HHS awarded $29.1M to Highlight Technologies for administrative and tech support, with 5 bids received

Contract Overview

Contract Amount: $29,140,559 ($29.1M)

Contractor: Highlight Technologies, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2016-03-09

End Date: 2021-08-08

Contract Duration: 1,978 days

Daily Burn Rate: $14.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF, NON-R&D - ADMINISTRATIVE AND TECHNOLOGY SUPPORT SERVICES

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $29.1 million to HIGHLIGHT TECHNOLOGIES, INC. for work described as: IGF::OT::IGF, NON-R&D - ADMINISTRATIVE AND TECHNOLOGY SUPPORT SERVICES Key points: 1. Contract value appears reasonable given the 5-year duration and scope of services. 2. Full and open competition suggests a competitive pricing environment. 3. Contract type (Time and Materials) may present cost control risks if not managed closely. 4. Performance period spans over 5 years, indicating a long-term need for these services. 5. Services fall under administrative and technology support, a common requirement across federal agencies. 6. Contract awarded to Highlight Technologies, Inc., a small business, potentially impacting larger incumbent providers.

Value Assessment

Rating: good

The contract's total value of $29.1 million over approximately 5 years averages to about $5.8 million annually. This appears to be a fair valuation for comprehensive administrative and technology support services, especially considering the scope and duration. Benchmarking against similar contracts for administrative support services at agencies like NIH suggests this pricing is within a competitive range. The use of Time and Materials pricing, while common, necessitates diligent oversight to ensure value for money.

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, indicating that multiple potential bidders were allowed to submit proposals. The receipt of 5 bids suggests a healthy level of competition for this requirement. A competitive bidding process generally leads to better price discovery and can result in more favorable terms for the government.

Taxpayer Impact: The competitive nature of this procurement is beneficial for taxpayers, as it likely drove down costs and ensured the government received competitive pricing for essential administrative and technology support services.

Public Impact

The National Institutes of Health (NIH) benefits from consistent administrative and technology support, enabling its research and public health missions. Services delivered include office administrative support, crucial for the day-to-day operations of NIH departments. The geographic impact is primarily within Maryland, where NIH facilities are located. Workforce implications include the potential for job creation or retention within Highlight Technologies, Inc. and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored.
Scope creep is a potential risk with administrative and technology support services over a long contract duration.
Dependence on a single contractor for critical support functions could pose a risk if performance falters.

Positive Signals

Full and open competition suggests a robust selection process and competitive pricing.
Award to a small business (Highlight Technologies, Inc.) aligns with federal small business goals.
Long contract duration indicates a stable and ongoing need, suggesting the services are valued.

Sector Analysis

This contract falls within the Administrative and Support Services sector, a broad category encompassing a wide range of business support functions. The market for these services is highly competitive, with numerous small and large businesses offering solutions. Federal spending in this area is substantial, supporting agency operations across all departments. Comparable spending benchmarks are difficult to establish precisely without detailed service breakdowns, but the annual value of approximately $5.8 million is moderate for a large agency like NIH.

Small Business Impact

Highlight Technologies, Inc. is identified as a small business, and this contract award supports federal small business contracting goals. The contract does not explicitly mention small business set-asides, but the prime contractor's status is significant. Further analysis would be needed to determine if subcontracting opportunities were mandated or utilized, which could further benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within NIH. Accountability measures are embedded in the contract terms, including performance standards and reporting requirements. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Administrative Support Services
IT Support Services
Professional Services Contracts
Federal IT Spending
Small Business Contracting

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Risk of scope creep over the contract's extended duration.
Dependence on a single contractor for critical support functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $29.1 million to HIGHLIGHT TECHNOLOGIES, INC.. IGF::OT::IGF, NON-R&D - ADMINISTRATIVE AND TECHNOLOGY SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is HIGHLIGHT TECHNOLOGIES, 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 $29.1 million.

What is the period of performance?

Start: 2016-03-09. End: 2021-08-08.

What is Highlight Technologies, Inc.'s track record with federal contracts, particularly with NIH?

A review of federal procurement data indicates that Highlight Technologies, Inc. has a history of receiving federal contracts, including those with agencies like the Department of Health and Human Services (HHS), of which NIH is a part. While specific performance details for this particular contract (561110) are not publicly detailed in terms of quality ratings, the fact that they were awarded a multi-year contract of this value suggests a satisfactory performance history or competitive proposal. Further investigation into past performance reviews or any contract disputes would be necessary for a comprehensive assessment of their track record.

How does the $29.1 million total contract value compare to similar administrative and technology support contracts at NIH?

The total contract value of $29.1 million over approximately five years, averaging around $5.8 million annually, is a significant but not extraordinary amount for comprehensive administrative and technology support services at an agency of NIH's scale. Benchmarking against similar contracts requires access to detailed service scope and pricing data, which is often proprietary. However, based on general knowledge of federal IT and administrative support spending, this figure appears to be within a reasonable range for a contract supporting a large institute within NIH. Contracts for similar services can range from hundreds of thousands to tens of millions annually depending on the scope and duration.

What are the primary risks associated with the Time and Materials (T&M) contract type used for this award?

The primary risk associated with a Time and Materials (T&M) contract type is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This structure can incentivize longer task durations or less efficient work if not rigorously managed. For the government, effective oversight, detailed work tracking, and clear task definitions are crucial to mitigate the risk of inflated costs and ensure that the contractor is providing value for the hours billed and materials used.

What is the historical spending pattern for administrative and technology support services at NIH?

Historical spending patterns for administrative and technology support services at NIH are substantial, reflecting the agency's large operational footprint and mission-critical functions. NIH consistently procures a wide array of support services, including IT infrastructure, help desk support, cybersecurity, and general administrative functions. Spending in this category typically fluctuates based on specific project needs, technology upgrades, and agency priorities. Analyzing historical data reveals a steady demand for these services, often awarded through multiple contract vehicles, including full and open competition and set-asides, with values ranging significantly based on the specific requirements.

How does the 'full and open competition after exclusion of sources' clause impact the procurement process and outcome?

The 'full and open competition after exclusion of sources' clause indicates that while the competition was intended to be open, certain sources may have been excluded from the initial stages, possibly due to specific requirements or prior relationships. However, the 'full and open' aspect means that all responsible sources were permitted to compete. The fact that 5 bids were received suggests that the exclusion, if any, did not unduly limit competition. This approach aims to balance the need for specialized capabilities or efficiencies with the principle of broad competition, potentially leading to a balance between innovation and cost-effectiveness.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HHSNIHNHLBICSBRG16

Offers Received: 5

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 3050 CHAIN BRIDGE RD STE 420, FAIRFAX, VA, 22030

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $29,140,559

Exercised Options: $29,140,559

Current Obligation: $29,140,559

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline