HHS Awards $3.4M IT Compliance Support Services Contract to SEHMI ENTERPRISE, INC
Contract Overview
Contract Amount: $3,441,998 ($3.4M)
Contractor: Sehmi Enterprise, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2025-03-12
End Date: 2027-03-11
Contract Duration: 729 days
Daily Burn Rate: $4.7K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: OIT-SERVICES33 C 6564 IT COMPLIANCE SUPPORT SERVICES
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 SEHMI ENTERPRISE, INC. for work described as: OIT-SERVICES33 C 6564 IT COMPLIANCE SUPPORT SERVICES Key points: 1. Contract awarded for IT Compliance Support Services to SEHMI ENTERPRISE, INC. 2. The contract value is $3,441,998. 3. The contract was not competed under Simplified Acquisition Procedures (SAP). 4. The period of performance is 729 days. 5. The NAICS code is 541611 for Administrative Management and General Management Consulting Services.
Value Assessment
Rating: questionable
The contract is a Purchase Order with a Firm Fixed Price. Without competitive bidding or a clear justification for sole-source, assessing value for money is difficult. The benchmark for similar contracts is unavailable.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was 'NOT COMPETED UNDER SAP,' indicating it was likely procured through limited competition or a non-competitive process. This lack of broad competition may have limited price discovery and potentially led to a higher cost for taxpayers.
Taxpayer Impact: The absence of full and open competition raises concerns about whether the government secured the best possible price for these essential IT compliance support services.
Public Impact
Taxpayers may not have received the most cost-effective solution due to limited competition. The Health Resources and Services Administration relies on these services for IT compliance. The contract duration of approximately two years requires ongoing monitoring for effectiveness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Limited transparency in award process
Positive Signals
- Firm Fixed Price contract type
- Clear service description (IT Compliance Support)
Sector Analysis
This contract falls under IT consulting services, specifically administrative management and general management consulting. Benchmarks for IT compliance support services can vary widely based on scope and complexity, but a lack of competition makes direct comparison challenging.
Small Business Impact
The contract was awarded to SEHMI ENTERPRISE, INC. and there is no indication that small businesses were involved as subcontractors or partners in this specific award. Further analysis would be needed to determine if small business set-asides were considered or applicable.
Oversight & Accountability
The award being a Purchase Order not competed under SAP suggests a less rigorous oversight process compared to full competitive solicitations. Accountability for the value and performance of these services will depend on the HRSA's contract management and performance monitoring.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Health and Human Services Contracting
- Health Resources and Services Administration Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency in award justification
- No clear indication of small business participation
Tags
administrative-management-and-general-ma, department-of-health-and-human-services, md, purchase-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $3.4 million to SEHMI ENTERPRISE, INC.. OIT-SERVICES33 C 6564 IT COMPLIANCE SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is SEHMI ENTERPRISE, INC..
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Health Resources and Services Administration).
What is the total obligated amount?
The obligated amount is $3.4 million.
What is the period of performance?
Start: 2025-03-12. End: 2027-03-11.
What was the justification for not competing this contract under SAP?
The provided data states the contract was 'NOT COMPETED UNDER SAP.' This typically implies that the procurement either fell outside the scope of SAP thresholds or was awarded using other contracting methods, such as limited competition or sole-source. A detailed justification would be required from the agency to understand the specific reasons.
How does the $3.44M price compare to similar IT compliance support contracts?
Without access to a competitive bidding process or a database of comparable contracts, it is difficult to benchmark the $3.44M price. The lack of competition limits the ability to assess if this price represents fair market value. Further research into similar agency procurements or industry benchmarks would be necessary for a comprehensive comparison.
What are the key performance indicators (KPIs) for this IT compliance support contract?
The provided data does not specify the key performance indicators (KPIs) for this contract. Effective oversight requires clearly defined KPIs to measure the contractor's performance in delivering IT compliance support services. The HRSA should have established these metrics within the contract's statement of work.
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 COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 75R60225Q00052
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 375 DERWOOD CIR STE A, ROCKVILLE, MD, 20850
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, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $4,499,785
Exercised Options: $3,441,998
Current Obligation: $3,441,998
Actual Outlays: $1,427,045
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2025-03-12
Current End Date: 2027-03-11
Potential End Date: 2027-03-11 00:00:00
Last Modified: 2026-03-09
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