NIH awards $35.7M for IT services to Ideation Solutions JV LLC, with 7 bids received

Contract Overview

Contract Amount: $35,746,502 ($35.7M)

Contractor: Ideation Solutions JV LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2022-11-01

End Date: 2026-05-21

Contract Duration: 1,297 days

Daily Burn Rate: $27.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: NIH SERVICE DESK IDEATION SOLUTIONS JV, LLC:1325117 [23-000124]

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $35.7 million to IDEATION SOLUTIONS JV LLC for work described as: NIH SERVICE DESK IDEATION SOLUTIONS JV, LLC:1325117 [23-000124] Key points: 1. The contract value of $35.7 million over approximately 4 years suggests a moderate investment in IT support. 2. With 7 bids received, the competition level indicates a healthy market interest for these services. 3. The Time and Materials pricing structure introduces potential cost variability, requiring close monitoring. 4. This contract falls within the Computer Systems Design Services NAICS code, a common area for federal IT procurement. 5. The award to a joint venture may offer specialized expertise but also introduces potential complexities in performance management. 6. The contract duration of nearly 4 years allows for sustained service delivery and potential for performance optimization.

Value Assessment

Rating: good

The contract value of $35.7 million for IT services over nearly four years appears reasonable given the scope of computer systems design and related services. Benchmarking against similar contracts for IT support within the Department of Health and Human Services (HHS) would provide a more precise value-for-money assessment. The Time and Materials (T&M) pricing model, while flexible, can lead to cost overruns if not managed diligently. However, the presence of multiple bidders suggests that the pricing was competitive at the time of award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was open, specific sources were initially excluded before the final award. Seven bids were received, suggesting a robust level of interest and competition for these IT services. A higher number of bidders generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The competitive nature of this procurement is beneficial for taxpayers, as it likely drove down prices and encouraged offerors to present their best value propositions. The presence of multiple bidders reduces the risk of paying an inflated price for the services.

Public Impact

The National Institutes of Health (NIH) benefits from enhanced IT support services, crucial for its research and administrative functions. Services delivered include computer systems design and related services, supporting the operational efficiency of the NIH. The primary geographic impact is within Maryland, where the contract is managed and likely where services are primarily delivered. The contract supports the IT workforce within the contractor organization, potentially creating or sustaining jobs in the IT sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation due to the Time and Materials pricing structure if not closely managed.
Performance risks associated with managing a joint venture, including coordination and accountability.
Ensuring consistent service quality across the contract duration to meet NIH's evolving IT needs.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Multiple bidders (7) suggest strong market interest and potential for competitive pricing.
The contract duration allows for stability and continuity of IT services for the NIH.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical component of the federal IT landscape. The federal government is a significant consumer of these services, with spending often concentrated in areas supporting agency operations, research, and data management. Comparable spending benchmarks would typically involve analyzing IT service contracts awarded by other large federal agencies for similar scope and duration, considering factors like the number of bidders and pricing models.

Small Business Impact

The contract was awarded to 'IDEATION SOLUTIONS JV LLC,' a joint venture. While the data does not explicitly state if this is a small business set-aside or if small businesses are involved as subcontractors, joint ventures can sometimes be structured to meet small business contracting goals. Further investigation would be needed to determine the extent of small business participation and subcontracting opportunities generated by this award.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program managers within the National Institutes of Health. Accountability measures are embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

IT Support Services
Computer Systems Design
Federal IT Contracts
HHS IT Procurement
NIH IT Services

Risk Flags

Potential for cost overruns due to T&M pricing.
Need for robust oversight to manage T&M contract effectively.
Performance management of a joint venture requires careful attention.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $35.7 million to IDEATION SOLUTIONS JV LLC. NIH SERVICE DESK IDEATION SOLUTIONS JV, LLC:1325117 [23-000124]

Who is the contractor on this award?

The obligated recipient is IDEATION SOLUTIONS JV 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 $35.7 million.

What is the period of performance?

Start: 2022-11-01. End: 2026-05-21.

What is the track record of Ideation Solutions JV LLC in performing federal IT contracts?

Information regarding the specific track record of 'IDEATION SOLUTIONS JV LLC' in performing federal contracts is not detailed in the provided data. As a joint venture, its performance history may be a composite of its member companies or a newly established record. A thorough review would involve examining past performance evaluations (if available) in federal procurement databases, looking at contract awards to its constituent companies, and assessing any reported issues or successes on previous government engagements. Understanding the experience of the key personnel involved in the joint venture is also crucial for assessing their capability to deliver on this NIH contract.

How does the awarded amount compare to similar IT service contracts at NIH?

The awarded amount of $35.7 million over approximately 4 years for computer systems design services is a significant investment. To benchmark this against similar contracts at NIH, one would need to analyze historical data for contracts with comparable NAICS codes (541512), service scopes, and durations. Factors such as the number of bidders, the pricing model (e.g., T&M vs. Firm-Fixed-Price), and the specific technical requirements would need to be considered for a fair comparison. Without access to a comprehensive database of NIH's IT procurements, a precise comparison is difficult, but this value suggests a substantial requirement for IT support.

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 for this contract is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual time and materials used. If the project scope is not well-defined, or if project management is weak on either the government or contractor side, the hours and materials consumed can exceed initial estimates, leading to a higher final cost than anticipated. This necessitates robust government oversight, including detailed tracking of labor hours, material costs, and effective change management to control expenditures and ensure value for money.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring competitive pricing?

The 'Full and Open Competition After Exclusion of Sources' method aims to balance the benefits of full and open competition with specific circumstances that might necessitate excluding certain sources initially. While it allows for a broad range of potential bidders, the initial exclusion of sources could, in theory, limit the competitive pool. However, receiving seven bids suggests that the competition was still robust. The effectiveness in ensuring competitive pricing depends heavily on the nature of the exclusion and the overall market dynamics. In this case, with seven bidders, it appears to have facilitated price discovery, but understanding the rationale for the initial exclusion would provide further insight.

What are the implications of this contract award for the IT services market in Maryland?

This contract award to 'IDEATION SOLUTIONS JV LLC,' located in Maryland (ST: MD), has positive implications for the local IT services market. It represents a significant federal expenditure in the region, potentially leading to job creation and business opportunities for the contractor and any subcontractors based in Maryland. The presence of a substantial federal contract can also attract other IT service providers to the area, fostering a competitive ecosystem. Furthermore, it signals the NIH's continued reliance on external IT support, which could encourage further investment and specialization within the Maryland IT sector catering to government needs.

Are there any specific performance metrics or KPIs that will be used to evaluate the contractor's success?

While the provided data does not specify the exact performance metrics or Key Performance Indicators (KPIs) for this contract, federal contracts of this nature typically include detailed performance standards. These standards are usually outlined in the contract's Performance Work Statement (PWS) or Statement of Work (SOW). Common KPIs for IT service desk and computer systems design contracts might include response times for service requests, resolution rates, system uptime, user satisfaction scores, and adherence to security protocols. The government's contracting officer and program managers are responsible for monitoring these metrics and ensuring the contractor meets the defined performance levels.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 7

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 4031 UNIVERSITY DR STE 204, FAIRFAX, VA, 22030

Business Categories: Black American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $40,492,875

Exercised Options: $35,746,502

Current Obligation: $35,746,502

Actual Outlays: $30,946,971

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 75N98120D00154

IDV Type: GWAC

Timeline