HHS awards $12M for PDF publishing software to MasterControl Solutions, Inc

Contract Overview

Contract Amount: $12,084 ($12.1K)

Contractor: Mastercontrol Solutions, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2011-02-16

End Date: 2012-02-15

Contract Duration: 364 days

Daily Burn Rate: $33/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MASTER CONTROL PDF PUBLISHING SOFTWARE

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $12,084.44 to MASTERCONTROL SOLUTIONS, INC. for work described as: MASTER CONTROL PDF PUBLISHING SOFTWARE Key points: 1. The contract was competed under SAP, suggesting a potentially competitive process for this software acquisition. 2. The firm fixed-price contract type indicates that the price was set upfront, transferring some cost risk to the contractor. 3. The duration of one year (364 days) is typical for software licensing or maintenance agreements. 4. The award was made by the Department of Health and Human Services (HHS) to support the FDA. 5. The North American Industry Classification System (NAICS) code 511210 points to the Software Publishers sector. 6. The contract value of approximately $12 million warrants scrutiny for value for money. 7. The absence of small business set-aside flags suggests this was not specifically targeted for small business participation.

Value Assessment

Rating: fair

Benchmarking the value of this $12 million contract for PDF publishing software is challenging without more specific details on the software's capabilities and the market for comparable solutions. The firm fixed-price nature suggests a negotiated price, but without a clear comparison to similar government or commercial contracts for this specific software or its features, it's difficult to definitively assess if the price represents good value. The single award also limits the ability to compare pricing across multiple vendors.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under SAP (Simplified Acquisition Procedures), which generally allows for broader competition than sole-source awards. However, the specific number of bidders or the extent of outreach under SAP is not detailed here. The use of SAP suggests that the acquisition was likely valued below the threshold requiring full and open competition, but still aimed to leverage market competition to some degree.

Taxpayer Impact: Competing under SAP likely resulted in a more favorable price for taxpayers compared to a sole-source award, by allowing multiple vendors to submit proposals and potentially driving down costs through competitive bidding.

Public Impact

The primary beneficiary of this contract is the Food and Drug Administration (FDA), a sub-agency of HHS. The contract delivers essential PDF publishing software, likely used for document management, regulatory submissions, or internal processes. The geographic impact is primarily within Maryland, where the FDA is headquartered and where the contractor is located. The workforce implications are likely related to IT support staff and end-users within the FDA who will utilize the software.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the effectiveness of the software.
The contract value of $12 million for a single-year software license could be high if the software's functionality is standard.
Limited information on the competition process under SAP makes it hard to confirm optimal price discovery.

Positive Signals

The contract was competed, indicating an effort to obtain competitive pricing.
The firm fixed-price contract type shifts cost overrun risk to the contractor.
The award is to a specific software publisher, suggesting a focus on a known solution for a defined need.

Sector Analysis

The software publishing industry is a significant segment of the technology sector, encompassing companies that develop, publish, and distribute software. This contract falls within the broader IT services and software acquisition landscape for federal agencies. The $12 million award for PDF publishing software is a substantial amount, suggesting a critical need or a specialized solution. Comparable spending benchmarks would typically involve analyzing other federal contracts for enterprise-level document management or specialized publishing software.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This means that both large and small businesses were eligible to compete. The absence of a small business set-aside does not preclude subcontracting opportunities for small businesses, but it does not guarantee them either. The impact on the small business ecosystem is neutral in terms of direct set-aside benefits, but large prime contractors may still engage small businesses for specialized services or support related to the software.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services' contracting officers and program managers. The contract type (Purchase Order) suggests a streamlined acquisition process. Transparency is facilitated by public contract databases, but detailed performance reviews or Inspector General involvement would depend on specific performance issues or audits. Accountability rests with the contractor to deliver the software as specified and with the agency to monitor performance and payment.

Related Government Programs

HHS IT Software Procurement
FDA Software Licensing
Federal Document Management Systems
General Services Administration (GSA) Schedule IT Contracts
Software Publishers Contracts

Risk Flags

Potential for high cost relative to functionality without detailed benchmarking.
Limited transparency on the specific competition details under SAP.
Lack of performance metrics in the provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $12,084.44 to MASTERCONTROL SOLUTIONS, INC.. MASTER CONTROL PDF PUBLISHING SOFTWARE

Who is the contractor on this award?

The obligated recipient is MASTERCONTROL SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Food and Drug Administration).

What is the total obligated amount?

The obligated amount is $12,084.44.

What is the period of performance?

Start: 2011-02-16. End: 2012-02-15.

What specific functionalities does MasterControl PDF publishing software offer that justify a $12 million award?

The provided data does not detail the specific functionalities of the MasterControl PDF publishing software. A $12 million award for a one-year contract suggests the software may offer advanced features beyond basic PDF creation and editing, potentially including enterprise-level document control, workflow automation, regulatory compliance tools, audit trails, and integration capabilities with other systems. To justify this cost, the software likely addresses complex needs within the FDA related to managing vast amounts of documentation, ensuring data integrity, and facilitating regulatory processes. Further analysis would require reviewing the contract's statement of work (SOW) and the vendor's technical proposal to understand the scope and sophistication of the delivered solution.

How does the $12 million contract value compare to similar federal contracts for PDF publishing or document management software?

Without access to a comprehensive database of federal contract awards specifically for 'PDF publishing software' with detailed feature comparisons, a direct benchmark is difficult. However, $12 million for a one-year contract is a significant sum. Federal agencies often procure enterprise-level document management systems, which can range from a few million to tens of millions of dollars annually, depending on the user base, complexity, and included services (like support and maintenance). If this contract is solely for PDF publishing capabilities, it might be on the higher end. If it encompasses broader document lifecycle management, collaboration, and compliance features, the price could be more aligned with market rates for such enterprise solutions. Further investigation into contracts with similar NAICS codes (511210) and PSCs (if available) for agencies with comparable needs would be necessary for a robust comparison.

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

Key risks include potential overpayment if the software's value does not match the $12 million price tag, vendor lock-in if switching to another solution is difficult or costly, and performance issues if the software does not meet the FDA's specific requirements. Mitigation strategies are partially indicated by the contract terms: the firm fixed-price structure shifts cost overrun risk to the contractor. Competition under SAP aims to secure a reasonable price. However, ongoing oversight by the agency to monitor performance, ensure deliverables meet specifications, and manage the vendor relationship is crucial. The one-year duration also allows for re-evaluation at renewal, providing an opportunity to adjust or seek alternatives if performance is unsatisfactory.

What is the track record of MasterControl Solutions, Inc. in fulfilling federal contracts, particularly for software solutions?

The provided data does not include information on MasterControl Solutions, Inc.'s track record with federal contracts. To assess this, one would need to query federal procurement databases (like FPDS or SAM.gov) for past awards to this contractor, examining contract values, performance history, and any reported issues or successes. A history of successful, on-time, and within-budget contract completions would indicate lower risk. Conversely, a history of contract disputes, performance failures, or significant cost overruns would raise concerns about their ability to deliver on this $12 million award effectively.

How does the agency (HHS/FDA) typically procure software, and does this contract align with those patterns?

HHS and its sub-agencies like the FDA procure software through various mechanisms, including GSA Schedules, direct solicitations, and competitive bidding processes like SAP. The use of SAP for this $12 million award suggests it was considered within the simplified acquisition threshold or that the agency opted for this route for efficiency. This aligns with common federal procurement practices where agencies balance the need for competition with the efficiency of streamlined processes for certain acquisition values. The specific choice of SAP might indicate that the agency believed it could achieve adequate competition and value within those parameters for this particular software need.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6322 S 3000 E STE 110, SALT LAKE CITY, UT, 84121

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,084

Exercised Options: $12,084

Current Obligation: $12,084

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline