HHS awards $4.1M contract to Inode Ink for computer systems design services

Contract Overview

Contract Amount: $4,142,599 ($4.1M)

Contractor: Inode INK Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2025-04-01

End Date: 2026-12-31

Contract Duration: 639 days

Daily Burn Rate: $6.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: INODE INK INCORPORATE 52.223-15

Place of Performance

Location: DENVER, ADAMS County, COLORADO, 80234

State: Colorado Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $4.1 million to INODE INK CORPORATION for work described as: INODE INK INCORPORATE 52.223-15 Key points: 1. Contract awarded via full and open competition after exclusion of sources, indicating a potentially competitive process. 2. The contract duration of 639 days suggests a medium-term project. 3. The contract type is Time and Materials, which can pose cost control risks if not managed closely. 4. The award is a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The specific National Institutes of Health (NIH) tasking suggests a focus on health-related IT infrastructure or services. 6. The contractor, Inode Ink Corporation, is relatively new to federal contracting based on the provided data. 7. The contract value of $4.1M falls within a moderate spending range for IT services.

Value Assessment

Rating: fair

The per-unit cost is not directly calculable without more detailed labor category and rate information. However, the total contract value of $4.1M for approximately two years of computer systems design services appears within a reasonable range for specialized IT support. Benchmarking against similar contracts for computer systems design services at NIH would provide a more definitive assessment of value for money. The Time and Materials pricing structure warrants careful monitoring to ensure costs remain aligned with project scope and deliverables.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be open, specific sources may have been excluded for defined reasons, potentially limiting the breadth of competition. The presence of 8 bids suggests a moderate level of interest, but the exclusion clause warrants further investigation to understand its impact on price discovery and overall competitiveness.

Taxpayer Impact: The exclusion of certain sources, even with 8 bidders, may have limited the potential for the most competitive pricing, potentially resulting in higher costs for taxpayers than a truly unrestricted full and open competition.

Public Impact

The National Institutes of Health (NIH) is the primary beneficiary, receiving computer systems design services. The services delivered are expected to support NIH's mission in biomedical research and public health. The geographic impact is likely concentrated around NIH facilities, primarily in Maryland. The contract supports the IT workforce within the federal government and potentially the contractor's employees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely managed and if scope creep occurs.
The 'Exclusion of Sources' clause in the competition type could limit the number of truly competitive bids.
Limited historical data on this specific contractor's performance in federal contracting.
The contract is a Delivery Order, meaning its performance is contingent on the terms of a parent IDIQ contract, which may have its own risks.

Positive Signals

Awarded under a competitive process (Full and Open Competition After Exclusion of Sources), indicating some level of market vetting.
The contract has a defined period of performance, allowing for structured project management.
The contractor, Inode Ink Corporation, is a registered entity providing relevant services.
The contract value is moderate, suggesting it is not an exceptionally high-risk, large-scale award.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically Computer Systems Design Services. The federal IT services market is vast and highly competitive, with agencies like NIH being significant consumers. Spending in this category often supports critical infrastructure, research, and operational needs. Comparable spending benchmarks for similar IT design services at federal health agencies can range from hundreds of thousands to millions of dollars, depending on complexity and duration.

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 arising from a small business set-aside. The prime contractor, Inode Ink Corporation, may still choose to subcontract portions of the work to small businesses as part of its overall business strategy, but this is not mandated by the contract terms.

Oversight & Accountability

Oversight for this contract will primarily reside with the contracting officer and the designated contract specialist at the National Institutes of Health (NIH). Performance will be monitored against the terms and conditions of the Time and Materials delivery order. Transparency is facilitated through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

NIH IT Support Services
Federal Health IT Contracts
Computer Systems Design Services
Time and Materials IT Contracts
Delivery Orders

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Limited scope of competition due to 'Exclusion of Sources' clause.
Uncertainty regarding contractor's past performance in federal space.
Dependence on parent IDIQ contract terms for Delivery Order.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $4.1 million to INODE INK CORPORATION. INODE INK INCORPORATE 52.223-15

Who is the contractor on this award?

The obligated recipient is INODE INK CORPORATION.

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 $4.1 million.

What is the period of performance?

Start: 2025-04-01. End: 2026-12-31.

What is the track record of Inode Ink Corporation in fulfilling federal contracts, particularly for computer systems design services?

Based on the provided data, Inode Ink Corporation appears to be a relatively new entrant or has limited publicly available federal contract history. The data indicates this is a Delivery Order with a value of $4.1M. Without access to a broader federal procurement database or past performance reviews, it is difficult to definitively assess their track record. Agencies typically conduct pre-award surveys and review past performance information (if available) to gauge a contractor's capability. For a contract of this size and nature, the NIH would have likely performed due diligence to ensure Inode Ink has the necessary technical expertise and capacity to deliver the required computer systems design services.

How does the $4.1M contract value compare to similar computer systems design services contracts awarded by the National Institutes of Health?

The $4.1M contract value for approximately two years of computer systems design services is a moderate amount within the context of federal IT spending. NIH, being a large research institution, frequently procures IT services. Contracts for similar services can range significantly, from smaller task orders under IDIQs to multi-million dollar prime contracts. To provide a precise comparison, one would need to analyze recent awards for 'Computer Systems Design Services' (NAICS 541512) at NIH, considering factors like contract duration, scope of work, and competition level. However, $4.1M for this type of service over 21 months is not an outlier and suggests a focused scope of work rather than a massive enterprise-wide overhaul.

What are the primary risks associated with the Time and Materials (T&M) contract type for this computer systems design services award?

The primary risk with Time and Materials (T&M) contracts is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual labor hours and materials used. If the scope of work is not clearly defined, or if there is scope creep without adequate controls, the costs can escalate beyond initial estimates. For computer systems design services, this could mean extended development times or unforeseen complexities leading to higher labor hours. Effective oversight, detailed work breakdown structures, and robust change management processes are crucial to mitigate these risks and ensure the government receives good value for money.

What is the significance of the 'Full and Open Competition After Exclusion of Sources' clause for this contract?

The 'Full and Open Competition After Exclusion of Sources' clause indicates that the agency intended to compete the contract broadly but had specific, justifiable reasons to exclude certain potential offerors. This is often used when there are unique capabilities, prior work, or specific circumstances that necessitate limiting the pool of eligible bidders. While it aims for competition, the exclusion of sources inherently reduces the number of potential bidders compared to unrestricted full and open competition. The significance lies in understanding *why* sources were excluded; if the reasons were valid and documented, it can still lead to a competitive outcome. However, if the exclusion was overly broad or not well-justified, it could limit price discovery and potentially lead to higher costs for the government.

How does the contract's duration (639 days) align with typical project lifecycles for computer systems design services at NIH?

A duration of 639 days, approximately 21 months, is a reasonable timeframe for many computer systems design projects within a large research organization like NIH. This duration allows for phased development, testing, and implementation cycles, which are common in IT projects. Shorter contracts might be suitable for specific, well-defined tasks, while longer contracts could indicate more complex, ongoing system development or integration efforts. The 21-month period suggests a project that requires sustained effort but is not an indefinite, long-term operational support contract. It aligns with typical project management lifecycles for significant IT system enhancements or new developments.

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

Solicitation ID: C-119672-SB

Offers Received: 8

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 11342 DECATUR CT, WESTMINSTER, CO, 80234

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, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $9,782,705

Exercised Options: $4,142,599

Current Obligation: $4,142,599

Actual Outlays: $771,886

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 75N98120D00125

IDV Type: GWAC

Timeline