NIH awards $32.8M to Digicon for IT and bioinformatics support over 5 years
Contract Overview
Contract Amount: $32,791,782 ($32.8M)
Contractor: Digicon Corporation
Awarding Agency: Department of Health and Human Services
Start Date: 2011-09-01
End Date: 2016-08-31
Contract Duration: 1,826 days
Daily Burn Rate: $18.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: DIGICON-FUNDING FOR TASK ORDER C2953, OD&DER. TECHNICAL SUPPORT FOR BIOINFORMATICS, DNA SEQUENCING, SCIENTIFIC SYSTEMS ADMINISTRATION AND INFORMATION TECHNOLOGY INFRASTRUCTURE. FOR: BILL KIBBY 5635 FISHER LN. RM. 1400. CAN# 8337367
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $32.8 million to DIGICON CORPORATION for work described as: DIGICON-FUNDING FOR TASK ORDER C2953, OD&DER. TECHNICAL SUPPORT FOR BIOINFORMATICS, DNA SEQUENCING, SCIENTIFIC SYSTEMS ADMINISTRATION AND INFORMATION TECHNOLOGY INFRASTRUCTURE. FOR: BILL KIBBY 5635 FISHER LN. RM. 1400. CAN# 8337367 Key points: 1. Digicon Corporation secured a significant contract for specialized IT and scientific support. 2. The contract spans five years, indicating a long-term need for these services. 3. Competition was full and open, suggesting a potentially competitive pricing environment. 4. The sector is Information Technology, with a focus on scientific applications.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar contracts for Computer Systems Design Services is difficult without more detailed scope information.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the specific pricing structure (Cost Plus Fixed Fee) requires careful monitoring to ensure value for money.
Taxpayer Impact: Taxpayers benefit from competitive bidding, but the Cost Plus Fixed Fee structure necessitates vigilant oversight to prevent excessive costs.
Public Impact
Supports critical scientific research infrastructure at NIH. Ensures continuity of essential IT services for bioinformatics and DNA sequencing. Contract duration suggests a stable, ongoing requirement for these specialized skills.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher spending.
- Lack of detailed performance metrics makes value assessment challenging.
- Potential for scope creep in long-term IT support contracts.
Positive Signals
- Awarded under full and open competition.
- Long contract duration indicates sustained need and potential for stable service delivery.
- Supports critical scientific and research functions.
Sector Analysis
This contract falls within the IT sector, specifically Computer Systems Design Services. Spending in this area is substantial across government, supporting everything from administrative functions to advanced scientific research.
Small Business Impact
The data indicates that Digicon Corporation, the awardee, is not a small business. There is no information provided on whether small business subcontracting was a requirement or a factor in this award.
Oversight & Accountability
The contract was awarded as a Delivery Order under a larger agreement, suggesting some level of pre-qualification. However, the Cost Plus Fixed Fee structure requires robust oversight to manage costs and ensure performance.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration (5 years).
- Lack of detailed performance metrics in summary data.
- Potential for scope creep in IT support contracts.
Tags
computer-systems-design-services, department-of-health-and-human-services, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $32.8 million to DIGICON CORPORATION. DIGICON-FUNDING FOR TASK ORDER C2953, OD&DER. TECHNICAL SUPPORT FOR BIOINFORMATICS, DNA SEQUENCING, SCIENTIFIC SYSTEMS ADMINISTRATION AND INFORMATION TECHNOLOGY INFRASTRUCTURE. FOR: BILL KIBBY 5635 FISHER LN. RM. 1400. CAN# 8337367
Who is the contractor on this award?
The obligated recipient is DIGICON 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 $32.8 million.
What is the period of performance?
Start: 2011-09-01. End: 2016-08-31.
What specific performance metrics are in place to ensure Digicon delivers high-quality bioinformatics and IT support within the fixed fee?
The provided data does not detail specific performance metrics. A thorough review would require access to the contract's statement of work and performance standards. Without these, it's difficult to definitively assess the quality of service and ensure the fixed fee aligns with expected outcomes and taxpayer value.
How does the Cost Plus Fixed Fee structure mitigate risks of cost overruns for these complex scientific IT services?
The Cost Plus Fixed Fee (CPFF) structure inherently carries a risk of cost overruns, as the contractor is reimbursed for actual costs plus a fixed fee. Mitigation relies heavily on stringent government oversight, detailed cost tracking, and clear definition of the scope of work to prevent unmanaged cost increases. Regular audits and performance reviews are crucial.
What is the long-term strategic value of this bioinformatics and DNA sequencing IT support to NIH's mission?
This support is likely critical for advancing NIH's mission in biomedical research, particularly in areas like genomics and personalized medicine. Reliable IT infrastructure and specialized bioinformatics expertise are foundational for processing vast datasets, enabling scientific discovery, and accelerating the development of new treatments and diagnostics.
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
Offers Received: 5
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 460 HERNDON PKWY STE 250, HERNDON, VA, 20170
Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $62,636,373
Exercised Options: $32,791,782
Current Obligation: $32,791,782
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 263010063
IDV Type: IDC
Timeline
Start Date: 2011-09-01
Current End Date: 2016-08-31
Potential End Date: 2016-08-31 00:00:00
Last Modified: 2023-03-07
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