIAAA information systems?

Historical spending data for APIS specifically would provide the best context. However, generally, federal IT support contracts for specialized information systems often involve multi-year commitments with annual costs ranging from several hundred thousand to several million dollars, depending on the system's complexity and scope. Spending patterns can fluctuate based on system upgrades, changes in technology, or evolving data requirements. Understanding the historical budget allocation for APIS would reveal trends in investment and whether current spending aligns with past levels or represents an increase or decrease, potentially linked to new initiatives or system modernization efforts.

Given the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation, what does this imply about the procurement process and potential bidder pool?

This designation indicates that the government initially intended to compete the contract broadly but, for specific reasons (often related to the nature of the requirement or market research), decided to exclude certain sources before the final solicitation. However, the 'full and open' aspect means that all responsible sources were permitted to submit an offer. This suggests a deliberate procurement strategy where the government may have identified a need that could be met by a limited number of highly specialized vendors, but still aimed for a competitive process among those identified. It implies a more targeted approach than a completely unrestricted competition but is still designed to foster price competition among qualified bidders.

Industry Classification

NAICS: Information › Web Search Portals, Libraries, Archives, and Other Information Services › Web Search Portals and All Other Information Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 75N94022R00011

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6116 EXECUTIVE BLVD STE 311, NORTH BETHESDA, MD, 20852

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $7,351,117

Exercised Options: $5,987,677

Current Obligation: $5,987,677

Actual Outlays: $4,584,680

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline