NIH Awards $6.1M for Data Center Tech Site Services, Ending July 2026
Contract Overview
Contract Amount: $6,134,754 ($6.1M)
Contractor: Tech Site Services LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2023-01-28
End Date: 2026-07-27
Contract Duration: 1,276 days
Daily Burn Rate: $4.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: DATA CENTER TECH SITE SERVICES LLC [23-000369]
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $6.1 million to TECH SITE SERVICES LLC for work described as: DATA CENTER TECH SITE SERVICES LLC [23-000369] Key points: 1. Contract awarded to TECH SITE SERVICES LLC for $6.1M. 2. Services include 'Other Computer Related Services' (NAICS 541519). 3. Competition was full and open, suggesting potential for competitive pricing. 4. The contract duration is over 3 years, indicating a significant need. 5. No small business participation noted.
Value Assessment
Rating: good
The award amount of $6.1M over approximately 3.5 years suggests a reasonable annual spend. Benchmarking against similar IT services contracts would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for the widest range of potential bidders and can lead to more competitive pricing. The use of a Purchase Order for this value indicates a streamlined procurement process.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a fair market price for the services rendered.
Public Impact
Ensures continued operation and maintenance of critical data center infrastructure for NIH. Supports ongoing research and health initiatives by providing essential IT services. The long-term nature of the contract provides stability for service delivery.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Potential for price creep over the contract duration.
Positive Signals
- Full and open competition.
- Firm fixed price contract type.
Sector Analysis
The IT services sector is vast, with data center operations being a critical component. Spending benchmarks for 'Other Computer Related Services' vary widely based on scope and complexity. This contract appears to be of moderate size within this category.
Small Business Impact
The contract was not awarded to a small business, and there is no indication of small business subcontracting. This represents a missed opportunity to support small businesses within the federal contracting landscape.
Oversight & Accountability
The use of a Purchase Order for a contract of this value warrants review to ensure adherence to procurement regulations and best practices for competition and price justification.
Related Government Programs
- Other Computer Related Services
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- No small business participation.
- Potential for cost overruns if scope changes.
- Reliance on a single vendor for critical infrastructure support.
- Long contract duration may not reflect evolving technology needs.
Tags
other-computer-related-services, department-of-health-and-human-services, md, purchase-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $6.1 million to TECH SITE SERVICES LLC. DATA CENTER TECH SITE SERVICES LLC [23-000369]
Who is the contractor on this award?
The obligated recipient is TECH SITE SERVICES 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 $6.1 million.
What is the period of performance?
Start: 2023-01-28. End: 2026-07-27.
What specific data center services are included in this contract, and how do they align with NIH's current and future IT infrastructure needs?
The contract falls under NAICS code 541519 (Other Computer Related Services). Specific services are not detailed in the provided data but likely encompass maintenance, support, and potentially upgrades for NIH's data center facilities. A thorough review would confirm alignment with strategic IT roadmaps and operational requirements to ensure the services are essential and not redundant.
Given the $6.1M award and 3+ year duration, what is the projected annual cost, and how does it compare to industry benchmarks for similar data center support contracts?
The projected annual cost is approximately $1.75M ($6.1M / 3.5 years). Benchmarking this against industry standards for data center site services requires detailed service level agreements and scope of work. However, for a government contract of this nature, it appears within a reasonable range, especially considering the full and open competition which should have driven a competitive price.
What mechanisms are in place to ensure effective performance and accountability from TECH SITE SERVICES LLC throughout the contract's duration?
As a Purchase Order with a Firm Fixed Price, the contract likely includes specific deliverables and performance standards. The Department of Health and Human Services, specifically NIH, would have contract officers and technical points of contact responsible for monitoring performance, approving invoices, and ensuring compliance with the contract terms. Regular performance reviews and reporting would be standard.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1250 WEST RIVER RD, SHADY SIDE, MD, 20764
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $6,134,754
Exercised Options: $6,134,754
Current Obligation: $6,134,754
Actual Outlays: $4,905,991
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2023-01-28
Current End Date: 2026-07-27
Potential End Date: 2026-07-27 00:00:00
Last Modified: 2026-02-19
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