HHS awards $3M+ Time & Materials contract for financial processing support to ITEGRITY INC

Contract Overview

Contract Amount: $3,000,557 ($3.0M)

Contractor: Itegrity Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2024-01-08

End Date: 2027-01-07

Contract Duration: 1,095 days

Daily Burn Rate: $2.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: THE PURPOSE OF THIS CONTRACT IS TO OBTAIN CONTRACTOR SUPPORT TO PROVIDE CUSTOMER SERVICE AND PROCESSING OF ALL FINANCIAL ACTIVITIES.

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $3.0 million to ITEGRITY INC for work described as: THE PURPOSE OF THIS CONTRACT IS TO OBTAIN CONTRACTOR SUPPORT TO PROVIDE CUSTOMER SERVICE AND PROCESSING OF ALL FINANCIAL ACTIVITIES. Key points: 1. Contract focuses on essential customer service and financial processing, indicating a need for specialized administrative support. 2. The award was made under full and open competition, suggesting a robust bidding process. 3. The contract duration of three years (1095 days) provides a stable period for service delivery. 4. The use of Time and Materials pricing may present cost control challenges if not closely managed. 5. The specific NAICS code 541511 points to custom computer programming services, though the description emphasizes financial activities. 6. The small business indicators are false, suggesting the primary awardee is not a small business. 7. The contract is a delivery order, implying it's part of a larger indefinite-delivery contract vehicle.

Value Assessment

Rating: fair

The contract value of approximately $3 million over three years for customer service and financial processing support appears moderate for government contracts of this nature. Benchmarking against similar contracts for administrative and financial processing services would be necessary for a definitive value assessment. The Time and Materials (T&M) pricing structure, while flexible, can lead to higher costs if not managed with strict oversight and clear task definitions, potentially impacting the overall value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that it was competed suggests that the government sought to leverage market competition to obtain the best value. Without specific details on the number of bids received, it's difficult to fully assess the intensity of the competition, but the 'full and open' designation is a positive indicator for price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging multiple vendors to offer competitive pricing, potentially leading to lower overall costs for the services rendered.

Public Impact

Beneficiaries include internal HHS staff and potentially external stakeholders who interact with the department's financial systems. Services delivered encompass customer service and the processing of all financial activities, crucial for departmental operations. The geographic impact is primarily within the scope of the Department of Health and Human Services' operations, likely concentrated where the contractor provides services. Workforce implications may involve the contractor's personnel supporting HHS's administrative and financial functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not meticulously monitored.
The description focuses on financial activities, but the NAICS code suggests custom computer programming, raising questions about the precise scope of work.
Lack of specific performance metrics in the provided data makes it difficult to assess service quality proactively.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
The contract duration of three years provides stability for service delivery.
The contract supports essential financial processing and customer service functions for a major federal agency.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically related to administrative and financial support. The market for such services within the federal government is substantial, with agencies consistently seeking support for back-office functions like financial processing and customer service. Comparable spending benchmarks would typically be found in contracts awarded to large system integrators or specialized administrative support firms serving federal agencies.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific award. This suggests the contract was not specifically targeted towards small businesses, and the prime contractor is likely a larger entity. There is no information provided regarding subcontracting plans or their impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Office of the Assistant Secretary for Administration at HHS. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases, though detailed performance data may not always be publicly available.

Related Government Programs

HHS Financial Management Systems Support
Federal Customer Service Contracts
Administrative Support Services
IT Services for Government Agencies

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Ambiguity between NAICS code and contract description.
Lack of specified performance metrics in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $3.0 million to ITEGRITY INC. THE PURPOSE OF THIS CONTRACT IS TO OBTAIN CONTRACTOR SUPPORT TO PROVIDE CUSTOMER SERVICE AND PROCESSING OF ALL FINANCIAL ACTIVITIES.

Who is the contractor on this award?

The obligated recipient is ITEGRITY INC.

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 $3.0 million.

What is the period of performance?

Start: 2024-01-08. End: 2027-01-07.

What is the specific nature of the 'financial activities' being processed, and how do they align with the 'Custom Computer Programming Services' NAICS code?

The provided data indicates the contract's purpose is to 'obtain contractor support to provide customer service and processing of all financial activities.' However, the assigned NAICS code is 541511, 'Custom Computer Programming Services.' This presents a potential misalignment or a need for clarification. It's possible that the 'financial activities' involve the use, maintenance, or customization of financial software systems, which would justify the programming services code. Alternatively, the NAICS code might be a broader classification, and the actual work is primarily administrative processing supported by IT tools. Further details on the statement of work (SOW) would be required to definitively reconcile the description with the NAICS code and understand the precise technical or administrative nature of the services.

How does the Time and Materials (T&M) pricing structure compare to fixed-price or other contract types for similar financial processing support services?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change, offering flexibility. However, they carry a higher risk of cost overruns for the government compared to fixed-price contracts, as the contractor is reimbursed for direct labor hours and materials at specified rates. For routine financial processing and customer service, fixed-price contracts or firm-fixed-price labor hour contracts are often preferred for better cost control, as they establish a ceiling or a set price for defined tasks. The use of T&M here suggests either a highly variable workload or a lack of precise definition in the SOW, necessitating robust oversight from HHS to ensure value for money and prevent uncontrolled cost escalation.

What is ITEGRITY INC.'s track record with similar government contracts, particularly in financial processing or customer service?

Information regarding ITEGRITY INC.'s specific track record with similar government contracts is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), previous contract awards, and any reported issues or successes in delivering financial processing and customer service support to federal agencies. Without this historical data, it is difficult to benchmark their capabilities and reliability against the requirements of this new HHS contract. Agencies typically conduct thorough due diligence on contractor past performance during the source selection process.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract to measure performance?

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this contract. Effective government contracting relies on clearly defined performance metrics to ensure the contractor meets expectations. For a contract involving customer service and financial processing, typical KPIs might include response times for inquiries, accuracy rates in financial transactions, turnaround times for processing requests, and customer satisfaction scores. The absence of this information in the summary data means that the effectiveness and efficiency of the contractor's performance cannot be assessed without consulting the full contract documentation or performance reports.

How does the $3 million contract value compare to historical spending by HHS for similar financial processing and customer service functions?

The contract value of approximately $3 million over three years for customer service and financial processing support is a moderate figure within the context of a large agency like the Department of Health and Human Services (HHS). To assess if this represents value for money or a significant increase/decrease in spending, historical data would be crucial. HHS likely has ongoing or past contracts for similar functions, potentially with different contractors or under different contract vehicles. Analyzing trends in spending for these types of services over the past several fiscal years would reveal whether this award is consistent with past investment levels, potentially indicating stable needs or a shift in strategy or cost structure.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 8380 COLESVILLE RD, SILVER SPRING, MD, 20910

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,497,517

Exercised Options: $3,000,557

Current Obligation: $3,000,557

Actual Outlays: $1,299,945

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F049DA

IDV Type: FSS

Timeline