NIH's $21.9M IT Support Contract Awarded to Base Technologies, LLC Under Full and Open Competition

Contract Overview

Contract Amount: $21,900,140 ($21.9M)

Contractor: Base Technologies, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2011-01-30

End Date: 2015-03-14

Contract Duration: 1,504 days

Daily Burn Rate: $14.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: TAS::75 0844::TAS IT SUPPORT

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $21.9 million to BASE TECHNOLOGIES, LLC for work described as: TAS::75 0844::TAS IT SUPPORT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Time and Materials, which can pose cost control risks if not managed diligently. 3. The duration of the contract (1504 days) indicates a significant, long-term need for IT support services. 4. The award was a Delivery Order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The North American Industry Classification System (NAICS) code 541519 suggests a broad range of IT services were procured. 6. The contract was awarded to a single entity, Base Technologies, LLC. 7. The contract was awarded in Maryland, a hub for federal contracting activity.

Value Assessment

Rating: fair

The total award amount of $21.9 million over approximately four years for IT support services requires careful benchmarking. Without specific details on the services rendered and the labor categories involved, a precise value-for-money assessment is challenging. However, the Time and Materials (T&M) contract type, while flexible, can lead to higher costs if not closely monitored for scope creep and efficient resource utilization. Comparing this to similar IT support contracts awarded by NIH or other agencies for comparable services and durations would be necessary to determine if the pricing was competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that all responsible sources were permitted to submit a bid. The presence of two bids (no: 2) suggests a moderate level of competition for this specific delivery order. While full and open competition is generally preferred for maximizing price discovery and ensuring fair access to government contracts, a low number of bidders can sometimes indicate market limitations or specific requirements that may have deterred broader participation.

Taxpayer Impact: A competitive bidding process, even with a limited number of bidders, generally leads to better pricing for taxpayers compared to sole-source or limited competition awards. It ensures that the government receives proposals that are evaluated on merit and cost.

Public Impact

The National Institutes of Health (NIH) benefits from this contract by receiving essential IT support services to maintain its operational infrastructure. The contract delivers a range of computer-related services, crucial for the functioning of a large research institution. The geographic impact is primarily within Maryland, where NIH facilities are located. The contract supports a workforce of IT professionals employed by Base Technologies, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type can lead to cost overruns if not managed effectively, as it incentivizes labor hours rather than fixed outcomes.
A low number of bidders (2) for a full and open competition may indicate potential market concentration or specialized requirements that limit broader participation.
The contract duration of over four years means that potential inefficiencies or suboptimal pricing could have a sustained impact on program costs.

Positive Signals

Awarded under full and open competition, which is the government's preferred method for ensuring a competitive marketplace.
The contract was awarded to a single entity, Base Technologies, LLC, implying they met all the required qualifications and offered a competitive proposal.
The contract is a Delivery Order, suggesting it was part of a pre-competed IDIQ vehicle, which can streamline procurement processes.

Sector Analysis

The IT services sector is a critical component of federal spending, supporting a vast array of agency operations. This contract falls under the 'Other Computer Related Services' category (NAICS 541519), which is broad and can encompass everything from IT consulting and system integration to network management and data processing. The federal government is a significant consumer of these services, with spending often concentrated in areas supporting research, defense, and administrative functions. Benchmarking this contract's value would involve comparing its total value and duration against similar IT support contracts awarded to other federal agencies or within the broader IT services market.

Small Business Impact

This contract does not appear to have a small business set-aside component, as the 'sb' field is false. Furthermore, the contractor, Base Technologies, LLC, is not explicitly identified as a small business in the provided data. Analysis of subcontracting opportunities for small businesses would require further investigation into the contract's specific terms and the contractor's subcontracting plan, if any. The absence of a set-aside suggests that the procurement was aimed at larger, potentially more established firms capable of handling the scope of IT support required by NIH.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the National Institutes of Health. The Time and Materials (T&M) nature of the contract necessitates robust oversight to ensure that labor hours are reasonable and necessary, and that the work performed aligns with the contract's objectives. Accountability measures would include performance reviews, invoicing audits, and adherence to delivery schedules. Transparency is generally facilitated through contract award databases, though detailed performance metrics are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

NIH IT Support Services
Federal IT Services Contracts
Health and Human Services IT Procurement
Delivery Order Contracts
Time and Materials Contracts

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Limited competition (2 bidders) despite Full and Open competition.
Lack of specific performance metrics in provided data.
Need for detailed benchmarking against similar contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $21.9 million to BASE TECHNOLOGIES, LLC. TAS::75 0844::TAS IT SUPPORT

Who is the contractor on this award?

The obligated recipient is BASE TECHNOLOGIES, 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 $21.9 million.

What is the period of performance?

Start: 2011-01-30. End: 2015-03-14.

What specific IT support services were included under this contract?

The provided data indicates the NAICS code is 541519, 'Other Computer Related Services.' This is a broad category that can encompass a wide range of IT support functions. Without access to the full contract statement of work (SOW), it is difficult to specify the exact services. However, typical services under such a classification for an organization like NIH could include help desk support, network administration, server maintenance, cybersecurity monitoring, software installation and troubleshooting, and IT infrastructure management. The Time and Materials (T&M) pricing structure suggests that the contract likely involved the provision of labor hours for these services, rather than fixed-price deliverables.

How does the $21.9 million award compare to similar IT support contracts at NIH or other agencies?

A direct comparison of the $21.9 million award for 1504 days (approximately 4 years) requires access to a database of comparable contracts with detailed service descriptions and labor rates. However, for a large federal agency like NIH, this amount for comprehensive IT support is within a plausible range, especially considering the complexity and scale of operations. To assess value, one would need to benchmark the average hourly rates for various labor categories against market data and other federal contracts. The T&M nature of this contract means that the final cost is heavily dependent on the actual hours worked, making a simple total cost comparison less informative than an analysis of labor rates and efficiency.

What are the primary risks associated with a Time and Materials (T&M) contract of this nature?

The primary risk with a T&M contract is the potential for cost overruns, as the contractor is reimbursed for direct labor hours and materials. Unlike fixed-price contracts, there is less inherent incentive for the contractor to control costs or maximize efficiency. This can lead to scope creep, where the scope of work expands without a corresponding adjustment in the contract ceiling, or inefficient use of labor. For NIH, effective oversight is crucial. This includes rigorous monitoring of labor hours, validation of the necessity of all hours worked, and careful management of any changes to the scope of work to ensure that the government only pays for what is needed and delivered.

What is the significance of the contract being a 'Delivery Order'?

The designation of this award as a 'Delivery Order' indicates that it was issued under a pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract. IDIQ contracts establish terms and conditions for services over a period, allowing agencies to issue specific orders (like this one) as needed. This approach streamlines the procurement process for recurring needs. The fact that it's a delivery order means that the initial competition likely occurred when the parent IDIQ contract was awarded. This specific order then defines the scope, price, and delivery timeline for a particular requirement, in this case, IT support services for NIH.

What does the low number of bidders (2) suggest about the market for these IT support services?

A low number of bidders (2) in a 'full and open competition' scenario can suggest several possibilities. It might indicate that the specific requirements of the contract were highly specialized, limiting the pool of qualified contractors. Alternatively, it could point to a concentrated market where only a few companies possess the necessary expertise, security clearances, or capacity to undertake such a project. It's also possible that the timing or structure of the procurement (e.g., as a delivery order under an IDIQ) may have influenced the number of interested parties. While full and open competition is ideal, a low bid count warrants further examination to ensure adequate market research was conducted and that the requirements weren't unnecessarily restrictive.

What is the historical spending pattern for IT support services at NIH?

The provided data only includes details for this specific contract. To understand historical spending patterns for IT support services at NIH, one would need to analyze procurement data over several fiscal years. This would involve identifying all contracts awarded for IT support (using relevant NAICS codes and contract types), their values, durations, and awarded contractors. Such an analysis could reveal trends in spending levels, shifts in technology focus, changes in contracting strategies (e.g., move towards cloud services, increased use of small businesses), and the prevalence of specific contractors over time. Without this broader dataset, it's impossible to establish historical context for this single award.

Industry Classification

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

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: CA, Inc. (UEI: 080399256)

Address: 2291 WOOD OAK DR STE 200, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $21,900,140

Exercised Options: $21,900,140

Current Obligation: $21,900,140

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $1,562,763

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F5451H

IDV Type: FSS

Timeline