HHS awards $3.5M IT support contract to Areeva Solutions, LLC via sole-source purchase order

Contract Overview

Contract Amount: $3,517,954 ($3.5M)

Contractor: Areeva Solutions, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2024-08-15

End Date: 2026-08-14

Contract Duration: 729 days

Daily Burn Rate: $4.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: GRANTS PROGRAM SOLUTIONS AND INFORMATION TECHNOLOGY SUPPORT SERVICES

Place of Performance

Location: CHANTILLY, LOUDOUN County, VIRGINIA, 20152

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $3.5 million to AREEVA SOLUTIONS, LLC for work described as: GRANTS PROGRAM SOLUTIONS AND INFORMATION TECHNOLOGY SUPPORT SERVICES Key points: 1. Contract awarded using a sole-source approach, limiting competitive price discovery. 2. Purchase order structure may indicate a need for rapid or specialized support. 3. The contract duration of approximately two years suggests ongoing operational requirements. 4. The North American Industry Classification System (NAICS) code 541611 points to management consulting services. 5. The awardee, Areeva Solutions, LLC, is the sole recipient of this funding. 6. The contract is categorized under 'Administrative Management and General Management Consulting Services'.

Value Assessment

Rating: questionable

Benchmarking the value of this $3.5 million contract is challenging without more detailed service descriptions and performance metrics. As a sole-source award, there's no direct comparison to other bids to assess pricing competitiveness. The 'Administrative Management and General Management Consulting Services' category can encompass a wide range of activities, making it difficult to compare unit costs or overall value against similar contracts without further context on the specific IT support and solutions provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the unique capabilities or qualifications required for the service, or in cases of urgent need. The lack of competition means that the Department of Health and Human Services did not benefit from a bidding process that could have potentially driven down costs or fostered innovation through multiple proposals.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of a competitive bidding process. The government did not explore alternative solutions or pricing structures that might have been available from other qualified vendors.

Public Impact

The primary beneficiaries are likely the internal operations of the Office of the Assistant Secretary for Administration within HHS, which will receive IT support and solutions. The contract aims to provide essential information technology support services, ensuring the smooth functioning of administrative and management functions. The geographic impact is primarily within Virginia, where the contractor is located, and the federal agency's operational sites. Workforce implications may include the direct employment of IT professionals by Areeva Solutions, LLC to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing and service innovation.
Lack of detailed performance metrics makes value-for-money assessment difficult.
Purchase order type may not offer the same level of oversight as a traditional contract.
Limited transparency into the justification for sole-source procurement.

Positive Signals

Award to a single vendor can ensure continuity of specialized IT support.
Focus on administrative and IT support addresses critical agency operational needs.
Contract duration suggests a stable, ongoing requirement for these services.

Sector Analysis

The IT services sector, particularly within government contracting, is highly competitive and diverse. This contract falls under administrative management and general management consulting, often involving IT support, system integration, and operational efficiency services. The market size for such services to federal agencies is substantial, with significant spending allocated annually. This specific award represents a small portion of overall federal IT spending, but highlights the ongoing need for specialized support within large departments like HHS.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. The award is made directly to Areeva Solutions, LLC. There is no information provided regarding subcontracting plans or requirements for small business participation. Therefore, this award does not directly contribute to the small business contracting goals of the federal government through set-asides or mandated subcontracting.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services, specifically the Office of the Assistant Secretary for Administration. As a purchase order, the level of formal oversight might differ from larger, more complex contract vehicles. Accountability would be managed through performance reviews and adherence to the terms of the purchase order. Transparency is limited due to the sole-source nature and the lack of publicly available detailed justification.

Related Government Programs

HHS IT Modernization Initiatives
Federal Civilian IT Services Contracts
Administrative Support Services Contracts
Management and Consulting Services

Risk Flags

Sole-source award lacks competitive justification.
Limited transparency into specific services and performance expectations.
Potential for suboptimal pricing due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $3.5 million to AREEVA SOLUTIONS, LLC. GRANTS PROGRAM SOLUTIONS AND INFORMATION TECHNOLOGY SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is AREEVA SOLUTIONS, 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 $3.5 million.

What is the period of performance?

Start: 2024-08-15. End: 2026-08-14.

What specific IT support and solutions are being provided under this contract?

The provided data indicates the contract is for 'GRANTS PROGRAM SOLUTIONS AND INFORMATION TECHNOLOGY SUPPORT SERVICES' under NAICS code 541611 (Administrative Management and General Management Consulting Services). However, the specific nature of these IT support services and solutions is not detailed. This could range from help desk support, network management, software development, cybersecurity, to specialized grants management IT systems. Without further documentation, it's impossible to ascertain the precise scope of work, which is crucial for evaluating the contract's value and effectiveness.

What is the justification for awarding this contract on a sole-source basis?

The data explicitly states the contract was 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source award. Federal procurement regulations permit sole-source awards under specific circumstances, such as when only one responsible source can satisfy the agency's needs, or in cases of urgent and compelling need. A detailed justification, typically documented in a Justification and Approval (J&A) document, would outline the rationale. Without access to this J&A, the specific reasons for bypassing full and open competition remain unknown, making it difficult to assess if the sole-source determination was appropriate and in the government's best interest.

How does the awardee, Areeva Solutions, LLC, compare to other potential vendors in this space?

Information regarding Areeva Solutions, LLC's track record, past performance, and specific expertise in grants program solutions and IT support is not provided in the summary data. As this was a sole-source award, a formal comparison against other vendors through a competitive bidding process did not occur. To assess Areeva Solutions' standing, one would need to review their contract history, client testimonials, and any available performance evaluations, particularly for similar government contracts. Without this, it's difficult to benchmark their capabilities against the broader market.

What is the historical spending pattern for similar IT support services at HHS?

The provided data focuses solely on this specific $3.5 million contract. To understand historical spending patterns for similar IT support services at HHS, one would need to analyze historical contract databases (like FPDS or USASpending.gov) for the Office of the Assistant Secretary for Administration or related IT functions. This analysis would involve searching for contracts with similar NAICS codes (e.g., 541611, 541512, 541519) and service descriptions over multiple fiscal years. Such a review would reveal trends in spending, identify key contractors, and potentially highlight periods of increased or decreased investment in these services.

Are there any performance metrics or key performance indicators (KPIs) associated with this contract?

The summary data does not include any information about performance metrics or Key Performance Indicators (KPIs) for this contract. Typically, government contracts, especially those for IT services, include specific deliverables, service level agreements (SLAs), and measurable outcomes that the contractor must meet. The absence of this information in the provided data makes it impossible to assess the contractor's performance objectively or to determine if the agency is receiving the expected value for the funds expended. A thorough review of the contract document itself would be necessary to identify any such metrics.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: OS329057

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 25932 DONOVAN DR, CHANTILLY, VA, 20152

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

Financial Breakdown

Contract Ceiling: $4,376,320

Exercised Options: $3,517,954

Current Obligation: $3,517,954

Actual Outlays: $2,763,964

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline