NIH Spends $35.5M on Rave/Medidata Hosting and Maintenance, Sole-Source Contract

Contract Overview

Contract Amount: $35,514,875 ($35.5M)

Contractor: Medidata Solutions, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2018-08-31

End Date: 2023-08-31

Contract Duration: 1,826 days

Daily Burn Rate: $19.4K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF HOSTING, MAINTENANCE AND PROFESSIONAL SERVICES FOR RAVE AND MEDIDATA RAVE INTEGRATED SOFTWARE

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10014

State: New York Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $35.5 million to MEDIDATA SOLUTIONS, INC. for work described as: IGF::OT::IGF HOSTING, MAINTENANCE AND PROFESSIONAL SERVICES FOR RAVE AND MEDIDATA RAVE INTEGRATED SOFTWARE Key points: 1. The contract for Rave and Medidata hosting and maintenance services was awarded to Medidata Solutions, Inc. 2. This represents a significant investment in critical data management software for health research. 3. The sole-source nature of the award raises questions about potential price gouging and lack of competitive pressure. 4. The sector is IT services, specifically cloud computing and data processing.

Value Assessment

Rating: questionable

The contract value of $35.5 million over five years for specialized software hosting and maintenance is substantial. Without competitive bids, it's difficult to assess if this price is fair market value compared to similar integrated software solutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Medidata Solutions, Inc. This limits price discovery and potentially leads to higher costs for taxpayers as there was no competitive pressure to drive down the price.

Taxpayer Impact: The lack of competition on this $35.5 million contract means taxpayers may be overpaying for essential IT services.

Public Impact

Patients and researchers rely on the integrity and availability of data managed by Rave and Medidata. NIH's ability to conduct critical health research is dependent on the uninterrupted service of this software. The cost of this contract could impact funding available for other vital research initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
High contract value without competitive benchmark.
Potential for vendor lock-in with specialized software.

Positive Signals

Essential service for critical health research.
Long-term contract provides stability for NIH operations.

Sector Analysis

This contract falls within the IT sector, specifically focusing on computing infrastructure, data processing, and web hosting for specialized medical research software. Benchmarks for similar integrated software hosting and maintenance contracts are difficult to ascertain without competitive data.

Small Business Impact

There is no indication that small businesses were involved in this sole-source contract, either as prime contractors or subcontractors. This represents a missed opportunity for small business participation in federal IT spending.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government is receiving fair value. A review of the justification for not competing the contract is essential.

Related Government Programs

Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Sole-source award
Lack of competitive pricing
Potential for overpayment
Limited small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $35.5 million to MEDIDATA SOLUTIONS, INC.. IGF::OT::IGF HOSTING, MAINTENANCE AND PROFESSIONAL SERVICES FOR RAVE AND MEDIDATA RAVE INTEGRATED SOFTWARE

Who is the contractor on this award?

The obligated recipient is MEDIDATA SOLUTIONS, 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 $35.5 million.

What is the period of performance?

Start: 2018-08-31. End: 2023-08-31.

What was the justification for awarding this contract on a sole-source basis, and was a thorough market analysis conducted to confirm no other viable vendors could provide these services?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. A thorough market analysis is crucial to validate these claims and ensure no other potential vendors, including small businesses, could meet the government's needs. Without this information, it's impossible to definitively assess the necessity of the sole-source approach.

How does the per-unit cost or overall pricing of this contract compare to industry benchmarks for similar integrated clinical data management software hosting and maintenance services?

Without competitive bidding, establishing a direct comparison to industry benchmarks is challenging. However, agencies should conduct independent market research and consult industry reports to estimate fair market value. If the pricing significantly deviates from established benchmarks for comparable services, it could indicate an unfavorable price for the government, necessitating further investigation into the contract's cost-effectiveness.

What measures are in place to ensure the continued availability and security of the sensitive health data processed through Medidata Rave, given the sole-source nature of the contract?

Even with a sole-source contract, robust security and availability measures must be contractually mandated and regularly audited. This includes adherence to data privacy regulations (like HIPAA), regular security assessments, disaster recovery plans, and performance monitoring. The government should ensure Medidata Solutions, Inc. is meeting all contractual obligations for data protection and service uptime.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N02C07101440

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Dassault Systemes

Address: 350 HUDSON ST # 9, NEW YORK, NY, 10014

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

Financial Breakdown

Contract Ceiling: $35,514,875

Exercised Options: $35,514,875

Current Obligation: $35,514,875

Actual Outlays: $14,741,795

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75N91018D00033

IDV Type: IDC

Timeline