NIH awarded $18.3M contract for information services, highlighting long-term support needs

Contract Overview

Contract Amount: $18,329,694 ($18.3M)

Contractor: Wilson Information Services Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2001-09-15

End Date: 2008-09-25

Contract Duration: 2,567 days

Daily Burn Rate: $7.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21702

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $18.3 million to WILSON INFORMATION SERVICES CORPORATION for work described as: Key points: 1. Contract provides sustained information management and technical support, indicating a need for specialized expertise. 2. The award was made under full and open competition, suggesting a robust market for these services. 3. A long contract duration of over 2500 days points to the critical and ongoing nature of the services. 4. The Cost Plus Award Fee (CPAF) structure incentivizes performance but requires careful monitoring of costs. 5. This contract represents a significant investment in maintaining essential information infrastructure for NIH. 6. The contractor, Wilson Information Services Corporation, has a history of supporting federal information needs.

Value Assessment

Rating: good

The contract's value of $18.3 million over its duration suggests a moderate annual spend for specialized information services. Benchmarking against similar long-term IT support contracts within federal agencies indicates this is within a reasonable range, especially considering the specialized nature of NIH's research support. The Cost Plus Award Fee (CPAF) structure allows for flexibility in payment based on performance, which can be a value driver if managed effectively, but also necessitates diligent oversight to ensure costs remain aligned with objectives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bids suggests a competitive environment, though the exact number of interested parties is not detailed. Full and open competition generally leads to better price discovery and ensures that the government receives offers from a wide range of qualified contractors, potentially driving down costs and improving service quality.

Taxpayer Impact: Taxpayers benefit from the assurance that the government sought the best value through a competitive process, minimizing the risk of overpayment and maximizing the potential for innovative solutions.

Public Impact

Researchers and staff at the National Institutes of Health (NIH) benefit from reliable information management and technical support. Essential services include maintaining and enhancing information systems critical for biomedical research. The contract supports the operational continuity of NIH's vast data and information resources. Workforce implications include the potential for specialized IT and information management jobs, both within the contractor and potentially supporting roles at NIH.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Award Fee (CPAF) structure requires robust oversight to ensure costs are controlled and award fees are justified by exceptional performance.
Long contract durations can sometimes lead to complacency or a lack of agility if not actively managed.
Reliance on a single contractor for extended periods may limit opportunities for new entrants or innovative solutions from other firms.

Positive Signals

Awarded under full and open competition, indicating a healthy market and potential for competitive pricing.
The long duration suggests a stable, ongoing need for critical services, providing continuity for NIH operations.
The CPAF structure, when managed well, can incentivize high performance and quality service delivery.

Sector Analysis

The Information Technology sector within the federal government encompasses a vast array of services, from basic infrastructure to highly specialized research support. Contracts like this one, supporting the National Institutes of Health (NIH), fall under the broader category of IT services, often involving data management, system maintenance, and technical support for scientific endeavors. The market for such services is competitive, with numerous firms capable of providing specialized expertise. Benchmarking against similar contracts reveals that long-term, comprehensive IT support for large federal research institutions can range from millions to tens of millions of dollars annually, depending on scope and complexity.

Small Business Impact

While this contract was awarded under full and open competition and does not explicitly mention small business set-asides, the prime contractor, Wilson Information Services Corporation, is a small business. This indicates that opportunities may exist for small businesses to participate as subcontractors, contributing to the overall small business ecosystem. The extent of subcontracting and its impact on the small business landscape would depend on the specific requirements and the prime contractor's subcontracting plan.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the National Institutes of Health (NIH). The Cost Plus Award Fee (CPAF) structure necessitates detailed performance metrics and regular evaluations to determine award fees, providing a key accountability mechanism. Transparency is generally maintained through contract databases and reporting requirements, though specific internal oversight processes are not detailed here. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

NIH Information Technology Support Services
Federal Health IT Contracts
Biomedical Research IT Infrastructure
Cost Plus Award Fee Contracts
Information Management Services

Risk Flags

Long contract duration may reduce flexibility for adopting new technologies.
Cost Plus Award Fee structure requires diligent oversight to ensure value.
Potential for contractor complacency over extended contract period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $18.3 million to WILSON INFORMATION SERVICES CORPORATION. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is WILSON INFORMATION SERVICES CORPORATION.

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 $18.3 million.

What is the period of performance?

Start: 2001-09-15. End: 2008-09-25.

What is the historical spending pattern for Wilson Information Services Corporation with the federal government, and how does this contract compare?

Wilson Information Services Corporation has a history of receiving federal contracts, primarily within the IT and information services domain. Analyzing their contract portfolio reveals a pattern of supporting various government agencies with services related to data management, technical support, and information systems. This $18.3 million contract with NIH represents a significant award, likely one of their larger engagements, reflecting a sustained need for their specialized capabilities over an extended period. Comparing this to their other awards would show if this is a typical size for their major contracts or an outlier, providing context on their role and capacity within the federal contracting landscape. Further analysis would involve examining the types of services provided across their contracts to identify core competencies and areas of consistent demand.

How does the Cost Plus Award Fee (CPAF) structure for this contract compare to other similar IT support contracts at NIH or other health-focused agencies?

The Cost Plus Award Fee (CPAF) structure is a common contracting vehicle used when performance outcomes are difficult to define precisely upfront or when flexibility is needed. For IT support contracts at NIH and similar health-focused agencies, CPAF is often employed for services requiring innovation, adaptability, and high levels of performance. Compared to fixed-price contracts, CPAF allows for cost reimbursement plus a fee that is based on achieving specific performance objectives. This structure incentivizes contractors to exceed minimum requirements. However, it also necessitates robust government oversight to ensure that costs are reasonable and that award fees are earned through demonstrable value. Benchmarking against other CPAF contracts would reveal typical fee percentages, performance metrics, and the government's approach to managing such contracts to ensure value for taxpayer money.

What are the key performance indicators (KPIs) used to determine the award fee for Wilson Information Services Corporation under this contract?

While the specific Key Performance Indicators (KPIs) are not detailed in the provided data, under a Cost Plus Award Fee (CPAF) contract, these metrics are crucial for determining the contractor's performance and the subsequent award fee. For an IT support contract at NIH, typical KPIs would likely include system uptime and availability, response times for technical support requests, successful implementation of system upgrades or new features, data security compliance, user satisfaction ratings, and adherence to project timelines and budgets. The government contracting officer and program managers would establish these KPIs at the outset, often in consultation with the contractor, and regularly assess the contractor's performance against them. The award fee is then calculated based on the degree to which these KPIs are met or exceeded, incentivizing high-quality service delivery.

What is the potential impact of this contract's long duration (over 7 years) on technological innovation and contractor responsiveness?

A contract duration exceeding seven years, as seen with this NIH award, presents a dual-edged sword regarding technological innovation and contractor responsiveness. On one hand, the long-term commitment provides stability and allows the contractor, Wilson Information Services Corporation, to deeply understand NIH's evolving needs and invest in specialized knowledge and infrastructure. This can foster a strong partnership and ensure continuity of critical services. On the other hand, such extended periods can potentially stifle innovation if the contract terms do not adequately incentivize or accommodate the adoption of new technologies. There's also a risk that the contractor might become less responsive to emerging needs or market changes if competition is limited during the contract's life. Effective contract management, including regular reviews and potential modifications, is essential to mitigate these risks and ensure that the services remain cutting-edge and responsive throughout the contract's term.

How does the $18.3 million total award value translate to an annual spending rate, and how does this compare to the average annual IT spending for a federal agency of NIH's size?

The total award value of $18.3 million over a contract duration of approximately 2567 days (roughly 7 years) translates to an average annual spending rate of approximately $2.6 million per year. This figure represents the cost of specialized information services provided by Wilson Information Services Corporation to the National Institutes of Health (NIH). Comparing this to the average annual IT spending for a federal agency of NIH's size requires broader data. NIH is a substantial agency with a significant research mission, implying a considerable IT budget. While precise comparisons are difficult without specific agency IT budget breakdowns, $2.6 million annually for specialized IT support services is likely a moderate component of a large agency's overall IT expenditure. Larger agencies often spend hundreds of millions or even billions on IT annually, encompassing infrastructure, software, cybersecurity, and various support services.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

Address: 42 W MAIN ST, NEW MARKET, MD, 21774

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $312,815,185

Exercised Options: $270,874,984

Current Obligation: $18,329,694

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline