HHS Awards $13M Contract to Hyatt Corp for NGIT Services

Contract Overview

Contract Amount: $12,957,859 ($13.0M)

Contractor: Hyatt Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2000-03-23

End Date: 2005-06-30

Contract Duration: 1,925 days

Daily Burn Rate: $6.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: 200-2000-00625, NGIT

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30341, UNITED STATES OF AMERICA

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $13.0 million to HYATT CORPORATION for work described as: 200-2000-00625, NGIT Key points: 1. Contract Value: $12.96 million over approximately 6.4 years. 2. Competition: Awarded under full and open competition. 3. Risk: Potential for cost overruns given the Cost Plus Fixed Fee structure. 4. Sector: Information Technology (IT) services.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee structure can lead to higher costs if not managed tightly. Benchmarking against similar IT service contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a competitive bidding process. However, the Cost Plus Fixed Fee pricing model may not always yield the most cost-effective outcome.

Taxpayer Impact: Taxpayer funds are utilized for IT modernization efforts, with potential for cost efficiencies through competition, but also risks associated with cost-reimbursement contracts.

Public Impact

Supports critical IT infrastructure for the Centers for Disease Control and Prevention (CDC). Aims to modernize National Government Information Technology (NGIT) systems. Contract duration spans over six years, indicating a long-term investment. Potential impact on public health data management and accessibility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee pricing model
Long contract duration
No small business participation noted

Positive Signals

Full and open competition
Supports critical public health agency

Sector Analysis

This contract falls within the IT services sector, specifically focusing on government IT modernization. Benchmarks for similar large-scale IT service contracts can vary widely based on scope and complexity.

Small Business Impact

The data indicates that small businesses were not directly involved in this contract award. Opportunities for small business subcontracting were not explicitly stated or met.

Oversight & Accountability

Oversight would be crucial to ensure the Cost Plus Fixed Fee structure does not lead to excessive spending and that the NGIT modernization meets its objectives effectively.

Related Government Programs

Department of Health and Human Services Contracting
Centers for Disease Control and Prevention Programs

Risk Flags

Cost Plus Fixed Fee pricing
Lack of small business participation
Potential for scope creep over long duration
Dependence on contractor performance for critical IT functions

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $13.0 million to HYATT CORPORATION. 200-2000-00625, NGIT

Who is the contractor on this award?

The obligated recipient is HYATT CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $13.0 million.

What is the period of performance?

Start: 2000-03-23. End: 2005-06-30.

What specific NGIT systems are being modernized, and what are the expected performance improvements?

The specific NGIT systems targeted for modernization are not detailed in the provided data. Expected performance improvements would likely relate to enhanced data processing, improved system reliability, and better cybersecurity posture for the CDC's critical operations. A thorough review of the contract's statement of work would be necessary to ascertain these details.

How will the Cost Plus Fixed Fee structure be managed to mitigate cost overrun risks?

Managing a Cost Plus Fixed Fee contract requires robust oversight from the contracting agency. This involves detailed tracking of incurred costs, regular performance reviews, and strict adherence to the fixed fee component. The agency must ensure that Hyatt Corporation operates efficiently and that any cost increases are justified and within the contract's scope, potentially utilizing incentive clauses if available.

What is the long-term value proposition of this IT modernization for the CDC's mission?

The long-term value proposition lies in upgrading aging IT infrastructure to support the CDC's evolving public health mission. Modernized systems can lead to faster data analysis during health crises, improved disease surveillance, more efficient resource allocation, and enhanced public communication. Ultimately, it aims to strengthen the nation's ability to respond to health threats.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 1999N00190

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Parent Company: Hyatt Hotels Corporation (UEI: 602495579)

Address: 265 PEACHTREE ST NE, ATLANTA, GA, 30303

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $488,592,114

Exercised Options: $299,498,394

Current Obligation: $12,957,859

Timeline