NIH awards $31.4M for IT support, with Hygeia Solutions Partners LLC managing systems integration and operations

Contract Overview

Contract Amount: $31,380,174 ($31.4M)

Contractor: Hygeia Solutions Partners LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2014-03-05

End Date: 2024-01-30

Contract Duration: 3,618 days

Daily Burn Rate: $8.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE LEVEL OF EFFORT

Sector: IT

Official Description: IGF::OT::IGF DESIGN DEVELOPMENT, INSTALLATION AND INTEGRATION, TESTING, OPERATION AND SYSTEMS SUPPORT, MAINTENANCE AND MODERNIZATION AT ALL NIH OWNED AND LEASED

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $31.4 million to HYGEIA SOLUTIONS PARTNERS LLC for work described as: IGF::OT::IGF DESIGN DEVELOPMENT, INSTALLATION AND INTEGRATION, TESTING, OPERATION AND SYSTEMS SUPPORT, MAINTENANCE AND MODERNIZATION AT ALL NIH OWNED AND LEASED Key points: 1. Contract focuses on comprehensive IT lifecycle support, from design to modernization. 2. Long-term contract duration suggests a need for stable, ongoing IT services. 3. Fixed-price contract type aims to control costs for defined service levels. 4. Competition was full and open, indicating a broad market engagement. 5. Services are critical for NIH's research and operational infrastructure. 6. Geographic focus on California for service delivery. 7. Contractor has a significant tenure, spanning a decade. 8. No small business set-aside, suggesting large prime contractor involvement.

Value Assessment

Rating: good

The contract value of $31.4 million over approximately 10 years represents a significant investment in IT support for the NIH. Benchmarking this against similar IT support contracts is challenging without more specific service details and market data. However, the fixed-price contract type suggests an effort to establish predictable costs for defined services. The long duration implies a stable, ongoing need, and the value appears reasonable for comprehensive IT lifecycle management, assuming performance meets expectations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. This approach typically fosters a competitive environment, encouraging multiple bidders to vie for the contract. The presence of robust competition is generally beneficial for price discovery and can lead to more favorable pricing for the government. The specific number of bidders is not provided, but the designation indicates a broad solicitation.

Taxpayer Impact: Full and open competition maximizes the potential for the government to secure the best value by leveraging a wide range of qualified contractors, which can drive down costs and improve service quality for taxpayers.

Public Impact

Benefits researchers and administrative staff at NIH by ensuring reliable IT systems. Delivers essential IT services including design, installation, integration, testing, operation, support, maintenance, and modernization. Geographic impact is primarily at NIH facilities, with service delivery centered in California. Supports a workforce reliant on robust IT infrastructure for scientific discovery and administrative functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to vendor lock-in if not managed carefully.
Reliance on a single contractor for a decade may reduce flexibility to adopt new technologies.
Potential for scope creep if requirements are not tightly defined and managed.
Performance monitoring is crucial to ensure continued value over the contract's lifespan.

Positive Signals

Contractor has a long tenure, suggesting consistent performance and satisfaction.
Fixed-price contract type provides cost certainty for the government.
Full and open competition indicates a potentially competitive pricing structure.
Comprehensive IT support covers the full lifecycle, ensuring continuity.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical component of the broader IT services industry. This sector encompasses a wide range of activities, from custom software development to IT infrastructure management and consulting. The market is characterized by a mix of large established firms and smaller specialized companies. The value of this contract, approximately $3.14 million annually on average, is moderate within the context of large federal IT procurements, but significant for the specific services provided to the NIH.

Small Business Impact

The contract was not awarded as a small business set-aside, and the data indicates the prime contractor is not a small business. This suggests that the primary award went to a larger entity. While there is no direct set-aside, there may be opportunities for small businesses to participate as subcontractors to Hygeia Solutions Partners LLC. The extent of small business subcontracting will depend on the prime contractor's strategy and the specific requirements of the contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract specialist at the National Institutes of Health. Performance monitoring, adherence to contract terms, and quality assurance are key oversight functions. Given the long duration and critical nature of IT services, regular reviews and potential audits by the NIH or the HHS Office of Inspector General would be expected to ensure accountability and value for taxpayer money.

Related Government Programs

NIH IT Support Services
HHS IT Modernization Contracts
Federal Computer Systems Design Services
IT Operations and Maintenance Contracts
Research Infrastructure IT Support

Risk Flags

Long contract duration may not keep pace with technological advancements.
Potential for vendor lock-in over a 10-year period.
Performance monitoring is critical for sustained value.
Scope definition and management are key to fixed-price success.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $31.4 million to HYGEIA SOLUTIONS PARTNERS LLC. IGF::OT::IGF DESIGN DEVELOPMENT, INSTALLATION AND INTEGRATION, TESTING, OPERATION AND SYSTEMS SUPPORT, MAINTENANCE AND MODERNIZATION AT ALL NIH OWNED AND LEASED

Who is the contractor on this award?

The obligated recipient is HYGEIA SOLUTIONS PARTNERS 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 $31.4 million.

What is the period of performance?

Start: 2014-03-05. End: 2024-01-30.

What is the track record of Hygeia Solutions Partners LLC with the federal government, particularly with the NIH?

Hygeia Solutions Partners LLC has a significant track record with the federal government, evidenced by this contract spanning from March 2014 to January 2024. This decade-long engagement with the National Institutes of Health (NIH) for comprehensive IT support suggests a history of consistent performance and a strong working relationship. While specific details on past performance ratings or other contracts are not provided in this data snippet, the longevity of this award implies a level of satisfaction from the NIH regarding Hygeia's ability to meet its IT service requirements. Further analysis would involve examining contract performance reports, any past disputes, and other federal awards to gain a complete picture of their track record.

How does the average annual cost of this contract compare to similar IT support contracts at other federal agencies?

The average annual cost of this contract is approximately $3.14 million ($31.4 million / 10 years). Comparing this to similar IT support contracts across federal agencies requires detailed benchmarking data on contract scope, service levels, and geographic considerations. However, for a comprehensive, decade-long IT lifecycle support contract at a major research institution like the NIH, this figure appears within a reasonable range. Federal IT spending varies widely, but contracts for system design, integration, operations, maintenance, and modernization often represent substantial investments. Without specific comparable contract details, a precise benchmark is difficult, but the value seems aligned with the critical and extensive nature of the services provided.

What are the primary risks associated with a long-term IT support contract like this one?

The primary risks associated with a long-term IT support contract include technological obsolescence, vendor lock-in, and potential performance degradation over time. As technology evolves rapidly, a contract structured for a decade might not adequately accommodate newer, more efficient solutions, leading to the NIH using outdated systems. Vendor lock-in is a risk where the government becomes overly dependent on a single provider, making it difficult and costly to switch vendors even if performance declines or better options emerge. Performance degradation is also a concern; a contractor's focus or capability might wane over an extended period, impacting service quality. Mitigating these risks requires robust performance metrics, regular contract reviews, and flexibility clauses to adapt to technological advancements.

How effective is the fixed-price contract type in ensuring value for money for these IT services?

The fixed-price contract type is generally effective in ensuring value for money for IT services when the scope of work is well-defined and unlikely to change significantly. For this contract, which covers a broad range of IT lifecycle support, the fixed price provides cost certainty for the government, transferring some of the cost overrun risk to the contractor. This encourages the contractor to manage resources efficiently to maintain profitability. However, if the scope is not precisely managed, there's a risk of the contractor cutting corners on quality to meet the fixed price, or conversely, the government potentially overpaying if the scope is less demanding than anticipated. Effective performance monitoring is crucial to ensure the contractor delivers the agreed-upon quality and services within the fixed price.

What are the historical spending patterns for similar IT support services at the NIH or HHS?

Historical spending patterns for similar IT support services at the NIH and the broader Department of Health and Human Services (HHS) indicate a consistent and significant investment in maintaining and modernizing their complex IT infrastructure. Agencies like the NIH, which are heavily reliant on data management, research computing, and secure networks, typically allocate substantial portions of their budgets to IT operations, maintenance, and upgrades. Spending often trends upwards due to increasing data volumes, cybersecurity needs, and the drive for technological advancement. Contracts for system design, integration, and ongoing support are common, often awarded through competitive processes, with durations varying based on project scope and agency strategy. This specific $31.4M contract over 10 years aligns with the substantial, long-term IT commitments seen across major federal health and research agencies.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: NIHJT2010001

Offers Received: 1

Pricing Type: FIXED PRICE LEVEL OF EFFORT (B)

Evaluated Preference: NONE

Contractor Details

Address: 3110 FAIRVIEW PARK DR STE 1000, FALLS CHURCH, VA, 22042

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

Financial Breakdown

Contract Ceiling: $31,380,174

Exercised Options: $31,380,174

Current Obligation: $31,380,174

Actual Outlays: $6,977,893

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200027W

IDV Type: GWAC

Timeline