HHS awards $31.2M for digital communications support, with Webfirst Inc. as prime

Contract Overview

Contract Amount: $31,227,716 ($31.2M)

Contractor: Webfirst, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2022-09-29

End Date: 2026-09-28

Contract Duration: 1,460 days

Daily Burn Rate: $21.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: BASE AWARD ASPA DIGITAL COMMUNICATIONS SUPPORT SERVICES - WEBFIRST, INC. POP 09/29/22-09/28/23. FFP

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $31.2 million to WEBFIRST, LLC for work described as: BASE AWARD ASPA DIGITAL COMMUNICATIONS SUPPORT SERVICES - WEBFIRST, INC. POP 09/29/22-09/28/23. FFP Key points: 1. Contract value appears reasonable for comprehensive digital communications support. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Performance period extends over multiple years, indicating a need for sustained services. 4. The contract is for computer systems design services, aligning with IT infrastructure needs. 5. Webfirst, LLC is the prime contractor, with a single award noted. 6. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The award amount of $31.2 million for a 4-year period for digital communications support appears to be within a reasonable range for the scope of services. Benchmarking against similar contracts for IT support and digital services would provide a more precise value-for-money assessment. The cost-plus-fixed-fee (CPFF) pricing structure necessitates careful monitoring of costs to ensure efficiency and prevent overruns.

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,' which indicates that the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. While the specific number of bidders is not provided, this procurement method generally fosters competitive pricing and allows the government to select the best value offering.

Taxpayer Impact: This competitive approach is beneficial for taxpayers as it is designed to drive down costs and ensure that the government receives high-quality services at a fair market price.

Public Impact

The National Institutes of Health (NIH) benefits from enhanced digital communication capabilities. Services delivered likely include website design, development, maintenance, and digital strategy. The geographic impact is primarily within Maryland, where the contractor is located. Workforce implications include potential job creation within Webfirst, LLC and related IT sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type can incentivize higher costs if not closely managed.
Lack of specific bidder count makes it difficult to fully assess competitive intensity.
The duration of the contract (4 years) requires ongoing performance monitoring.

Positive Signals

Full and open competition suggests a robust bidding process.
The contract supports critical digital infrastructure for a major health agency.
Webfirst, LLC is the prime contractor, indicating a clear point of accountability.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design and digital communications. The market for such services is large and competitive, with numerous firms offering specialized expertise. This award to Webfirst, LLC represents a portion of the federal government's significant investment in maintaining and modernizing its digital presence and communication channels.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary focus is on the prime contractor's capabilities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the National Institutes of Health. Accountability measures are embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Digital Services Contracts
IT Support Services
Website Development and Maintenance
Health IT Services
Federal IT Modernization

Risk Flags

Cost Overrun Risk (CPFF)
Performance Monitoring Complexity
Vendor Lock-in Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $31.2 million to WEBFIRST, LLC. BASE AWARD ASPA DIGITAL COMMUNICATIONS SUPPORT SERVICES - WEBFIRST, INC. POP 09/29/22-09/28/23. FFP

Who is the contractor on this award?

The obligated recipient is WEBFIRST, 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 $31.2 million.

What is the period of performance?

Start: 2022-09-29. End: 2026-09-28.

What is Webfirst, LLC's track record with federal contracts, particularly within the Department of Health and Human Services?

Webfirst, LLC has a history of performing federal contracts. While specific details on past performance metrics for this particular contract are not provided in the summary data, their selection as a prime contractor by the National Institutes of Health (NIH) suggests they met the agency's requirements during the procurement process. Further analysis would involve reviewing their past performance evaluations (if publicly available) and any prior contracts with HHS or similar agencies to assess their reliability, quality of service, and adherence to contract terms. A review of contract databases like FPDS or SAM.gov could reveal the extent and nature of their federal work.

How does the awarded amount compare to similar digital communications support contracts awarded by other federal agencies?

The awarded amount of approximately $31.2 million over a four-year period (September 2022 - September 2026) for digital communications support services needs to be benchmarked against comparable contracts. Factors such as the scope of work (e.g., website design, content management, digital strategy, user experience), the specific services required, and the duration of the contract are crucial for a fair comparison. Contracts for similar IT services, particularly those involving system design and digital engagement for large federal agencies, can vary significantly. A detailed comparison would require identifying contracts with similar service descriptions and contract types (e.g., CPFF) from agencies like GSA, DOD, or other HHS components, and then normalizing the award values by contract duration and scope.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract type for digital communications support?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee. This structure can incentivize contractors to incur higher costs, as their fee remains constant regardless of the actual expenses. For the government, this means there is less direct cost control compared to fixed-price contracts. Effective risk mitigation requires robust oversight, detailed cost monitoring, and clear definition of allowable costs to prevent cost overruns and ensure the government receives good value. The fixed fee itself should be negotiated to reflect a reasonable profit margin for the work performed.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring competitive pricing for IT services?

The 'Full and Open Competition After Exclusion of Sources' method is generally considered a strong approach for ensuring competitive pricing, especially for complex IT services. It mandates that the solicitation be publicly advertised, allowing all responsible sources to submit proposals. The 'exclusion of sources' part typically refers to specific circumstances where certain types of contractors or technologies might be excluded based on defined criteria, but the core principle remains broad competition. This method encourages multiple bidders to vie for the contract, driving down prices through market forces and allowing the government to select the offer that provides the best overall value, considering both cost and technical factors. The effectiveness hinges on the clarity of the solicitation and the agency's ability to attract a sufficient number of qualified bidders.

What are the historical spending patterns for digital communications support at the National Institutes of Health?

Historical spending patterns for digital communications support at the National Institutes of Health (NIH) would reveal the agency's investment trends in this area over time. Analyzing past contracts for similar services, including their values, durations, and the contractors involved, can provide context for the current $31.2 million award. Significant increases or decreases in spending could indicate shifts in strategic priorities, technological adoption, or budget allocations. Understanding these patterns helps in assessing whether the current contract represents a typical investment, an expansion of services, or a change in approach. This analysis requires accessing historical contract data from sources like FPDS.

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-90910-SB

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 9200 CORPORATE BLVD, ROCKVILLE, MD, 20850

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,227,716

Exercised Options: $31,227,716

Current Obligation: $31,227,716

Actual Outlays: $25,990,008

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSN316201200189W

IDV Type: GWAC

Timeline