HHS Spends $19.6M on I3 FEDERAL LLC for IT Support Services

Contract Overview

Contract Amount: $19,652,650 ($19.7M)

Contractor: I3 Federal LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2021-10-13

End Date: 2022-04-12

Contract Duration: 181 days

Daily Burn Rate: $108.6K/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 AND SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20201

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $19.7 million to I3 FEDERAL LLC for work described as: HHS PROTECT LICENSES AND SUPPORT SERVICES Key points: 1. The contract awarded to I3 FEDERAL LLC for $19.6M covers licenses and support services. 2. The contract was awarded under full and open competition after exclusion of sources. 3. The primary sector for this spending is Information Technology. 4. The contract duration is 181 days, indicating a short-term need.

Value Assessment

Rating: fair

The total award amount is $19.6M. Without specific per-unit data or comparison to similar contracts for these exact services, a precise value assessment is difficult. However, the amount suggests a significant investment in IT support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition after exclusion of sources, suggesting a competitive process was intended. This method aims to ensure fair pricing and access to a broad range of potential contractors.

Taxpayer Impact: Taxpayer funds are being used for IT licenses and support services. The competitive nature of the award is intended to maximize value for money.

Public Impact

Ensures critical IT infrastructure and services are maintained for HHS operations. Supports the Office of the Assistant Secretary for Administration's technological needs. Potential impact on the efficiency and security of HHS data and systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed service breakdown for the $19.6M.
Short contract duration may indicate a stop-gap measure or a pilot program.
Specific reasons for 'exclusion of sources' in the competition method are not detailed.

Positive Signals

Awarded through a competitive process.
Supports essential government IT functions.
Firm fixed price contract provides cost certainty.

Sector Analysis

This spending falls within the IT sector, specifically 'Other Computer Related Services'. Benchmarks for similar IT support contracts vary widely based on scope and duration, but $19.6M for a 6-month period is substantial.

Small Business Impact

The data does not indicate any specific set-aside for small businesses. The prime contractor is I3 FEDERAL LLC, and further analysis would be needed to determine their small business status or subcontracting plans.

Oversight & Accountability

The contract was awarded by the Department of Health and Human Services, Office of the Assistant Secretary for Administration. Standard government oversight processes would apply to ensure performance and proper use of funds.

Related Government Programs

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

Risk Flags

Lack of detailed service scope.
Short contract duration.
Ambiguity in 'exclusion of sources' clause.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $19.7 million to I3 FEDERAL LLC. HHS PROTECT LICENSES AND 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 $19.7 million.

What is the period of performance?

Start: 2021-10-13. End: 2022-04-12.

What specific IT licenses and support services are included in this $19.6M contract, and how do they align with HHS's strategic IT goals?

The provided data lacks specifics on the exact IT licenses and support services covered. A detailed breakdown is crucial to understand if the expenditure directly supports HHS's strategic objectives, such as modernization, cybersecurity enhancements, or specific program needs. Without this, it's difficult to fully assess the value and necessity of the contract beyond general IT maintenance.

What were the key factors that led to the 'exclusion of sources' in the full and open competition, and did this exclusion potentially limit competitive pricing?

The term 'exclusion of sources' within a 'full and open competition' context is unusual and requires clarification. Typically, full and open competition aims to solicit offers from all responsible sources. If specific sources were excluded, it suggests a potential limitation on the competitive landscape, which could impact price discovery and potentially lead to higher costs than a truly unrestricted competition.

Given the 181-day duration, is this contract intended as a bridge to a larger, long-term solution, and what is the plan for IT support beyond April 2022?

The short duration of 181 days strongly suggests this contract is either a short-term solution, a bridge to a future contract, or a pilot program. Understanding the agency's long-term IT support strategy is essential to determine if this expenditure represents an efficient use of funds or if it's a temporary measure that might require subsequent, potentially costly, contract actions.

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: 212770

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: $39,305,299

Exercised Options: $19,652,650

Current Obligation: $19,652,650

Actual Outlays: $19,652,650

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD31B

IDV Type: GWAC

Timeline