HHS awarded $19.6M for adverse event reporting IT services, with 3 bidders competing

Contract Overview

Contract Amount: $19,654,137 ($19.7M)

Contractor: Diamond Solutions, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2010-09-13

End Date: 2016-03-10

Contract Duration: 2,005 days

Daily Burn Rate: $9.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TAS::75 0600::TAS CDER ADVERSE EVENT REPORTING TASK ORDER

Place of Performance

Location: HYATTSVILLE, PRINCE GEORGES County, MARYLAND, 20785

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $19.7 million to DIAMOND SOLUTIONS, INC. for work described as: TAS::75 0600::TAS CDER ADVERSE EVENT REPORTING TASK ORDER Key points: 1. The contract's value appears reasonable given the duration and scope of IT services for critical public health data. 2. Full and open competition after exclusion of sources suggests a deliberate procurement strategy to ensure fair access. 3. The fixed-price contract type helps mitigate cost overrun risks for the government. 4. This contract supported the FDA's essential function of monitoring drug safety. 5. The IT services sector is highly competitive, with many providers capable of meeting these needs. 6. The duration of the contract (over 5 years) indicates a long-term need for these services.

Value Assessment

Rating: good

The contract value of approximately $19.6 million over roughly five years for IT infrastructure and data processing services appears to be within a reasonable range for supporting critical public health functions like adverse event reporting. Benchmarking against similar contracts for data management and IT support within federal health agencies would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the pricing was determined upfront, which is generally favorable for the government in managing costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, certain sources were excluded for specific reasons, possibly related to specialized capabilities or prior performance. With three bidders, the competition level suggests a moderate degree of market interest, which should have contributed to price discovery. However, the exclusion of sources might limit the full breadth of competitive pressure.

Taxpayer Impact: The presence of three bidders indicates that taxpayers benefited from some level of price competition. However, the exclusion of certain sources could mean that the final price might not be as low as it could have been under truly unrestricted full and open competition.

Public Impact

The primary beneficiaries are the public, through enhanced drug safety monitoring by the FDA. The services delivered were crucial for the collection, processing, and analysis of adverse event reports for pharmaceutical products. The geographic impact is national, supporting the FDA's regulatory oversight across the United States. The contract supported IT infrastructure and data processing, likely involving skilled technical personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the specialized nature of adverse event reporting systems.
Risk of data security breaches given the sensitive nature of health information.
Dependence on a limited number of qualified bidders due to specific exclusion criteria.

Positive Signals

Firm fixed-price contract limits cost uncertainty for the government.
Competition, even if limited, provides some assurance of fair pricing.
Contract supports a critical public health mission, indicating high strategic importance.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on data processing and computing infrastructure. The market for such services is vast and highly competitive, with numerous companies offering solutions for data management, hosting, and related IT support. Federal spending in this area is substantial, driven by the need for robust IT systems to manage vast amounts of data for various agencies, including those in healthcare and public safety. Comparable spending benchmarks would typically be found in contracts for cloud hosting, database management, and application support services.

Small Business Impact

Information on small business set-asides or subcontracting is not explicitly provided for this contract. Given the nature of the services (complex IT infrastructure and data processing), it is possible that larger, specialized firms were the primary focus. Further analysis would be needed to determine if small businesses had opportunities to participate either as prime contractors or subcontractors.

Oversight & Accountability

Oversight would typically be managed by the Food and Drug Administration (FDA) contracting officers and program managers responsible for the adverse event reporting system. Accountability measures are inherent in the firm fixed-price contract, requiring delivery of specified services. Transparency is generally facilitated through federal procurement databases like FPDS-NG, where contract details are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

FDA Adverse Event Reporting System (FAERS)
Medical Product Quality
Public Health Data Management
Federal Health IT Services
Drug Safety Surveillance

Risk Flags

Limited Competition
Potential Data Security Risks
Reliance on Specialized IT Services

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $19.7 million to DIAMOND SOLUTIONS, INC.. TAS::75 0600::TAS CDER ADVERSE EVENT REPORTING TASK ORDER

Who is the contractor on this award?

The obligated recipient is DIAMOND SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Food and Drug Administration).

What is the total obligated amount?

The obligated amount is $19.7 million.

What is the period of performance?

Start: 2010-09-13. End: 2016-03-10.

What was the specific nature of the 'exclusion of sources' in this 'Full and Open Competition After Exclusion of Sources' award?

The designation 'Full and Open Competition After Exclusion of Sources' implies that the agency intended to compete the contract broadly but identified specific sources that were excluded from consideration. This exclusion could be based on various factors, such as the need for highly specialized technology or expertise possessed by only a few entities, prior performance issues with certain contractors, or specific national security concerns. Without further details from the contract award documentation or agency justifications, the precise reasons for excluding certain sources remain unknown. This approach aims to balance the benefits of competition with the need to ensure that only qualified and appropriate vendors are considered for specific requirements, potentially impacting the final price and innovation.

How does the cost of this contract compare to similar IT services contracts for data processing and hosting within the federal government?

Comparing the total contract value of $19.6 million over approximately five years (2010-2016) requires looking at the average annual cost, which is roughly $3.9 million. This figure needs to be benchmarked against similar federal contracts for IT infrastructure, data processing, and web hosting services, particularly those supporting critical data management functions within health or regulatory agencies. Factors such as the specific service level agreements, security requirements, data volume, and geographic scope would influence comparability. Generally, federal IT service contracts can range widely, but for a contract supporting a critical system like adverse event reporting, this annual spend appears moderate, suggesting a potentially good value if performance metrics were met. A detailed analysis would involve examining contract databases for comparable services awarded around the same period.

What were the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract, and how was performance measured?

Specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) for this contract are not detailed in the provided data. However, for a contract supporting the FDA's Adverse Event Reporting System, critical performance areas would likely include data accuracy, system uptime and availability, data processing turnaround times, security compliance (e.g., HIPAA, FISMA), and response times for critical incidents. Performance would typically be monitored through regular reporting by the contractor, government inspections, user feedback, and potentially through automated system monitoring tools. Failure to meet agreed-upon SLAs could result in penalties, reduced payments, or contract termination, depending on the contract's terms and conditions.

What is the track record of Diamond Solutions, Inc. in performing similar federal IT contracts, particularly those involving sensitive data?

Diamond Solutions, Inc. was awarded this contract for IT services related to adverse event reporting. To assess their track record, one would need to examine their past performance on other federal contracts, especially those involving data processing, hosting, and management of sensitive information. Information on contract performance history, including past performance evaluations and any disputes or terminations, would be crucial. A review of federal procurement data (like FPDS-NG) and potentially contractor performance assessment reporting (CPARS) would reveal their history. Without this specific data, it's difficult to definitively assess their capabilities and reliability for handling critical public health data, though winning this contract suggests they met the agency's initial qualifications.

How has federal spending on adverse event reporting systems evolved since this contract was awarded in 2010?

Federal spending on adverse event reporting systems, particularly within agencies like the FDA, has likely seen significant evolution since 2010. Technological advancements, increasing data volumes, and a greater emphasis on data analytics and real-time monitoring have probably driven increased investment. Post-2010, there has been a broader push towards modernizing federal IT infrastructure, including cloud adoption and enhanced cybersecurity measures, which would impact how such systems are managed and funded. Furthermore, legislative mandates and public health priorities can influence budget allocations. It's probable that spending has increased to accommodate more sophisticated data ingestion, analysis tools, and potentially artificial intelligence applications for identifying safety signals more effectively.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 10223SOL00082

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8117 LEESBURG PIKE STE 200, VIENNA, VA, 22182

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,207,149

Exercised Options: $23,207,149

Current Obligation: $19,654,137

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: HHSF223201000031I

IDV Type: IDC

Timeline