HHS Awards $10M for IT Systems Support to DNI Emerging Technologies, LLC

Contract Overview

Contract Amount: $10,042,409 ($10.0M)

Contractor: DNI Emerging Technologies, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2024-09-12

End Date: 2027-03-05

Contract Duration: 904 days

Daily Burn Rate: $11.1K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NCIRD OFFICE OF INFORMATICS INFORMATION TECHNOLOGY SYSTEMS SUPPORT

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73106

State: Oklahoma Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $10.0 million to DNI EMERGING TECHNOLOGIES, LLC for work described as: NCIRD OFFICE OF INFORMATICS INFORMATION TECHNOLOGY SYSTEMS SUPPORT Key points: 1. Contract value of $10.04M for IT systems support. 2. Sole-source award to DNI Emerging Technologies, LLC. 3. Potential risk due to lack of competition. 4. IT sector spending, specifically computer systems design services.

Value Assessment

Rating: questionable

The contract value of $10.04M for computer systems design services appears to be a standard definitive contract. Without competitive bidding, it's difficult to assess if this price is optimal or reflects market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under Simplified Acquisition Procedures (SAP) and was awarded as a sole-source definitive contract. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition raises concerns about the best use of taxpayer funds, as a more competitive process could have yielded a lower price.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. Limited transparency into the justification for a sole-source award. Potential for reduced innovation if alternative vendors are excluded.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpayment

Positive Signals

Definitive contract
Firm Fixed Price

Sector Analysis

This contract falls within the Information Technology sector, specifically for computer systems design services. Spending in this area is substantial across federal agencies, with competitive bidding generally expected to ensure value.

Small Business Impact

The data indicates that this contract was not awarded to a small business (sb: false). Further analysis would be needed to determine if small businesses were considered or excluded from this sole-source opportunity.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny. An investigation into the justification for not competing this requirement would be appropriate to ensure accountability and adherence to procurement regulations.

Related Government Programs

Computer Systems Design Services
Department of Health and Human Services Contracting
Centers for Disease Control and Prevention Programs

Risk Flags

Sole-source award lacks transparency and competitive pricing.
Potential for overpayment due to lack of competition.
No indication of small business participation.
Contract duration is substantial (904 days).

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $10.0 million to DNI EMERGING TECHNOLOGIES, LLC. NCIRD OFFICE OF INFORMATICS INFORMATION TECHNOLOGY SYSTEMS SUPPORT

Who is the contractor on this award?

The obligated recipient is DNI EMERGING TECHNOLOGIES, 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 $10.0 million.

What is the period of performance?

Start: 2024-09-12. End: 2027-03-05.

What is the justification for awarding this contract on a sole-source basis, and were alternative vendors or small businesses considered?

The provided data states the contract was 'NOT COMPETED UNDER SAP' and is a 'SOLE SOURCE'. Without further documentation, the specific justification for this sole-source award is unclear. Typically, sole-source awards require a documented justification, such as unique capabilities or urgent needs. It is also unclear if small businesses were considered or excluded from this procurement.

How does the $10.04M contract value compare to similar IT systems support contracts awarded competitively?

Benchmarking this $10.04M contract value against similar IT systems support contracts is challenging without more specific details on the scope of work and service level agreements. However, given the sole-source nature, there is a risk that the price may be higher than what could have been achieved through a competitive bidding process, where multiple vendors vie for the contract.

What is the potential impact on the Centers for Disease Control and Prevention's IT capabilities if DNI Emerging Technologies, LLC fails to perform adequately?

If DNI Emerging Technologies, LLC fails to perform adequately, the CDC's Office of Informatics could face significant disruptions to its IT systems. This could impact critical public health data management and analysis. The firm fixed-price nature of the contract might offer some cost control, but service delivery issues could still lead to operational inefficiencies and potential delays in essential functions.

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 - IT MANAGEMENT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 75D301-24-R-72933

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2000 N CLASSEN BLVD STE 1650, OKLAHOMA CITY, OK, 73106

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,951,346

Exercised Options: $10,042,409

Current Obligation: $10,042,409

Actual Outlays: $5,101,249

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline