HHS awarded $39M for NIH computer systems design, with a significant portion for Maryland

Contract Overview

Contract Amount: $39,071,401 ($39.1M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2017-02-28

End Date: 2022-03-31

Contract Duration: 1,857 days

Daily Burn Rate: $21.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::OT::IGF SRA INTERNATIONAL INC:1108732 [17-000709]

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $39.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::OT::IGF SRA INTERNATIONAL INC:1108732 [17-000709] Key points: 1. Contract value of $39.1 million over five years indicates substantial investment in IT services. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. A high number of bids (21040) implies strong market interest and potential for competitive pricing. 4. The Time and Materials pricing structure may pose cost control risks if not closely managed. 5. The contract supports critical IT infrastructure for the National Institutes of Health. 6. Geographic concentration in Maryland highlights regional IT sector activity.

Value Assessment

Rating: good

The contract value of $39.1 million over five years for computer systems design services appears reasonable given the scope and duration. Benchmarking against similar large-scale IT service contracts for federal health agencies suggests this falls within expected spending ranges. The Time and Materials pricing, while common, requires diligent oversight to ensure value for money and prevent cost overruns. Without specific per-unit data, a precise value-for-money assessment is challenging, but the competitive nature of the award is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The exceptionally high number of bids received (21,040) strongly suggests a robust and highly competitive marketplace for these computer systems design services. This level of competition is ideal for price discovery and likely resulted in a more favorable price for the government compared to a less competitive scenario.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it likely drove down prices and ensured the government received competitive offers for essential IT services.

Public Impact

The primary beneficiaries are the National Institutes of Health (NIH), which will receive enhanced computer systems design services. The services delivered are crucial for maintaining and improving the IT infrastructure supporting biomedical research. The geographic impact is concentrated in Maryland, where the NIH is headquartered and where the contractor is based. This contract supports IT professionals and potentially other roles within the contractor's organization, impacting the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost overruns if not meticulously monitored and controlled.
The long duration of the contract (five years) necessitates ongoing performance evaluation to ensure continued value.
Reliance on a single awardee for critical IT services, even if competitively won, carries inherent operational risks.

Positive Signals

Awarded through full and open competition, indicating a broad and competitive marketplace.
A very high number of bids received suggests significant market interest and potential for cost efficiencies.
The contract supports a critical agency (NIH) with essential IT services, aligning with government mission objectives.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically focusing on computer systems design services. The federal IT services market is substantial, with agencies consistently investing in infrastructure, software development, and cybersecurity. Contracts like this are essential for agencies like the NIH to maintain their complex research and administrative systems. Comparable spending benchmarks for IT services at agencies of similar size and mission often run into tens or hundreds of millions of dollars annually.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the large contract value and the nature of computer systems design services, it is likely that larger, established IT firms were the primary bidders. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business IT ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services (HHS) and the National Institutes of Health (NIH) contracting and program management offices. The contract type (Time and Materials) necessitates close monitoring of labor hours and costs. While specific Inspector General (IG) involvement isn't detailed, HHS OIG has jurisdiction over HHS contracts, and they may audit or investigate as part of their oversight responsibilities. Transparency is generally maintained through contract databases like FPDS.

Related Government Programs

HHS IT Modernization Contracts
NIH Research Support Services
Federal Computer Systems Design Services
Large-Scale IT Service Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Long contract duration requires sustained performance monitoring.
Geographic concentration of services in Maryland.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $39.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::OT::IGF SRA INTERNATIONAL INC:1108732 [17-000709]

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 $39.1 million.

What is the period of performance?

Start: 2017-02-28. End: 2022-03-31.

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

Analyzing historical spending for computer systems design services at the NIH requires accessing detailed contract databases over several fiscal years. Generally, agencies like the NIH have consistent, significant spending in this area due to the complex IT needs supporting vast research initiatives. Spending can fluctuate based on specific project lifecycles, technology upgrades, and strategic IT modernization efforts. For instance, a period of significant infrastructure overhaul or the launch of a new large-scale research data platform could lead to spikes in spending. Conversely, periods of stable operations might see more predictable, steady expenditure. Without specific historical data for this NAICS code (541512) at NIH, it's difficult to provide precise figures, but it's reasonable to assume multi-million dollar annual investments are typical for such a large and critical research institution.

How does the number of bids (21,040) compare to typical federal IT service contracts?

The number of bids received for this contract, 21,040, is exceptionally high and significantly exceeds the average for most federal IT service contracts. While some high-profile, broad requirement contracts might attract thousands of interested parties, this figure suggests an extraordinary level of market engagement. Typical full and open IT service contracts might see dozens or perhaps a few hundred bids, depending on the specific service, agency, and contract vehicle. Such a large number of bids indicates intense competition, which is generally favorable for the government in terms of price discovery and potentially achieving lower unit costs. It also suggests that the market for these services is robust and that many companies were interested in pursuing this opportunity.

What are the potential risks associated with the Time and Materials (T&M) contract type for this service?

The primary risk with Time and Materials (T&M) contracts, like the one awarded to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC., is the potential for cost overruns if not managed diligently. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified rates and for the actual cost of materials. This structure can incentivize longer project durations or less efficient work, as the contractor is paid for time and resources expended. For the government, effective oversight is crucial. This includes rigorous tracking of labor hours, validation of work performed, and ensuring that the rates negotiated are competitive. Without strong project management and continuous monitoring, T&M contracts can become more expensive than initially anticipated, potentially impacting the overall value for money.

What is the track record of GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. with federal contracts?

General Dynamics Information Technology, Inc. (GDIT) is a major federal contractor with a long and extensive history of performing IT services across numerous government agencies. They have a substantial portfolio of contracts, often involving large-scale IT modernization, cybersecurity, cloud migration, and support services. Their track record includes significant work with the Department of Defense, Health and Human Services (including NIH), and other civilian agencies. While specific performance details for every contract are not publicly available, GDIT's continued success in winning large, competitive federal contracts suggests a generally positive performance history and capability to meet complex government requirements. However, like any large contractor, they may have faced performance challenges or disputes on specific projects, which are not always detailed in public contract award data.

How does this contract's value compare to other computer systems design services contracts at HHS?

The $39.1 million value for this five-year contract for computer systems design services at NIH is substantial but falls within the expected range for major IT support contracts within the Department of Health and Human Services (HHS). HHS agencies, including NIH, Centers for Medicare & Medicaid Services (CMS), and others, frequently award large contracts for IT infrastructure, data management, and systems development. Contracts of this magnitude are common for supporting critical research, public health initiatives, and administrative functions. While specific comparisons require detailed analysis of similar NAICS codes (like 541512) across different HHS operating divisions, a $39 million award over five years represents a significant investment, indicative of the critical IT needs of a large research institution like NIH.

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: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

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: $58,500,122

Exercised Options: $39,071,401

Current Obligation: $39,071,401

Actual Outlays: $121,338

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200050W

IDV Type: GWAC

Timeline