NIH awards $20.8M contract for property management services to New Year Tech, Inc

Contract Overview

Contract Amount: $20,790,073 ($20.8M)

Contractor: NEW Year Tech, Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2019-01-02

End Date: 2025-02-28

Contract Duration: 2,249 days

Daily Burn Rate: $9.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF NATIONAL INSTITUTES OF HEALTH PROPERTY MANAGEMENT BRANCH ASSET INVENTORY

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $20.8 million to NEW YEAR TECH, INC for work described as: IGF::OT::IGF NATIONAL INSTITUTES OF HEALTH PROPERTY MANAGEMENT BRANCH ASSET INVENTORY Key points: 1. Contract awarded for property management and asset inventory services. 2. The contract duration spans over six years, indicating a long-term need. 3. Services are categorized under logistics consulting, suggesting a focus on operational efficiency. 4. The award was made under full and open competition. 5. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 6. The contractor, New Year Tech, Inc., is based in Maryland.

Value Assessment

Rating: good

The contract value of $20.8 million over approximately six years suggests a moderate annual spend for property management services. Benchmarking this against similar contracts for logistics consulting and asset inventory management within federal agencies would provide a clearer picture of value for money. The firm fixed-price structure is generally favorable for the government when requirements are well-defined, as it caps potential cost overruns. However, without specific performance metrics or comparisons to industry standards for asset inventory and property management, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of a single award (no=1) suggests that one vendor was selected as the best value. The level of competition is a positive sign for price discovery, as it likely encouraged competitive pricing among bidders. Further analysis would involve examining the number of bids received to fully understand the extent of the competition.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment where vendors strive to offer the most cost-effective solutions.

Public Impact

The National Institutes of Health (NIH) benefits from improved property and asset management. Services delivered include logistics consulting for physical distribution and asset inventory. The geographic impact is primarily within Maryland, where the contractor is located. The contract supports operational efficiency and potentially the maintenance of federal assets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if asset inventory requirements are not precisely defined.
Dependence on a single contractor for critical property management functions.
Risk of vendor performance issues impacting NIH's asset tracking capabilities.

Positive Signals

Firm Fixed Price contract structure provides cost certainty.
Awarded through full and open competition, suggesting competitive pricing.
Long contract duration indicates a stable, ongoing need for these services.

Sector Analysis

This contract falls within the professional services sector, specifically logistics and consulting. The federal government spends billions annually on such services to manage its vast inventory of assets and ensure efficient operations. Contracts for property management and asset inventory are crucial for agencies like NIH to maintain accountability and optimize the use of resources. Comparable spending benchmarks would typically be found within broader categories of management and financial consulting services.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss=false, sb=false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. The primary contractor, New Year Tech, Inc., is likely a large business, and the contract does not appear to mandate specific small business subcontracting goals. This means the direct economic benefit to the small business ecosystem from this specific award is likely minimal.

Oversight & Accountability

Oversight for this contract would typically be managed by the National Institutes of Health's contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated through federal contract databases where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

Federal Asset Management Programs
Logistics and Supply Chain Management Services
Government Property Management Systems
NIH Operational Support Contracts

Risk Flags

Potential for vendor lock-in due to long contract duration.
Lack of specific performance metrics in summary data.
No indication of small business participation requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $20.8 million to NEW YEAR TECH, INC. IGF::OT::IGF NATIONAL INSTITUTES OF HEALTH PROPERTY MANAGEMENT BRANCH ASSET INVENTORY

Who is the contractor on this award?

The obligated recipient is NEW YEAR TECH, 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 $20.8 million.

What is the period of performance?

Start: 2019-01-02. End: 2025-02-28.

What is the track record of New Year Tech, Inc. in performing similar federal contracts?

A review of federal procurement data would be necessary to assess New Year Tech, Inc.'s track record. This would involve examining past contract awards, performance evaluations (if publicly available), and any history of contract modifications or disputes. Understanding their experience with property management, asset inventory, and logistics consulting for agencies of similar size and complexity to NIH is crucial. A history of successful contract completion and positive performance reviews would indicate a lower risk for this current award. Conversely, any past performance issues, such as missed deadlines, cost overruns on previous fixed-price contracts, or quality deficiencies, would raise concerns about their ability to meet the requirements of this $20.8 million contract.

How does the annual value of this contract compare to industry benchmarks for similar services?

To benchmark the annual value, we would need to compare the approximate annual spend ($20.8M / ~6 years = ~$3.47M/year) against industry data for property management and logistics consulting services. This comparison should consider the scope of services (asset inventory, physical distribution), the size and complexity of the client (NIH), and the geographic location. Industry reports from consulting firms specializing in government contracting or market research firms focusing on professional services can provide average contract values or cost ranges. If the annual spend is significantly higher or lower than comparable contracts, it could indicate either exceptional value or potential overpricing/underbidding. Without specific benchmark data, it's difficult to definitively assess value for money.

What are the key performance indicators (KPIs) used to measure the success of this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, for property management and asset inventory services, typical KPIs might include the accuracy rate of asset inventory records, the timeliness of asset updates, the reduction in lost or unaccounted-for assets, the efficiency of physical distribution processes, and adherence to property disposal regulations. The contract's performance work statement (PWS) would detail these metrics and the acceptable performance levels. The firm fixed-price nature suggests that meeting these KPIs is critical for the contractor to achieve profitability, and failure to do so could lead to penalties or contract termination.

What is the historical spending trend for property management and logistics consulting services at NIH?

Analyzing historical spending trends at NIH for property management and logistics consulting would provide context for the $20.8 million award. This involves examining contract databases (like FPDS) to identify previous awards for similar services, their values, durations, and the contractors involved. A consistent or increasing trend in spending might indicate a growing need or reliance on these services. Conversely, a declining trend could suggest efforts to bring services in-house or reduce overall spending. Understanding this history helps assess whether the current contract represents a typical investment or a significant shift in NIH's approach to asset and property management.

Are there any specific risks associated with the 'Process, Physical Distribution, and Logistics Consulting Services' NAICS code?

The NAICS code 541614, 'Process, Physical Distribution, and Logistics Consulting Services,' generally involves advising organizations on improving efficiency in their supply chains, warehousing, transportation, and inventory management. Risks associated with this sector can include the complexity of integrating new systems or processes into existing agency infrastructure, the potential for disruption during implementation phases, and the challenge of accurately measuring the return on investment for consulting services. For this specific contract, risks might also involve the accurate tracking and management of NIH's physical assets, ensuring compliance with regulations, and the contractor's ability to adapt to evolving logistical needs or technological advancements within the agency.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting 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: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 43525 CLIVEDON CT, ASHBURN, VA, 20147

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, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,790,073

Exercised Options: $20,790,073

Current Obligation: $20,790,073

Actual Outlays: $10,001,379

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS10F130AA

IDV Type: FSS

Timeline