HHS awards $873K for software publishing to DYNAMIC SYSTEMS INC, a sole-source contract

Contract Overview

Contract Amount: $87,362 ($87.4K)

Contractor: Dynamic Systems Inc

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: $240/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DYNAMIC SYSTEMS:1110311 [26-003910]

Place of Performance

Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $87,361.62 to DYNAMIC SYSTEMS INC for work described as: DYNAMIC SYSTEMS:1110311 [26-003910] Key points: 1. Contract Value: $873,611.62 over 364 days. 2. Competition: Sole-source award, raising concerns about price discovery. 3. Risk: Limited competition may lead to inflated pricing. 4. Sector: Information Technology (Software Publishers).

Value Assessment

Rating: questionable

The contract is a sole-source award, making direct pricing comparisons difficult. Without competitive bidding, it's challenging to ascertain if the $873,611.62 price represents fair market value.

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. This limits price discovery and potentially increases costs for taxpayers as there was no competitive pressure to achieve the lowest price.

Taxpayer Impact: The lack of competition may result in higher costs than if the contract had been openly competed, impacting taxpayer funds.

Public Impact

Taxpayers may be paying a premium due to the absence of competitive bidding. The government's ability to secure the best value for software publishing services is potentially compromised. Future procurements in this area should explore competitive strategies to ensure cost-effectiveness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
Potential for overpayment due to lack of price discovery.
No indication of small business participation.

Positive Signals

Clear contract duration and end date.
Firm fixed price contract type provides cost certainty.

Sector Analysis

The Information Technology sector, specifically software publishing, is a critical area for government operations. Benchmarks for similar software publishing contracts vary widely based on scope and complexity, but competitive bidding typically drives prices down.

Small Business Impact

There is no indication that this contract was awarded to a small business. Further analysis would be needed to determine if small business set-aside opportunities were considered or missed.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the government obtained fair value. Oversight should focus on the justification for the sole-source award and explore competitive options for future needs.

Related Government Programs

Software Publishers
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
No small business consideration evident

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $87,361.62 to DYNAMIC SYSTEMS INC. DYNAMIC SYSTEMS:1110311 [26-003910]

Who is the contractor on this award?

The obligated recipient is DYNAMIC SYSTEMS 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 $87,361.62.

What is the period of performance?

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

What was the justification for awarding this contract on a sole-source basis instead of competing it?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. Without specific documentation, it's impossible to confirm the exact reason. However, the absence of competition raises concerns about whether the government explored all avenues to secure competitive pricing and ensure the best value for taxpayer dollars.

What is the risk associated with a sole-source award for software publishing services?

The primary risk of a sole-source award is the potential for inflated pricing due to the lack of competitive pressure. Without competing vendors vying for the contract, the awarded vendor may not offer the most cost-effective solution. This can lead to inefficient use of taxpayer funds and potentially lower quality services if the vendor is not incentivized by competition.

How effective is a sole-source contract in ensuring the government receives optimal value for software publishing?

Sole-source contracts are generally less effective in ensuring optimal value compared to competitively awarded contracts. While they can be necessary in specific circumstances, they bypass the price discovery mechanism inherent in competition. This means the government relies heavily on negotiation and the vendor's pricing integrity, which can be less reliable than market forces driving down costs.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - COMPUTE

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Dynamic Systems, Inc.

Address: 880 N PARK VIEW DR, EL SEGUNDO, CA, 90245

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $87,362

Exercised Options: $87,362

Current Obligation: $87,362

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline