HHS awards $529K for MIM Software upgrade, impacting NIH operations through 2026

Contract Overview

Contract Amount: $52,932 ($52.9K)

Contractor: MIM Software Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-01

End Date: 2026-12-31

Contract Duration: 274 days

Daily Burn Rate: $193/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TO PURCHASE MIM SOFTWARE UPGRADE FOR ONE YEAR (AMBIS #2283513 AND #2245076) POP 04/01/2026 TO 12/31/2026

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $52,931.99 to MIM SOFTWARE INC for work described as: TO PURCHASE MIM SOFTWARE UPGRADE FOR ONE YEAR (AMBIS #2283513 AND #2245076) POP 04/01/2026 TO 12/31/2026 Key points: 1. The contract is for a one-year upgrade of MIM Software, essential for NIH operations. 2. The sole vendor, MIM SOFTWARE INC, indicates a lack of competition. 3. Potential risks include vendor lock-in and lack of price negotiation due to sole-source nature. 4. The IT sector, specifically software publishers, is the focus of this spending.

Value Assessment

Rating: fair

The awarded price of $529,319.99 for a 274-day software upgrade appears high without competitive benchmarking. Given the sole-source nature, it's difficult to assess if this price is reasonable compared to market alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, relying on a sole-source award to MIM SOFTWARE INC. This limits price discovery and negotiation opportunities, potentially leading to higher costs for taxpayers.

Taxpayer Impact: Taxpayer funds are used for this sole-source software upgrade, with limited assurance of the best possible price.

Public Impact

NIH operations rely on this software upgrade, ensuring continued functionality. The lack of competition raises concerns about the efficient use of taxpayer funds. Future procurements may face similar sole-source challenges if alternatives are not explored.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source procurement
Lack of competitive bidding
Potential for overpayment

Positive Signals

Essential software upgrade
Defined contract period

Sector Analysis

This spending falls within the IT sector, specifically software publishers. Benchmarks for similar software upgrades are difficult to ascertain due to the sole-source nature of this award.

Small Business Impact

There is no indication that small businesses were involved in this procurement, as it was a sole-source award to a specific software vendor.

Oversight & Accountability

Oversight is needed to ensure the necessity and cost-effectiveness of sole-source software procurements. Future contracts should explore competitive options to ensure accountability.

Related Government Programs

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

Risk Flags

Sole-source award limits competition and price negotiation.
Lack of transparency regarding justification for sole-source.
Potential for inflated costs due to absence of competitive bidding.
No clear indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $52,931.99 to MIM SOFTWARE INC. TO PURCHASE MIM SOFTWARE UPGRADE FOR ONE YEAR (AMBIS #2283513 AND #2245076) POP 04/01/2026 TO 12/31/2026

Who is the contractor on this award?

The obligated recipient is MIM SOFTWARE 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 $52,931.99.

What is the period of performance?

Start: 2026-04-01. End: 2026-12-31.

What is the justification for the sole-source award, and were alternative solutions or vendors considered?

The justification for this sole-source award is not provided in the data. Typically, sole-source justifications are based on unique capabilities, proprietary software, or urgent needs where no other vendor can meet requirements. Without this information, it's impossible to assess if alternatives were genuinely unavailable or if the procurement process could have been more competitive.

How does the per-unit cost of this software upgrade compare to similar NIH software procurements or industry standards?

A direct per-unit cost comparison is not feasible with the provided data. The total award is $529,319.99 for a 274-day period. Without knowing the number of users, specific modules upgraded, or the base software cost, benchmarking is impossible. The lack of competition further hinders any meaningful price assessment against industry standards.

What is the long-term strategy for MIM Software maintenance and upgrades to ensure cost-effectiveness and avoid perpetual sole-source reliance?

The provided data only covers a one-year upgrade. A long-term strategy is crucial to manage costs and competition. Agencies should explore options like enterprise licenses, multi-year contracts with competitive options, or evaluating alternative software solutions to mitigate the risks and potential inefficiencies associated with ongoing sole-source procurements.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: MIM Software Inc.

Address: 25800 SCIENCE PARK DR, BEACHWOOD, OH, 44122

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

Financial Breakdown

Contract Ceiling: $52,932

Exercised Options: $52,932

Current Obligation: $52,932

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline