HHS awards $23.3M for AHRQ applications development and maintenance to Enterprise Technology Solutions, LLC

Contract Overview

Contract Amount: $23,315,603 ($23.3M)

Contractor: Enterprise Technology Solutions, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2009-11-16

End Date: 2015-04-11

Contract Duration: 1,972 days

Daily Burn Rate: $11.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: TAS::75 1700::TAS AHRQ APPLICATIONS DEVELOPMENT AND MAINTENANCE

Place of Performance

Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20877, UNITED STATES OF AMERICA

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $23.3 million to ENTERPRISE TECHNOLOGY SOLUTIONS, LLC for work described as: TAS::75 1700::TAS AHRQ APPLICATIONS DEVELOPMENT AND MAINTENANCE Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1972 days (approx. 5.4 years) indicates a long-term need for these services. 3. The primary service category is Custom Computer Programming Services, a critical area for federal IT infrastructure. 4. The contract was awarded by the Agency for Healthcare Research and Quality (AHRQ), focusing on health research IT. 5. The contract type is Time and Materials, which can pose cost control challenges if not managed effectively. 6. The award was made in Maryland, potentially impacting the local IT workforce.

Value Assessment

Rating: fair

The total award amount of $23.3 million over approximately 5.4 years averages to about $4.3 million per year. Benchmarking this against similar custom computer programming contracts for federal health agencies is challenging without more specific service details. However, the Time and Materials contract type suggests that costs are tied to labor hours and materials used, which can be variable. Without detailed breakdowns of labor rates and material costs, a precise value-for-money assessment is difficult, but the duration and scope imply a significant investment in maintaining critical applications.

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,' indicating that the agency solicited bids from all responsible sources, but specific exclusions might have been applied. The presence of 7 bids suggests a reasonably competitive environment, which typically helps in achieving better pricing and service terms for the government. The level of competition is a positive indicator for price discovery.

Taxpayer Impact: A competitive bidding process generally leads to better value for taxpayers by encouraging multiple vendors to offer their best pricing and technical solutions.

Public Impact

The Agency for Healthcare Research and Quality (AHRQ) benefits from the continued development and maintenance of its applications, crucial for its mission of improving healthcare quality, safety, and efficiency. Federal researchers and healthcare professionals gain access to reliable and up-to-date IT tools and platforms supporting health services research. The contract supports IT jobs within the state of Maryland, contributing to the local technology sector. The successful execution of this contract ensures the continuity of essential IT services for a key federal health research agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored.
Lack of specific performance metrics in the provided data makes it difficult to assess the quality of services delivered.
The long contract duration might reduce flexibility to adopt newer technologies if the existing systems become outdated.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contractor, Enterprise Technology Solutions, LLC, has secured a significant contract, suggesting a level of trust and capability.
The contract supports a critical function for the Agency for Healthcare Research and Quality.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically custom computer programming services. The federal IT services market is substantial, with agencies continually investing in application development, maintenance, and modernization. This contract represents a portion of the broader federal spending on IT infrastructure and services, supporting the operational needs of health research and policy development. Comparable spending benchmarks would typically be found within IT services contracts awarded to health-focused federal 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 for small businesses stemming from a small business set-aside. The prime contractor, Enterprise Technology Solutions, LLC, is likely a mid-to-large-sized business given the contract value. Analysis of their subcontracting plan, if any, would be necessary to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for Healthcare Research and Quality (AHRQ) contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. The Department of Health and Human Services (HHS) also has an Office of Inspector General (OIG) that conducts audits and investigations to ensure accountability and prevent fraud, waste, and abuse in federal programs. Transparency is facilitated through contract databases like FPDS, where award details are publicly available.

Related Government Programs

AHRQ Applications Development
Custom Computer Programming Services
Federal Health IT Contracts
Time and Materials IT Contracts
HHS IT Modernization Efforts

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Lack of specific performance metrics in summary data.
Long contract duration may limit flexibility for technological upgrades.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $23.3 million to ENTERPRISE TECHNOLOGY SOLUTIONS, LLC. TAS::75 1700::TAS AHRQ APPLICATIONS DEVELOPMENT AND MAINTENANCE

Who is the contractor on this award?

The obligated recipient is ENTERPRISE TECHNOLOGY SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Agency for Healthcare Research and Quality).

What is the total obligated amount?

The obligated amount is $23.3 million.

What is the period of performance?

Start: 2009-11-16. End: 2015-04-11.

What is the track record of Enterprise Technology Solutions, LLC with federal contracts, particularly within HHS?

Enterprise Technology Solutions, LLC has a history of federal contracting, with this award representing a significant portion of their reported federal obligations. Further analysis of their contract history within HHS and other agencies would reveal their performance trends, types of services rendered, and overall success rate. Examining past performance evaluations and any reported issues or commendations would provide a clearer picture of their reliability and capability in delivering complex IT solutions. Understanding their experience with similar-sized and scoped contracts is crucial for assessing their suitability for this long-term application development and maintenance role.

How does the average annual cost of this contract compare to similar IT services contracts within the federal government?

The average annual cost of approximately $4.3 million for this contract needs to be benchmarked against comparable IT services contracts, particularly those for custom computer programming and application maintenance within health-focused federal agencies. Factors such as the complexity of the applications, the specific technologies used, labor rates in the geographic region (Maryland), and the level of security required will influence costs. Without access to detailed service level agreements and labor rate breakdowns, a precise comparison is difficult. However, this figure should be evaluated against industry standards and government-wide IT spending benchmarks to determine if it represents good value for money.

What are the key performance indicators (KPIs) used to measure the success of this contract?

The provided data does not specify the key performance indicators (KPIs) used to measure the success of this contract. Typically, for application development and maintenance contracts, KPIs would include metrics such as system uptime, response times, bug resolution rates, user satisfaction, adherence to project timelines, and successful deployment of new features. The Time and Materials nature of the contract suggests that oversight would focus on managing labor hours and material costs against defined tasks and milestones. A thorough review of the contract's Statement of Work (SOW) and performance work statement (PWS) would be necessary to identify the specific KPIs and performance standards.

What is the historical spending trend for AHRQ applications development and maintenance services?

To assess the historical spending trend for AHRQ applications development and maintenance, one would need to analyze AHRQ's budget allocations and contract awards for these specific services over several fiscal years prior to and following this contract. This would involve examining data from sources like the Federal Procurement Data System (FPDS) to identify previous contracts, their values, durations, and awarded contractors. Understanding whether spending has increased, decreased, or remained stable can indicate shifts in AHRQ's IT priorities, the lifecycle of their applications, or the effectiveness of their procurement strategies for these services.

What are the potential risks associated with a Time and Materials contract for this type of service?

Time and Materials (T&M) contracts, like the one awarded to Enterprise Technology Solutions, LLC, carry inherent risks, primarily concerning cost control. Since payment is based on direct labor hours and actual material costs, there is a risk of cost overruns if the scope of work is not well-defined or if project management is insufficient. The government may end up paying more than anticipated if the contractor's efficiency is low or if scope creep occurs without adequate controls. To mitigate these risks, robust oversight, detailed task orders, clear milestones, and regular progress reviews are essential to ensure that the contractor's efforts are efficient and aligned with the government's objectives.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 7

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 16 S SUMMIT AVE STE 250, GAITHERSBURG, MD, 20877

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

Financial Breakdown

Contract Ceiling: $40,508,958

Exercised Options: $23,315,603

Current Obligation: $23,315,603

Contract Characteristics

Cost or Pricing Data: NO

Timeline