NIH Spends $41.6M on IT Professional Support Services with Occam Solutions, Inc

Contract Overview

Contract Amount: $41,567,575 ($41.6M)

Contractor: Occam Solutions, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2019-03-18

End Date: 2023-04-17

Contract Duration: 1,491 days

Daily Burn Rate: $27.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IT PROFESSIONAL SUPPORT SERVICES

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $41.6 million to OCCAM SOLUTIONS, INC. for work described as: IT PROFESSIONAL SUPPORT SERVICES Key points: 1. Significant contract value of $41.6 million over nearly 5 years. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk is moderate, given the time and materials pricing structure. 4. IT professional support services sector is crucial for government operations.

Value Assessment

Rating: good

The contract's time and materials pricing structure can lead to cost overruns if not closely managed. Benchmarking against similar IT support contracts is essential to ensure fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the time and materials (T&M) pricing type requires diligent oversight to prevent scope creep and ensure cost-effectiveness.

Taxpayer Impact: The use of full and open competition is positive for taxpayers, as it aims to secure the best value. However, the T&M structure necessitates robust contract management to control spending.

Public Impact

Ensures critical IT infrastructure and systems at NIH are maintained and operational. Supports ongoing research and public health initiatives through reliable IT services. Potential for cost increases due to the time and materials pricing model.

Waste & Efficiency Indicators

Waste Risk Score: 70 / 10

Warning Flags

Time and Materials pricing
Contract duration

Positive Signals

Full and open competition
Significant contract value

Sector Analysis

This contract falls within the IT professional support services sector, which is vital for government agencies to maintain their technological infrastructure and support operations. Spending in this sector can vary widely based on agency needs and contract scope.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.

Oversight & Accountability

The contract's duration and T&M pricing structure warrant close oversight by the contracting officer and relevant NIH program managers to ensure performance objectives are met and costs remain controlled.

Related Government Programs

Computer Systems Design Services
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Time and Materials pricing structure
Contract duration of nearly 5 years
Lack of small business award noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $41.6 million to OCCAM SOLUTIONS, INC.. IT PROFESSIONAL SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is OCCAM 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 $41.6 million.

What is the period of performance?

Start: 2019-03-18. End: 2023-04-17.

What specific IT professional support services were provided under this contract?

The contract, NAICS code 541512, covers Computer Systems Design Services. This typically includes services like IT consulting, systems integration, network design, and IT project management. Specific deliverables and tasks would be detailed in the contract's statement of work, outlining the exact support provided to the National Institutes of Health.

What are the primary risks associated with the Time and Materials pricing structure for this contract?

The primary risk of a Time and Materials (T&M) contract is the potential for uncontrolled cost growth. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual time and materials used. This can lead to higher-than-expected costs if the scope is not well-defined, if there is inefficiency, or if the contractor inflates hours or material costs.

How effectively does full and open competition ensure value for money in IT support services?

Full and open competition is designed to maximize value by allowing all responsible sources to submit offers, fostering a competitive environment that drives down prices and improves quality. For IT support services, this means multiple vendors can propose solutions, leading to potentially better-tailored services and more cost-effective pricing compared to sole-source or limited competition scenarios.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 13221 WOODLAND PARK RD, HERNDON, VA, 20171

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $41,567,575

Exercised Options: $41,567,575

Current Obligation: $41,567,575

Actual Outlays: $20,366,267

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA18D0093

IDV Type: FSS

Timeline