HHS Awards $2.8M Contract to NextGenID for Remote Onboarding Pilot
Contract Overview
Contract Amount: $2,848,863 ($2.8M)
Contractor: Nextgenid Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2023-02-28
End Date: 2026-05-27
Contract Duration: 1,184 days
Daily Burn Rate: $2.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: NEXTGENID REMOTE ONBOARDING PILOT
Place of Performance
Location: FAIRFAX, FAIRFAX CITY County, VIRGINIA, 22030
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $2.8 million to NEXTGENID INC for work described as: NEXTGENID REMOTE ONBOARDING PILOT Key points: 1. The contract is for a pilot program focused on remote onboarding. 2. NextGenID Inc. is the sole awardee, raising questions about competition. 3. The fixed-price contract aims to manage costs for a specific service. 4. The IT services sector is experiencing significant growth in digital solutions.
Value Assessment
Rating: fair
The contract value of $2.8M over approximately three years appears reasonable for a pilot program of this nature. Benchmarking against similar IT service contracts for onboarding solutions would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially reduces opportunities for innovative solutions from a broader market.
Taxpayer Impact: Taxpayer funds are being used for this pilot, and the lack of competition means potential savings from a competitive bidding process may have been forgone.
Public Impact
Pilot program could improve federal employee onboarding efficiency. Potential for enhanced remote work capabilities within HHS. Success of the pilot may influence future technology investments.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Lack of clear performance metrics for pilot success.
- Potential for cost overruns if not managed effectively.
Positive Signals
- Addresses a specific need for remote onboarding.
- Pilot approach allows for testing and refinement.
- Fixed-price contract provides cost certainty.
Sector Analysis
This contract falls within the Other Computer Related Services NAICS code, part of the broader Information Technology sector. Spending in this sector has surged, particularly for solutions enabling remote operations and digital transformation.
Small Business Impact
There is no indication that small businesses were involved in this specific award, as it was a sole-source contract. Future opportunities may arise if the pilot is successful and expanded.
Oversight & Accountability
Oversight will be crucial to ensure the pilot meets its objectives and stays within budget. The contracting agency should monitor performance closely and conduct a thorough review upon completion.
Related Government Programs
- Other Computer Related Services
- Department of Health and Human Services Contracting
- Office of the Assistant Secretary for Financial Resources Programs
Risk Flags
- Sole-source award
- Limited competition
- Potential for cost overruns
- Pilot program effectiveness not clearly defined
Tags
other-computer-related-services, department-of-health-and-human-services, va, purchase-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $2.8 million to NEXTGENID INC. NEXTGENID REMOTE ONBOARDING PILOT
Who is the contractor on this award?
The obligated recipient is NEXTGENID 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 $2.8 million.
What is the period of performance?
Start: 2023-02-28. End: 2026-05-27.
What specific metrics will be used to define the success of this remote onboarding pilot program?
The success of the pilot program will likely be defined by metrics such as reduced onboarding time, increased employee satisfaction with the remote process, successful integration of new hires into their roles, and the cost-effectiveness of the NextGenID solution compared to traditional methods. A detailed evaluation plan should outline these specific KPIs.
What are the primary risks associated with a sole-source award for this type of IT service?
The primary risks of a sole-source award include a lack of competitive pricing, potentially leading to higher costs for taxpayers. There's also a risk that the chosen vendor may not offer the most innovative or suitable solution available in the market, as competition often drives technological advancement and efficiency.
How will the effectiveness of NextGenID's remote onboarding solution be measured against potential alternatives?
Effectiveness will be measured by comparing key performance indicators (KPIs) of the pilot against baseline data from previous onboarding processes or against industry benchmarks. This includes evaluating time-to-productivity for new hires, error rates in onboarding documentation, and feedback from both new employees and HR personnel. A post-pilot analysis will determine if the solution achieved its intended goals.
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 - END USER
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 10300 EATON PL, FAIRFAX, VA, 22030
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,848,863
Exercised Options: $2,848,863
Current Obligation: $2,848,863
Actual Outlays: $2,848,863
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2023-02-28
Current End Date: 2026-05-27
Potential End Date: 2026-05-27 00:00:00
Last Modified: 2026-03-02
Other Department of Health and Human Services Contracts
- Contact Center Operations (CCO) — $5.5B (Maximus Federal Services, Inc.)
- TAS::75 0849::TAS Oper of Govt R&D Goco Facilities — $4.8B (Leidos Biomedical Research Inc)
- THE Purpose of This Contract IS to Provide the Full Complement of Services Necessary to Care for UC in ORR Custody Including Facilities Set-Up, Maintenance, and Support Internal and Perimeter (IF Applicable) Security, Direct Care and Supervision Inc — $3.5B (Rapid Deployment Inc)
- Contact Center Operations — $2.6B (Maximus Federal Services, Inc.)
- Federal Contract — $2.4B (Leidos Biomedical Research Inc)
View all Department of Health and Human Services contracts →