HHS renews Cisco Meraki IT services contract for $84,950, ensuring continued network infrastructure support

Contract Overview

Contract Amount: $84,950 ($85.0K)

Contractor: CDW Government LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2024-08-16

End Date: 2025-08-15

Contract Duration: 364 days

Daily Burn Rate: $233/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: RENEWAL OF CISCO MERAKI (AMBIS #2228796)

Place of Performance

Location: VERNON HILLS, LAKE County, ILLINOIS, 60061

State: Illinois Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $84,950.29 to CDW GOVERNMENT LLC for work described as: RENEWAL OF CISCO MERAKI (AMBIS #2228796) Key points: 1. The contract value appears modest, suggesting a focused scope for IT network services. 2. Full and open competition was utilized, indicating a potentially competitive bidding process. 3. The fixed-price contract type helps manage cost certainty for the government. 4. This renewal focuses on maintaining existing IT infrastructure rather than acquiring new capabilities. 5. The contract duration of one year aligns with typical IT service renewal cycles.

Value Assessment

Rating: good

The contract value of approximately $85,000 for a one-year term for IT network services is relatively low, suggesting a specific, potentially limited scope of work or a renewal of existing services. Benchmarking against similar IT service contracts is challenging without more detail on the specific services provided (e.g., hardware maintenance, software licensing, managed services). However, the firm fixed-price structure provides cost predictability. Given the modest value, it is likely competitive within its niche.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically involves a broad solicitation to all eligible bidders. The presence of 3 bidders suggests a reasonable level of interest and competition for this specific IT service requirement. This competitive process is expected to drive fair market pricing and encourage vendors to offer their best terms.

Taxpayer Impact: Taxpayers benefit from the assurance that the government sought the best value through a competitive process, likely leading to a more cost-effective outcome compared to a sole-source award.

Public Impact

The National Institutes of Health (NIH) benefits from the continued provision of IT network services. Essential network infrastructure support is maintained, crucial for daily operations and research. The services likely impact IT staff and researchers within the NIH facilities in Illinois. Workforce implications are minimal, primarily involving the contractor's support personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific Cisco Meraki hardware/software is deeply integrated.
Reliance on a single vendor for critical network components could pose a risk if that vendor faces disruptions.

Positive Signals

Renewal indicates satisfaction with the current service provider's performance.
The use of a well-established IT vendor like CDW Government LLC suggests reliability.
Firm fixed-price contract provides budget certainty.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer network infrastructure and related services. The North American Industry Classification System (NAICS) code 541519 ('Other Computer Related Services') encompasses a wide range of IT support. Spending in this area is substantial across federal agencies, supporting everything from basic network maintenance to complex system integration. This particular contract's value is small relative to the overall federal IT spending landscape, suggesting it addresses a specific, localized need.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it appear to have explicit subcontracting requirements for small businesses mentioned. CDW Government LLC, the awardee, is a large business. Therefore, the direct impact on the small business ecosystem through this specific award is likely limited, though CDW may engage small businesses in its broader supply chain.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program managers within the National Institutes of Health. As a delivery order under a larger contract vehicle, the initial award process and ongoing performance monitoring are subject to federal acquisition regulations. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Information Technology Acquisition Reform Act (FITARA) related spending
IT Network Infrastructure Services
General Services Administration (GSA) Schedule Contracts (if applicable)
Department of Health and Human Services IT Modernization Efforts

Risk Flags

Potential vendor lock-in with proprietary cloud-managed solutions.
Reliance on a single vendor's cloud infrastructure for network management.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $84,950.29 to CDW GOVERNMENT LLC. RENEWAL OF CISCO MERAKI (AMBIS #2228796)

Who is the contractor on this award?

The obligated recipient is CDW GOVERNMENT LLC.

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 $84,950.29.

What is the period of performance?

Start: 2024-08-16. End: 2025-08-15.

What specific Cisco Meraki services are being provided under this contract?

The provided data does not specify the exact Cisco Meraki services covered by this contract. However, Cisco Meraki is known for its cloud-managed IT solutions, including wireless networking (access points), switching, security appliances (firewalls), and SD-WAN. Given the NAICS code 541519 (Other Computer Related Services), the contract likely involves maintenance, support, and potentially software licensing for these network devices. Further details would be needed from the contract documentation to ascertain the precise scope, such as whether it includes hardware refresh, ongoing technical support, cloud management platform access, or professional services for configuration.

How does the $84,950 contract value compare to similar IT network service renewals at NIH?

Without access to a comprehensive database of all NIH IT network service renewals, a direct comparison is difficult. However, $84,950 for a one-year term is a relatively modest amount for IT network services, especially for an organization like the National Institutes of Health, which has extensive infrastructure needs. This value suggests the contract might cover a specific building, a particular set of devices, or a renewal of existing managed services rather than a large-scale network overhaul or the acquisition of significant new hardware. Larger network infrastructure projects or comprehensive managed services contracts at federal agencies often run into hundreds of thousands or millions of dollars annually.

What are the primary risks associated with renewing a contract for Cisco Meraki equipment and services?

Key risks associated with renewing a Cisco Meraki contract include vendor lock-in, where the agency becomes heavily reliant on Meraki's proprietary hardware, software, and cloud management platform, making future transitions to other vendors difficult and costly. There's also a risk related to the vendor's financial stability or strategic shifts; if Cisco were to discontinue a product line or significantly alter its pricing model, the agency could face disruption. Security vulnerabilities within the Meraki ecosystem, although actively managed by Cisco, remain a potential concern, requiring diligent patching and monitoring. Finally, the cloud-managed nature means reliance on internet connectivity and Cisco's cloud infrastructure, introducing potential availability risks.

What is the track record of CDW Government LLC in providing IT services to federal agencies?

CDW Government LLC is a well-established reseller and solutions provider with a significant presence in the federal IT market. They hold numerous contract vehicles, including GSA Schedules, and frequently win awards for IT hardware, software, and related services across various federal agencies. Their track record generally indicates reliability in fulfilling orders and providing support, leveraging partnerships with major technology manufacturers like Cisco. Agencies often contract with CDW for its broad product catalog, procurement efficiency, and established government contracting expertise. Performance on specific contracts can vary, but their overall engagement with the federal government is extensive and long-standing.

How does the 'full and open competition' award mechanism impact the value proposition for taxpayers?

The 'full and open competition' award mechanism is designed to maximize value for taxpayers by ensuring that the government solicits bids from the widest possible pool of qualified vendors. This broad competition typically drives down prices as vendors vie for the contract, leading to more favorable terms and potentially innovative solutions. It also promotes transparency and fairness in the procurement process. For taxpayers, this means the likelihood of obtaining goods or services at a competitive market rate, reducing the risk of overpayment that might occur with less competitive methods like sole-source procurements. The presence of 3 bidders in this specific case suggests a moderate level of competition.

What is the historical spending pattern for similar IT network services at the National Institutes of Health?

Historical spending data for similar IT network services at the National Institutes of Health (NIH) is not provided in the current data. However, federal agencies like NIH consistently invest significant amounts in IT infrastructure, including network hardware, software, and managed services, to support their research and operational missions. Spending patterns often reflect a mix of large, multi-year procurements for core infrastructure and smaller, recurring renewals for maintenance, support, and specific device management. The value of this particular $84,950 contract suggests it represents a smaller component within NIH's overall IT network services budget, possibly a renewal for a specific location or technology refresh cycle.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: CS-118330

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 230 N MILWAUKEE AVE, VERNON HILLS, IL, 60061

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $84,950

Exercised Options: $84,950

Current Obligation: $84,950

Actual Outlays: $78,870

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: HHSN316201500011W

IDV Type: GWAC

Timeline