Department of Health and Human Services Awarded a Contract to DATARAY INC for $115,932.00

Summary of Award

In a recent review of a complex financial transaction facilitated through usaspending.gov, a comprehensive examination of a federal contract awarded by the U.S. government reveals significant insights into both the contractual dynamics and the services provided by the recipient. The contract in question, identified by the ID 75H70725P00096, epitomizes the critical role small businesses play in fulfilling government needs, especially when specialized services are required.

The contract, structured as a purchase order, was executed on April 10, 2025. It was awarded by the Department of Health and Human Services, specifically through the Indian Health Service’s Albuquerque Area office. The primary objective of the contract is to secure an annual software maintenance plan for D3-MMP label printers at the Zuni Comprehensive Community Health Center (ZCCHC).

The product or service code (PSC) attributed to this contract is J065, which defines the scope as maintenance, repair, or rebuilding of medical, dental, and veterinary equipment and supplies. This focus underscores the essential nature of the work, as it directly impacts the functionality and efficiency of medical equipment, crucial for the effective delivery of health care services. The North American Industry Classification System (NAICS) code associated with this contract is 541511. This code pertains to custom computer programming services, indicating that the contract's deliverables include specialized software solutions tailored to meet specific organizational needs. Such services are instrumental in maintaining the high standards of operation required in healthcare settings. The total obligation for this contract amounts to $21,836. However, the contract has provisions for extended obligations, with the base and all options potentially reaching up to $115,932. This scalability highlights the government's commitment to sustaining long-term partnerships with reliable service providers and ensuring ongoing support for critical systems. A detailed examination of the latest transaction data reveals that this contract was awarded on a firm fixed price basis. This type of pricing is common in government contracts where the scope of work is well-defined, and the risks associated with cost overruns are minimized by locking in price terms upfront. The extent of competition for this contract was classified as "competed under SAP" (Simplified Acquisition Procedures), indicating that while competition was encouraged, the process was streamlined under federal guidelines to expedite service delivery. Interestingly, the contract was set aside entirely for small businesses. This strategic set-aside falls under the Small Business Administration's guidelines, ensuring that smaller firms, such as the recipient DATARAY INC, have fair access to federal contracting opportunities. DATARAY INC, based in Oklahoma City, Oklahoma, is identified as the contract recipient. The company holds a reputable status as a small business and operates under a variety of business categories. Notably, it is recognized as a U.S.-owned business and classified as a self-certified small disadvantaged business, a subchapter S corporation, and a corporate entity not tax-exempt. This diverse categorization underscores the company's adaptability and competitiveness in the intricate domain of government contracts. The location of services rendered under this contract is Zuni, New Mexico, within McKinley County, a setting predisposed to unique logistical challenges. This geographic detail illustrates the critical nature of precise technology maintenance in remote or underserved areas, where continuity in healthcare service delivery is vital. The contractual period spans from April 9, 2025, to March 31, 2026, with potential extensions up to March 31, 2030. This extended potential end date signifies a long-term strategic partnership, emphasizing the importance of durable and consistent service agreements in the healthcare sector. Reflecting on the transaction aspects of the contract, the solitary transaction documented aligns closely with the contract's signing date and obligation amount. This single transaction further cements the contract's purpose as a precise and distinctly defined agreement with straightforward financial execution. In conclusion, the contract between the Department of Health and Human Services' Indian Health Service and DATARAY INC is a testament to the vital interplay between government and small businesses in delivering specialized healthcare services. This agreement is characterized by its commitment to quality, efficiency, and sustainability within the chain of healthcare infrastructure maintenance. The meticulous design of the contract ensures that the Indian Health Service can maintain technological standards, thereby continuing to provide outstanding support to its constituencies, notably within communities that face significant healthcare delivery challenges.