HHS awards $11.4M contract for IT services to Candor Solutions LLC, with a 3-year period of performance

Contract Overview

Contract Amount: $11,371,656 ($11.4M)

Contractor: Candor Solutions LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2023-03-23

End Date: 2026-06-22

Contract Duration: 1,187 days

Daily Burn Rate: $9.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: LABOR HOURS

Sector: IT

Official Description: NIDA APPLICATION DEVELOPMENT AND INFORMATION TECHNOLOGY SERVICES (ADITS). 03/23/2023 - 03/22/2024

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $11.4 million to CANDOR SOLUTIONS LLC for work described as: NIDA APPLICATION DEVELOPMENT AND INFORMATION TECHNOLOGY SERVICES (ADITS). 03/23/2023 - 03/22/2024 Key points: 1. The contract value of $11.4 million over approximately three years suggests a moderate investment in IT services. 2. Competition dynamics for this contract were 'Full and Open Competition after Exclusion of Sources,' indicating a broad but potentially complex solicitation process. 3. The contract type is a Delivery Order under an existing contract, which may imply a streamlined process but could limit new vendor entry. 4. Performance is situated in Virginia, a hub for federal IT contracting, suggesting a concentration of specialized talent and infrastructure. 5. The primary service category is Computer Systems Design Services, a critical area for federal agency operations and modernization. 6. The contract's duration of nearly three years allows for sustained support and development of IT systems.

Value Assessment

Rating: good

The contract value of $11.4 million for approximately three years of IT services appears reasonable for a federal agency like NIH. Benchmarking against similar Computer Systems Design Services contracts awarded by HHS or NIH would provide a more precise value-for-money assessment. The pricing structure, based on Labor Hours, allows for flexibility but requires diligent oversight to ensure efficient resource utilization and prevent cost overruns. Without specific details on the scope of work and deliverables, a definitive value assessment is challenging, but the overall investment aligns with typical federal IT support needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition after Exclusion of Sources.' This indicates that the solicitation was broadly advertised, allowing all responsible sources to submit offers. However, the 'exclusion of sources' clause suggests that certain pre-existing conditions or requirements might have narrowed the field of eligible bidders, even within an open competition framework. The presence of 3 bidders, as indicated by 'no': 3, suggests a moderate level of competition, which is generally positive for price discovery and innovation.

Taxpayer Impact: A full and open competition, even with exclusions, generally benefits taxpayers by encouraging multiple vendors to bid, potentially driving down costs and improving service quality. The moderate number of bidders suggests that taxpayers likely received competitive pricing, though a higher number of bidders could have potentially yielded even greater savings.

Public Impact

The National Institutes of Health (NIH) benefits from enhanced IT infrastructure and support, enabling its mission-critical research and public health initiatives. Federal employees and researchers at NIH will receive improved IT services, facilitating their daily operations and data management. The contract supports the development and maintenance of critical information technology systems essential for public health data analysis and dissemination. The geographic impact is primarily within the National Institutes of Health's operational centers, likely concentrated in Maryland and potentially other research facilities. The contract supports the IT workforce, potentially creating or sustaining jobs in computer systems design and related technical fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in labor-hour contracts if not managed tightly.
Reliance on a single contractor for critical IT systems could pose a risk if performance falters.
The 'exclusion of sources' in an otherwise open competition warrants scrutiny to ensure fairness and prevent artificial limitations.

Positive Signals

Awarded under a full and open competition, suggesting a robust vetting process.
The contract duration allows for stability and continuity of essential IT services.
The contractor, Candor Solutions LLC, is likely vetted through the federal procurement system, implying a baseline level of capability.

Sector Analysis

The federal IT services market is vast and highly competitive, with agencies increasingly relying on external contractors for specialized skills in areas like computer systems design. This contract falls within the broader IT services sector, which encompasses a wide range of support, development, and maintenance activities. Comparable spending benchmarks for similar IT support contracts within agencies like HHS can range significantly based on scope, duration, and complexity. The market is characterized by both large prime contractors and a growing number of small and medium-sized businesses vying for federal dollars.

Small Business Impact

This contract was not specifically set aside for small businesses, as indicated by 'sb': false. The prime contractor, Candor Solutions LLC, is not explicitly identified as a small business in the provided data. Therefore, the primary impact on the small business ecosystem would be through potential subcontracting opportunities. Agencies are encouraged to ensure that small businesses have a fair opportunity to participate in subcontracting roles, contributing to the overall health and diversity of the federal contracting landscape.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the National Institutes of Health. Accountability measures are embedded in the contract terms, including performance standards, delivery schedules, and payment milestones. Transparency is facilitated through federal procurement databases like FPDS, where contract awards are recorded. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise concerning the contract's execution.

Related Government Programs

NIH IT Support Services
HHS Application Development Contracts
Federal Computer Systems Design Services
Health IT Modernization Programs
NIH Information Technology Acquisition Reform Act (ITARA) Compliance

Risk Flags

Potential for cost overruns in labor-hour contracts.
Risk of vendor lock-in if performance is critical and alternatives are limited.
Need for vigilant oversight to manage scope and ensure efficient resource utilization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $11.4 million to CANDOR SOLUTIONS LLC. NIDA APPLICATION DEVELOPMENT AND INFORMATION TECHNOLOGY SERVICES (ADITS). 03/23/2023 - 03/22/2024

Who is the contractor on this award?

The obligated recipient is CANDOR SOLUTIONS LLC.

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 $11.4 million.

What is the period of performance?

Start: 2023-03-23. End: 2026-06-22.

What is the track record of Candor Solutions LLC in performing similar federal IT contracts?

Assessing the track record of Candor Solutions LLC requires a review of their past performance on federal contracts, particularly those involving computer systems design and development services for agencies like HHS or NIH. Information on past performance, including client satisfaction, adherence to schedule and budget, and technical execution, is typically available through sources like the Contractor Performance Assessment Reporting System (CPARS). A detailed analysis would involve examining the size, scope, and complexity of their previous awards, as well as any documented performance issues or commendations. Without direct access to CPARS data for Candor Solutions LLC, it is difficult to provide a specific assessment of their track record beyond the general assumption that they met the requirements for this award.

How does the awarded value compare to similar IT services contracts at NIH?

To compare the awarded value of $11.4 million for this contract to similar IT services contracts at NIH, one would need to analyze historical contract data for Computer Systems Design Services (NAICS 541512) awarded by NIH over a comparable period (e.g., the last 1-3 years). Key comparison points would include contract duration, scope of work (e.g., application development, system integration, IT support), and the number of bidders. For instance, if NIH has awarded multiple 3-year contracts for similar IT design services in the $3-5 million range, then $11.4 million might appear on the higher end, warranting further investigation into the specific deliverables. Conversely, if other contracts of similar scope were awarded at or above this value, it would suggest the current award is within a reasonable range. Without access to a comprehensive database of NIH's IT contract awards, a precise benchmark is not possible.

What are the primary risks associated with a labor-hour contract for IT services?

Labor-hour contracts, like the one awarded to Candor Solutions LLC, present specific risks primarily related to cost control and scope management. The main risk is the potential for cost overruns if the contractor's labor hours exceed initial estimates or if billing rates are higher than anticipated. This necessitates robust oversight from the government to monitor the hours worked, ensure efficiency, and validate the necessity of each task performed. Scope creep is another significant risk; without a clearly defined fixed scope, there's a tendency for tasks to expand, leading to increased labor hours and costs. Effective risk mitigation involves detailed work breakdown structures, regular progress reviews, and strong communication between the contractor and the government program manager to ensure alignment on objectives and resource allocation.

How effective is the 'Full and Open Competition after Exclusion of Sources' method in ensuring competitive pricing?

The 'Full and Open Competition after Exclusion of Sources' method aims to balance broad competition with specific requirements. While 'full and open' suggests maximum participation, the 'exclusion of sources' implies that certain types of offerors or specific solutions were deemed ineligible from the outset. This can be effective if the exclusions are justified by legitimate technical, security, or programmatic needs, preventing unqualified vendors from bidding and focusing competition among capable entities. However, if the exclusions are overly restrictive or not well-justified, they can artificially limit competition, potentially leading to higher prices than a truly unrestricted full and open competition. The fact that there were 3 bidders suggests a moderate level of competition was achieved, which is generally conducive to competitive pricing, but the specific nature of the exclusions would determine the extent of this effectiveness.

What is the historical spending trend for Computer Systems Design Services at NIH?

Analyzing the historical spending trend for Computer Systems Design Services (NAICS 541512) at NIH requires examining procurement data over several fiscal years. Generally, federal agencies like NIH have seen a consistent or increasing demand for IT services, including system design and development, driven by the need for modernization, cybersecurity enhancements, and support for research initiatives. Spending in this category can fluctuate based on major system upgrades, new research projects requiring IT infrastructure, or the expiration and re-competition of large IT contracts. A detailed trend analysis would involve aggregating annual spending data for this specific NAICS code at NIH, identifying any significant peaks or troughs, and correlating these with known agency priorities or contract cycles. This would provide context for the current $11.4 million award.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: C-92291-SB

Offers Received: 3

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 113 E MARKET STREET, SUITE 120, LEESBURG, VA, 20176

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Joint Venture Economically Disadvantaged Women Owned Small Business, Joint Venture Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged 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: $11,371,656

Exercised Options: $11,371,656

Current Obligation: $11,371,656

Actual Outlays: $9,780,952

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200110W

IDV Type: GWAC

Timeline