HHS Awards $32.17M for Custom Computer Programming Services to Lexical Intelligence, LLC

Contract Overview

Contract Amount: $32,171,846 ($32.2M)

Contractor: Lexical Intelligence, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2020-09-29

End Date: 2024-09-28

Contract Duration: 1,460 days

Daily Burn Rate: $22.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: MULTIPLE SERVICES NEEDED FROM LEXICAL INCLUDING CONSULTATIONS, TRAINING IN THE USE OF PORTFOLIO ANALYSIS TOOLS, AND SOFTWARE DEVELOPMENT.

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $32.2 million to LEXICAL INTELLIGENCE, LLC for work described as: MULTIPLE SERVICES NEEDED FROM LEXICAL INCLUDING CONSULTATIONS, TRAINING IN THE USE OF PORTFOLIO ANALYSIS TOOLS, AND SOFTWARE DEVELOPMENT. Key points: 1. The contract focuses on essential services like consultations, training, and software development for portfolio analysis tools. 2. Lexical Intelligence, LLC, a single awardee, will provide these services over a four-year period. 3. The contract's value is substantial, requiring careful monitoring of performance and cost-effectiveness. 4. The sector is IT services, specifically custom computer programming, a critical area for government operations.

Value Assessment

Rating: good

The total award value of $32.17 million over four years appears reasonable for the scope of services, which include consultations, training, and software development. Benchmarking against similar custom programming contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and potentially more favorable pricing for the government.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary IT services.

Public Impact

Enhances NIH's capabilities in portfolio analysis through specialized tools and training. Supports critical software development for health research and data management. Ensures continuity of essential IT services for a significant period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in software development.
Ensuring effective knowledge transfer during training.
Monitoring contractor performance against defined milestones.

Positive Signals

Clear definition of services (consultations, training, development).
Awarded through full and open competition.
Long-term contract provides stability for NIH's IT needs.

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming services. Spending in this area is consistently high across federal agencies, driven by the need for specialized software and IT support to manage complex data and operations.

Small Business Impact

The data indicates this was not set aside for small businesses, and the awardee, Lexical Intelligence, LLC, is not explicitly identified as a small business in this context. Further analysis would be needed to confirm their size status and the impact on small business participation.

Oversight & Accountability

The contract's duration and value necessitate robust oversight from the Department of Health and Human Services to ensure deliverables are met, costs are controlled, and the services align with NIH's strategic objectives.

Related Government Programs

Custom Computer Programming Services
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Potential for cost overruns due to T&M pricing.
Risk of scope creep in software development.
Dependency on a single contractor for critical services.
Need for robust performance monitoring and oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $32.2 million to LEXICAL INTELLIGENCE, LLC. MULTIPLE SERVICES NEEDED FROM LEXICAL INCLUDING CONSULTATIONS, TRAINING IN THE USE OF PORTFOLIO ANALYSIS TOOLS, AND SOFTWARE DEVELOPMENT.

Who is the contractor on this award?

The obligated recipient is LEXICAL INTELLIGENCE, 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 $32.2 million.

What is the period of performance?

Start: 2020-09-29. End: 2024-09-28.

How will the effectiveness of the portfolio analysis tools and training be measured to ensure they meet NIH's needs?

Effectiveness will likely be measured through a combination of user feedback, performance metrics related to the tools' functionality and efficiency, and the successful completion of training programs. NIH should establish clear key performance indicators (KPIs) tied to the adoption and utilization of the tools, as well as the skill development of personnel. Regular reviews and post-implementation assessments will be crucial to gauge the actual impact on portfolio analysis capabilities.

What are the primary risks associated with the software development component of this contract?

Key risks include potential scope creep, where requirements expand beyond the initial agreement, leading to cost overruns and schedule delays. Technical challenges in developing complex portfolio analysis tools, integration issues with existing systems, and ensuring the software meets evolving user needs are also significant risks. Furthermore, the departure of key personnel from the contractor could disrupt development progress and institutional knowledge.

Does the 'Time and Materials' pricing structure pose a risk to cost control for the software development services?

Yes, a Time and Materials (T&M) pricing structure can pose a risk to cost control, especially for software development, as it incentivizes contractor effort rather than fixed outcomes. Without strong oversight, clear task definitions, and defined ceilings, T&M contracts can lead to cost overruns if not managed diligently. NIH must closely monitor hours, labor categories, and project progress to mitigate this risk and ensure value for money.

Industry Classification

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

Solicitation ID: 75N98020R00018

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 13013 ARCTIC AVE, ROCKVILLE, MD, 20853

Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,171,846

Exercised Options: $32,171,846

Current Obligation: $32,171,846

Actual Outlays: $27,204,560

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA20D009G

IDV Type: FSS

Timeline