HHS awarded $18.9M for custom computer programming, with 2 bids received

Contract Overview

Contract Amount: $18,936,077 ($18.9M)

Contractor: Woodbourne Solutions Incorporated

Awarding Agency: Department of Health and Human Services

Start Date: 2008-10-17

End Date: 2013-10-17

Contract Duration: 1,826 days

Daily Burn Rate: $10.4K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: MISCELLANEOUS ITEMS

Place of Performance

Location: GERMANTOWN, MONTGOMERY County, MARYLAND, 20874

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $18.9 million to WOODBOURNE SOLUTIONS INCORPORATED for work described as: MISCELLANEOUS ITEMS Key points: 1. Value for money appears fair given the 5-year duration and time-and-materials pricing. 2. Competition was limited, with only two bids, potentially impacting price discovery. 3. Risk indicators include the use of time-and-materials pricing, which can lead to cost overruns. 4. Performance context shows a long contract duration, suggesting a need for ongoing services. 5. Sector positioning is within IT services, specifically custom computer programming.

Value Assessment

Rating: fair

The total award of $18.9 million over five years averages to approximately $3.78 million per year. Without specific benchmarks for custom computer programming services of this nature, it's challenging to definitively assess value. However, the time-and-materials pricing structure, while flexible, carries inherent risks of cost escalation compared to fixed-price contracts. The limited competition also makes direct value comparison difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded as a competitive delivery order with two bids received. While it was competed, the low number of bidders suggests limited market engagement or potential barriers to entry for other firms. This level of competition may not have driven the most aggressive pricing or innovative solutions.

Taxpayer Impact: With only two bidders, taxpayers may not have benefited from the full spectrum of competitive pricing that a more robust bidding process could have yielded.

Public Impact

The National Institutes of Health (NIH) benefits from these custom computer programming services. Services delivered likely include software development, system integration, and IT support for NIH operations. The geographic impact is primarily within Maryland, where the contractor is located. Workforce implications include the employment of skilled IT professionals by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time-and-materials pricing can lead to unpredictable costs and potential overruns.
Limited competition may result in higher prices than a more open bidding process.
The long duration of the contract could indicate a lack of agile procurement or evolving needs.

Positive Signals

The contract was competitively awarded, indicating some level of market vetting.
The long duration suggests a sustained need for the services, implying successful past performance or critical function.

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming services. The market for such services is vast and highly competitive, with numerous firms offering specialized development and integration capabilities. Comparable spending benchmarks are difficult to establish without more detail on the specific programming tasks, but federal IT spending is in the hundreds of billions annually.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from this particular award's structure.

Oversight & Accountability

Oversight would typically be managed by the contracting officers and program managers within the National Institutes of Health. Accountability measures would be tied to the delivery order terms and conditions, performance metrics, and adherence to the time-and-materials ceiling. Transparency is facilitated by contract award databases, though detailed performance reports are often internal.

Related Government Programs

Custom Software Development Services
IT Professional Services
Federal IT Contracts
Health IT Services

Risk Flags

Limited Competition
Time and Materials Pricing
Potential for Cost Overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $18.9 million to WOODBOURNE SOLUTIONS INCORPORATED. MISCELLANEOUS ITEMS

Who is the contractor on this award?

The obligated recipient is WOODBOURNE SOLUTIONS INCORPORATED.

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 $18.9 million.

What is the period of performance?

Start: 2008-10-17. End: 2013-10-17.

What is the typical cost range for custom computer programming services similar to those provided under this contract?

Determining a precise cost range for custom computer programming services is highly dependent on the specific technologies used, the complexity of the project, the skill level of the developers, and the geographic location of the work. For federal contracts, rates can vary significantly. Time-and-materials contracts, like this one, often have hourly rates for different labor categories. Without knowing the specific roles (e.g., senior software engineer, junior developer, project manager) and their associated hours, a direct comparison is difficult. However, market research for IT services indicates that hourly rates for experienced software developers can range from $100 to over $250 per hour, depending on specialization and clearance requirements. The total award of $18.9 million over five years suggests a substantial project requiring consistent effort from a team of professionals.

How does the limited competition (2 bidders) impact the potential value for money for the government?

Limited competition, such as having only two bidders, generally has a negative impact on the government's potential for achieving the best value for money. When fewer companies bid on a contract, the competitive pressure to offer the lowest price or the most innovative solution is reduced. This can lead to higher prices than might be achieved in a market with more robust competition. Furthermore, a limited number of bidders might indicate barriers to entry, such as complex requirements, specific technical expertise needed, or the size of the contract, which could exclude smaller or more agile companies. For taxpayers, this means there's a higher risk that the government is paying more than it would if multiple qualified vendors were vying for the contract.

What are the risks associated with the 'Time and Materials' (T&M) contract type used here?

The primary risk associated with Time and Materials (T&M) contracts is the potential for cost overruns and a lack of definitive cost control. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials, plus a fee or profit. This structure places the burden of cost management on the government. If the project scope is not well-defined, or if the contractor's efficiency is low, costs can escalate beyond initial expectations. To mitigate this, T&M contracts typically include a 'ceiling price' that the contractor cannot exceed without modification, and often require detailed tracking and reporting of labor hours and materials used. For this contract, the $18.9 million award represents the ceiling.

What does the contract duration of 1826 days (approx. 5 years) imply about the nature of the services?

A contract duration of approximately five years for custom computer programming services suggests that the work is likely to be ongoing, strategic, or foundational in nature, rather than a short-term project. This could involve the development and maintenance of critical software systems, long-term IT support for essential government functions, or research and development requiring sustained effort. Such a long duration implies a stable requirement within the agency (in this case, NIH) and potentially a need for deep institutional knowledge or specialized expertise that the contractor is expected to provide over an extended period. It also suggests that the agency may have opted for continuity of service rather than re-competing the requirement frequently.

How does the NAICS code '541511 - Custom Computer Programming Services' define the scope of this contract?

The North American Industry Classification System (NAICS) code 541511 specifically defines establishments primarily engaged in writing, modifying, testing, and supporting software to meet the needs of a particular customer. This includes custom computer programming services, custom software development services, and software design and development services. Contracts under this code typically involve creating unique software applications, adapting existing software to specific client needs, or providing services related to the entire software development lifecycle. It excludes the sale of prepackaged software (unless significant customization is involved) and IT infrastructure management.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 12800 MIDDLEBROOK RD STE 300, GERMANTOWN, MD, 20874

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,224,471

Exercised Options: $18,936,077

Current Obligation: $18,936,077

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F0482U

IDV Type: FSS

Timeline