HHS awards $30M for NCI's cancer therapy software hosting and maintenance to Medidata Solutions

Contract Overview

Contract Amount: $29,993,256 ($30.0M)

Contractor: Medidata Solutions, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2023-09-01

End Date: 2026-08-31

Contract Duration: 1,095 days

Daily Burn Rate: $27.4K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: HOSTING, MAINTENANCE AND PROFESSIONAL SERVICES FOR RAVE AND MEDIDATA RAVE INTEGRATED ANCILLARY SOFTWARE FOR NCI'S CANCER THERAPY EVALUATION PROGRAM (CTEP)

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 $30.0 million to MEDIDATA SOLUTIONS, INC. for work described as: HOSTING, MAINTENANCE AND PROFESSIONAL SERVICES FOR RAVE AND MEDIDATA RAVE INTEGRATED ANCILLARY SOFTWARE FOR NCI'S CANCER THERAPY EVALUATION PROGRAM (CTEP) Key points: 1. The contract focuses on critical IT infrastructure for cancer research. 2. Medidata Solutions is the sole provider for this specialized software. 3. Potential risks include vendor lock-in and limited price negotiation. 4. The IT services sector is experiencing significant growth and demand.

Value Assessment

Rating: fair

The award amount of $29.99M over three years for hosting, maintenance, and professional services appears high given the lack of competition. Benchmarking against similar cloud hosting and specialized software maintenance contracts is difficult without more detailed service breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits opportunities for price discovery and potentially leads to higher costs as there is no market pressure from competing vendors.

Taxpayer Impact: Taxpayers may be overpaying due to the absence of competitive bidding, as the government lacks leverage to negotiate a lower price.

Public Impact

Supports critical research for the National Cancer Institute (NCI). Ensures continuity of essential data management for cancer therapy evaluation. Impacts researchers and patients relying on CTEP's data infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price negotiation.
Potential for cost overruns without competitive pressure.
Reliance on a single vendor for critical IT services.

Positive Signals

Supports vital cancer research infrastructure.
Ensures continuity of essential software services.

Sector Analysis

This contract falls within the IT services sector, specifically cloud computing and data processing. Spending in this area has surged as government agencies increasingly rely on specialized software and cloud infrastructure for data management and research.

Small Business Impact

The contract was awarded to Medidata Solutions, Inc., a large business. There is no indication of subcontracting opportunities for small businesses in the provided data.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the pricing remains reasonable and the services delivered meet the government's needs effectively. Regular performance reviews are crucial.

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 competition
Potential for price inflation
Vendor lock-in risk
Limited transparency on service costs

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $30.0 million to MEDIDATA SOLUTIONS, INC.. HOSTING, MAINTENANCE AND PROFESSIONAL SERVICES FOR RAVE AND MEDIDATA RAVE INTEGRATED ANCILLARY SOFTWARE FOR NCI'S CANCER THERAPY EVALUATION PROGRAM (CTEP)

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 $30.0 million.

What is the period of performance?

Start: 2023-09-01. End: 2026-08-31.

What is the justification for the sole-source award, and has the government explored alternative solutions or vendors in the past?

The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or a lack of viable alternatives. For this contract, it's likely tied to Medidata's specific Rave software. The government should have documented efforts to assess market alternatives and justify why only Medidata could meet the requirement, especially for essential services like hosting and maintenance.

How does the per-unit cost of these services compare to industry benchmarks for similar cloud hosting and specialized software maintenance?

Without a detailed breakdown of services and specific metrics, a direct per-unit cost comparison is challenging. However, given the sole-source nature, the pricing is likely at a premium. The government should have conducted a price analysis based on historical data, commercial pricing, or independent government cost estimates to validate the reasonableness of the awarded price.

What are the risks associated with vendor lock-in for critical research infrastructure, and are there mitigation strategies in place?

Vendor lock-in poses significant risks, including escalating costs, limited flexibility, and potential disruption if the vendor faces financial or operational issues. Mitigation strategies could include negotiating clear exit clauses, ensuring data portability, and actively seeking opportunities to transition to more competitive solutions or in-house capabilities over time.

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 › IT AND TELECOM - DELIVERY

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 75N91023R00025

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9TH FLOOR, NEW YORK, NY, 10014

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: $50,057,708

Exercised Options: $29,993,256

Current Obligation: $29,993,256

Actual Outlays: $19,929,344

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75N91023D00012

IDV Type: IDC

Timeline