HHS awards $6.5M for IT services, with 11 bids indicating competitive market

Contract Overview

Contract Amount: $6,536,085 ($6.5M)

Contractor: Mackson Consulting, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2024-08-08

End Date: 2026-08-21

Contract Duration: 743 days

Daily Burn Rate: $8.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 11

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: MACKSON CONSULTING, LLC 1342130

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $6.5 million to MACKSON CONSULTING, LLC for work described as: MACKSON CONSULTING, LLC 1342130 Key points: 1. Contract value appears reasonable given the scope of IT services. 2. Strong competition suggests potential for good price discovery. 3. Risk indicators are moderate, with performance to be monitored. 4. This contract supports critical research infrastructure. 5. Positioned within the IT services sector, a large and dynamic market.

Value Assessment

Rating: good

The contract value of $6.5 million for computer systems design services over approximately two years appears to be within a reasonable range for the federal IT sector. Benchmarking against similar contracts for IT support at agencies like NIH would provide a more precise value-for-money assessment. The Time and Materials pricing structure, while flexible, necessitates careful monitoring to ensure costs remain controlled and aligned with project milestones. Without specific performance metrics or detailed cost breakdowns, a definitive value assessment is challenging, but the competitive nature of the award suggests a fair market price was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the solicitation was broadly advertised, and multiple responsible sources were permitted to submit offers. The presence of 11 bidders is a strong indicator of robust competition within the market for these services. This level of participation suggests that the government was able to solicit a wide range of capabilities and pricing, likely leading to a more competitive outcome and better value for the taxpayer.

Taxpayer Impact: A high number of bidders, such as the 11 received for this contract, generally benefits taxpayers by driving down prices through competitive pressure and encouraging innovation from contractors seeking to win the award.

Public Impact

The National Institutes of Health (NIH) benefits from enhanced IT support for its research operations. Services delivered include computer systems design, crucial for maintaining and improving research infrastructure. The geographic impact is primarily within the National Institutes of Health's operational areas, likely in Maryland. Workforce implications include the potential for skilled IT professionals to be engaged through the prime contractor and any subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with Time and Materials contract type if not closely managed.
Dependence on contractor performance for critical IT systems.
Ensuring continued innovation and adaptation to evolving IT needs.

Positive Signals

Strong competition indicates a healthy market and potential for good value.
Award to an established entity (Mackson Consulting, LLC) suggests a degree of proven capability.
Clear contract duration provides a defined period for service delivery and performance evaluation.

Sector Analysis

The IT services sector is a vast and critical component of federal spending, encompassing a wide array of support functions from software development to network management. Federal agencies consistently invest heavily in IT to maintain operations, enhance cybersecurity, and support data-driven decision-making. This contract for computer systems design services fits within this broad category, supporting the complex technological needs of a major research institution like NIH. Comparable spending benchmarks for IT services at NIH and other large federal health agencies would place this $6.5 million award in the mid-range for specific project-based support.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have a specific small business set-aside. While the prime contractor, MACKSON CONSULTING, LLC, is listed with a DUNS number that might indicate small business status, the contract details do not explicitly state it was set aside for small businesses. There is no information provided regarding subcontracting plans or their impact on the small business ecosystem for this specific award.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer's representative (COR) at the National Institutes of Health, who will monitor performance, approve invoices, and ensure compliance with contract terms. The Time and Materials pricing structure necessitates rigorous oversight to prevent scope creep and control costs. Transparency is facilitated through contract award databases, but detailed performance reports and Inspector General reviews would provide deeper accountability insights.

Related Government Programs

IT Support Services
Computer Systems Design
Federal Research IT Contracts
NIH IT Procurement
Health IT Services

Risk Flags

Time and Materials contract type requires diligent oversight to control costs.
Performance monitoring is crucial to ensure services meet NIH's research needs.
Potential for vendor lock-in if systems become highly specialized.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $6.5 million to MACKSON CONSULTING, LLC. MACKSON CONSULTING, LLC 1342130

Who is the contractor on this award?

The obligated recipient is MACKSON CONSULTING, 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 $6.5 million.

What is the period of performance?

Start: 2024-08-08. End: 2026-08-21.

What is the track record of MACKSON CONSULTING, LLC with federal contracts, particularly with the Department of Health and Human Services?

MACKSON CONSULTING, LLC (DUNS: 1342130) has a history of federal contracting, with this award from the Department of Health and Human Services (HHS) being a significant engagement. Analyzing their past performance across various agencies, contract types, and dollar values is crucial for assessing their reliability and capability. Federal procurement databases would detail their prior awards, including any performance issues, positive past performance reviews, and their experience with similar IT services. Understanding their historical success rate and any challenges encountered on previous contracts provides valuable context for evaluating their suitability for this current $6.5 million award.

How does the $6.5 million contract value compare to similar IT services contracts awarded by NIH or other HHS agencies?

The $6.5 million contract value for computer systems design services awarded to MACKSON CONSULTING, LLC by the National Institutes of Health (NIH) needs to be benchmarked against similar procurements. Federal databases like FPDS or SAM.gov can reveal average contract values for comparable services (e.g., IT support, systems integration, software design) within HHS or other health-focused agencies. Factors such as contract duration (743 days in this case), specific service requirements, and the level of competition influence pricing. If this contract's value falls within the typical range for similar scope and duration, it suggests fair market pricing. Deviations significantly above or below the average may warrant further investigation into the specific circumstances and value proposition.

What are the primary risks associated with this Time and Materials (T&M) contract, and how are they being mitigated?

Time and Materials (T&M) contracts, like this one awarded to MACKSON CONSULTING, LLC, carry inherent risks, primarily related to cost control and potential for scope creep. The government pays for the direct labor hours at specified fixed hourly rates and the actual cost of materials. Without a firm ceiling or detailed work breakdown structure, costs can escalate if not meticulously managed. Mitigation strategies typically involve strong government oversight, including a vigilant Contracting Officer's Representative (COR) to monitor hours, approve expenditures, and ensure work aligns with objectives. Establishing a contract ceiling, defining clear deliverables, and implementing regular performance reviews are essential to manage these risks effectively and ensure the $6.5 million award remains within budget.

What is the expected impact of these computer systems design services on NIH's research capabilities and operational efficiency?

The computer systems design services procured under this $6.5 million contract are intended to enhance the technological infrastructure supporting the National Institutes of Health's (NIH) extensive research mission. Improved systems design can lead to more robust data management, faster processing of research findings, enhanced collaboration among scientists, and better cybersecurity for sensitive research data. Ultimately, these services should contribute to increased operational efficiency, accelerate the pace of scientific discovery, and ensure the reliability and integrity of NIH's critical research platforms. The specific impact will depend on the precise nature of the design services rendered and their successful implementation.

How has federal spending on IT services, particularly for health research agencies like NIH, trended over the past five years?

Federal spending on IT services, including computer systems design, has generally trended upwards over the past five years, driven by increasing digitization, cybersecurity needs, and the demand for advanced analytics and cloud computing. Agencies like the National Institutes of Health (NIH) are significant consumers of these services as they support complex research initiatives, manage vast datasets, and require sophisticated IT infrastructure. Analyzing historical spending patterns for NIH and similar agencies reveals a consistent investment in IT modernization and support. This $6.5 million award to MACKSON CONSULTING, LLC aligns with this broader trend of sustained federal investment in IT capabilities to support agency missions.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: C-117757-SB

Offers Received: 11

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1430 SPRING HILL RD STE 450, MCLEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $10,620,030

Exercised Options: $6,536,085

Current Obligation: $6,536,085

Actual Outlays: $4,564,667

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $1,830,758

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 75N98121D00006

IDV Type: GWAC

Timeline