Dod Awards $45.3M for Military Health System IT Support to HUI Huliau Technology Services LLC

Contract Overview

Contract Amount: $45,337,884 ($45.3M)

Contractor: HUI Huliau Technology Services LLC

Awarding Agency: Department of Defense

Start Date: 2022-07-01

End Date: 2024-05-31

Contract Duration: 700 days

Daily Burn Rate: $64.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MILITARY HEALTH SYSTEM GENESIS SUSTAINMENT & SUPPORT FOR JACKSONVILLE/EGLIN, PORTSMOUTH/DRUM, WALTER REED BELVOIR, WRIGHT-PATTERSON.

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $45.3 million to HUI HULIAU TECHNOLOGY SERVICES LLC for work described as: MILITARY HEALTH SYSTEM GENESIS SUSTAINMENT & SUPPORT FOR JACKSONVILLE/EGLIN, PORTSMOUTH/DRUM, WALTER REED BELVOIR, WRIGHT-PATTERSON. Key points: 1. Contract awarded to HUI HULIAU TECHNOLOGY SERVICES LLC for $45.3M. 2. Services include sustainment and support for multiple military health system locations. 3. The contract was not available for competition, raising potential concerns about price discovery. 4. The sector is IT services within the Defense Health Agency.

Value Assessment

Rating: fair

The contract's value of $45.3M for IT sustainment and support appears reasonable given the scope across multiple military health system sites. However, without competitive bidding, a precise pricing assessment against similar contracts is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not available for competition, indicating a limited competition approach. This lack of competition may have impacted the government's ability to secure the most favorable pricing.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding, potentially leading to less efficient use of funds.

Public Impact

Ensures continuity of critical IT services for military healthcare facilities. Supports the operational readiness of medical personnel and patient care. Potential for increased costs to taxpayers due to sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing

Positive Signals

Essential service provision
Supports military healthcare infrastructure

Sector Analysis

This contract falls within the IT services sector, specifically supporting healthcare IT infrastructure. Benchmarks for similar sustainment and support contracts within the defense sector can vary widely based on complexity and scope.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors or partners in this contract award.

Oversight & Accountability

The limited competition nature of this award warrants scrutiny to ensure fair pricing and effective service delivery. Further oversight may be needed to confirm value for money.

Related Government Programs

Other Computer Related Services
Department of Defense Contracting
Defense Health Agency Programs

Risk Flags

Limited competition
Potential for inflated costs
Dependency on a single vendor
Lack of transparency in award justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.3 million to HUI HULIAU TECHNOLOGY SERVICES LLC. MILITARY HEALTH SYSTEM GENESIS SUSTAINMENT & SUPPORT FOR JACKSONVILLE/EGLIN, PORTSMOUTH/DRUM, WALTER REED BELVOIR, WRIGHT-PATTERSON.

Who is the contractor on this award?

The obligated recipient is HUI HULIAU TECHNOLOGY SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Health Agency).

What is the total obligated amount?

The obligated amount is $45.3 million.

What is the period of performance?

Start: 2022-07-01. End: 2024-05-31.

What was the justification for limiting competition on this significant IT support contract?

The justification for limiting competition is not provided in the data. Typically, such decisions are based on factors like urgent need, unique capabilities of the contractor, or the infeasibility of breaking down the requirement. Without this information, it's difficult to assess if the limitation was appropriate and if it truly served the government's best interest.

How does the awarded price compare to industry benchmarks for similar IT sustainment and support services in the defense sector?

Direct comparison is challenging without detailed scope and service level agreements. However, the absence of competition suggests the government may not have achieved the best possible price. A thorough review of the contractor's proposed costs against independent government cost estimates and market research would be necessary to determine if the price is fair and reasonable.

What are the potential risks associated with relying on a single vendor for critical military health system IT infrastructure?

Key risks include vendor lock-in, reduced negotiation leverage for future contracts, and potential complacency in service quality or innovation. If the vendor faces financial difficulties or operational issues, it could lead to significant disruptions in critical military healthcare IT systems, impacting readiness and patient care.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HT001122R0031

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 85-876 FARRINGTON HWY STE 204, WAIANAE, HI, 96792

Business Categories: 8(a) Program Participant, Category Business, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Native Hawaiian Organization Owned Firm, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $45,337,884

Exercised Options: $45,337,884

Current Obligation: $45,337,884

Actual Outlays: $2,386,088

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HT001122D0057

IDV Type: IDC

Timeline