HHS awards $14.9M contract to Skylight Inc. for IT process improvement and ATO transformation

Contract Overview

Contract Amount: $14,922,613 ($14.9M)

Contractor: Skylight Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2025-09-30

End Date: 2026-09-29

Contract Duration: 364 days

Daily Burn Rate: $41.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: HHS PROCESSES IMPROVEMENT & ATO TRANSFORMATION

Place of Performance

Location: SARASOTA, SARASOTA County, FLORIDA, 34236

State: Florida Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $14.9 million to SKYLIGHT INC. for work described as: HHS PROCESSES IMPROVEMENT & ATO TRANSFORMATION Key points: 1. Contract focuses on enhancing internal processes and Authority to Operate (ATO) transformation. 2. The contract is a definitive contract awarded on a time and materials basis. 3. Skylight Inc. is the sole awardee, raising questions about competition. 4. The contract duration is one year, with a potential for extension. 5. The specific services under 'Custom Computer Programming Services' need further clarification regarding value. 6. Geographic focus appears to be Florida, based on the awardee's location.

Value Assessment

Rating: fair

The contract value of $14.9 million for a one-year period for IT process improvement and ATO transformation appears to be within a reasonable range for complex IT services. However, without specific deliverables or performance metrics, a precise value-for-money assessment is challenging. Benchmarking against similar HHS or other agency IT transformation contracts would provide better context. The time and materials pricing structure can sometimes lead to cost overruns if not closely managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This limits the government's ability to explore a wider range of potential solutions and pricing from multiple vendors. The justification for a sole-source award, if available, would be critical to understanding why other vendors were not considered.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the government does not benefit from competitive bidding to drive down prices.

Public Impact

The Department of Health and Human Services (HHS) will benefit from improved internal IT processes and a streamlined ATO process. This contract aims to deliver enhanced cybersecurity posture and operational efficiency within HHS. The primary beneficiaries are likely the IT departments and operational staff within HHS. The geographic impact is primarily within HHS operations, with a potential focus on Florida-based activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Time and materials contract type requires rigorous oversight to control costs.
Scope of 'process improvement' and 'ATO transformation' is broad and may lack clear definition.

Positive Signals

Focus on critical IT infrastructure and cybersecurity (ATO).
Potential for significant efficiency gains within HHS IT operations.
Definitive contract provides a framework for ongoing support.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming and IT process improvement. The market for such services is large and competitive, with many firms offering expertise in system modernization, cloud migration, and cybersecurity compliance (like ATO). HHS's spending in this area is consistent with the government's broader push for digital transformation and enhanced IT security across agencies. Benchmarks for similar IT transformation projects can vary widely based on scope and complexity.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by this specific award. The prime contractor, Skylight Inc., is not identified as a small business in the provided data. This means opportunities for small business participation would likely depend on Skylight Inc.'s own subcontracting strategy.

Oversight & Accountability

Oversight for this contract will likely be managed by the Office of the Assistant Secretary for Administration (ASA) within HHS. As a definitive contract, there should be established mechanisms for performance monitoring and financial oversight. Transparency will depend on the public availability of contract performance reports and any associated Inspector General reviews. The time and materials nature of the contract necessitates close monitoring of labor hours and costs to ensure accountability.

Related Government Programs

HHS IT Modernization Initiatives
Federal Cybersecurity Programs
Authority to Operate (ATO) Process Improvement
Custom Computer Programming Services Contracts

Risk Flags

Sole-source award limits competitive pricing.
Time and materials contract requires close cost management.
Broad scope of services may lack specific performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $14.9 million to SKYLIGHT INC.. HHS PROCESSES IMPROVEMENT & ATO TRANSFORMATION

Who is the contractor on this award?

The obligated recipient is SKYLIGHT 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 $14.9 million.

What is the period of performance?

Start: 2025-09-30. End: 2026-09-29.

What is Skylight Inc.'s track record with HHS or similar federal agencies for IT process improvement and ATO transformation projects?

Information regarding Skylight Inc.'s specific track record with HHS for IT process improvement and ATO transformation is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any publicly available project outcomes associated with Skylight Inc. and similar federal IT initiatives. Understanding their experience with complex government IT systems and cybersecurity frameworks is crucial for evaluating their capability to successfully execute this contract. Further research into their past performance on similar contracts, including client satisfaction and adherence to timelines and budgets, would be necessary.

How does the $14.9 million contract value compare to similar IT process improvement and ATO transformation contracts within HHS or other federal agencies?

The $14.9 million contract value for a one-year period for IT process improvement and ATO transformation is a significant investment. To benchmark this value effectively, comparisons should be made with contracts of similar scope, complexity, and duration awarded by HHS or other large federal agencies. Factors such as the number of systems involved, the extent of process re-engineering, and the specific cybersecurity requirements for ATO would influence comparable contract values. Without access to a database of similar contracts, it's difficult to definitively state if this represents excellent, fair, or concerning value. However, for a single-year effort, it suggests a substantial undertaking.

What are the primary risks associated with a sole-source award for this type of IT service?

The primary risks associated with a sole-source award for IT services like process improvement and ATO transformation include potential overpricing due to lack of competition, limited innovation from a single vendor, and a reduced incentive for the contractor to perform at their best. Taxpayers may not receive the best possible value for their money. Furthermore, if the chosen contractor underperforms or encounters unforeseen challenges, the government has fewer immediate alternatives compared to a competitively awarded contract. The justification for the sole-source award needs to be robust to mitigate these inherent risks.

What specific performance metrics or deliverables will be used to measure the success of this 'process improvement and ATO transformation' contract?

The provided data does not specify the performance metrics or deliverables for this contract. Successful execution of 'process improvement and ATO transformation' typically involves measurable outcomes such as reduced processing times, improved system uptime, successful completion of ATO audits, enhanced security vulnerability scores, and increased user satisfaction. The contract's Statement of Work (SOW) would detail these specific, measurable, achievable, relevant, and time-bound (SMART) goals. Without these details, assessing program effectiveness is speculative. Rigorous oversight and clearly defined deliverables are essential for this type of contract.

What is the historical spending pattern for IT process improvement and ATO transformation within the Office of the Assistant Secretary for Administration (ASA) at HHS?

Historical spending data for IT process improvement and ATO transformation specifically within HHS's Office of the Assistant Secretary for Administration (ASA) is not provided. To establish a pattern, one would need to analyze past contract awards for similar services by the ASA over several fiscal years. This analysis would reveal trends in spending levels, the types of contractors engaged, and the duration and value of previous projects. Understanding this historical context is vital for assessing whether the current $14.9 million award represents an increase, decrease, or continuation of previous investment levels in these critical IT functions.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 24-SOL-OS344856

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1226 N TAMIAMI TRL, SARASOTA, FL, 34236

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,612,323

Exercised Options: $14,922,613

Current Obligation: $14,922,613

Actual Outlays: $2,684,461

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline