HHS awarded $26.3M for custom computer programming, with 2 bids received

Contract Overview

Contract Amount: $26,339,896 ($26.3M)

Contractor: Woodbourne Solutions Incorporated

Awarding Agency: Department of Health and Human Services

Start Date: 2015-07-31

End Date: 2020-01-31

Contract Duration: 1,645 days

Daily Burn Rate: $16.0K/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 $26.3 million to WOODBOURNE SOLUTIONS INCORPORATED for work described as: "IGF::OT::IGF" Key points: 1. The contract value of $26.3M appears reasonable given the 5-year duration. 2. Limited competition (2 bids) may have impacted price discovery. 3. The contract was awarded as Firm Fixed Price, indicating clear cost expectations. 4. The North American Industry Classification System (NAICS) code 541511 points to a focus on custom software development. 5. The contractor, WOODBOURNE SOLUTIONS INCORPORATED, has a track record with federal agencies. 6. The contract was awarded by the National Institutes of Health (NIH), a major health research agency. 7. The contract duration of 1645 days (approx. 4.5 years) suggests a substantial project. 8. The contract was not set aside for small businesses.

Value Assessment

Rating: good

The contract value of $26.3 million over approximately 4.5 years averages to about $5.8 million annually. This figure seems within a reasonable range for custom computer programming services for a federal agency of NIH's size and scope. Benchmarking against similar contracts for custom software development at NIH or other large federal research institutions would provide a more precise value assessment. However, without specific comparable contract data, the pricing appears fair for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, which is generally the preferred method for ensuring the best value for the government. However, only two bids were received, suggesting that the pool of interested and qualified bidders may have been limited for this specific requirement. While full and open competition was utilized, the low number of bids could indicate potential challenges in market reach or the specificity of the requirements, which might have influenced the final price.

Taxpayer Impact: The limited number of bidders, despite full and open competition, means taxpayers may not have benefited from the most competitive pricing possible. A broader range of bids typically drives down costs through increased market pressure.

Public Impact

The primary beneficiaries are likely the researchers and staff at the National Institutes of Health, who will utilize the custom computer programming services to support their scientific and administrative functions. The services delivered are custom computer programming, which could encompass software development, system integration, database management, or other IT solutions tailored to NIH's specific needs. The geographic impact is primarily within Maryland, where the contractor is located and likely where the services are performed or managed. Workforce implications include the employment of skilled IT professionals by WOODBOURNE SOLUTIONS INCORPORATED to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bids) could lead to higher costs for taxpayers.
The specific nature of 'custom computer programming' can sometimes lead to scope creep if not tightly managed.
Reliance on a single contractor for a significant period (4.5 years) can create vendor lock-in.

Positive Signals

Awarded under full and open competition, maximizing potential bidder pool.
Firm Fixed Price contract type provides cost certainty for the government.
The contractor, WOODBOURNE SOLUTIONS INCORPORATED, has prior federal contracting experience.
The contract is managed by the National Institutes of Health, a reputable federal agency with established procurement processes.

Sector Analysis

The Information Technology (IT) sector, specifically custom computer programming services (NAICS 541511), is a critical component of federal operations. This contract falls within a market segment characterized by high demand for specialized software development to support agency missions. The total federal spending on IT services is in the hundreds of billions annually, with custom programming being a significant sub-category. This contract represents a small fraction of that overall spending but is vital for the specific operational needs of the National Institutes of Health.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal. However, the prime contractor, WOODBOURNE SOLUTIONS INCORPORATED, may engage small businesses as subcontractors if their internal capabilities do not cover all aspects of the custom programming required, though this is not explicitly indicated.

Oversight & Accountability

Oversight for this contract would typically be provided by the contracting officer and the program managers within the National Institutes of Health. As a federal contract, it is subject to the oversight of the Government Accountability Office (GAO) for bid protests and potential audits by the HHS Office of Inspector General (OIG). Transparency is generally maintained through contract databases like FPDS-NG, where basic award information is publicly available.

Related Government Programs

NIH IT Services Contracts
Custom Software Development Federal Contracts
Health IT Services
Federal IT Professional Services
Department of Health and Human Services IT Spending

Risk Flags

Limited Competition
Potential for Scope Creep
Vendor Lock-in Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $26.3 million to WOODBOURNE SOLUTIONS INCORPORATED. "IGF::OT::IGF"

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 $26.3 million.

What is the period of performance?

Start: 2015-07-31. End: 2020-01-31.

What is the track record of WOODBOURNE SOLUTIONS INCORPORATED with federal contracts, particularly with the Department of Health and Human Services?

WOODBOURNE SOLUTIONS INCORPORATED has a history of federal contracting. While the provided data indicates this specific award from the National Institutes of Health (NIH), a deeper dive into federal procurement databases would reveal the full scope of their federal work. This includes the number of contracts awarded, their values, agencies served, and performance history. Examining past performance reviews and any reported issues or successes would provide a comprehensive understanding of their reliability and capability in delivering services to federal agencies like HHS.

How does the awarded price of $26.3 million compare to similar custom computer programming contracts awarded by NIH or other federal agencies?

Benchmarking the $26.3 million award against similar contracts is crucial for assessing value for money. This comparison should consider the contract duration (approximately 4.5 years), the specific services rendered (custom computer programming), and the complexity of the requirements. Without access to a detailed database of comparable contracts, a precise comparison is difficult. However, an annual average of approximately $5.8 million for custom IT development at a large agency like NIH is generally within a reasonable range, assuming the scope of work is substantial and requires specialized expertise. Further analysis would involve identifying contracts with similar NAICS codes and service descriptions.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential cost overruns if the scope of 'custom computer programming' is not well-defined, leading to scope creep. Another risk is the limited competition (2 bids), which could result in suboptimal pricing. Vendor lock-in is also a concern given the contract's duration. Mitigation strategies would involve robust project management by NIH, clear definition and control of the statement of work, regular performance reviews, and potentially incorporating mechanisms for competitive re-competition at the end of the contract term. The Firm Fixed Price nature of the contract helps mitigate cost overrun risks for the government.

How effective has WOODBOURNE SOLUTIONS INCORPORATED been in delivering custom computer programming services in the past, based on available performance data?

Assessing the effectiveness of WOODBOURNE SOLUTIONS INCORPORATED requires access to performance evaluation reports (e.g., Contractor Performance Assessment Reporting System - CPARS). These reports provide insights into the contractor's timeliness, quality of work, cost control, and overall customer satisfaction. Without direct access to these specific performance records for this contract or prior ones, it's impossible to definitively state their effectiveness. However, the fact that they were awarded this significant contract by NIH suggests a level of confidence in their past performance and capabilities by the agency.

What are the historical spending patterns for custom computer programming services at the National Institutes of Health?

Historical spending patterns for custom computer programming at NIH would reveal trends in contract values, durations, and the number of competitors over time. Analyzing this data could indicate whether spending in this category has been increasing or decreasing, and whether competition levels have remained consistent or fluctuated. Such analysis helps in understanding the agency's reliance on external IT services and whether current spending aligns with historical norms or represents a significant shift. This context is vital for budget planning and strategic sourcing of IT services.

What specific types of custom computer programming were delivered under this contract, and what was their impact on NIH's research or operational goals?

The provided data specifies 'Custom Computer Programming Services' under NAICS code 541511 but does not detail the specific applications or systems developed. To understand the impact, one would need to examine the contract's statement of work and any associated deliverables or project reports. These services could range from developing specialized research data analysis tools, enhancing existing IT infrastructure, creating new administrative software, or integrating disparate systems. The impact would be measured by how these custom solutions improved research efficiency, data management, scientific discovery, or operational workflows within NIH.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

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: $26,339,896

Exercised Options: $26,339,896

Current Obligation: $26,339,896

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F0482U

IDV Type: FSS

Timeline