NIH Awards $4.6M for SYNGO Dynamics Application and Support to Siemens Medical Solutions USA, Inc

Contract Overview

Contract Amount: $46,432 ($46.4K)

Contractor: Siemens Medical Solutions USA, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2024-12-01

End Date: 2026-11-30

Contract Duration: 729 days

Daily Burn Rate: $64/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SYNGO DYNAMICS APPLICATION AND SUPPORT SIEMENS MEDICAL SOLUTIONS USA INC:1106671 [25-000068]

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20810

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $46,432 to SIEMENS MEDICAL SOLUTIONS USA, INC. for work described as: SYNGO DYNAMICS APPLICATION AND SUPPORT SIEMENS MEDICAL SOLUTIONS USA INC:1106671 [25-000068] Key points: 1. Siemens Medical Solutions USA, Inc. secured a $4.6M contract for software support. 2. The contract was not competed under SAP, raising potential competition concerns. 3. The award is a Firm Fixed Price purchase order, providing cost certainty. 4. This spending falls within the Software Publishers sector.

Value Assessment

Rating: fair

The contract value of $4.6M for a 2-year period appears reasonable for specialized software application support. Benchmarking against similar Siemens software support contracts would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was 'NOT COMPETED UNDER SAP,' suggesting a limited competition approach. This method may not have explored all potential vendors, potentially impacting price discovery and overall value for money.

Taxpayer Impact: Taxpayers may be impacted by potentially higher costs due to limited competition. A more competitive process could have yielded better pricing.

Public Impact

Ensures continued operation of critical SYNGO Dynamics applications within NIH. Supports healthcare research and operations through reliable software infrastructure. Potential for increased costs due to lack of broad competition.

Waste & Efficiency Indicators

Waste Risk Score: 64 / 10

Warning Flags

Limited competition
Lack of SAP competition

Positive Signals

Firm Fixed Price contract
Long-term support agreement

Sector Analysis

This contract falls under the Software Publishers sector (NAICS 513210). Spending in this sector often involves licensing, maintenance, and support for specialized software critical to government operations.

Small Business Impact

There is no indication that small businesses were involved in this procurement. The award went to a large corporation, Siemens Medical Solutions USA, Inc.

Oversight & Accountability

The award was a Purchase Order, which is a common contracting instrument. Oversight will be crucial to ensure deliverables meet NIH's needs and that the pricing remains fair throughout the contract term.

Related Government Programs

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

Risk Flags

Limited competition may lead to higher costs.
Potential for vendor lock-in with specialized software.
Lack of transparency in the procurement process.
No clear indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $46,432 to SIEMENS MEDICAL SOLUTIONS USA, INC.. SYNGO DYNAMICS APPLICATION AND SUPPORT SIEMENS MEDICAL SOLUTIONS USA INC:1106671 [25-000068]

Who is the contractor on this award?

The obligated recipient is SIEMENS MEDICAL SOLUTIONS USA, 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 $46,432.

What is the period of performance?

Start: 2024-12-01. End: 2026-11-30.

What specific functionalities does the SYNGO Dynamics application provide to NIH, and how critical is Siemens' exclusive support for these functions?

The SYNGO Dynamics application likely provides critical data management, analysis, or workflow automation capabilities essential for NIH's research and operational activities. Understanding the specific functions and the proprietary nature of Siemens' support is key to assessing the necessity of a limited competition award and the potential risks associated with vendor lock-in.

What are the risks associated with awarding a contract without full and open competition, especially for a significant sum like $4.6 million?

The primary risk of limited competition is the potential for inflated pricing and reduced innovation, as vendors face less pressure to offer their best value. It can also lead to a lack of transparency and may exclude potentially more capable or cost-effective solutions from smaller businesses or emerging competitors.

How will NIH ensure the effectiveness and value for money of this contract, given the limited competition?

NIH can ensure effectiveness by establishing clear performance metrics and milestones within the contract, conducting regular performance reviews, and closely monitoring expenditures. Seeking competitive pricing for future renewals or similar services, even if limited, and performing market research to understand alternative solutions will be vital.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - IT MANAGEMENT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 25-000068

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Altair Engineering Inc.

Address: 40 LIBERTY BLVD, MALVERN, PA, 19355

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $116,080

Exercised Options: $46,432

Current Obligation: $46,432

Actual Outlays: $23,216

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline