NIH awards $45.2M IT support contract to JCS Solutions LLC, a re-compete

Contract Overview

Contract Amount: $45,192,096 ($45.2M)

Contractor: JCS Solutions LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2022-09-13

End Date: 2025-12-17

Contract Duration: 1,191 days

Daily Burn Rate: $37.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: RE-COMPETE - IT SUPPORT SERVICES FOR NICHD

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $45.2 million to JCS SOLUTIONS LLC for work described as: RE-COMPETE - IT SUPPORT SERVICES FOR NICHD Key points: 1. Contract value represents a significant investment in IT support for a key NIH institute. 2. The re-compete nature suggests a focus on continuity of services and potentially stable pricing. 3. The Time and Materials pricing structure introduces some cost variability risk. 4. The contract is for custom computer programming services, indicating a need for specialized IT expertise. 5. Performance is located in Maryland, impacting the local IT workforce and economy. 6. The award amount is substantial, requiring careful monitoring for value for money.

Value Assessment

Rating: good

The contract value of approximately $45.2 million over its period of performance (roughly 3 years) appears reasonable for comprehensive IT support services. Benchmarking against similar custom computer programming services contracts within the federal government would provide a more precise value-for-money assessment. The Time and Materials (T&M) pricing, while common for IT services, warrants close oversight to ensure efficient labor utilization and prevent cost overruns. Without specific comparable contract data, it's difficult to definitively state if this is an exceptional price, but it falls within a typical range for this type of service.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 4 bids suggests a healthy level of competition for this requirement. Full and open competition generally leads to better price discovery and encourages vendors to offer competitive terms and pricing to secure the award. The agency's decision to use this procurement method implies confidence in obtaining a fair market price and a suitable solution.

Taxpayer Impact: Taxpayers benefit from full and open competition as it drives down prices and ensures the government receives the best value for its investment. This approach minimizes the risk of inflated costs often associated with less competitive solicitations.

Public Impact

The National Institute of Allergy and Infectious Diseases (NIAID) is the primary beneficiary, receiving essential IT support services. Services include custom computer programming, crucial for maintaining and advancing the institute's research and operational capabilities. The geographic impact is concentrated in Maryland, supporting the local IT sector and potentially creating or sustaining jobs. The contract ensures the continuity of critical IT infrastructure and services necessary for scientific research and public health initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost overruns if not closely managed and monitored for efficiency.
The re-compete nature, while providing continuity, might limit opportunities for innovative solutions from new vendors.
Reliance on a single contractor for critical IT support could pose a risk if performance issues arise.
The specific scope of 'Custom Computer Programming Services' needs clear definition to avoid scope creep and ensure alignment with NIH needs.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process and likely fair pricing.
The contractor, JCS SOLUTIONS LLC, has secured a significant federal contract, suggesting a level of established capability.
The contract duration (through late 2025) provides stability for both the agency and the contractor.
The re-compete aspect suggests the agency is satisfied with the previous performance or requires continuity of specific services.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically custom computer programming. The federal IT services market is vast, with agencies consistently investing in software development, system integration, and IT support to maintain and modernize their operations. Comparable spending benchmarks for custom programming services can vary widely based on complexity, duration, and required expertise. The NIH, as a major research institution, requires specialized IT capabilities that often command higher rates due to the need for domain knowledge and advanced technical skills.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'sb': false. The primary award went to JCS SOLUTIONS LLC. There is no explicit information provided regarding subcontracting plans for small businesses. Without this data, it's difficult to assess the direct impact on the small business ecosystem. However, larger IT service contracts often include subcontracting opportunities, and it would be beneficial to understand if JCS SOLUTIONS LLC intends to engage small businesses for specialized tasks.

Oversight & Accountability

Oversight for this contract will likely be managed by the National Institutes of Health (NIH) contracting officers and program managers. The contract's Time and Materials (T&M) nature necessitates robust monitoring of labor hours and costs to ensure efficiency and prevent overspending. Transparency is typically maintained through contract databases like FPDS-NG. While specific Inspector General (IG) jurisdiction isn't detailed here, the Department of Health and Human Services (HHS) IG would have oversight authority over potential fraud, waste, or abuse related to this contract.

Related Government Programs

NIH IT Support Services
Custom Computer Programming Contracts
Federal IT Services Re-competes
Health and Human Services IT Spending
Time and Materials IT Contracts

Risk Flags

Time and Materials Pricing
Potential for Scope Creep
Contractor Performance Risk
Reliance on Single Vendor

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $45.2 million to JCS SOLUTIONS LLC. RE-COMPETE - IT SUPPORT SERVICES FOR NICHD

Who is the contractor on this award?

The obligated recipient is JCS SOLUTIONS 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 $45.2 million.

What is the period of performance?

Start: 2022-09-13. End: 2025-12-17.

What is the historical spending pattern for IT support services at the National Institutes of Health (NIH) for similar custom computer programming requirements?

Analyzing historical spending patterns for IT support and custom computer programming at NIH is crucial for context. While this specific contract is valued at approximately $45.2 million, understanding prior awards for similar services can reveal trends in pricing, contractor performance, and competition levels. For instance, if NIH has consistently awarded multi-million dollar contracts for custom programming over the past decade, it suggests a sustained need. Comparing the current award amount and duration to previous contracts awarded to the same or different vendors for comparable services can help determine if the current pricing is competitive and if the value proposition has improved or declined. This analysis would also highlight any shifts in the types of IT services being procured, such as a move towards cloud-based solutions or specific software development languages, which could inform future procurement strategies and budget allocations.

How does the per-unit cost or labor rate for JCS SOLUTIONS LLC compare to market rates for custom computer programming services in the Maryland region?

Benchmarking the per-unit cost or labor rates against market data is essential for assessing value for money. For a Time and Materials contract, this involves examining the average hourly rates for different labor categories (e.g., senior programmers, project managers, analysts) proposed by JCS SOLUTIONS LLC. These rates should then be compared to industry surveys, government-wide contract vehicles (like GSA schedules), and publicly available data for similar services in the Maryland geographic area. If JCS SOLUTIONS LLC's rates are significantly higher than market averages without clear justification (e.g., highly specialized skills, unique experience), it could indicate potential overpricing. Conversely, rates significantly below market might raise concerns about the quality of personnel or the contractor's ability to deliver. A thorough analysis requires access to detailed labor category breakdowns and corresponding rates.

What is the track record of JCS SOLUTIONS LLC in delivering IT support and custom programming services to federal agencies, particularly within the Department of Health and Human Services (HHS)?

Evaluating the track record of JCS SOLUTIONS LLC is critical for understanding their past performance and reliability. This involves reviewing past federal contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes. Specifically, examining their history with HHS and NIH would provide the most relevant context. Have they successfully completed similar custom programming projects on time and within budget? Have there been any significant performance deficiencies, contract disputes, or past performance issues that could indicate a higher risk for this current contract? Understanding their experience with the specific technologies and requirements relevant to NIH's mission is also important. A strong performance history suggests a lower risk of delivery failure and better assurance of quality service.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract, and how will performance be measured?

The effectiveness of this IT support contract hinges on clearly defined Key Performance Indicators (KPIs) and Service Level Agreements (SLAs). These metrics provide the framework for measuring the contractor's performance and ensuring that the NIH receives the expected level of service. Examples of relevant KPIs/SLAs could include system uptime percentages, response times for critical issue resolution, bug fix turnaround times, project milestone completion rates, and adherence to security protocols. The contract documentation should specify these metrics, the targets, and the methods for measurement and reporting. Regular performance reviews, based on these KPIs/SLAs, are essential for identifying any performance gaps early and implementing corrective actions, thereby ensuring accountability and maximizing the value derived from the contract.

Given this is a re-compete, what changes or improvements were incorporated into the new contract compared to the previous one to enhance value or address past issues?

As a re-compete, understanding the evolution of the contract is important. The solicitation and award documents for this new contract should ideally reflect lessons learned from the previous performance period. This could include updated technical requirements, revised performance metrics, adjustments to the contract type or pricing structure, or specific clauses aimed at improving efficiency or addressing any shortcomings identified previously. For example, if the previous contract faced challenges with scope creep, the new solicitation might have more detailed SOWs. If cost control was an issue, the pricing model might have been adjusted. Analyzing the differences between the old and new contract scopes and terms can reveal the agency's strategy for maximizing value and mitigating risks in the renewed engagement with JCS SOLUTIONS LLC.

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

Solicitation ID: 75N94022Q00148

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 4114 LEGATO RD STE 710, FAIRFAX, VA, 22033

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $46,716,190

Exercised Options: $45,192,096

Current Obligation: $45,192,096

Actual Outlays: $37,984,891

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $5,463,155

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA18D003T

IDV Type: FSS

Timeline