HHS awarded $28.7M for computer systems design services to Occam Solutions, Inc

Contract Overview

Contract Amount: $28,739,546 ($28.7M)

Contractor: Occam Solutions, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2014-12-04

End Date: 2019-12-03

Contract Duration: 1,825 days

Daily Burn Rate: $15.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $28.7 million to OCCAM SOLUTIONS, INC. for work described as: IGF::OT::IGF Key points: 1. Value for money appears fair given the 5-year duration and firm-fixed-price contract type. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a firm-fixed-price contract generally transferring risk to the contractor. 4. Performance context is for computer systems design services, a common requirement for federal agencies. 5. Sector positioning is within IT services, a significant area of federal spending.

Value Assessment

Rating: fair

The contract value of $28.7 million over five years averages to approximately $5.75 million annually. Without specific deliverables or performance metrics, a direct value-for-money assessment is challenging. However, the firm-fixed-price structure suggests the contractor bears the risk of cost overruns, which can be a positive indicator for the government. Benchmarking against similar IT services contracts would provide a clearer picture of whether this pricing is 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 offers. The presence of two bidders suggests a degree of competition, though the exact number of interested parties is not detailed. A higher number of bidders typically leads to more robust price discovery and potentially lower prices for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation.

Public Impact

The Department of Health and Human Services (HHS) is the primary beneficiary, receiving computer systems design services. These services likely support the operational needs and technological infrastructure of the agency. The geographic impact is centered around the agency's operations, likely within the Washington D.C. metropolitan area or wherever NIH facilities are located. Workforce implications may include the need for specialized IT personnel within HHS or through contractor support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the effectiveness of the services provided.
The specific nature of 'computer systems design services' is broad and could encompass a wide range of activities, making precise evaluation challenging without further context.

Positive Signals

The contract was awarded through full and open competition, suggesting a fair and transparent process.
A firm-fixed-price contract type generally aligns incentives and transfers cost risk to the contractor.
The contract duration of five years allows for continuity of services and potential for building long-term relationships and expertise.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. The federal IT market is substantial, with agencies consistently investing in modernizing and maintaining their technological infrastructure. This contract likely supports the National Institutes of Health's (NIH) mission-critical functions. Comparable spending benchmarks for IT services contracts of this size and duration are common across various federal agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The award to a company that is not identified as a small business suggests it may be a larger entity or that small businesses were not the primary focus for this particular requirement.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the Department of Health and Human Services, specifically the National Institutes of Health. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver specified services. Transparency is facilitated by the contract award being publicly available, though detailed performance reports may not be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

IT Services Contracts
Computer Systems Design
Department of Health and Human Services Contracts
National Institutes of Health IT Spending
Federal IT Modernization Programs

Risk Flags

Limited competition (2 bidders)
Potential for undefined scope in 'computer systems design services'

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $28.7 million to OCCAM SOLUTIONS, INC.. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is OCCAM SOLUTIONS, INC..

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 $28.7 million.

What is the period of performance?

Start: 2014-12-04. End: 2019-12-03.

What specific computer systems design services were provided under this contract?

The contract specifies 'Computer Systems Design Services' (NAICS code 541512). This broad category typically encompasses designing and developing computer systems, including software and hardware integration, network architecture, and IT infrastructure planning. Without access to the detailed statement of work (SOW) or task orders issued under this contract, the precise nature of the services remains unspecified. These services could range from developing custom software applications to designing secure network infrastructures or implementing cloud-based solutions to support the National Institutes of Health's research and administrative functions.

How does the $28.7 million contract value compare to similar IT services contracts awarded by NIH or HHS?

The $28.7 million contract value over five years, averaging approximately $5.75 million annually, is a moderate-sized award within the federal IT services landscape. For the National Institutes of Health (NIH) or the broader Department of Health and Human Services (HHS), such a value is not uncommon for complex IT projects or ongoing support services. Benchmarking against similar contracts for computer systems design or IT support services within these agencies would require analyzing a portfolio of awards with comparable NAICS codes, contract types, and durations. However, this figure suggests a significant investment in IT infrastructure or development.

What are the primary risks associated with this firm-fixed-price contract for computer systems design?

The primary risk for the government under a firm-fixed-price (FFP) contract is ensuring the contractor delivers the full scope of services defined in the contract at the agreed-upon price. While FFP generally shifts cost overrun risk to the contractor, the government must meticulously define requirements to avoid scope creep or disputes. Risks for the contractor include underestimating costs or effort, potentially leading to reduced profit margins or even losses if performance issues arise. For computer systems design, risks also include technological obsolescence, integration challenges, and cybersecurity vulnerabilities that must be managed throughout the contract lifecycle.

What was the historical spending pattern for computer systems design services at NIH prior to this award?

Analyzing historical spending patterns for computer systems design services at the National Institutes of Health (NIH) prior to this $28.7 million award would involve examining prior contract awards under NAICS code 541512 and related IT service categories. Federal procurement data indicates that agencies like NIH consistently spend significant amounts on IT services to support their vast research and administrative operations. Without specific historical data for this contract's predecessors, it's reasonable to infer that NIH has a continuous need for such services, with spending fluctuating based on specific project needs, technology upgrades, and budget allocations. This $28.7 million award represents a substantial, multi-year commitment.

How does the competition level (2 bidders) impact the value and potential for innovation?

A competition level with only two bidders, while indicating a full and open process, is on the lower end of what is typically considered robust competition. Fewer bidders can potentially lead to less aggressive pricing compared to scenarios with numerous offers. It might also suggest that the specific requirements of the contract were highly specialized, limiting the pool of qualified contractors, or that other potential bidders chose not to participate for various reasons. While innovation can still occur, the pressure to innovate aggressively might be less pronounced than in a highly competitive environment where differentiation is key to winning future contracts.

What is the track record of Occam Solutions, Inc. in performing similar federal IT contracts?

Occam Solutions, Inc. has a track record of performing federal IT contracts, including this $28.7 million award from the Department of Health and Human Services (HHS) for computer systems design services. To fully assess their track record, a deeper dive into their past performance evaluations, contract history, and any reported issues or successes on previous government contracts would be necessary. Federal procurement databases often contain information on past performance, which is crucial for understanding a contractor's reliability, quality of work, and ability to meet deadlines and budget constraints on similar projects.

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: FCISJB980001B

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 590 HERNDON PKWY STE 375, HERNDON, VA, 20170

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $28,739,546

Exercised Options: $28,739,546

Current Obligation: $28,739,546

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0539Y

IDV Type: FSS

Timeline