HHS Spends $23.7M on Telecommunication Network Management Services with Heitech Services, LLC

Contract Overview

Contract Amount: $23,732,282 ($23.7M)

Contractor: Heitech Services, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2008-09-23

End Date: 2013-09-28

Contract Duration: 1,831 days

Daily Burn Rate: $13.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: TELECOMMUNICATION NETWORK MGMT SVCS

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $23.7 million to HEITECH SERVICES, LLC for work described as: TELECOMMUNICATION NETWORK MGMT SVCS Key points: 1. The contract awarded to Heitech Services, LLC for telecommunication network management services totals $23.7 million. 2. The procurement method was 'Full and Open Competition After Exclusion of Sources', indicating a competitive process with specific source exclusions. 3. The contract duration is 1831 days, spanning from September 2008 to September 2013. 4. The sector is IT, specifically 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services'.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Benchmarking against similar contracts for telecommunication network management services is difficult without more detailed scope of work and performance data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract utilized 'Full and Open Competition After Exclusion of Sources'. While competitive, the exclusion of certain sources may have limited the overall pool of bidders and potentially impacted price discovery.

Taxpayer Impact: Taxpayer funds were used for this contract. The total value of $23.7 million represents a significant investment in essential network management services for the Department of Health and Human Services.

Public Impact

Ensures the operational stability and security of critical health information networks. Supports the Department of Health and Human Services' mission by providing reliable telecommunication infrastructure. The long-term nature of the contract suggests a sustained need for these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize overspending.
Exclusion of sources in a competitive bid process warrants scrutiny.
Contract duration is long, increasing risk of cost overruns or outdated technology.

Positive Signals

Procured through a competitive process.
Provides essential IT infrastructure services.
Long-term contract provides stability for service delivery.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on network management. Spending in this area is crucial for government operations, but requires careful oversight to ensure cost-effectiveness and technological relevance.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The contract was awarded by the Department of Health and Human Services. Oversight would involve monitoring performance, costs, and adherence to contract terms throughout its duration to ensure value for taxpayer money.

Related Government Programs

Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Department of Health and Human Services Contracting
Office of the Assistant Secretary for Administration Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Exclusion of sources in competition.
Long contract duration.
Lack of performance metrics in provided data.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $23.7 million to HEITECH SERVICES, LLC. TELECOMMUNICATION NETWORK MGMT SVCS

Who is the contractor on this award?

The obligated recipient is HEITECH SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $23.7 million.

What is the period of performance?

Start: 2008-09-23. End: 2013-09-28.

What was the specific justification for excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' process, and how did this impact the final price?

The justification for excluding specific sources is not provided in the data. Such exclusions can limit competition, potentially leading to higher prices than if all potential bidders were allowed to compete. A thorough review would examine the rationale behind the exclusions and compare the awarded price against market benchmarks for similar services under fully open competition.

How effectively did Heitech Services, LLC manage the telecommunication network, and were there any performance issues or cost overruns associated with the Cost Plus Fixed Fee structure?

Performance data and specific cost breakdowns are not available in the provided data. For a Cost Plus Fixed Fee contract, effective oversight is crucial to control costs and ensure performance standards are met. Without detailed reports on service delivery, cost management, and any incurred overruns, it's difficult to assess the effectiveness and true value delivered by Heitech Services, LLC.

Given the contract ended in 2013, what was the transition process and the subsequent spending on telecommunication network management services by HHS?

The provided data only covers the period up to 2013. Information regarding the transition process after the contract's expiration and HHS's subsequent spending on similar services is not included. Understanding the follow-on contracts and their costs would provide a more complete picture of HHS's long-term investment in this area and the effectiveness of their procurement strategies.

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: 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: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 8201 CORPORATE DR STE 600, LANDOVER, MD, 20785

Business Categories: 8(a) Program Participant, Category Business, Service Disabled Veteran Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, Veteran Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $23,732,282

Exercised Options: $23,732,282

Current Obligation: $23,732,282

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline