HHS Awards $23.3M GovDelivery Contract to FedResults, Inc. for Web Hosting Services

Contract Overview

Contract Amount: $23,276,057 ($23.3M)

Contractor: Fedresults, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2012-03-31

End Date: 2017-03-31

Contract Duration: 1,826 days

Daily Burn Rate: $12.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NEW GOVDELIVERY CONTRACT

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $23.3 million to FEDRESULTS, INC. for work described as: NEW GOVDELIVERY CONTRACT Key points: 1. Contract awarded to FedResults, Inc. for computing infrastructure and web hosting. 2. The contract falls under the 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services' NAICS code. 3. Awarded via full and open competition, indicating a competitive bidding process. 4. The contract duration is 5 years, with a total value of $23,276,057.23.

Value Assessment

Rating: good

The contract value of $23.3M over 5 years appears reasonable for comprehensive web hosting and data processing services. Benchmarking against similar government-wide contracts for cloud hosting and IT infrastructure services would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, suggesting that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition contract.

Public Impact

Ensures continued operation of critical web hosting and data processing services for CMS. Supports the infrastructure necessary for public access to health program information. The contract's duration provides stability for service delivery. Potential impact on small businesses is minimal as the award was not set-aside.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in provided data.
Potential for vendor lock-in if not managed effectively.
Reliance on a single vendor for critical infrastructure.

Positive Signals

Awarded through full and open competition.
Firm fixed price contract type helps control costs.
Long-term contract provides service continuity.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computing infrastructure and web hosting. Government spending in this area is substantial, driven by the need for secure and reliable digital platforms for agency operations and public-facing services.

Small Business Impact

The provided data indicates that this contract was not set-aside for small businesses, and the awardee, FedResults, Inc., is not explicitly identified as a small business. Further analysis would be needed to determine the extent of small business participation as subcontractors.

Oversight & Accountability

The contract was awarded via delivery order under a larger contract vehicle, suggesting it has undergone some level of prior review. However, ongoing oversight of performance, cost, and adherence to terms is crucial for ensuring value and accountability.

Related Government Programs

Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Department of Health and Human Services Contracting
Centers for Medicare and Medicaid Services Programs

Risk Flags

Potential for cost overruns if scope creep occurs.
Dependence on a single vendor for critical IT infrastructure.
Risk of service disruption if vendor performance degrades.
Cybersecurity vulnerabilities associated with data hosting.
Limited visibility into subcontractor performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $23.3 million to FEDRESULTS, INC.. NEW GOVDELIVERY CONTRACT

Who is the contractor on this award?

The obligated recipient is FEDRESULTS, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).

What is the total obligated amount?

The obligated amount is $23.3 million.

What is the period of performance?

Start: 2012-03-31. End: 2017-03-31.

What specific services are included under the 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services' NAICS code for this contract?

This NAICS code encompasses a broad range of services including providing access to computer resources, data processing services, web hosting, and related support. For this specific contract, it likely includes hosting for websites, managing databases, providing cloud infrastructure, and ensuring the availability and security of digital platforms for CMS operations and public engagement.

How does the $23.3M contract value compare to industry benchmarks for similar government web hosting and data processing services over a 5-year period?

Without specific details on the service level agreements, data storage, bandwidth, and security requirements, a direct benchmark is challenging. However, for large-scale government contracts, this value appears within a reasonable range, especially considering the potential for high availability and security demands. Comparing it to GSA schedules or other large agency IT procurements would offer more precise insights.

What mechanisms are in place to ensure the effectiveness and efficiency of FedResults, Inc.'s services throughout the contract's 5-year duration?

Effectiveness and efficiency are typically ensured through Service Level Agreements (SLAs) within the contract, performance metrics, regular reporting requirements, and periodic reviews by the contracting officer's representative. The firm fixed price structure incentivizes the contractor to deliver services efficiently to maintain profitability, while the government monitors performance against agreed-upon standards.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1900 CAMPUS COMMONS DR STE 100, RESTON, VA, 20191

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

Financial Breakdown

Contract Ceiling: $40,290,925

Exercised Options: $23,276,057

Current Obligation: $23,276,057

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F0256K

IDV Type: FSS

Timeline