HHS awards $936K for IT services to I3 FEDERAL LLC, highlighting a need for specialized computer support

Contract Overview

Contract Amount: $9,366,240 ($9.4M)

Contractor: I3 Federal LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2021-04-13

End Date: 2021-10-12

Contract Duration: 182 days

Daily Burn Rate: $51.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: HHS PROTECT LICENSES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $9.4 million to I3 FEDERAL LLC for work described as: HHS PROTECT LICENSES Key points: 1. Contract value represents a significant investment in IT infrastructure for HHS. 2. The award to a single vendor suggests a focused approach to meeting specific service requirements. 3. Performance period of 182 days indicates a short-term need or project-based engagement. 4. The fixed-price contract structure aims to control costs and define project scope. 5. Geographic location in Washington D.C. may point to on-site service delivery requirements.

Value Assessment

Rating: fair

Benchmarking the value of this $936,624 contract is challenging without more detailed service descriptions. However, the award amount for 'Other Computer Related Services' for a 182-day period appears within a reasonable range for specialized IT support. Comparing it to similar contracts for IT services within HHS or other federal agencies would provide a clearer picture of value for money. The firm fixed-price nature suggests that the government has a defined scope and expects cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that while competition was sought, certain sources were excluded. The exact reasons for exclusion are not detailed, but this procurement method can sometimes limit the pool of potential bidders. The number of bidders is not specified, making it difficult to fully assess the level of competition achieved and its impact on price discovery.

Taxpayer Impact: The limited competition may have resulted in a higher price than if a broader range of vendors had been able to participate. Taxpayers may not have received the full benefit of competitive pricing.

Public Impact

The Department of Health and Human Services (HHS) benefits from this contract by receiving essential IT services. The services delivered are categorized under 'Other Computer Related Services,' likely supporting critical IT operations and infrastructure. The contract's impact is primarily within the Washington D.C. metropolitan area, where the vendor is located. This contract supports the IT workforce by engaging a specialized service provider.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential overpayment and lack of broader market engagement.
The exclusion of sources, without clear justification, warrants further scrutiny to ensure fairness and optimal value.
Short performance period could indicate a reactive approach to IT needs rather than strategic planning.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to a single vendor suggests a specific capability match for the requirement.
The contract addresses a defined IT service need within HHS.

Sector Analysis

The IT services sector is a vast and critical component of federal spending. This contract falls under 'Other Computer Related Services,' a broad category encompassing a wide array of IT support functions beyond standard software development or hardware maintenance. Federal agencies consistently spend billions on IT services annually to maintain and modernize their systems. This specific award, while relatively small at under $1 million, contributes to the overall IT ecosystem supporting public health initiatives.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). Therefore, the direct impact on small businesses through this specific award is minimal. However, the prime contractor, I3 FEDERAL LLC, may engage small businesses as subcontractors, though this is not specified. The absence of a set-aside means larger, established firms were likely the primary focus of the competition.

Oversight & Accountability

Oversight for this contract would typically fall under the Office of the Assistant Secretary for Administration (ASA) within HHS. As a delivery order under a larger contract vehicle (implied by 'aw': 'DELIVERY ORDER'), oversight might be managed through the parent contract's administration. Transparency is moderate, with basic award details available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

HHS IT Modernization Initiatives
Federal Civilian IT Services
Other Computer Related Services Contracts
IT Support Services

Risk Flags

Limited competition may impact value for money.
Justification for source exclusion requires further review.
Short performance period may indicate reactive rather than strategic IT planning.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $9.4 million to I3 FEDERAL LLC. HHS PROTECT LICENSES

Who is the contractor on this award?

The obligated recipient is I3 FEDERAL LLC.

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 $9.4 million.

What is the period of performance?

Start: 2021-04-13. End: 2021-10-12.

What specific IT services were provided under this contract?

The contract NAICS code 541519, 'Other Computer Related Services,' is broad and can encompass a wide range of IT support. Without more detailed documentation, it's difficult to pinpoint the exact services. However, this category typically includes services such as IT support, help desk operations, network management, IT consulting, and other computer-related professional services that do not fit into more specific categories like software development or data processing. Given the agency (HHS) and the contract value, it likely involved critical support for their IT infrastructure or specific applications crucial for their operations.

How does the contract value of $936,624 compare to similar IT service contracts within HHS?

Comparing this $936,624 contract value requires access to a broader dataset of HHS IT service contracts, particularly those awarded under similar NAICS codes (541519) and for comparable performance durations (182 days). Generally, federal IT service contracts can range from tens of thousands to hundreds of millions of dollars. For a short-term, specialized IT service engagement, this value appears moderate. However, without specific benchmarks for 'Other Computer Related Services' within HHS for similar scopes, a definitive value comparison is difficult. It suggests a focused need rather than a large-scale, long-term IT overhaul.

What are the potential risks associated with a 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement?

The primary risk associated with 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' is the potential for reduced competition, which can lead to higher prices and less innovation. While the initial intent is full and open competition, the subsequent exclusion of specific sources, if not well-justified and transparently communicated, can limit the vendor pool. This may prevent the government from obtaining the best possible value or the most suitable solution. It also raises concerns about fairness and equal opportunity for vendors who were excluded, potentially leading to protests or dissatisfaction within the industry.

What is the significance of the 'FIRM FIXED PRICE' contract type for this award?

A Firm Fixed Price (FFP) contract type is significant because it places the majority of the risk and responsibility for cost control on the contractor. For the government, this means the price is set and generally will not change, regardless of the contractor's actual costs. This provides budget certainty and simplifies financial management. For this $936,624 award for IT services, FFP indicates that the scope of work was well-defined, allowing the contractor to accurately estimate costs and the government to lock in a price. It incentivizes the contractor to manage their costs efficiently to maximize profit.

What does the short performance period (182 days) suggest about the nature of the IT services required?

A short performance period of 182 days (approximately six months) for an IT services contract often suggests a specific, time-bound need. This could include project-based work, addressing a temporary surge in demand, filling a critical skill gap for a limited duration, or providing support during a transition period. It is less likely to be for ongoing, long-term IT infrastructure management or strategic development. The short duration also implies that the services were likely well-defined and achievable within that timeframe, aligning with the firm fixed-price structure.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: OS275180

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12030 HENDERSON RD, CLIFTON, VA, 20124

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $9,866,240

Exercised Options: $9,366,240

Current Obligation: $9,366,240

Actual Outlays: $9,366,240

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD31B

IDV Type: GWAC

Timeline