HHS awards $31.3M for IT services to Berry Technology Solutions, spanning nearly 6 years

Contract Overview

Contract Amount: $31,347,637 ($31.3M)

Contractor: Berry Technology Solutions, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2015-09-24

End Date: 2021-03-23

Contract Duration: 2,007 days

Daily Burn Rate: $15.6K/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: SERVICES

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30329

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $31.3 million to BERRY TECHNOLOGY SOLUTIONS, LLC for work described as: SERVICES Key points: 1. Contract value represents a significant investment in IT support for CDC. 2. Competition dynamics suggest a potentially competitive bidding process. 3. Contract duration indicates a long-term need for these services. 4. Performance period spans multiple fiscal years, requiring sustained oversight. 5. Sector positioning within public health IT is a key area of focus. 6. The contract type (Time and Materials) warrants close monitoring of labor hours and rates.

Value Assessment

Rating: good

The contract's total value of $31.3 million over nearly six years averages to approximately $5.2 million annually. Benchmarking this against similar IT service contracts within federal health agencies requires a detailed analysis of the specific services rendered. However, the duration and scope suggest a moderate level of investment. Without specific per-unit cost data or detailed service breakdowns, a precise value-for-money assessment is challenging, but the competitive award process provides some assurance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, there were specific reasons for excluding certain sources. This suggests a robust initial competition phase. The award to Berry Technology Solutions implies they were the most advantageous offeror based on the evaluation criteria. The presence of 7 bids indicates a healthy level of interest and competition.

Taxpayer Impact: A full and open competition generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source or limited competition awards.

Public Impact

The Centers for Disease Control and Prevention (CDC) benefits from enhanced IT services. Services likely support critical public health data management, analysis, and infrastructure. Geographic impact is national, supporting CDC's nationwide operations. Workforce implications may include support for federal IT staff and potential contractor employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with Time and Materials contract type if not closely managed.
Ensuring the 'exclusion of sources' was justified and did not unduly limit competition.
Monitoring contractor performance to ensure alignment with evolving IT needs.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Contract duration of nearly 6 years indicates a stable, long-term partnership.
The number of bids received (7) suggests significant market interest and a competitive landscape.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically focusing on 'Other Computer Related Services' (NAICS 541519). The federal IT services market is substantial, with agencies like HHS being major spenders. This contract likely supports critical infrastructure and data management functions for the CDC, a key player in public health. Comparable spending benchmarks would depend on the specific nature of the IT services provided, such as network management, software development, or data analytics.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Berry Technology Solutions, LLC, is identified as the contractor. Further analysis would be needed to determine if Berry Technology Solutions qualifies as a small business itself, or if subcontracting opportunities were mandated or utilized. Without this information, the direct impact on the small business ecosystem is unclear, but the absence of a set-aside suggests larger firms or those meeting specific criteria were eligible and competed.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services (HHS) and the Centers for Disease Control and Prevention (CDC). Contract administration and performance monitoring are key accountability measures. Transparency is facilitated through contract databases like FPDS. The Inspector General for HHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

HHS IT Services Contracts
CDC IT Modernization Efforts
Federal Health IT Spending
Information Technology Professional Services
Time and Materials Contracts

Risk Flags

Time and Materials contract type requires diligent oversight to control costs.
Justification for 'Exclusion of Sources' needs verification to ensure fair competition.
Contract duration necessitates long-term performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $31.3 million to BERRY TECHNOLOGY SOLUTIONS, LLC. SERVICES

Who is the contractor on this award?

The obligated recipient is BERRY TECHNOLOGY SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $31.3 million.

What is the period of performance?

Start: 2015-09-24. End: 2021-03-23.

What specific IT services were provided under this contract, and how did they align with the CDC's mission?

The contract's NAICS code (541519) indicates 'Other Computer Related Services.' While the specific deliverables are not detailed in the provided data, these services typically encompass a broad range of IT support, potentially including IT system development, integration, maintenance, cybersecurity, data management, and technical consulting. For the CDC, such services are crucial for managing vast amounts of public health data, supporting disease surveillance systems, enabling research, and maintaining the operational integrity of their IT infrastructure. The contract's duration and value suggest it supported significant, ongoing IT functions essential to the CDC's public health mission.

How does the average annual cost of this contract compare to similar IT service contracts awarded by the CDC or HHS?

The contract's total value of $31.3 million over approximately 5.75 years (September 24, 2015, to March 23, 2021) averages to about $5.44 million per year. To benchmark this effectively, one would need to compare it with other IT service contracts of similar scope and duration awarded by the CDC or HHS during the same period. Factors such as the specific services (e.g., software development vs. network support), the level of expertise required, and the contract type (e.g., fixed-price vs. T&M) significantly influence pricing. Without access to a detailed comparative analysis of similar contracts, it's difficult to definitively state if this represents a high, low, or average cost.

What are the key risks associated with a Time and Materials (T&M) contract of this magnitude and duration?

Time and Materials contracts, like this one, carry inherent risks primarily related to cost control. The government pays for the actual labor hours and the cost of materials used. Key risks include potential for cost overruns if labor hours are not efficiently managed or if material costs escalate unexpectedly. There's also a risk of scope creep, where the project expands beyond its original intent without a corresponding increase in contract ceiling, leading to higher costs. For a contract of this size ($31.3M) and duration (nearly 6 years), robust oversight, detailed tracking of hours and materials, and clear task definitions are critical to mitigate these risks and ensure value for taxpayer money.

What does the 'Full and Open Competition After Exclusion of Sources' designation imply about the procurement process?

This designation indicates that the procurement initially aimed for broad competition ('Full and Open'). However, specific sources were excluded before the final solicitation or evaluation. This exclusion must be justified under specific circumstances outlined in federal acquisition regulations, such as national security concerns, the need for specialized capabilities only available from certain sources, or prior performance issues. While it implies a competitive process was intended, the exclusion of sources warrants scrutiny to ensure it was necessary and did not unduly restrict competition, potentially impacting price discovery and the range of available solutions.

How has Berry Technology Solutions performed on previous federal contracts, and does this inform the risk assessment for this award?

Assessing Berry Technology Solutions' past performance is crucial for understanding the risk associated with this $31.3 million contract. A review of their contract history within federal databases (like FPDS) would reveal their track record regarding on-time delivery, quality of work, adherence to budget, and overall customer satisfaction. Positive past performance would indicate a lower risk, suggesting the contractor is reliable and capable. Conversely, a history of performance issues, contract disputes, or terminations could signal higher risks, necessitating closer monitoring and potentially more stringent performance requirements during the execution of this contract.

Industry Classification

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

Solicitation ID: 2015-N-16885

Offers Received: 7

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Berry Technology Solutions LLC

Address: 19 E BROAD ST, NEWNAN, GA, 30263

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $33,191,222

Exercised Options: $33,191,222

Current Obligation: $31,347,637

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline