HHS awards $124M contract for software publishing services to CSR INC

Contract Overview

Contract Amount: $12,408,628 ($12.4M)

Contractor: CSR Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2002-02-27

End Date: 2007-12-31

Contract Duration: 2,133 days

Daily Burn Rate: $5.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $12.4 million to CSR INC. for work described as: Key points: 1. The contract value is substantial at $124,086,280. 2. CSR INC. is the sole awardee under full and open competition. 3. The contract spans over 5 years, indicating a long-term need. 4. The sector is software publishing, a critical area for government operations.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The fixed fee component provides some cost control, but the overall value is high for a 5-year period.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing discovery mechanisms are not detailed, making it difficult to assess if the best possible price was achieved.

Taxpayer Impact: The significant contract value represents a considerable taxpayer investment in software publishing services.

Public Impact

Taxpayers are funding essential software publishing services for the NIH. The long-term nature of the contract suggests ongoing reliance on these services. The use of a Cost Plus Fixed Fee contract warrants scrutiny for cost efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 58 / 10

Warning Flags

Cost Plus Fixed Fee contract type
Long contract duration (5 years)
No small business participation noted

Positive Signals

Full and open competition utilized
Clear agency and service area identified

Sector Analysis

The software publishing sector is vital for government agencies like the NIH, supporting data management, research dissemination, and operational efficiency. Benchmarks for similar contracts are difficult to ascertain without more specific service details.

Small Business Impact

The data indicates that small businesses were not involved in this contract, either as prime contractors or subcontractors. This represents a missed opportunity for small business engagement in federal contracting.

Oversight & Accountability

The contract's duration and cost structure necessitate robust oversight from the Department of Health and Human Services to ensure performance and cost control. Regular reviews of the fixed fee and cost reimbursements are crucial.

Related Government Programs

Software Publishers
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Potential for cost overruns due to Cost Plus Fixed Fee structure.
Lack of small business participation.
Long contract duration may reduce flexibility.
Limited transparency on pricing and competition details.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $12.4 million to CSR INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is CSR INC..

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 $12.4 million.

What is the period of performance?

Start: 2002-02-27. End: 2007-12-31.

What specific software publishing services were procured under this contract, and how do they align with NIH's strategic objectives?

The contract details do not specify the exact nature of the software publishing services. These could range from developing custom software solutions to managing the publication and distribution of research findings and data. Understanding this specificity is key to evaluating the contract's alignment with NIH's mission and its overall value proposition.

How was the fixed fee determined, and what mechanisms were in place to ensure it remained reasonable throughout the contract's life?

The determination of the fixed fee for a Cost Plus Fixed Fee contract typically involves negotiation based on estimated costs, complexity, and risk. Without detailed documentation, it's challenging to assess if the fee was optimized. Robust oversight would involve periodic reviews to ensure the fee remained fair and reflected actual performance and market conditions.

What was the competitive landscape for this contract, and were there any potential barriers to entry for other qualified software publishers?

While the contract states 'full and open competition,' the absence of further details on the bidding process makes it hard to gauge the true level of competition. Factors like specific technical requirements, past performance evaluations, or the contract's duration could have inadvertently limited the pool of potential bidders, impacting price discovery.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2107 WILSON BLVD STE 1000, ARLINGTON, VA, 22201

Business Categories: Category Business, Small Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $29,024,945

Exercised Options: $3,211,503

Current Obligation: $12,408,628

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline