HHS awards $3.4M contract for business management solution to APEX LOGIC INC, emphasizing improved user interactions

Contract Overview

Contract Amount: $3,438,362 ($3.4M)

Contractor: Apex Logic Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2023-04-14

End Date: 2026-10-31

Contract Duration: 1,296 days

Daily Burn Rate: $2.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES (HHS) OFFICE OF SMALL DISADVANTAGED BUSINESS UTILIZATION (OSDBU) REQUIRES A SINGLE INTERFACE OF BUSINESS MANAGEMENT SOLUTION THAT PROVIDES FOR A SYSTEM PROVIDES IMPROVED INTERACTIONS WITH USERS AND RE

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 $3.4 million to APEX LOGIC INC for work described as: THIS U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES (HHS) OFFICE OF SMALL DISADVANTAGED BUSINESS UTILIZATION (OSDBU) REQUIRES A SINGLE INTERFACE OF BUSINESS MANAGEMENT SOLUTION THAT PROVIDES FOR A SYSTEM PROVIDES IMPROVED INTERACTIONS WITH USERS AND RE Key points: 1. The contract aims to enhance user interactions with a business management solution, suggesting a focus on improving internal processes and stakeholder engagement. 2. Awarded under full and open competition, the contract's pricing will be benchmarked against market rates for custom computer programming services. 3. The fixed-price nature of the contract shifts performance risk to the contractor, APEX LOGIC INC. 4. The contract duration of over three years indicates a need for sustained support and development of the business management solution. 5. The specific North American Industry Classification System (NAICS) code 541511 points to a focus on custom software development and integration. 6. The contract's primary location in Washington D.C. suggests a potential focus on federal agency operations within the capital region.

Value Assessment

Rating: good

The contract value of $3.4 million over approximately three years appears reasonable for a custom computer programming services contract of this scope. Benchmarking against similar federal contracts for business management solutions and custom software development will be crucial to fully assess value for money. The firm-fixed-price contract type suggests that the contractor has a clear understanding of the requirements and associated costs, which can lead to better cost control for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is expected to drive favorable pricing and ensure the government receives the best value. The number of bidders is not specified, but the open competition suggests a healthy market for these services.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which is designed to secure services at the most advantageous price point and reduce the risk of overpayment.

Public Impact

The primary beneficiaries are likely internal HHS staff and potentially external stakeholders who interact with the OSDBU's business management systems. The contract will deliver a business management solution designed to improve interactions and streamline processes. The geographic impact is centered in Washington D.C., where the HHS OSDBU is located. The contract supports the IT services sector, contributing to the demand for custom computer programming expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed throughout the contract lifecycle.
Dependence on a single contractor for a critical business management solution could pose a risk if performance issues arise.
Ensuring the solution meets evolving user needs and technological advancements over its lifespan will require ongoing oversight.

Positive Signals

The use of full and open competition suggests a robust market and potential for high-quality service delivery.
The firm-fixed-price contract type provides cost certainty for the government.
The multi-year duration allows for sustained development and integration of the business management solution.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming. The market for such services is large and competitive, with numerous firms offering solutions for business process management and system integration. Federal spending in this area is substantial, driven by the need for agencies to modernize operations, improve data management, and enhance user experiences. Comparable contracts often involve developing or enhancing enterprise resource planning (ERP) systems, customer relationship management (CRM) tools, or internal workflow management platforms.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. Therefore, there are no direct subcontracting implications for small businesses mandated by this award. However, the prime contractor, APEX LOGIC INC, may choose to subcontract portions of the work to small businesses as part of their business strategy.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Health and Human Services' contracting officers and program managers. Accountability measures will be tied to the performance standards and deliverables outlined in the contract. Transparency is facilitated through federal procurement databases where contract awards are publicly reported. The Inspector General's office may conduct audits or investigations if performance concerns or potential fraud are identified.

Related Government Programs

HHS OSDBU IT Modernization Efforts
Federal Business Management Software Contracts
Custom Software Development Services
IT Services for Federal Agencies

Risk Flags

Potential for vendor lock-in if the solution is highly proprietary.
Risk of inadequate user adoption if change management is not prioritized.
Dependency on contractor's key personnel for successful project execution.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $3.4 million to APEX LOGIC INC. THIS U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES (HHS) OFFICE OF SMALL DISADVANTAGED BUSINESS UTILIZATION (OSDBU) REQUIRES A SINGLE INTERFACE OF BUSINESS MANAGEMENT SOLUTION THAT PROVIDES FOR A SYSTEM PROVIDES IMPROVED INTERACTIONS WITH USERS AND RE

Who is the contractor on this award?

The obligated recipient is APEX LOGIC INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.4 million.

What is the period of performance?

Start: 2023-04-14. End: 2026-10-31.

What is the track record of APEX LOGIC INC in delivering similar business management solutions to federal agencies?

Assessing the track record of APEX LOGIC INC requires a review of their past performance on federal contracts, particularly those involving custom computer programming and business management solutions. Information on past performance can often be found in federal procurement databases like SAM.gov or through agency performance evaluations. Key indicators to examine include on-time delivery, adherence to budget, quality of deliverables, and client satisfaction. A history of successful, similar projects would increase confidence in their ability to meet the requirements of this HHS contract. Conversely, a history of performance issues or contract disputes would raise concerns about their suitability for this role.

How does the awarded amount of $3.4 million compare to the market rates for similar custom computer programming services?

To benchmark the $3.4 million award, one would compare it against the average costs for similar custom computer programming services, considering factors like contract duration, complexity, and the specific services required. This involves analyzing data from similar federal contracts awarded under full and open competition, as well as consulting industry pricing guides and market research reports. The North American Industry Classification System (NAICS) code 541511 (Custom Computer Programming Services) is a key identifier for finding comparable data. If the awarded amount falls within or below the typical range for such services, it suggests good value for money. Significant deviations above the market average might warrant further investigation into the specific requirements or the contractor's pricing structure.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks for this contract include potential scope creep, where project requirements expand beyond the initial agreement, leading to cost overruns and delays. Another risk is the contractor's ability to deliver a solution that effectively meets the evolving needs of the OSDBU and improves user interactions as intended. Technical risks, such as integration challenges with existing systems or cybersecurity vulnerabilities, also exist. Mitigation strategies include robust contract management, clearly defined performance metrics, regular progress reviews, and a well-defined change control process. The firm-fixed-price contract type also mitigates cost overrun risks for the government, placing that burden on the contractor.

How effective is the chosen competition level (full and open) in ensuring optimal pricing and quality for this type of IT service?

A full and open competition is generally considered the most effective method for ensuring optimal pricing and quality for IT services, as it allows the widest possible pool of qualified vendors to submit proposals. This broad competition drives down prices through market forces and encourages vendors to offer their best technical solutions to win the contract. For custom computer programming services, where innovation and specific expertise are crucial, a broad competition increases the likelihood of finding a vendor with the precise capabilities needed at a competitive price. The government benefits from a wider range of options and a stronger negotiating position.

What is the historical spending pattern for business management solutions within HHS or similar agencies?

Analyzing historical spending patterns for business management solutions within HHS and comparable agencies provides context for the current $3.4 million award. This involves examining past contract awards for similar services, noting the contract values, durations, and the types of solutions procured. Significant increases or decreases in spending over time could indicate shifts in agency priorities, technological adoption rates, or market dynamics. Understanding this history helps in assessing whether the current contract represents a typical investment, an expansion of services, or a move towards a new technological approach. It also aids in identifying trends in contractor performance and pricing over time.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 885 TAHOE BLVD STE 9, INCLINE VILLAGE, NV, 89451

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $4,350,179

Exercised Options: $3,438,362

Current Obligation: $3,438,362

Actual Outlays: $2,635,625

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA22D00A2

IDV Type: FSS

Timeline