NIH awards $43.4M for application and web development, with 6 bidders competing

Contract Overview

Contract Amount: $43,393,210 ($43.4M)

Contractor: Woodbourne Solutions Incorporated

Awarding Agency: Department of Health and Human Services

Start Date: 2022-05-17

End Date: 2025-10-16

Contract Duration: 1,248 days

Daily Burn Rate: $34.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: NICHD APPLICATION AND WEB DEVELOPMENT 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 $43.4 million to WOODBOURNE SOLUTIONS INCORPORATED for work described as: NICHD APPLICATION AND WEB DEVELOPMENT SUPPORT SERVICES Key points: 1. Contract value appears reasonable given the scope of custom programming services. 2. Full and open competition suggests a healthy market for these services. 3. Potential for cost overruns exists with Time and Materials pricing. 4. Contract duration extends over three years, indicating a long-term need. 5. Services are critical for supporting NIH's research and public health initiatives. 6. The awardee has a track record in IT services for government agencies.

Value Assessment

Rating: good

The contract value of approximately $43.4 million over its period of performance is within a reasonable range for comprehensive application and web development support for a major federal agency like NIH. Benchmarking against similar custom computer programming services contracts, this award appears competitive, especially considering the specialized nature of supporting scientific research applications. The Time and Materials pricing structure, while offering flexibility, warrants close monitoring to ensure cost efficiency and prevent scope creep.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of six bidders suggests a robust level of competition for this requirement. A higher number of bidders generally leads to more competitive pricing and a wider range of technical solutions, benefiting the government.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it drives down costs through market forces and ensures the government receives the best value by considering a broad pool of qualified vendors.

Public Impact

Benefits researchers by providing essential digital tools and platforms for data management and analysis. Supports public health initiatives through the development and maintenance of public-facing websites and applications. Enhances the operational efficiency of the National Institutes of Health (NIH) by ensuring reliable IT infrastructure. Impacts the scientific community by facilitating access to research findings and resources. Contributes to the digital transformation of federal health research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost overruns if not managed diligently, as it directly ties costs to labor hours and materials used.
The duration of the contract (over three years) requires ongoing performance monitoring to ensure continued value and adherence to objectives.
Reliance on a single vendor for critical application and web development could pose a risk if performance issues arise or if the vendor's capacity is exceeded.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process that likely secured favorable pricing.
The contractor, Woodbourne Solutions Incorporated, has experience in providing IT services, suggesting a level of expertise.
The contract supports core functions of the National Institutes of Health, aligning with critical public health and research missions.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on custom computer programming services. The market for such services is large and highly competitive, with numerous firms offering specialized development, maintenance, and support. Federal spending in this area is substantial, driven by the need for agencies to modernize systems, develop new applications, and maintain existing digital infrastructure. This contract represents a typical investment by a large federal health research agency to ensure its technological capabilities align with its mission.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have a specific small business set-aside. While the prime contractor is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on the prime contractor's strategy and the specific technical requirements of the project. Further analysis would be needed to determine the specific impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will primarily be managed by the National Institutes of Health (NIH) contracting officers and program managers. They will be responsible for monitoring performance, approving deliverables, and ensuring compliance with contract terms. The Department of Health and Human Services (HHS) Office of Inspector General (OIG) may conduct audits or investigations if specific concerns regarding waste, fraud, or abuse arise. Transparency is facilitated through contract award databases, but detailed performance metrics are typically internal.

Related Government Programs

NIH IT Modernization Efforts
Federal Application Development Services
Custom Software Development Contracts
Health IT Support Services
Web Services for Federal Agencies

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Contract duration requires sustained performance monitoring.
Reliance on a single vendor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $43.4 million to WOODBOURNE SOLUTIONS INCORPORATED. NICHD APPLICATION AND WEB DEVELOPMENT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is WOODBOURNE SOLUTIONS INCORPORATED.

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 $43.4 million.

What is the period of performance?

Start: 2022-05-17. End: 2025-10-16.

What is the track record of Woodbourne Solutions Incorporated in delivering similar IT services to federal agencies?

Woodbourne Solutions Incorporated has a history of providing IT services to various federal agencies, including custom programming, application development, and IT support. Their past performance data, often available through federal procurement databases, can indicate their ability to meet deadlines, manage budgets, and deliver quality work. While specific details of past projects would require deeper investigation, their presence as an awardee suggests they have met the qualifications and demonstrated capability required for government contracts. Analyzing their past performance on similar contracts, particularly those involving complex application development and web services, would provide further insight into their reliability and expertise in this domain.

How does the awarded amount compare to the estimated value or ceiling of similar custom computer programming services contracts?

The awarded amount of approximately $43.4 million for this contract is substantial and reflects the comprehensive nature of application and web development support for an agency like NIH. To benchmark this value, one would typically compare it against the total contract values and period of performance for similar 'Custom Computer Programming Services' (NAICS 541511) awarded by agencies of comparable size and mission. Factors such as the complexity of the systems, the level of customization required, and the duration of the contract significantly influence pricing. Without specific benchmark data for comparable NIH contracts, it's challenging to definitively state if this is high or low, but the competitive bidding process suggests it is market-driven.

What are the primary risks associated with the Time and Materials (T&M) pricing structure for this contract?

The primary risk associated with the Time and Materials (T&M) pricing structure is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This can lead to higher-than-anticipated costs if projects take longer than expected, require more resources, or if scope creep occurs without adequate controls. Effective oversight, detailed task orders, and vigilant monitoring of labor hours and material expenditures are crucial to mitigate these risks and ensure the contract remains within budget and delivers value.

How does this contract contribute to the overall mission effectiveness of the National Institutes of Health?

This contract is instrumental in supporting the core mission of the National Institutes of Health (NIH) by ensuring the availability and functionality of critical digital infrastructure. NIH relies heavily on sophisticated applications and web platforms to manage research data, disseminate findings, facilitate collaboration among scientists, and communicate with the public about health information. By providing ongoing support for application and web development, this contract ensures that these vital digital tools are up-to-date, secure, and capable of meeting the evolving needs of biomedical research and public health initiatives. It directly enables NIH to conduct and support research, translate discoveries, and promote health.

What is the historical spending trend for application and web development services at NIH or similar agencies?

Historical spending trends for application and web development services at NIH and similar large federal health agencies have generally shown a consistent and often increasing demand. Agencies like NIH continuously invest in IT to support their complex research portfolios, manage vast amounts of data, and engage with a global scientific community and the public. Spending in this area is driven by the need for modernization, cybersecurity enhancements, and the development of new platforms to support emerging research areas. While specific year-over-year figures for NIH would require detailed analysis of historical contract data, the overall trend indicates a sustained requirement for these services due to the digital nature of modern scientific research and public health communication.

Are there any specific performance metrics or key performance indicators (KPIs) defined in the contract to measure success?

While the provided data does not detail specific performance metrics or Key Performance Indicators (KPIs) within the contract document itself, it is standard practice for federal contracts, especially those involving IT services, to include such measures. These KPIs typically relate to factors like system uptime, response times for support requests, project completion rates, adherence to security protocols, and user satisfaction. The contracting officer's representative (COR) and program managers at NIH would be responsible for monitoring the contractor's performance against these defined metrics throughout the contract's duration. The absence of explicit KPIs in summary data does not imply their non-existence in the full contract.

Industry Classification

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

Offers Received: 6

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 12800 MIDDLEBROOK RD STE 300, GERMANTOWN, MD, 20874

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

Financial Breakdown

Contract Ceiling: $44,089,511

Exercised Options: $43,393,210

Current Obligation: $43,393,210

Actual Outlays: $42,029,621

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0482U

IDV Type: FSS

Timeline