HHS awards $63M for IT services, with General Dynamics Information Technology securing a significant portion

Contract Overview

Contract Amount: $63,173,318 ($63.2M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2015-09-25

End Date: 2019-09-27

Contract Duration: 1,463 days

Daily Burn Rate: $43.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF THIS IS TO EXERCISE THE BASE PERIOD WITH A POP OF 9/28/2015-9/27/2016 FOR THE HPC INITIATIVE. THE POC IS STEVE BAILEY AT 12 SOUTH DRIVE, 12B LOADING DOCK, BETHESDA, MD 20892.

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $63.2 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::OT::IGF THIS IS TO EXERCISE THE BASE PERIOD WITH A POP OF 9/28/2015-9/27/2016 FOR THE HPC INITIATIVE. THE POC IS STEVE BAILEY AT 12 SOUTH DRIVE, 12B LOADING DOCK, BETHESDA, MD 20892. Key points: 1. The contract focuses on computer systems design services, a critical area for health research and administration. 2. A firm-fixed-price structure suggests predictable costs for the government, though it may limit flexibility. 3. The award was made under full and open competition, indicating a broad market solicitation. 4. The duration of the contract, over four years, suggests a need for sustained IT support. 5. The contract's value places it within a substantial spending category for IT services within the federal government.

Value Assessment

Rating: good

The total award of $63.2 million over approximately four years for computer systems design services appears reasonable given the scope of supporting the National Institutes of Health (NIH). Benchmarking against similar large-scale IT contracts for federal health agencies suggests that pricing is competitive, especially considering the specialized nature of the services. The firm-fixed-price contract type helps manage cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, meaning all responsible sources were permitted to submit offers. The presence of three bidders indicates a healthy level of competition for this significant IT services contract. This competitive environment generally leads to better price discovery and potentially more innovative solutions for the government.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best value for their investment in critical IT infrastructure and services for the NIH.

Public Impact

The primary beneficiaries are the National Institutes of Health, which will receive essential IT support to advance its mission in biomedical research and public health. Services delivered include computer systems design, crucial for maintaining and enhancing the technological backbone of a leading research institution. The geographic impact is centered in Maryland, where the NIH is headquartered, supporting its operational needs. The contract supports the federal workforce by ensuring they have the necessary technological tools and infrastructure to perform their duties effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on work is not competed.
Reliance on a single contractor for critical IT systems could pose a risk if performance issues arise.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Firm-fixed-price contract provides cost predictability.
Long-term nature of the contract indicates a stable need and potential for sustained support.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. The federal government is a major consumer of these services, with significant spending allocated to maintaining and upgrading its vast IT infrastructure. Comparable spending benchmarks for large federal IT contracts often run into tens or hundreds of millions of dollars, reflecting the complexity and scale of government IT needs. This contract represents a notable investment in supporting critical health research functions.

Small Business Impact

The contract was not set aside for small businesses, and the prime contractor, General Dynamics Information Technology, Inc., is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. This suggests that the primary focus was on securing the best overall solution from the broader market, and the impact on the small business ecosystem may be limited unless the prime contractor actively engages small business subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officers 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 delivery of specified services. Transparency is facilitated through federal contract databases where award details are published. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

HHS IT Modernization Initiatives
NIH Research Infrastructure Support
Federal Civilian IT Services Contracts
Health Information Technology Services

Risk Flags

Potential for scope creep in long-term IT contracts.
Reliance on a single vendor for critical systems.
Ensuring continued technological relevance over contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $63.2 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::OT::IGF THIS IS TO EXERCISE THE BASE PERIOD WITH A POP OF 9/28/2015-9/27/2016 FOR THE HPC INITIATIVE. THE POC IS STEVE BAILEY AT 12 SOUTH DRIVE, 12B LOADING DOCK, BETHESDA, MD 20892.

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, 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 $63.2 million.

What is the period of performance?

Start: 2015-09-25. End: 2019-09-27.

What is the track record of General Dynamics Information Technology, Inc. with federal IT contracts, particularly within the Department of Health and Human Services?

General Dynamics Information Technology, Inc. (GDIT) has a substantial history of performing IT services for various federal agencies, including HHS. They are a major federal contractor with extensive experience in areas such as cloud computing, cybersecurity, data analytics, and IT infrastructure management. Within HHS, GDIT has held numerous contracts supporting agencies like the Centers for Disease Control and Prevention (CDC) and the Food and Drug Administration (FDA), in addition to the National Institutes of Health (NIH). Their performance history generally indicates a capacity to handle large-scale, complex IT projects. However, like any large contractor, specific contract performance can vary, and a detailed review of past performance ratings and any past issues on similar HHS contracts would provide a more granular understanding of their reliability for this specific award.

How does the awarded amount of $63.2 million compare to similar computer systems design service contracts awarded by HHS or other health-focused agencies?

The $63.2 million award for approximately four years of computer systems design services for the NIH is a significant but not extraordinary amount within the context of large federal IT procurements. HHS, and particularly NIH, often engage in substantial IT investments to support their vast research and administrative functions. Comparable contracts for similar services within HHS or agencies like the Department of Veterans Affairs (VA) or the Centers for Medicare & Medicaid Services (CMS) can range from tens to hundreds of millions of dollars over similar or longer durations. Factors influencing the cost include the scope of work, required security clearances, the complexity of existing systems, and the level of innovation demanded. Given the critical nature of NIH's mission, this level of investment for specialized IT support is generally in line with market expectations for such a large and vital agency.

What are the primary risks associated with a firm-fixed-price contract of this magnitude and duration?

The primary risks associated with a firm-fixed-price (FFP) contract of this magnitude and duration revolve around scope creep and the contractor's ability to manage costs effectively. For the government, the risk is that the fixed price may become unrepresentative of the actual work performed if the scope of requirements changes significantly, potentially leading to a less favorable deal if not managed through contract modifications. For the contractor, the risk is that unforeseen technical challenges or cost overruns could erode profit margins if they cannot deliver the required services within the agreed-upon price. Given the four-year duration, there's also a risk that technological advancements could make the contracted solutions less optimal by the end of the term, requiring careful management and potential adjustments. Robust change control processes and clear initial scope definition are crucial to mitigate these risks.

What is the historical spending pattern for computer systems design services at the National Institutes of Health?

Historical spending patterns for computer systems design services at the National Institutes of Health (NIH) indicate a consistent and substantial investment in IT infrastructure and support. NIH, as the world's largest biomedical research agency, relies heavily on sophisticated IT systems for data management, analysis, collaboration, and operational efficiency. Annual spending on IT services, including systems design, integration, and maintenance, typically runs into the hundreds of millions of dollars across various contracts. This specific $63.2 million award represents a portion of that overall IT budget. Trends often show an increasing demand for services related to big data analytics, cloud migration, cybersecurity, and high-performance computing, reflecting the evolving needs of biomedical research. Understanding these patterns helps contextualize the current award as part of a larger, ongoing commitment to technological advancement within NIH.

How does the competition level (full and open with 3 bidders) impact the potential value for money received by the government?

A full and open competition with three bidders generally suggests a healthy level of market interest and a reasonable chance of achieving good value for money. Having multiple bidders introduces competitive pressure, encouraging each offeror to submit their most competitive pricing and technically sound proposals to win the contract. Three bidders provide a sufficient pool to foster meaningful price comparison and technical evaluation, reducing the risk of a suboptimal award compared to a sole-source or very limited competition scenario. While more bidders could theoretically increase competition further, three is often considered a strong number for complex IT services, indicating that the opportunity was attractive enough for established players but not so niche as to limit participation. This level of competition supports the government's ability to negotiate favorable terms and pricing.

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: NIHJT2010001

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

Address: 3150 FAIRVIEW PARK DR STE 100, FALLS CHURCH, VA, 22042

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

Financial Breakdown

Contract Ceiling: $124,944,390

Exercised Options: $63,173,318

Current Obligation: $63,173,318

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $134,400

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200013W

IDV Type: GWAC

Timeline