HHS CDC Awards $27.1M for IGF Evaluation Web Application to Luther Consulting LLC
Contract Overview
Contract Amount: $27,127,315 ($27.1M)
Contractor: Luther Consulting LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2017-09-29
End Date: 2022-09-28
Contract Duration: 1,825 days
Daily Burn Rate: $14.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF EVALUATION WEB APPLICATION
Place of Performance
Location: CARMEL, HAMILTON County, INDIANA, 46032
State: Indiana Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $27.1 million to LUTHER CONSULTING LLC for work described as: IGF::OT::IGF EVALUATION WEB APPLICATION Key points: 1. Significant contract value of $27.1 million over five years. 2. Contract was not competed, raising questions about price discovery. 3. Potential risk associated with sole-source awards and lack of competition. 4. Spending falls within the IT services sector, specifically custom computer programming.
Value Assessment
Rating: questionable
The contract's fixed price of $27.1 million over five years lacks a clear benchmark due to its sole-source nature. Without competitive bidding, it's difficult to assess if this price represents fair market value for custom computer programming services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, meaning it was not competed. This limits price discovery and may result in higher costs for taxpayers compared to a competitive procurement.
Taxpayer Impact: The lack of competition for a $27.1 million contract suggests potential for overpayment, impacting taxpayer funds negatively.
Public Impact
Taxpayers may be paying more than necessary due to the absence of competitive bidding. The CDC's reliance on a single vendor for this critical application warrants scrutiny. Lack of transparency in the procurement process could indicate systemic issues. The long-term implications of sole-source awards on government IT infrastructure are concerning.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value without clear justification
Positive Signals
- Contract awarded to a single entity
- Fixed-price contract type
Sector Analysis
This contract falls under IT services, specifically custom computer programming. The average contract value for this NAICS code can vary widely, but a $27.1 million award over five years is substantial and warrants scrutiny for competitive justification.
Small Business Impact
The contract was awarded to Luther Consulting LLC, a single entity. There is no indication that small businesses were involved as subcontractors or partners in this sole-source award.
Oversight & Accountability
The sole-source nature of this award raises concerns about oversight and accountability in the procurement process. A lack of competition limits the ability to ensure the government is receiving the best value.
Related Government Programs
- Custom Computer Programming Services
- Department of Health and Human Services Contracting
- Centers for Disease Control and Prevention Programs
Risk Flags
- Sole-source award lacks transparency.
- Absence of competition may lead to inflated costs.
- Potential for vendor lock-in.
- Limited oversight due to non-competitive nature.
- Risk of inadequate performance without competitive pressure.
Tags
custom-computer-programming-services, department-of-health-and-human-services, in, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $27.1 million to LUTHER CONSULTING LLC. IGF::OT::IGF EVALUATION WEB APPLICATION
Who is the contractor on this award?
The obligated recipient is LUTHER CONSULTING 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 $27.1 million.
What is the period of performance?
Start: 2017-09-29. End: 2022-09-28.
What was the justification for awarding this contract on a sole-source basis instead of competing it?
The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent needs. However, without explicit documentation, it's impossible to confirm the specific rationale in this case.
How does the $27.1 million price compare to similar custom computer programming services procured competitively?
Direct comparison is challenging due to the sole-source nature of this contract. Competitive procurements for similar custom computer programming services would likely yield a range of pricing based on scope, complexity, and vendor capabilities. The absence of competition here prevents a definitive assessment of whether this price is above or below market rates established through bidding.
What is the potential risk to the CDC if Luther Consulting LLC is unable to fulfill the contract requirements?
If Luther Consulting LLC fails to meet contract requirements, the CDC faces significant disruption to its IGF Evaluation Web Application operations. Transitioning to a new vendor for a custom-built system would likely incur substantial costs, delays, and potential loss of critical data or functionality. The sole-source nature exacerbates this risk, as finding an immediate replacement with the necessary institutional knowledge would be difficult.
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 › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 2017N66757
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 10435 COMMERCE DR, CARMEL, IN, 46032
Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $27,154,315
Exercised Options: $27,154,315
Current Obligation: $27,127,315
Actual Outlays: $6,248,315
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2017-09-29
Current End Date: 2022-09-28
Potential End Date: 2022-09-28 00:00:00
Last Modified: 2024-04-28
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