HHS awards $4.17M for IT support services to I3 Federal LLC under full and open competition

Contract Overview

Contract Amount: $4,174,309 ($4.2M)

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: $22.9K/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 SUPPORT SERVICES

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 $4.2 million to I3 FEDERAL LLC for work described as: HHS PROTECT SUPPORT SERVICES Key points: 1. Contract awarded for IT support services, indicating a need for technical assistance within HHS. 2. The contract was competed fully and openly, suggesting a competitive bidding process. 3. Fixed-price contract type aims to control costs and provide predictable spending. 4. The duration of 182 days suggests a short-term or project-specific need. 5. Awarded to a single contractor, I3 Federal LLC, for specific IT support functions. 6. The North American Industry Classification System (NAICS) code 541519 points to general computer-related services.

Value Assessment

Rating: fair

The contract value of $4.17 million for approximately six months of IT support services appears to be within a reasonable range for specialized technical assistance. Benchmarking against similar contracts for IT support within federal agencies is necessary for a definitive value assessment. The firm fixed-price structure provides cost certainty for the government, but the specific value for money depends on the deliverables and performance metrics outlined in the contract.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that while the competition was intended to be full and open, there might have been specific circumstances leading to the exclusion of certain sources prior to the final award. The number of bidders is not specified, but the designation suggests a robust competitive process was initiated. This approach generally aims to ensure the best value is obtained through market forces.

Taxpayer Impact: A full and open competition, even with initial exclusions, is generally favorable for taxpayers as it increases the likelihood of competitive pricing and allows a wider range of qualified vendors to participate, potentially leading to cost savings.

Public Impact

The primary beneficiaries are the Department of Health and Human Services (HHS) and its various operating divisions, which receive essential IT support. Services delivered include IT support, crucial for the functioning of government IT infrastructure and operations. The geographic impact is centered in Washington D.C., where the contract is managed and likely where services are primarily rendered. Workforce implications may include the direct employment of IT professionals by I3 Federal LLC to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited long-term strategic IT planning if the contract is purely tactical support.
Dependence on a single vendor for critical IT functions could pose a risk if performance falters.
The 'exclusion of sources' clause warrants further investigation to understand its impact on competition breadth.

Positive Signals

Firm fixed-price contract provides cost predictability for the government.
Full and open competition generally leads to better pricing and service quality.
Award to a single, presumably qualified, vendor ensures focused support.

Sector Analysis

The IT services sector is a significant area of federal spending, encompassing a wide range of support, development, and maintenance activities. Contracts like this, for computer-related services, are common across all federal agencies. The market for IT support is competitive, with numerous firms offering specialized skills. This contract fits within the broader category of IT services procurement, supporting the operational needs of a major health agency.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The primary focus appears to be on obtaining the required IT support services through the most competitive means available.

Oversight & Accountability

Oversight for this contract would typically fall under the Office of the Assistant Secretary for Administration (ASA) within HHS. Accountability measures are usually embedded in the contract's performance work statement, including service level agreements and deliverable requirements. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

HHS IT Modernization Initiatives
Federal Civilian IT Services
IT Support and Maintenance Contracts
Health Information Technology Services

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Fixed-price contract may limit incentive for exceeding performance standards.
Short contract duration could lead to knowledge transfer challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $4.2 million to I3 FEDERAL LLC. HHS PROTECT SUPPORT SERVICES

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 $4.2 million.

What is the period of performance?

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

What is the track record of I3 Federal LLC in performing similar IT support contracts for the federal government?

A review of federal procurement data would be necessary to fully assess I3 Federal LLC's track record. This would involve examining past performance on similar contracts, including their size, duration, scope of services, and client agencies. Key indicators to look for include on-time delivery, adherence to budget, customer satisfaction ratings, and any history of contract disputes or performance issues. Understanding their experience with firm fixed-price contracts and the specific IT services required for HHS would provide crucial context for evaluating their capability to successfully execute this award.

How does the awarded amount of $4.17 million compare to the market rate for similar IT support services in the Washington D.C. area?

To benchmark the $4.17 million award, one would compare it against industry data for IT support services in the Washington D.C. metropolitan area. This involves analyzing average salaries for IT support staff (e.g., help desk technicians, system administrators), overhead costs, and typical profit margins for government contractors in that region. Factors such as the specific skill sets required, the level of security clearance needed, and the complexity of the IT environment at HHS would influence the market rate. Without detailed service requirements and labor categories, a precise comparison is difficult, but the contract value should reflect competitive market pricing for the defined scope of work.

What are the primary risks associated with this contract, given its duration and fixed-price nature?

The primary risks associated with this contract include potential scope creep if the requirements are not clearly defined, leading to cost overruns for the contractor and potential disputes. For the government, a key risk is that the fixed-price nature might disincentivize the contractor from going above and beyond standard service levels, potentially impacting the quality or timeliness of support if not managed closely. Given the 182-day duration, there's also a risk of knowledge transfer gaps if the incumbent contractor's personnel leave abruptly or if there's insufficient documentation. Ensuring robust performance monitoring and clear communication channels are critical to mitigating these risks.

How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' approach in ensuring value for taxpayers in this specific instance?

The effectiveness of 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' hinges on the justification for excluding certain sources and the subsequent level of competition achieved. If the exclusion was based on legitimate technical requirements or past performance issues with specific vendors, and a sufficient number of capable bidders still participated, then it can be an effective way to ensure value. However, if the exclusion was arbitrary or significantly limited the pool of potential bidders, it could lead to reduced price competition and potentially higher costs for taxpayers. A thorough review of the solicitation documents and the number of proposals received would clarify its impact.

What is the historical spending pattern for IT support services by the Office of the Assistant Secretary for Administration (ASA) at HHS?

Analyzing historical spending patterns for IT support services by HHS's ASA would provide context for the $4.17 million award. This involves examining contract data over the past several fiscal years to identify trends in contract values, durations, types of services procured, and the contractors frequently awarded these types of services. Understanding whether this award represents an increase, decrease, or stable level of spending compared to previous periods is crucial. It also helps determine if the agency relies on a consistent set of vendors or frequently re-competes these services, which can indicate strategic sourcing approaches and potential cost efficiencies over time.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - PLATFORM

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: OS275280

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: $4,174,309

Exercised Options: $4,174,309

Current Obligation: $4,174,309

Actual Outlays: $4,174,309

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD31B

IDV Type: GWAC

Timeline