HHS awards $3.5M for information management, with 3 bidders competing for CDC's computer systems design needs

Contract Overview

Contract Amount: $3,494,915 ($3.5M)

Contractor: Inductivehealth Informatics, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2021-07-09

End Date: 2026-07-08

Contract Duration: 1,825 days

Daily Burn Rate: $1.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: INFORMATION MANAGEMENT SERVICES

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30345

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $3.5 million to INDUCTIVEHEALTH INFORMATICS, LLC for work described as: INFORMATION MANAGEMENT SERVICES Key points: 1. Value for money appears reasonable given the competitive nature of the award. 2. Strong competition dynamics suggest fair pricing was achieved. 3. Risk indicators are low due to a clear scope and established contractor. 4. Performance context is within standard IT service delivery for public health. 5. Sector positioning is within the broader health IT services market.

Value Assessment

Rating: good

The contract value of $3.5 million over five years for information management services is moderate. Benchmarking against similar IT service contracts within the federal government suggests this is within a typical range for the scope of work. The pricing structure, likely based on time and materials, needs careful monitoring to ensure efficiency, but the competitive award process provides a baseline for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all eligible sources were permitted to bid. With three bidders participating, the level of competition was adequate, suggesting that the agency received a reasonable range of proposals and pricing. This competitive environment generally leads to better price discovery and selection of qualified contractors.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by fostering a marketplace where contractors vie for the best price and performance, ultimately benefiting the government's budget.

Public Impact

The Centers for Disease Control and Prevention (CDC) benefits from enhanced information management capabilities. Services delivered include computer systems design, crucial for public health data. The geographic impact is primarily within the CDC's operational centers, likely in Georgia. Workforce implications may involve support for IT professionals within the agency and the contractor's staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if time and materials are not closely managed.
Dependence on a single contractor for critical information management systems.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Contract duration provides stability for essential IT services.
Contractor has a track record, though specific performance details are not provided here.

Sector Analysis

The health IT sector is a significant and growing area of federal spending. This contract for computer systems design services falls within the broader IT services market, specifically tailored to the needs of a major public health agency. Comparable spending benchmarks for IT services within HHS and other agencies often run into the hundreds of millions annually, making this a moderate-sized award within that context.

Small Business Impact

This contract does not appear to have a small business set-aside. There is no explicit information regarding subcontracting plans for small businesses. The award to InductiveHealth Informatics, LLC, a specific company, suggests it is not a small business set-aside. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the performance of this contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Centers for Disease Control and Prevention's contracting and program management offices. Accountability measures are inherent in the contract terms, including performance standards and payment schedules. Transparency is facilitated through federal contract databases where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

HHS IT Modernization
CDC Data Management Systems
Federal Information Technology Services
Computer Systems Design Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Need for robust oversight to ensure efficient labor and material usage.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $3.5 million to INDUCTIVEHEALTH INFORMATICS, LLC. INFORMATION MANAGEMENT SERVICES

Who is the contractor on this award?

The obligated recipient is INDUCTIVEHEALTH INFORMATICS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $3.5 million.

What is the period of performance?

Start: 2021-07-09. End: 2026-07-08.

What is the track record of InductiveHealth Informatics, LLC with federal contracts, particularly within HHS?

Information regarding the specific track record of InductiveHealth Informatics, LLC with federal contracts, especially within HHS, is not detailed in the provided data. A comprehensive review would require accessing federal procurement databases like SAM.gov or FPDS to examine past performance evaluations, contract history, and any reported issues. Understanding their past performance is crucial for assessing the reliability and effectiveness of their service delivery on this current contract. Without this specific data, we assume a baseline level of competence based on the award, but a deeper dive is recommended for a full risk assessment.

How does the awarded amount compare to similar computer systems design contracts for public health agencies?

The awarded amount of approximately $3.5 million over five years for information management services is considered moderate for IT support within a large federal agency like the CDC. Comparable contracts for similar services (e.g., IT support, systems design, data management) at agencies such as the National Institutes of Health (NIH) or the Food and Drug Administration (FDA) can range significantly, often from a few million to tens of millions of dollars depending on the scope and duration. The 'Computer Systems Design Services' NAICS code (541512) is broad, but for specialized public health informatics, this value appears aligned with industry standards for a five-year period, especially given the competitive award.

What are the primary risks associated with a Time and Materials (T&M) contract for these services?

Time and Materials (T&M) contracts, like the one awarded here, carry inherent risks primarily related to cost control. The government pays for the actual labor hours and materials used, which can lead to cost overruns if not managed diligently. Key risks include potential for inefficient labor practices, inflated material costs, and scope creep without adequate oversight. To mitigate these risks, the contracting agency must implement robust monitoring of labor hours, material receipts, and task completion. Establishing clear ceilings and requiring detailed reporting are essential practices to ensure the government receives good value and stays within budget for the duration of the contract.

What is the expected impact of these information management services on the CDC's operational effectiveness?

These information management services are expected to significantly enhance the CDC's operational effectiveness by improving the design, implementation, and maintenance of its computer systems. This directly supports the agency's mission to protect public health by enabling better data collection, analysis, and dissemination of health information. Improved systems can lead to more efficient disease surveillance, faster response to outbreaks, and more accurate public health reporting. Ultimately, robust information management underpins the CDC's ability to make data-driven decisions and fulfill its critical public health mandate.

How has federal spending on 'Computer Systems Design Services' (NAICS 541512) trended in recent years, and where does this contract fit?

Federal spending on 'Computer Systems Design Services' (NAICS 541512) has generally trended upwards over the past decade, reflecting the increasing reliance on technology across all government agencies. This category encompasses a wide range of IT services, from initial design and integration to ongoing maintenance and support. The total federal obligation for this NAICS code typically runs into the tens of billions of dollars annually. This specific $3.5 million contract for the CDC represents a small fraction of that overall spending, fitting within the typical procurement patterns for specialized IT support services at the agency level.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 75D301-21-Q-73018

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 3365 PIEDMONT RD NE STE 1400, ATLANTA, GA, 30305

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,494,915

Exercised Options: $3,494,915

Current Obligation: $3,494,915

Actual Outlays: $2,931,885

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA20D00B2

IDV Type: FSS

Timeline