HHS awards $33.7M for computer systems design, with NIH as the primary recipient

Contract Overview

Contract Amount: $33,681,500 ($33.7M)

Contractor: Candor Solutions LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2017-05-31

End Date: 2020-05-31

Contract Duration: 1,096 days

Daily Burn Rate: $30.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $33.7 million to CANDOR SOLUTIONS LLC for work described as: IGF::OT::IGF Key points: 1. The contract value of $33.7 million over its period of performance suggests a significant investment in IT infrastructure or services. 2. The contract was awarded under full and open competition after exclusion of sources, indicating a competitive process with some initial restrictions. 3. The fixed-price contract type generally transfers risk to the contractor, potentially leading to cost efficiencies if managed well. 4. The duration of 1096 days (approximately 3 years) allows for substantial project development or service provision. 5. The primary agency, NIH, suggests a focus on health research and development IT needs. 6. The contractor, CANDOR SOLUTIONS LLC, has secured a substantial award, indicating a level of trust and capability in delivering these services.

Value Assessment

Rating: good

The contract value of $33.7 million for computer systems design services over three years appears reasonable given the scope of work typically associated with federal IT projects. Benchmarking against similar contracts for system design and integration services within the federal government would provide a more precise value-for-money assessment. However, the fixed-price nature of the award suggests that the contractor is incentivized to manage costs effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be broad, there were specific reasons for excluding certain sources initially. The number of bidders is not explicitly stated, but the 'exclusion of sources' suggests a potentially narrower field than a pure full and open competition. This could impact price discovery if fewer qualified vendors were considered.

Taxpayer Impact: While the competition was not entirely unrestricted, the 'after exclusion of sources' clause implies an effort to ensure a competitive environment. Taxpayers benefit from a process that aims for competitive pricing, even with initial source exclusions.

Public Impact

The National Institutes of Health (NIH) is the primary beneficiary, likely receiving enhanced IT systems and design services to support its extensive biomedical research mission. The services delivered are computer systems design, which could encompass software development, system integration, network design, or IT consulting. The geographic impact is likely concentrated around NIH facilities, but the services could support remote research or data access nationwide. The contract supports the federal IT workforce and potentially the contractor's workforce, contributing to specialized IT employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition method warrants further investigation to understand the rationale and ensure it did not unduly limit competition.
Lack of specific details on the number of bidders makes it difficult to fully assess the competitive landscape and its impact on pricing.
The fixed-price contract type, while beneficial for cost control, can pose risks if the scope of work is not clearly defined or if unforeseen technical challenges arise.

Positive Signals

The award was made under a competitive process, suggesting that multiple vendors were considered.
The firm fixed-price contract type aligns with government objectives for cost certainty.
The contract duration allows for sustained service delivery and project completion.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. This is a critical area for federal agencies, supporting everything from administrative functions to complex research and operational systems. The market for IT services is highly competitive, with numerous large and small businesses offering specialized expertise. Federal spending in this category is substantial, driven by the need to modernize legacy systems, enhance cybersecurity, and leverage data analytics for improved decision-making. Comparable spending benchmarks would typically look at the average cost of similar IT design and integration projects across agencies like HHS, DOD, and GSA.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific award. This suggests the contract was likely awarded to a larger entity or that subcontracting opportunities for small businesses were not explicitly mandated or tracked in this data snippet. Further analysis would be needed to determine if any subcontracting plans were in place or if small businesses were involved in the competitive bidding process.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Health and Human Services, specifically the National Institutes of Health. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver specified services within the agreed budget. Transparency is facilitated through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

NIH IT Support Services
HHS Health IT Modernization
Federal Civilian IT Services
Computer Systems Design Contracts
Health Research IT Infrastructure

Risk Flags

Competition Level: 'Full and open competition after exclusion of sources' requires scrutiny to ensure maximum feasible competition.
Scope Definition: Clarity of 'Computer Systems Design Services' scope is crucial for FFP contract success.
Contractor Performance: Long-term performance and adherence to schedule/budget need ongoing monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $33.7 million to CANDOR SOLUTIONS LLC. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is CANDOR SOLUTIONS 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 $33.7 million.

What is the period of performance?

Start: 2017-05-31. End: 2020-05-31.

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

The provided data indicates the contract was for 'Computer Systems Design Services' (NAICS code 541512). While the specific deliverables are not detailed, this category typically encompasses a range of activities including designing and developing software, integrating hardware and software systems, planning computer systems that integrate hardware, software, and communication technologies, and providing technical consulting services related to these areas. For the National Institutes of Health (NIH), these services could have supported the development of research databases, analytical platforms, secure data repositories, or specialized scientific software applications crucial for biomedical research.

How does the $33.7 million award compare to other federal IT services contracts of similar scope?

The $33.7 million award over approximately three years for computer systems design services is a substantial but not extraordinary figure within the federal IT landscape. Larger agencies like the Department of Defense or the General Services Administration often award IT contracts in the hundreds of millions or even billions. However, for a specific service like system design awarded to a single entity, this amount suggests a significant project. Benchmarking against contracts with similar NAICS codes (541512) and durations across agencies like HHS, NIH, or other research-focused bodies would reveal if this represents a premium, a standard rate, or a cost-saving award. The fixed-price nature also implies a degree of cost certainty compared to cost-plus contracts.

What are the potential risks associated with a 'full and open competition after exclusion of sources' award?

The primary risk with 'full and open competition after exclusion of sources' lies in the potential for reduced competition compared to a truly unrestricted full and open process. The 'exclusion' implies that certain potential bidders were intentionally not considered, perhaps due to specific requirements, past performance issues, or other pre-determined criteria. While this can sometimes streamline the process or ensure a better fit for unique needs, it carries the risk of limiting the pool of innovative solutions or driving up prices if the remaining bidders face less pressure. Transparency regarding the reasons for exclusion is crucial for assessing whether this approach truly served the government's best interest and secured optimal value.

What is the track record of CANDOR SOLUTIONS LLC in securing and performing federal contracts?

Information on CANDOR SOLUTIONS LLC's specific track record beyond this $33.7 million award is not detailed in the provided snippet. However, securing a contract of this magnitude from a major agency like HHS/NIH suggests the company possesses the necessary qualifications, past performance, and financial stability to undertake significant federal projects. A deeper dive into federal procurement databases would reveal the number and types of contracts they have previously held, their performance ratings, and their history with different agencies. This would provide a more comprehensive understanding of their reliability and expertise in delivering IT services.

How does the firm fixed-price (FFP) contract type impact value for money in this context?

The Firm Fixed-Price (FFP) contract type is generally favored by the government for IT services like system design because it provides cost certainty. Under an FFP contract, the contractor agrees to a set price for a defined scope of work, absorbing any cost overruns. This incentivizes the contractor to manage resources efficiently and control costs. For value for money, this means the government knows its maximum expenditure upfront. However, if the scope of work is poorly defined or unforeseen technical challenges arise, the contractor might cut corners, potentially impacting quality, or seek change orders, which can increase the total cost. Effective scope definition and oversight are critical to realizing the value of an FFP award.

What is the historical spending pattern for computer systems design services at NIH?

The provided data only details one specific contract award. To understand historical spending patterns for computer systems design services at NIH, one would need to analyze procurement data over multiple fiscal years. This would involve querying databases for contracts with NAICS code 541512 awarded by NIH, examining the total dollar amounts, the number of awards, the types of contracts (FFP, T&M, etc.), and the primary contractors. Such an analysis would reveal trends in IT investment, identify key service providers, and highlight any significant shifts in spending levels or contract types over time, providing context for the $33.7 million award.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: NIHJT2010002

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 113 E MARKET STREET, SUITE 120, LEESBURG, VA, 20176

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Joint Venture Economically Disadvantaged Women Owned Small Business, Joint Venture Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $33,681,500

Exercised Options: $33,681,500

Current Obligation: $33,681,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200110W

IDV Type: GWAC

Timeline