HHS awards $27.8M contract for UFMS, FFSS2, and DMCS operations and maintenance to RIVA SOLUTIONS INC

Contract Overview

Contract Amount: $27,832,732 ($27.8M)

Contractor: Riva Solutions Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2021-02-09

End Date: 2026-02-25

Contract Duration: 1,842 days

Daily Burn Rate: $15.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: UFMS OPERATIONS, PRICES AND FFSS2 OPERATIONS AND MAINTENANCE, AND DMCS OPERATIONS AND MAINTENANCE

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20814

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $27.8 million to RIVA SOLUTIONS INC for work described as: UFMS OPERATIONS, PRICES AND FFSS2 OPERATIONS AND MAINTENANCE, AND DMCS OPERATIONS AND MAINTENANCE Key points: 1. Contract value of $27.8M over 5 years. 2. RIVA SOLUTIONS INC is the sole awardee. 3. Risk of vendor lock-in due to sole awardee. 4. IT services sector, custom computer programming.

Value Assessment

Rating: fair

The contract is a Time and Materials type, which can lead to cost overruns if not managed carefully. Benchmarking against similar custom programming services is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a BPA Call, indicating a pre-competed framework. However, the specific award to RIVA SOLUTIONS INC might not have undergone full and open competition at the task order level, potentially limiting price discovery.

Taxpayer Impact: The total taxpayer impact is $27.8M, spread over the contract duration. The effectiveness of this spending depends on the successful delivery of UFMS, FFSS2, and DMCS operations and maintenance.

Public Impact

Ensures continued operation of critical financial management systems (UFMS, FFSS2, DMCS). Supports the Office of the Assistant Secretary for Administration at HHS. Potential for service disruptions if vendor performance is inadequate. Impacts federal financial reporting and administrative processes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming. Spending benchmarks for similar large-scale operations and maintenance contracts for federal financial systems can vary widely based on system complexity and scope.

Small Business Impact

The contract does not indicate any specific set-asides for small businesses. The prime contractor, RIVA SOLUTIONS INC, is not listed as a small business, suggesting limited direct opportunities for small businesses through this specific award.

Oversight & Accountability

Oversight will be crucial to manage the Time and Materials aspect of this contract, ensuring costs remain within budget and that deliverables meet requirements. The contracting activity is within the Office of the Assistant Secretary for Administration.

Related Government Programs

Risk Flags

Tags

custom-computer-programming-services, department-of-health-and-human-services, md, bpa-call, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $27.8 million to RIVA SOLUTIONS INC. UFMS OPERATIONS, PRICES AND FFSS2 OPERATIONS AND MAINTENANCE, AND DMCS OPERATIONS AND MAINTENANCE

Who is the contractor on this award?

The obligated recipient is RIVA SOLUTIONS 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 $27.8 million.

What is the period of performance?

Start: 2021-02-09. End: 2026-02-25.

What is the estimated hourly rate for labor under this Time and Materials contract, and how does it compare to industry benchmarks for similar custom programming services?

The provided data does not include specific hourly rates for labor. Time and Materials contracts are inherently flexible but carry a risk of escalating costs if not closely monitored. A thorough review of the contract's ceiling rates and comparison with GSA schedules or other government-wide IT service contracts would be necessary to assess if the pricing is competitive.

Given that RIVA SOLUTIONS INC is the sole awardee for this BPA Call, what measures are in place to mitigate the risks associated with vendor lock-in and ensure continued competition for future needs?

While the BPA Call itself implies a pre-competed framework, the specific task order award to a single vendor raises concerns. HHS should ensure robust performance management and explore opportunities for future competition, potentially through re-competing the BPA or issuing new task orders under different vehicles to foster market competition and prevent vendor lock-in.

How will the effectiveness of the UFMS, FFSS2, and DMCS operations and maintenance be measured to ensure the $27.8M investment provides adequate value to the agency?

Effectiveness should be measured through clearly defined Key Performance Indicators (KPIs) tied to system uptime, performance, security, user satisfaction, and the successful execution of financial and administrative functions. Regular performance reviews and milestone assessments against these KPIs will be critical to ensure the contract delivers the intended value and supports HHS's mission.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesCustom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT AND TELECOM - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1676 INTERNATIONAL DR, MC LEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $27,832,732

Exercised Options: $27,832,732

Current Obligation: $27,832,732

Actual Outlays: $23,761,877

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 75P00121A00001

IDV Type: BPA

Timeline

Start Date: 2021-02-09

Current End Date: 2026-02-25

Potential End Date: 2026-02-25 00:00:00

Last Modified: 2026-01-21

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