HHS awards $3.35M contract for property management IT systems operations and maintenance to Liona Enterprises Inc

Contract Overview

Contract Amount: $3,350,670 ($3.4M)

Contractor: Liona Enterprises Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2024-01-23

End Date: 2027-01-22

Contract Duration: 1,095 days

Daily Burn Rate: $3.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: PROPERTY MANAGEMENT INFORMATION SYSTEMS OPERATIONS AND MAINTENANCE (PMIS)

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $3.4 million to LIONA ENTERPRISES INC for work described as: PROPERTY MANAGEMENT INFORMATION SYSTEMS OPERATIONS AND MAINTENANCE (PMIS) Key points: 1. Contract focuses on essential IT operations and maintenance for property management systems. 2. Liona Enterprises Inc. is the sole awardee for this delivery order. 3. The contract duration is three years, indicating a medium-term commitment. 4. The award was made under full and open competition, suggesting a broad search for qualified vendors. 5. The contract type is Time and Materials, which can pose cost control challenges. 6. The primary service area is Maryland, suggesting a localized operational focus.

Value Assessment

Rating: fair

The contract value of $3.35 million over three years for IT operations and maintenance is moderate. Without specific performance metrics or benchmarks for similar systems, it's difficult to definitively assess value for money. The Time and Materials (T&M) contract type, while flexible, can lead to higher costs if not closely managed, as it reimburses labor hours and material costs directly. Benchmarking against similar government IT O&M contracts would be necessary for a more precise value assessment.

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 broad, specific sources may have been excluded for defined reasons. The number of bidders is not specified, but the designation suggests an effort to solicit from a wide range of potential offerors. The level of competition is generally positive for price discovery, but the exclusion of sources warrants further investigation into the rationale.

Taxpayer Impact: The use of full and open competition generally benefits taxpayers by encouraging a wider pool of vendors to bid, potentially leading to more competitive pricing. However, the exclusion of specific sources could limit the ultimate price reduction achievable.

Public Impact

The Department of Health and Human Services (HHS) benefits from the continued operation and maintenance of its property management information systems. This contract ensures the functionality and reliability of critical IT infrastructure supporting administrative functions. The primary geographic impact is within Maryland, where the services are likely to be performed. The contract supports IT professionals and potentially other roles involved in system maintenance and operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not meticulously monitored.
The exclusion of sources in the 'full and open' competition requires scrutiny to ensure fairness and optimal pricing.
Lack of specific performance metrics makes it challenging to assess the true value for money delivered.

Positive Signals

Awarded under full and open competition, indicating an attempt to maximize vendor participation.
The contract duration of three years provides stability for essential IT operations.
The contract supports a critical function for HHS, ensuring the continuity of property management systems.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the federal IT market. The federal government consistently spends billions on IT operations and maintenance, encompassing software, hardware, and related services. This contract represents a small portion of that overall spending, focused on a specific application area (property management) within a large agency (HHS). Comparable spending benchmarks would involve analyzing other IT O&M contracts for similar system types across various agencies.

Small Business Impact

The provided data indicates that this contract was not 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 set-aside. The prime contractor, Liona Enterprises Inc., is not specified as a small business in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the Office of the Assistant Secretary for Administration within HHS, likely through contract officers and technical monitors. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is facilitated by the contract award notice, but detailed performance data and financial breakdowns are often not publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

HHS IT Operations and Maintenance
Property Management Systems
Computer Systems Design Services
Federal IT Infrastructure Support
Department of Health and Human Services Contracts

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Need for clear justification for 'exclusion of sources' in competition.
Requirement for robust oversight to ensure contractor efficiency and value.
Dependence on contractor performance for critical IT system operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $3.4 million to LIONA ENTERPRISES INC. PROPERTY MANAGEMENT INFORMATION SYSTEMS OPERATIONS AND MAINTENANCE (PMIS)

Who is the contractor on this award?

The obligated recipient is LIONA ENTERPRISES 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 $3.4 million.

What is the period of performance?

Start: 2024-01-23. End: 2027-01-22.

What is the track record of Liona Enterprises Inc. in performing similar IT operations and maintenance contracts for the federal government?

Assessing Liona Enterprises Inc.'s track record requires a review of their past performance on federal contracts, particularly those involving IT operations and maintenance for management systems. Information on past performance, including client satisfaction, adherence to schedule and budget, and technical execution, is typically available through sources like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS). A detailed analysis would involve examining the size, duration, and complexity of previous contracts awarded to Liona Enterprises Inc. and evaluating any reported performance issues or commendations. Without access to this specific performance data, it is difficult to definitively assess their capability to successfully execute this current HHS contract.

How does the awarded amount of $3.35 million compare to the estimated cost or market rates for similar property management IT O&M services?

To benchmark the $3.35 million award, one would need to compare it against the estimated costs provided during the solicitation phase and against market rates for similar services. The Time and Materials (T&M) nature of the contract complicates direct comparison, as final costs depend on actual hours and materials used. However, by analyzing the contract's duration (1095 days) and the estimated labor categories and rates, a potential average annual cost can be derived. This figure could then be compared to industry benchmarks for IT O&M services of comparable scope and complexity, considering factors like system criticality, user base, and geographic location. Data from other federal agencies for similar IT O&M contracts, especially those awarded competitively, would provide valuable context for assessing whether this award represents good value for money.

What are the primary risks associated with a Time and Materials contract for IT operations and maintenance, and how are they mitigated in this award?

The primary risk with Time and Materials (T&M) contracts is the potential for cost overruns, as the government pays for actual labor hours and material costs incurred by the contractor, rather than a fixed price. This can lead to unpredictable expenditures if not managed diligently. Mitigation strategies typically involve establishing strong oversight mechanisms, including detailed monitoring of labor hours, verification of material costs, and setting clear ceilings or limits on the total contract value. The contract statement of work should also define specific deliverables and performance standards to ensure that the contractor is providing efficient and necessary services. For this HHS contract, the effectiveness of risk mitigation will depend on the agency's ability to actively manage and oversee the contractor's time and resource allocation throughout the contract's three-year term.

What is the significance of 'Full and Open Competition After Exclusion of Sources' for taxpayer value and competition dynamics?

The designation 'Full and Open Competition After Exclusion of Sources' indicates that while the solicitation was broadly advertised, certain potential offerors were intentionally excluded. This exclusion must be justified by specific criteria outlined in federal acquisition regulations, such as national security concerns or unique capabilities. For taxpayer value, this approach can be beneficial if the excluded sources were unlikely to offer competitive solutions or if their exclusion streamlines the evaluation process. However, if the exclusion was overly broad or lacked strong justification, it could limit the competitive landscape, potentially leading to higher prices than might have been achieved with unrestricted competition. The key is understanding the rationale behind the exclusion to determine its impact on price discovery and overall value.

How does this contract align with HHS's overall IT spending and strategic goals for property management?

To assess alignment, one would need to examine HHS's broader IT budget, strategic IT plans, and specific objectives related to property management. This contract, valued at $3.35 million over three years, supports the operational continuity of critical property management information systems. Its alignment depends on whether these systems are considered essential for HHS operations, if they are slated for modernization or replacement in the near future, and how their maintenance costs fit within the agency's allocated IT funding. Understanding the role these systems play in supporting HHS's mission and administrative functions is crucial for evaluating the strategic importance and justification of this spending.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 308 READING RD UNIT 300, CINCINNATI, OH, 45202

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $4,541,691

Exercised Options: $3,350,670

Current Obligation: $3,350,670

Actual Outlays: $2,048,327

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCB22D0112

IDV Type: GWAC

Timeline