HHS awards $16.1M for Accounts Payable/Obligations Support Bridge Contract to Futrend Technology Inc

Contract Overview

Contract Amount: $16,126,478 ($16.1M)

Contractor: Futrend Technology Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2020-01-24

End Date: 2026-05-07

Contract Duration: 2,295 days

Daily Burn Rate: $7.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FUTREND ACCOUNTS PAYABLE/OBLIGATIONS SUPPORT BRIDGE CONTRACT

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $16.1 million to FUTREND TECHNOLOGY INC. for work described as: FUTREND ACCOUNTS PAYABLE/OBLIGATIONS SUPPORT BRIDGE CONTRACT Key points: 1. Contract value of $16.1M over 6 years. 2. Futrend Technology Inc. is the sole awardee. 3. Risk of vendor lock-in due to sole-source nature. 4. Accounting services sector, NAICS 541219.

Value Assessment

Rating: fair

The contract value of $16.1M over approximately 6 years suggests a moderate annual spend. Benchmarking against similar accounting support contracts would be necessary to assess pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', indicating a sole-source award. This limits price discovery and competition, potentially leading to higher costs.

Taxpayer Impact: Taxpayer funds are committed to a single vendor without competitive pressure, which could result in suboptimal value for money.

Public Impact

Ensures continuity of critical financial operations for HHS. Potential for increased costs due to lack of competition. Limited transparency on vendor selection process.

Waste & Efficiency Indicators

Waste Risk Score: 70 / 10

Warning Flags

Sole-source award limits competition.
Potential for cost overruns without competitive bidding.
Long contract duration increases risk.

Positive Signals

Provides essential accounting support.
Bridge contract ensures service continuity.

Sector Analysis

This contract falls within the Other Accounting Services sector (NAICS 541219). Spending in this area supports essential government financial management functions. Benchmarks for similar contracts are needed for a full assessment.

Small Business Impact

The contract does not indicate any specific set-asides for small businesses, suggesting limited direct opportunities for SMBs in this particular award.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and performance. Regular reviews of vendor performance and costs are crucial for accountability.

Related Government Programs

Other Accounting Services
Department of Health and Human Services Contracting
Office of the Assistant Secretary for Administration Programs

Risk Flags

Sole-source award
Lack of competitive pricing
Potential for vendor lock-in
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $16.1 million to FUTREND TECHNOLOGY INC.. FUTREND ACCOUNTS PAYABLE/OBLIGATIONS SUPPORT BRIDGE CONTRACT

Who is the contractor on this award?

The obligated recipient is FUTREND TECHNOLOGY INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $16.1 million.

What is the period of performance?

Start: 2020-01-24. End: 2026-05-07.

What was the justification for excluding other sources in this full and open competition?

The justification for excluding other sources in a 'full and open competition after exclusion of sources' award is critical. Typically, this implies a specific, documented reason, such as a unique capability, urgent need, or a prior investment that makes switching vendors impractical or excessively costly. Without this justification, the sole-source nature raises concerns about competitive fairness and potential cost inefficiencies.

How does the pricing compare to market rates for similar accounting support services?

A thorough price analysis is needed to determine if the $16.1M contract value is competitive. This involves benchmarking against similar contracts awarded by other agencies or in the private sector, considering the scope of work, duration, and vendor qualifications. Without this comparison, it's difficult to ascertain if taxpayers are receiving optimal value for the services provided.

What measures are in place to ensure effective performance and prevent cost creep over the contract's duration?

Given the sole-source nature and long duration, robust performance monitoring and cost control mechanisms are essential. This includes clearly defined performance metrics, regular progress reviews, and mechanisms for renegotiating terms if market conditions change or if performance issues arise. Proactive oversight is key to mitigating risks associated with single-vendor contracts.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Other Accounting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 75P00120Q00021

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1660 INTERNATIONAL DR, MC LEAN, VA, 22102

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,364,459

Exercised Options: $16,126,478

Current Obligation: $16,126,478

Actual Outlays: $10,952,694

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAD18D000G

IDV Type: IDC

Timeline