HHS awarded $20.2M for NIH app development, with Paragon Technology Group Inc. as the contractor

Contract Overview

Contract Amount: $20,208,899 ($20.2M)

Contractor: Paragon Technology Group Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2009-09-21

End Date: 2012-09-12

Contract Duration: 1,087 days

Daily Burn Rate: $18.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: LABOR HOURS

Sector: IT

Official Description: TAS::75 0872::TAS BASE AWARD FUNDING FOR APPS DEVELOPMENT CONTRACT.

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $20.2 million to PARAGON TECHNOLOGY GROUP INC. for work described as: TAS::75 0872::TAS BASE AWARD FUNDING FOR APPS DEVELOPMENT CONTRACT. Key points: 1. The contract was awarded on a full and open competition basis, suggesting a competitive bidding process. 2. The contract duration of 1087 days indicates a medium-term project for application development. 3. The primary service category is Custom Computer Programming Services, aligning with app development needs. 4. The award was made to Paragon Technology Group Inc., a single contractor for the duration. 5. The contract was a definitive contract, typically used for services or supplies over a period. 6. The base award funding was approximately $20.2 million.

Value Assessment

Rating: fair

The total award amount of $20.2 million for custom computer programming services over nearly three years appears within a reasonable range for complex application development projects. Benchmarking against similar contracts for custom software development by federal agencies would provide a more precise value-for-money assessment. Without specific details on the scope of work and deliverables, it is challenging to definitively assess if the pricing was optimal. However, the contract type (labor hours) suggests flexibility in managing project scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while there was an initial exclusion of certain sources, the remaining competition was open to all qualified offerors. The number of bids received is not specified, but the 'full and open' designation generally indicates a robust competitive environment. This approach aims to ensure fair pricing and access to a wide range of capabilities.

Taxpayer Impact: A competitive award process helps ensure that taxpayer funds are used efficiently by driving down costs and encouraging innovation from multiple vendors.

Public Impact

The primary beneficiary is the National Institutes of Health (NIH), a part of the Department of Health and Human Services (HHS). The services delivered are custom computer programming, likely for developing or enhancing applications to support NIH's mission. The geographic impact is primarily within Maryland, where the contractor is located and likely where the services are performed. Workforce implications include employment opportunities for programmers and IT professionals within Paragon Technology Group Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the scope of work makes it difficult to assess the true value and efficiency of the awarded funds.
The contract type (labor hours) can sometimes lead to cost overruns if not managed carefully, as it is tied to the time spent by personnel.
Without knowing the number of bidders, it's hard to confirm the extent of competition and its potential impact on pricing.

Positive Signals

The contract was awarded through a full and open competition process, indicating a commitment to leveraging the broadest possible market.
The contractor, Paragon Technology Group Inc., has secured a significant federal contract, suggesting a level of established capability.
The contract duration of nearly three years allows for sustained development and potential for building robust applications.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically custom computer programming services. The federal IT market is vast, with agencies consistently investing in software development to modernize operations, improve data analysis, and enhance user services. Comparable spending benchmarks for custom software development can vary widely based on complexity, technology stack, and project duration. Agencies often procure these services through various contract vehicles, including GSA schedules and direct solicitations.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The award to a single entity, Paragon Technology Group Inc., means that small businesses would likely need to be subcontractors to Paragon if they were to participate in this specific contract's execution, rather than being direct awardees.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and the program managers within the National Institutes of Health (NIH). As a definitive contract, it is subject to standard federal procurement regulations and oversight mechanisms. Transparency is generally maintained through contract award databases like FPDS-NG. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

NIH IT Modernization Efforts
HHS Application Development Services
Federal Custom Software Development Contracts
IT Services for Research Institutions

Risk Flags

Potential for cost overruns due to labor hours contract type.
Limited insight into the specific deliverables and performance metrics.
Uncertainty regarding the number of bidders in the competitive process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $20.2 million to PARAGON TECHNOLOGY GROUP INC.. TAS::75 0872::TAS BASE AWARD FUNDING FOR APPS DEVELOPMENT CONTRACT.

Who is the contractor on this award?

The obligated recipient is PARAGON TECHNOLOGY GROUP INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $20.2 million.

What is the period of performance?

Start: 2009-09-21. End: 2012-09-12.

What was the specific scope of work for the custom computer programming services awarded to Paragon Technology Group Inc.?

The provided data does not detail the specific scope of work for the custom computer programming services. However, the North American Industry Classification System (NAICS) code 541511, 'Custom Computer Programming Services,' indicates that the contract likely involved designing, developing, and implementing software applications tailored to the unique needs of the National Institutes of Health (NIH). This could encompass a wide range of activities, such as requirements gathering, system design, coding, testing, debugging, and deployment of new software, or modification and enhancement of existing systems. The contract's duration of over 1000 days suggests a substantial project, potentially involving complex systems or a suite of applications critical to NIH's research or administrative functions.

How does the $20.2 million award compare to typical federal spending on custom computer programming services?

The $20.2 million award for custom computer programming services over approximately three years is a significant but not extraordinary amount for federal IT projects. Federal agencies, particularly large ones like the National Institutes of Health (NIH), often engage in substantial software development initiatives. The average federal contract value for NAICS code 541511 can vary greatly depending on the agency, the complexity of the project, and the duration. However, multi-million dollar contracts for custom software development are common. To provide a precise comparison, one would need to benchmark this against similar-sized NIH or HHS projects, or other large federal research institutions, considering factors like the number of users, data complexity, and integration requirements.

What are the potential risks associated with a 'labor hours' contract type for application development?

Contracts awarded on a 'labor hours' basis, like this one, carry specific risks for the government. The primary risk is cost escalation, as payment is directly tied to the hours worked by contractor personnel, rather than fixed deliverables. If project timelines are extended, or if contractor efficiency is low, costs can increase beyond initial estimates. This necessitates robust oversight and project management from the government to ensure that hours billed are reasonable, necessary, and productive. Without strong government monitoring, there's a risk of inefficiency and overspending. Conversely, this contract type offers flexibility for evolving project requirements, which can be beneficial in complex development scenarios.

What is the track record of Paragon Technology Group Inc. in securing federal contracts, particularly for IT services?

The award of a $20.2 million definitive contract to Paragon Technology Group Inc. by the National Institutes of Health (NIH) indicates a successful track record in securing federal IT service contracts. While this specific data point highlights a substantial award, a comprehensive assessment of their track record would require examining their complete federal contract history. This would include the number and value of previous awards, the agencies they have served, the types of IT services provided, and their performance ratings on past contracts. A review of public databases like the Federal Procurement Data System (FPDS) would reveal the extent of their federal contracting experience and their performance trends.

How does the 'Full and Open Competition After Exclusion of Sources' award method impact price discovery and value for taxpayers?

The 'Full and Open Competition After Exclusion of Sources' method aims to balance competition with specific procurement needs. While 'full and open' competition is generally ideal for maximizing price discovery and achieving best value for taxpayers, the 'after exclusion of sources' qualifier suggests that certain potential offerors were initially excluded, perhaps due to specific requirements or prior relationships. This could potentially limit the breadth of competition compared to a pure 'full and open' process. However, if the exclusion was justified and the remaining competition was robust (i.e., multiple qualified bidders), it can still lead to competitive pricing. The key for taxpayers is whether this method resulted in a fair and reasonable price compared to what could have been achieved with broader competition.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 8229 BOONE BLVD STE 800, VIENNA, VA, 22182

Business Categories: 8(a) Program Participant, Category Business, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Other Minority Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $24,043,369

Exercised Options: $20,208,899

Current Obligation: $20,208,899

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Timeline