HHS awarded $17.2M for IT operations support to The Ventura Group Inc. over 5.5 years

Contract Overview

Contract Amount: $17,251,249 ($17.3M)

Contractor: THE Ventura Group Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2010-01-15

End Date: 2015-08-31

Contract Duration: 2,054 days

Daily Burn Rate: $8.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: OTHER FUNCTIONS TAS::75 0350::TAS IT OPERATIONS SUPPORT (NETWORK AND HELP DESK ACTIVITIES)

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $17.3 million to THE VENTURA GROUP INC for work described as: OTHER FUNCTIONS TAS::75 0350::TAS IT OPERATIONS SUPPORT (NETWORK AND HELP DESK ACTIVITIES) Key points: 1. The contract's value of $17.2 million over 5.5 years suggests a moderate annual spend for IT operations support. 2. The firm fixed-price contract type indicates that costs were determined upfront, potentially limiting cost overruns but also reducing flexibility. 3. The contract was awarded through full and open competition, suggesting a robust bidding process. 4. The duration of over 2000 days (5.5 years) indicates a long-term need for these IT services. 5. The North American Industry Classification System (NAICS) code 541519 points to a broad range of 'Other Computer Related Services'. 6. The contract was a delivery order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar vehicle.

Value Assessment

Rating: fair

The total award of $17.2 million over 5.5 years averages to approximately $3.1 million per year. Without specific benchmarks for 'Network and Help Desk Activities' within the Health Resources and Services Administration (HRSA), it's challenging to definitively assess value for money. However, this annual spend is within a reasonable range for comprehensive IT support services for a federal agency of HRSA's size. The firm fixed-price nature of the contract means the government locked in costs, which can be advantageous if the scope was well-defined, but may lead to less favorable pricing if market conditions changed significantly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. With 8 bidders participating, this suggests a healthy level of competition for the IT operations support services. A higher number of bidders generally leads to more competitive pricing and a wider selection of qualified contractors, benefiting the government.

Taxpayer Impact: The full and open competition with 8 bidders likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition award. This process helps ensure that taxpayer funds are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiaries are the Health Resources and Services Administration (HRSA) staff who rely on stable and responsive IT infrastructure and help desk support to perform their duties. The services delivered include essential IT operations support, encompassing network management and help desk activities, crucial for the agency's daily functioning. The geographic impact is primarily within the agency's operational locations, likely concentrated where HRSA employees are based, predominantly in Maryland. The contract supports the IT workforce within The Ventura Group Inc., providing employment for individuals skilled in network administration and technical support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The firm fixed-price contract type could lead to the contractor absorbing cost savings, potentially at the expense of service quality if not closely monitored.
The long contract duration (5.5 years) might reduce the agency's agility to adopt newer technologies or switch providers if performance issues arise or better solutions become available.

Positive Signals

The award through full and open competition with 8 bidders suggests a strong market interest and likely a competitive pricing structure.
The firm fixed-price contract type provides cost certainty for the government, assuming the scope of work was accurately defined.
The contract's focus on essential IT operations support (network and help desk) indicates a commitment to maintaining critical infrastructure for HRSA.

Sector Analysis

The IT services sector is highly competitive and dynamic. This contract falls under 'Other Computer Related Services' (NAICS 541519), a broad category encompassing IT support, consulting, and integration. Federal spending in this area is substantial, driven by the increasing reliance on technology for agency operations. Benchmarks for similar IT support contracts vary widely based on scope, duration, and specific services, but the $17.2 million total award over 5.5 years represents a moderate investment for maintaining essential IT functions.

Small Business Impact

This contract was not specifically set aside for small businesses, and there is no indication of mandatory subcontracting goals for small businesses. The award to The Ventura Group Inc., a single entity, does not directly reflect a strategy to boost the small business ecosystem through this particular contract. Further analysis would be needed to determine if The Ventura Group Inc. itself is a small business or if they engage in subcontracting with small businesses.

Oversight & Accountability

As a delivery order under a larger contract vehicle (implied by 'AW: DELIVERY ORDER'), oversight would likely be managed by the contracting officer at the Health Resources and Services Administration (HRSA). Performance monitoring, adherence to the firm fixed-price terms, and quality of service delivery would be key oversight areas. Transparency is generally facilitated through contract databases like FPDS, where basic award details are publicly available. Specific Inspector General (IG) jurisdiction would depend on the agency's internal policies and the nature of any potential issues.

Related Government Programs

IT Operations Support Contracts
Help Desk Services
Network Management Services
Federal IT Services
Health IT Support

Risk Flags

Long-term contract duration may limit flexibility for technology upgrades.
Firm fixed-price contracts can sometimes disincentivize contractor innovation or proactive service improvements.
Scope definition in IT contracts is critical; ambiguity can lead to disputes or unmet needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $17.3 million to THE VENTURA GROUP INC. OTHER FUNCTIONS TAS::75 0350::TAS IT OPERATIONS SUPPORT (NETWORK AND HELP DESK ACTIVITIES)

Who is the contractor on this award?

The obligated recipient is THE VENTURA GROUP INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $17.3 million.

What is the period of performance?

Start: 2010-01-15. End: 2015-08-31.

What is the track record of The Ventura Group Inc. in performing similar federal IT support contracts?

Assessing The Ventura Group Inc.'s track record requires examining their past performance on federal contracts, particularly those involving IT operations support, network management, and help desk services. Publicly available data, such as contract award histories and performance evaluations (if accessible), would reveal their experience with agencies like HRSA. Key indicators include contract values, durations, types of services rendered, and any reported performance issues or commendations. A history of successful, on-time, and within-budget contract completions would suggest reliability. Conversely, a pattern of contract disputes, performance failures, or significant cost overruns would raise concerns about their capability to fulfill this current $17.2 million award effectively.

How does the pricing of this contract compare to similar IT support contracts awarded by HRSA or other HHS agencies?

To benchmark the pricing, one would need to compare the average annual cost of this contract (approximately $3.1 million) against similar IT operations support contracts awarded by HRSA or other agencies within the Department of Health and Human Services (HHS). This comparison should consider factors such as the number of users supported, the scope of services (e.g., 24/7 help desk vs. standard hours, network complexity), and the contract duration. If comparable contracts show significantly lower annual costs for similar service levels, it might indicate that this contract's pricing is not optimal. Conversely, if the pricing aligns with or is lower than benchmarks, it suggests reasonable value for the services provided. The firm fixed-price nature also means the government's exposure to price increases is limited, which is a positive factor in value assessment.

What are the primary risks associated with a 5.5-year firm fixed-price contract for IT operations support?

A significant risk with a long-term, firm fixed-price contract for IT operations support is the potential for scope creep or the need for evolving technologies. If the initial scope definition is not comprehensive, the contractor may be hesitant to perform work outside its strict interpretation, leading to gaps in support. Conversely, if the agency requires changes or upgrades not initially envisioned, the fixed-price nature can make modifications costly or difficult. Furthermore, technology evolves rapidly; a 5.5-year commitment might lock the agency into outdated systems or services if the contract doesn't include mechanisms for adaptation or technological refresh. Contractor performance degradation over time is also a risk, as the fixed price might disincentivize proactive improvements or exceptional service delivery once the initial performance period is established.

How effective is the 'full and open competition' process in ensuring cost-effectiveness for this type of IT service?

The 'full and open competition' process is generally considered highly effective in ensuring cost-effectiveness for IT services like network and help desk support. By allowing all responsible vendors to bid, it fosters a competitive environment that drives down prices as contractors vie for the award. The presence of 8 bidders in this case suggests robust market interest, increasing the likelihood of receiving competitive proposals. This process allows the government to leverage market forces to obtain services at or near the lowest possible price while ensuring a wide pool of qualified vendors is considered. The cost-effectiveness is further enhanced if the evaluation criteria include not just price but also technical merit and past performance, ensuring the lowest price doesn't come at the expense of quality.

What are the historical spending patterns for IT operations support at HRSA or similar agencies?

Analyzing historical spending patterns for IT operations support at HRSA and similar agencies is crucial for context. This involves examining annual expenditures on IT support services over several preceding years. Key questions include whether spending has been consistent, increasing, or decreasing, and what factors influenced these trends (e.g., agency growth, technology upgrades, contract vehicles used). Comparing the $17.2 million total award to historical annual spending can reveal if this contract represents a significant increase or decrease in investment. Understanding these patterns helps in evaluating the reasonableness of the current contract's value and forecasting future IT support needs and budgets within the agency.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 19775 BELMONT EXECUTIVE PLZ STE 125, ASHBURN, VA, 20147

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Service Disabled Veteran Owned Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $30,952,158

Exercised Options: $17,251,249

Current Obligation: $17,251,249

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F0647T

IDV Type: FSS

Timeline