SAIC awarded $11.4M contract for NIMH software development, highlighting wired telecommunications carrier services

Contract Overview

Contract Amount: $11,420,534 ($11.4M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2007-08-10

End Date: 2012-08-31

Contract Duration: 1,848 days

Daily Burn Rate: $6.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NEW SOFTWARE DEVELOPMENT CONTRACT FOR NIMH

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $11.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: NEW SOFTWARE DEVELOPMENT CONTRACT FOR NIMH Key points: 1. Contract value of $11.4M for software development indicates significant investment in IT infrastructure. 2. Full and open competition suggests a robust bidding process, potentially leading to better pricing. 3. The contract duration of 1848 days (approx. 5 years) points to a long-term need for these services. 4. Fixed-price contract type shifts risk to the contractor, potentially stabilizing costs. 5. The North American Industry Classification System (NAICS) code 517110 relates to wired telecommunications carriers, suggesting a focus on network infrastructure for the software. 6. Awarded by the National Institutes of Health (NIH), this contract supports critical research functions.

Value Assessment

Rating: good

The contract value of $11.4 million for software development over approximately five years appears reasonable given the scope of supporting a federal research agency like NIMH. Benchmarking against similar large-scale software development projects within federal health agencies would provide a more precise value-for-money assessment. The firm fixed-price structure is generally favorable for cost control when requirements are well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The number of bidders is not specified, but the method itself suggests a strong emphasis on achieving market-driven pricing.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a level playing field for contractors, which can drive down costs and improve the quality of services received.

Public Impact

Researchers at the National Institute of Mental Health (NIMH) will benefit from enhanced software capabilities. The contract supports the development of new software, likely to improve data management, analysis, or research tools. The geographic impact is primarily within the agency's operational centers, likely in Maryland. The workforce implications include IT professionals and software developers employed by Science Applications International Corporation (SAIC) and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term software development projects if requirements are not meticulously managed.
Dependence on a single contractor for critical software infrastructure could pose a risk if performance falters.
The specific nature of 'wired telecommunications carriers' in relation to software development warrants further clarification to ensure alignment with NIMH's core research needs.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a thorough vetting of potential solutions and pricing.
Long contract duration allows for sustained development and integration of complex software systems.

Sector Analysis

This contract falls within the Information Technology sector, specifically software development and potentially network infrastructure services. The federal IT market is substantial, with agencies like NIH investing heavily in systems to support research and public health initiatives. Comparable spending benchmarks for large-scale federal software development projects often run into tens or hundreds of millions of dollars, making this $11.4M award a mid-range investment for a specific research program.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside provisions (ss: false, sb: false). Therefore, there is no direct analysis of small business set-aside impact. However, large prime contractors like SAIC are often required to meet subcontracting goals with small businesses, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officers and program managers within the National Institutes of Health (NIH). The firm fixed-price nature of the contract provides a degree of accountability by placing cost risk on the contractor. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and oversight activities are internal to the agency.

Related Government Programs

NIMH Research IT Support
Federal Health IT Modernization
NIH Software Development Services
Department of Health and Human Services IT Procurement

Risk Flags

Long contract duration increases risk of requirement obsolescence or change.
Firm fixed-price contracts can lead to quality compromises if contractor faces cost overruns.
NAICS code 517110 (Wired Telecommunications Carriers) seems unusual for pure software development, suggesting potential integration or infrastructure components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $11.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. NEW SOFTWARE DEVELOPMENT CONTRACT FOR NIMH

Who is the contractor on this award?

The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL 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 $11.4 million.

What is the period of performance?

Start: 2007-08-10. End: 2012-08-31.

What is the specific nature of the software being developed and how does it relate to NIMH's research objectives?

The provided data indicates the contract is for 'NEW SOFTWARE DEVELOPMENT CONTRACT FOR NIMH' and falls under NAICS code 517110, 'Wired Telecommunications Carriers.' This suggests the software may be related to managing or analyzing data transmitted over wired networks, or perhaps involves the development of communication infrastructure supporting research activities. NIMH's research objectives span a wide range of mental disorders, focusing on understanding their causes, prevention, diagnosis, and treatment. The software developed under this contract likely aims to enhance data collection, processing, storage, or dissemination capabilities crucial for advancing these research goals. Further details on the specific software modules or functionalities would be needed to fully understand its direct contribution to NIMH's mission.

How does the $11.4 million contract value compare to similar software development contracts awarded by NIH or other federal health agencies?

The $11.4 million contract value for new software development over approximately five years is a moderate investment within the federal health IT landscape. NIH and other agencies like the Centers for Disease Control and Prevention (CDC) or the Food and Drug Administration (FDA) often award contracts for complex IT systems, electronic health records, data analytics platforms, and research support software that can range from several million to hundreds of millions of dollars. For instance, large-scale data warehousing or clinical trial management systems can easily exceed $20 million. This $11.4 million award suggests a focused scope, perhaps for a specific research division or a particular set of functionalities, rather than an agency-wide system overhaul. A direct comparison would require identifying contracts with similar objectives (e.g., research software, data management) and durations within the health sector.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this contract. However, for a software development contract of this nature, typical KPIs would likely include metrics related to software functionality, performance (e.g., response times, uptime), security compliance, adherence to development timelines, bug resolution rates, and user satisfaction. SLAs might define response times for critical issues, availability targets for the developed software, and procedures for software updates and maintenance. These would be detailed in the contract's statement of work and performance requirements, which are not publicly available in this dataset.

What is Science Applications International Corporation's (SAIC) track record with similar federal software development contracts?

Science Applications International Corporation (SAIC) is a major federal contractor with extensive experience in IT services, including software development. They have a long history of supporting various government agencies, including those in the health and defense sectors. SAIC has been involved in numerous large-scale IT projects, encompassing system modernization, cybersecurity solutions, data analytics, and custom software development. Their track record typically involves managing complex projects, adhering to stringent government requirements, and delivering solutions across diverse technological landscapes. Specific performance on contracts similar to this NIMH software development would be detailed in past performance evaluations during future procurement processes, but their general profile indicates a capacity to handle such requirements.

What are the potential risks associated with a five-year firm fixed-price contract for new software development?

A significant risk with a five-year firm fixed-price contract for new software development is the potential for the contractor to underbid or for requirements to evolve significantly over the contract's lifespan. If the initial cost estimates are too low or if unforeseen technical challenges arise, SAIC might struggle to deliver within the fixed price, potentially impacting quality or leading to change requests. Conversely, if the government's needs change substantially due to evolving research priorities or technological advancements, the fixed-price nature could make modifications costly or cumbersome. Managing scope creep is also critical; without strict change control, the project could expand beyond its original intent, straining resources and potentially exceeding the fixed budget if not managed through formal change orders.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

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: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc. (UEI: 611641312)

Address: 1710 SAIC DR, MCLEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $11,420,534

Exercised Options: $11,420,534

Current Obligation: $11,420,534

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ06D0016

IDV Type: IDC

Timeline