DoD's $12.1M contract for medical research IT support awarded to Horus Technology Solutions, Inc

Contract Overview

Contract Amount: $12,102,316 ($12.1M)

Contractor: Horus Technology Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-04-01

End Date: 2026-03-31

Contract Duration: 729 days

Daily Burn Rate: $16.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 14

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: BUSINESS SYSTEM DEVELOPMENT AND MAINTENANCE SUPPORT SERVICES FOR THE CONGRESSIONALLY DIRECTED MEDICAL RESEARCH PROGRAM OFFICE

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $12.1 million to HORUS TECHNOLOGY SOLUTIONS, INC. for work described as: BUSINESS SYSTEM DEVELOPMENT AND MAINTENANCE SUPPORT SERVICES FOR THE CONGRESSIONALLY DIRECTED MEDICAL RESEARCH PROGRAM OFFICE Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of 729 days indicates a medium-term engagement for IT services. 4. The contract is for Business System Development and Maintenance Support, crucial for medical research operations. 5. The awardee, Horus Technology Solutions, Inc., has secured this significant contract within the defense health sector. 6. The contract value of $12.1M falls within a typical range for specialized IT support services in the federal government.

Value Assessment

Rating: good

The contract value of $12.1M for business system development and maintenance support appears reasonable given the scope and duration. Benchmarking against similar IT services contracts for the Department of Defense suggests this pricing is within expected parameters. The Cost Plus Fixed Fee structure requires careful monitoring to ensure value for money, but the fixed fee component provides some cost certainty.

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 while the competition was broad, specific sources may have been excluded based on prior performance or other criteria. With 14 bidders, the level of competition appears robust, which generally supports favorable pricing and selection of qualified vendors. The number of bidders suggests that the market for these services is active.

Taxpayer Impact: A competitive process with multiple bidders is generally beneficial for taxpayers, as it drives down prices and encourages innovation. The exclusion of sources, however, warrants a closer look to ensure it did not unduly limit competition.

Public Impact

The primary beneficiaries are the Department of Defense and the Congressionally Directed Medical Research Program (CDMRP) office, which will receive enhanced IT support. Services delivered include development and maintenance of business systems critical for managing and advancing medical research initiatives. The geographic impact is primarily within the operational sphere of the Defense Health Agency, likely supporting research activities nationwide. Workforce implications include the potential for employment opportunities within Horus Technology Solutions, Inc. and its subcontractors, as well as supporting the government personnel managing the research programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize profit if not closely monitored.
The 'Exclusion of Sources' clause, while potentially justified, could limit competition and should be reviewed for necessity.
Reliance on a single contractor for critical business system development and maintenance could pose a risk if performance issues arise.

Positive Signals

Awarded through full and open competition, indicating a broad search for qualified vendors.
A significant number of bidders (14) suggests a healthy competitive environment for these services.
The contract supports critical medical research programs, aligning with important national health objectives.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on custom computer programming and business system support. The federal IT services market is substantial, with agencies like the Department of Defense being major spenders. This contract supports the specialized needs of medical research, a critical area within the broader defense and health sectors. Comparable spending benchmarks for similar custom software development and maintenance contracts can vary widely based on complexity and duration.

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 arising from a small business set-aside. However, the prime contractor, Horus Technology Solutions, Inc., may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Health Agency (DHA) contracting officers and program managers. Accountability measures will be embedded in the contract's performance work statement and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Congressionally Directed Medical Research Program (CDMRP)
Defense Health Agency IT Support Services
Federal Custom Computer Programming Services
Department of Defense Business System Modernization

Risk Flags

Potential for cost overruns due to CPFF structure.
Risk of limited competition if source exclusions are not well-justified.
Dependency on a single contractor for critical systems.
Need for robust oversight to ensure performance and value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.1 million to HORUS TECHNOLOGY SOLUTIONS, INC.. BUSINESS SYSTEM DEVELOPMENT AND MAINTENANCE SUPPORT SERVICES FOR THE CONGRESSIONALLY DIRECTED MEDICAL RESEARCH PROGRAM OFFICE

Who is the contractor on this award?

The obligated recipient is HORUS TECHNOLOGY SOLUTIONS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.1 million.

What is the period of performance?

Start: 2024-04-01. End: 2026-03-31.

What is the track record of Horus Technology Solutions, Inc. with federal contracts, particularly within the Department of Defense?

Horus Technology Solutions, Inc. has a history of securing federal contracts, primarily within the Department of Defense and related agencies. Analysis of past awards indicates a focus on IT services, including software development, system integration, and technical support. While specific performance metrics for past contracts are not detailed here, the company's ability to win competitive bids suggests a level of established capability and client satisfaction. Further investigation into contract performance reports and past performance questionnaires would provide a more granular understanding of their track record and reliability in delivering complex IT solutions.

How does the Cost Plus Fixed Fee (CPFF) contract structure compare to other contract types used for similar IT services?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined at the outset, or when innovation and flexibility are paramount, as is common in system development. Unlike Firm-Fixed-Price (FFP) contracts, which offer greater cost certainty to the government but place risk on the contractor, CPFF allows for cost reimbursement plus a predetermined profit. This can be advantageous for complex, R&D-intensive projects where unforeseen technical challenges are likely. However, it carries a higher risk of cost growth compared to FFP if not rigorously managed. Other common types include Cost Plus Incentive Fee (CPIF), which adds performance incentives, and Time and Materials (T&M), typically used for smaller, less defined efforts.

What are the potential risks associated with the 'Full and Open Competition After Exclusion of Sources' clause?

The 'Full and Open Competition After Exclusion of Sources' clause allows the agency to exclude specific potential sources from a competitive procurement, even though the procurement is otherwise considered full and open. While this can be used legitimately to exclude contractors with poor past performance or those who cannot meet specific technical requirements, it carries the risk of unduly restricting competition. If the exclusion criteria are too broad or not well-justified, it could limit the pool of qualified bidders, potentially leading to higher prices or less optimal solutions for the government. Transparency and clear justification for any exclusions are crucial to mitigate this risk and ensure fair competition.

How effective is the Defense Health Agency in managing IT contracts to ensure program effectiveness and value for money?

The Defense Health Agency (DHA) manages a vast portfolio of IT contracts critical to military health readiness and research. Historically, the DHA has faced challenges common to large federal IT procurements, including cost overruns and schedule delays, but has also demonstrated success in implementing complex systems. Their effectiveness is often tied to the specific program management office, the clarity of requirements, and the robustness of oversight mechanisms. The agency employs various strategies, including performance-based contracting and regular reviews, to enhance program effectiveness and ensure value. Continuous improvement in contract management practices and strong collaboration between government and industry partners are key to maximizing IT investments.

What has been the historical spending trend for business system development and maintenance support within the Department of Defense?

Spending on business system development and maintenance within the Department of Defense (DoD) has been substantial and consistently high over the past decade, driven by the need to modernize aging infrastructure, improve data management, and enhance operational efficiency across various branches and agencies. This spending encompasses a wide range of services, including custom software development, COTS integration, cybersecurity enhancements, and ongoing maintenance and support. Factors influencing this trend include evolving technological landscapes, increasing cybersecurity threats, and directives for greater interoperability and data sharing. The DoD's IT budget represents a significant portion of its overall expenditures, reflecting the critical role technology plays in national defense.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HT942523R0059

Offers Received: 14

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Horus Technology Solutions Inc.

Address: 6710A ROCKLEDGE DR STE 400, BETHESDA, MD, 20817

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $35,572,462

Exercised Options: $13,178,193

Current Obligation: $12,102,316

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline