HHS awards $20.8M for IT cybersecurity support, with 9 bidders indicating strong competition

Contract Overview

Contract Amount: $20,835,570 ($20.8M)

Contractor: Reli Group Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2020-08-06

End Date: 2025-08-15

Contract Duration: 1,835 days

Daily Burn Rate: $11.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IHS INFORMATION TECHNOLOGY CYBERSECURITY PROGRAM SUPPORT SERVICES.

Place of Performance

Location: CATONSVILLE, BALTIMORE County, MARYLAND, 21228

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $20.8 million to RELI GROUP INC for work described as: IHS INFORMATION TECHNOLOGY CYBERSECURITY PROGRAM SUPPORT SERVICES. Key points: 1. Value for money appears reasonable given the scope of cybersecurity support. 2. Strong competition was present with 9 bidders, suggesting fair price discovery. 3. Risk indicators are moderate, with performance duration extending over 5 years. 4. This contract supports critical cybersecurity functions for NIH. 5. Positioned within the IT services sector, focusing on specialized cybersecurity. 6. The contract type is Firm Fixed Price, which shifts risk to the contractor.

Value Assessment

Rating: good

The contract value of $20.8 million over approximately five years for cybersecurity program support services is within a reasonable range for the federal IT sector. Benchmarking against similar contracts for IT support and cybersecurity at agencies like NIH suggests that the pricing is competitive, especially considering the firm-fixed-price nature which includes contractor risk. The number of bidders also supports the notion of a fair market price being achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating a robust bidding process. The participation of 9 bidders suggests a healthy level of interest and competition for this type of service. This broad competition is generally favorable for achieving competitive pricing and ensuring a wide pool of qualified vendors is considered.

Taxpayer Impact: The high number of bidders in this full and open competition is beneficial for taxpayers, as it drives down costs through competitive pressure and increases the likelihood of selecting a vendor offering the best value at a fair price.

Public Impact

Benefits the National Institutes of Health (NIH) by enhancing cybersecurity posture. Delivers essential program support services for IT security. Geographic impact is primarily within Maryland, where NIH facilities are located. Supports a workforce skilled in cybersecurity and IT program management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 5 years) could lead to potential cost overruns if not managed effectively.
Reliance on a single contractor for critical cybersecurity functions may pose a risk if performance degrades.
Firm Fixed Price contracts can sometimes lead to scope creep if not clearly defined.

Positive Signals

Full and open competition ensures a broad range of qualified vendors are considered.
Firm Fixed Price contract shifts cost risk to the contractor.
The contract supports critical cybersecurity functions, aligning with agency priorities.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on cybersecurity program support. The federal IT services market is substantial, with significant spending allocated to cybersecurity solutions due to increasing threats. This contract represents a portion of NIH's broader IT spending aimed at protecting sensitive health data and research information. Comparable spending benchmarks for cybersecurity services at large federal health agencies often range in the tens of millions of dollars annually.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. Therefore, there is no direct indication of small business participation through a set-aside. However, the prime contractor, RELI GROUP INC, may engage small businesses as subcontractors, which would be detailed in their subcontracting plan, if applicable.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the National Institutes of Health (NIH). The firm-fixed-price nature of the contract provides a degree of accountability by fixing the cost. Transparency is facilitated through federal procurement databases like FPDS. Inspector General oversight may be involved if specific concerns regarding fraud, waste, or abuse arise.

Related Government Programs

NIH IT Support Services
Federal Cybersecurity Contracts
Health IT Services
IT Program Management Support

Risk Flags

Long-term contract duration requires ongoing performance monitoring.
Cybersecurity is a critical and evolving threat area.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $20.8 million to RELI GROUP INC. IHS INFORMATION TECHNOLOGY CYBERSECURITY PROGRAM SUPPORT SERVICES.

Who is the contractor on this award?

The obligated recipient is RELI GROUP 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: 2020-08-06. End: 2025-08-15.

What is the track record of RELI GROUP INC in delivering similar cybersecurity program support services to federal agencies?

RELI GROUP INC has a history of providing IT and program support services to various federal agencies. While specific details on past cybersecurity program support performance for NIH would require deeper analysis of past performance evaluations (e.g., CPARS reports), their presence in the federal contracting space suggests experience. It is important to review their past performance on similar contracts, looking for indicators of successful delivery, adherence to schedules, and client satisfaction. A review of their contract history would reveal the types and scale of previous engagements, providing context for their capability to handle this current $20.8 million contract.

How does the awarded price compare to market rates for similar cybersecurity program support services?

The awarded price of $20.8 million over approximately five years, under a firm-fixed-price contract, suggests a competitive rate given the scope. Benchmarking against industry data for cybersecurity program support services indicates that federal contracts of this nature, especially those involving specialized IT support for agencies like NIH, can range significantly. The presence of 9 bidders in a full and open competition strongly implies that the price achieved is reflective of market conditions and competitive pressures. Without specific details on the labor mix and service levels, a precise comparison is difficult, but the competitive bidding process is a strong indicator of value.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential performance degradation by the contractor over the contract's five-year duration, the possibility of scope creep if requirements are not tightly managed, and the inherent risk of relying on a single entity for critical cybersecurity functions. Mitigation strategies likely involve robust contract oversight by NIH program managers, clear performance metrics and deliverables outlined in the contract, and regular performance reviews. The firm-fixed-price structure also mitigates cost overrun risks for the government, shifting that financial risk to the contractor. Furthermore, the competitive nature of the award suggests a capable contractor was selected.

How effective is this contract in enhancing the overall cybersecurity posture of the National Institutes of Health?

The effectiveness of this contract in enhancing NIH's cybersecurity posture is contingent on the specific services delivered and the contractor's execution. As a program support services contract, it likely focuses on areas such as policy development, risk management, security awareness training, incident response planning, and compliance monitoring, rather than direct implementation of security technologies. Its effectiveness will be measured by how well these support functions contribute to a stronger, more resilient security framework for NIH's vast IT infrastructure and sensitive data. Regular performance evaluations and alignment with NIH's strategic cybersecurity goals are crucial indicators.

What are the historical spending patterns for cybersecurity program support services at NIH, and how does this contract fit within them?

Historical spending on cybersecurity program support at NIH has likely been substantial and potentially increasing, reflecting the growing threat landscape and the agency's critical mission. This $20.8 million contract, spanning over five years, represents a significant but likely consistent investment in maintaining and improving cybersecurity capabilities. Analyzing past spending on similar contracts, including their duration and value, would provide context. This contract appears to be a standard, competitively awarded vehicle for obtaining essential support services, fitting within the agency's ongoing commitment to robust cybersecurity.

What is the potential impact of this contract on the cybersecurity IT services market, particularly concerning competition and innovation?

This contract, awarded through full and open competition with 9 bidders, positively impacts the cybersecurity IT services market by fostering a competitive environment. It signals to the market that NIH is actively seeking qualified vendors, encouraging participation and potentially driving innovation as companies vie for such opportunities. The success of RELI GROUP INC on this contract could also influence future procurement strategies and highlight specific capabilities valued by federal health agencies. The sustained demand for such services underscores the importance and growth of the cybersecurity sector within the broader federal IT landscape.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5520 RESEARCH PARK DRIVE, SUITE 105, CATONSVILLE, MD, 21228

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,923,455

Exercised Options: $20,835,570

Current Obligation: $20,835,570

Actual Outlays: $15,866,957

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75N98119D00027

IDV Type: GWAC

Timeline