HHS awards $755K IT maintenance contract to Synergy Group JV, LLC for one year

Contract Overview

Contract Amount: $75,540 ($75.5K)

Contractor: Synergy Group JV, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2025-10-23

End Date: 2026-10-20

Contract Duration: 362 days

Daily Burn Rate: $209/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: OIT- MAINT29 C 7356 ANUE MAINTENANCE RENEWAL

Place of Performance

Location: ANNAPOLIS, ANNE ARUNDEL County, MARYLAND, 21401

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $75,540.09 to SYNERGY GROUP JV, LLC for work described as: OIT- MAINT29 C 7356 ANUE MAINTENANCE RENEWAL Key points: 1. Contract value appears reasonable for a one-year IT maintenance renewal. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type mitigates cost overrun risks. 4. Contract duration of one year allows for periodic reassessment. 5. Synergy Group JV, LLC is the sole awardee for this delivery order. 6. The contract falls under IT services, specifically computer-related services.

Value Assessment

Rating: good

The contract value of approximately $755,000 for a one-year IT maintenance renewal seems within a reasonable range for services of this nature. Without specific benchmarks for this exact type of maintenance and the specific systems supported, a direct per-unit cost comparison is difficult. However, the firm fixed-price structure suggests that the government has negotiated a set price, which is generally favorable for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all eligible responsible sources were permitted to submit a bid. The number of bidders is not specified, but the process itself suggests a healthy level of competition, which typically drives down prices and encourages innovation.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining the best value through a competitive bidding process, potentially leading to lower costs and higher quality services.

Public Impact

The Department of Health and Human Services (HHS) benefits from continued IT system maintenance. Essential IT support services are delivered to ensure the smooth operation of HHS systems. The primary geographic impact is within Maryland, where the contractor is located. The contract supports the IT workforce within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on system criticality and potential impact of service disruption.
Limited information on the contractor's past performance specifically for this type of maintenance.
No data provided on the number of bids received, making it hard to fully assess competition intensity.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Firm Fixed Price contract type helps control costs and provides budget certainty.
Contract duration is relatively short (one year), allowing for performance review and potential re-competition.
The contract is for maintenance renewal, implying a need for ongoing, established services.

Sector Analysis

This contract falls within the broader IT services sector, specifically 'Other Computer Related Services' (NAICS 541519). This category encompasses a wide range of IT support and maintenance activities. The market for IT maintenance and support services is substantial, with government contracts forming a significant portion. Benchmarking this specific contract's value against the broader IT services market is challenging without more detail on the systems being maintained, but the award amount is modest for a federal agency.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from this particular award. The focus was on full and open competition.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services' contracting and program management offices. As a delivery order under a larger contract vehicle (implied by 'ANUE MAINTENANCE RENEWAL'), oversight might also be influenced by the parent contract's structure. Transparency is generally maintained through contract award databases, though specific performance monitoring details are not publicly available.

Related Government Programs

HHS IT Modernization Initiatives
Federal Civilian IT Services Contracts
IT Maintenance and Support Services

Risk Flags

Potential for vendor lock-in if maintenance is highly specialized.
Dependence on contractor performance for critical IT system uptime.
Limited visibility into detailed performance metrics from award data alone.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $75,540.09 to SYNERGY GROUP JV, LLC. OIT- MAINT29 C 7356 ANUE MAINTENANCE RENEWAL

Who is the contractor on this award?

The obligated recipient is SYNERGY GROUP JV, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Financial Resources).

What is the total obligated amount?

The obligated amount is $75,540.09.

What is the period of performance?

Start: 2025-10-23. End: 2026-10-20.

What is the specific nature of the IT systems or services being maintained under this contract?

The contract description 'ANUE MAINTENANCE RENEWAL' and the NAICS code '541519 - Other Computer Related Services' suggest that this contract covers the maintenance and support of various IT systems and infrastructure within the Department of Health and Human Services (HHS). This could include software, hardware, networks, or specialized IT applications critical to HHS operations. Without further details, the exact systems are not specified, but it is likely related to the ongoing operational needs of the Office of the Assistant Secretary for Financial Resources or broader HHS IT infrastructure.

How does the $755,000 contract value compare to similar IT maintenance contracts at HHS or other federal agencies?

Comparing the $755,000 value requires context on the scope and criticality of the systems maintained. For a one-year renewal of IT maintenance, this amount is moderate. Larger agencies often have multi-million dollar contracts for comprehensive IT support. However, for specific system maintenance or a particular office's needs, this figure could be appropriate. Benchmarking against similar 'Other Computer Related Services' contracts within HHS or other agencies of comparable size would provide a more precise assessment, but such data is not readily available in the provided snippet. The firm fixed-price nature suggests a negotiated value.

What is Synergy Group JV, LLC's track record with federal IT maintenance contracts?

Information on Synergy Group JV, LLC's specific track record for IT maintenance contracts is not detailed in the provided data. As a Joint Venture (JV), its performance may be a composite of its member companies' experiences. Federal procurement databases would typically show past awards, performance evaluations (e.g., CPARS), and the types of services previously rendered by the company. Further investigation into these resources would be necessary to fully assess their experience and reliability in fulfilling IT maintenance requirements for agencies like HHS.

What are the potential risks associated with this contract, and how are they mitigated?

Potential risks include service disruptions if maintenance is inadequate, or if the contractor fails to meet performance standards. Mitigation strategies are primarily embedded in the contract structure: the 'Firm Fixed Price' (FFP) type helps control costs, and the 'Full and Open Competition' process aims to select a capable vendor. The one-year duration allows for periodic reassessment of performance. However, specific performance metrics and remedies for non-performance are not detailed here, which could represent a residual risk if not adequately defined in the full contract.

How does this contract align with HHS's broader IT modernization or operational goals?

This contract, being a maintenance renewal, primarily supports the operational continuity of existing IT systems rather than new modernization efforts. While essential for day-to-day functioning, it may not directly contribute to strategic IT modernization goals unless the maintenance itself involves upgrades or supports systems slated for modernization. Its alignment depends on whether the systems being maintained are legacy systems targeted for replacement or stable platforms crucial for ongoing HHS functions. Understanding the specific systems would clarify its strategic relevance.

What is the historical spending pattern for IT maintenance at the Office of the Assistant Secretary for Financial Resources (ASFR)?

The provided data only includes details for this specific contract award (OIT- MAINT29 C 7356 ANUE MAINTENANCE RENEWAL). To understand historical spending patterns for IT maintenance at the ASFR, one would need to analyze procurement data over several fiscal years. This would involve searching for previous contracts awarded to this or other vendors for similar maintenance services, noting their values, durations, and the specific systems supported. Such an analysis would reveal trends, identify potential cost increases or decreases, and highlight any shifts in contracting strategies.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 75R60226Q00003

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 304 HARRY S TRUMAN PKWY STE G, ANNAPOLIS, MD, 21401

Business Categories: Category Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $75,540

Exercised Options: $75,540

Current Obligation: $75,540

Actual Outlays: $37,902

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSN316201500036W

IDV Type: GWAC

Timeline