NIH awards $46.4M IT infrastructure contract to Patriot LLC, emphasizing system design services

Contract Overview

Contract Amount: $46,428,214 ($46.4M)

Contractor: Patriot LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2017-08-18

End Date: 2023-01-09

Contract Duration: 1,970 days

Daily Burn Rate: $23.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::OT::IGF IT INFRASTRUCTURE AND DESKTOP SUPPORT

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27709

State: North Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $46.4 million to PATRIOT LLC for work described as: IGF::OT::IGF IT INFRASTRUCTURE AND DESKTOP SUPPORT Key points: 1. Contract value represents a significant investment in IT infrastructure and desktop support. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract duration of 1970 days indicates a long-term need for these services. 4. The use of Time and Materials pricing may introduce cost variability. 5. The National Institutes of Health (NIH) is a major federal agency with substantial IT needs. 6. The contractor, Patriot LLC, has secured a substantial award for its services.

Value Assessment

Rating: fair

The contract value of $46.4 million over approximately 5.5 years for IT infrastructure and desktop support appears within a reasonable range for a federal agency of NIH's size. Benchmarking against similar contracts for Computer Systems Design Services (NAICS 541512) is challenging without more specific service details. However, the duration and scope suggest a significant undertaking. The Time and Materials (T&M) pricing structure, while common, can lead to cost overruns if not managed closely, impacting overall value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that the opportunity was broadly advertised, but specific sources may have been excluded prior to the final award. The presence of 3 bidders suggests a moderate level of competition. While full and open competition is generally preferred, the exclusion of sources warrants further investigation to ensure no potential bidders were unfairly prevented from participating.

Taxpayer Impact: The competitive nature of this award, despite potential source exclusions, likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario. However, the extent of price discovery is dependent on the specific bidding pool and the evaluation criteria used.

Public Impact

Federal researchers and administrative staff at NIH will benefit from improved IT infrastructure and desktop support. The contract ensures the continuity and reliability of essential IT services for a leading biomedical research agency. The geographic impact is primarily focused on NIH facilities, likely in Maryland and other research sites. The contract supports jobs within the IT services sector, potentially benefiting skilled technicians and system administrators.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation due to Time and Materials pricing structure.
The 'exclusion of sources' clause in the competition type requires scrutiny to ensure fairness and maximum competition.
Lack of specific performance metrics makes it difficult to assess the contractor's efficiency and effectiveness.

Positive Signals

Awarded through full and open competition, indicating a broad search for qualified vendors.
The contract duration suggests a stable, long-term partnership for critical IT services.
Patriot LLC's selection implies they met the technical and performance requirements set by NIH.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design and related services. The federal IT market is vast, with agencies consistently investing in infrastructure, cybersecurity, and support to maintain operational efficiency. Comparable spending benchmarks for IT infrastructure and desktop support can vary widely based on agency size, scope of services, and geographic location. This award represents a portion of the federal government's ongoing commitment to modernizing its technological capabilities.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information regarding subcontracting plans. The award to Patriot LLC, without further details on its size, suggests it may not be a small business, or if it is, it successfully competed against larger entities. The lack of small business set-aside information means potential subcontracting opportunities for small businesses are not explicitly detailed in this award notice.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the National Institutes of Health. Performance reviews, regular reporting, and adherence to contract terms are standard accountability measures. Transparency is facilitated through contract award databases like FPDS. The Inspector General for the Department of Health and Human Services may have jurisdiction for audits and investigations if any issues of fraud, waste, or abuse arise.

Related Government Programs

Federal Civilian IT Infrastructure Modernization
Desktop Support Services Contracts
Computer Systems Design Services
NIH IT Procurement
Department of Health and Human Services IT Spending

Risk Flags

Potential for cost overruns due to T&M pricing.
Limited competition indicated by only 3 bidders, despite 'full and open' designation.
Lack of detailed performance metrics makes value assessment difficult.
Rationale for 'exclusion of sources' needs clarification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $46.4 million to PATRIOT LLC. IGF::OT::IGF IT INFRASTRUCTURE AND DESKTOP SUPPORT

Who is the contractor on this award?

The obligated recipient is PATRIOT 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 $46.4 million.

What is the period of performance?

Start: 2017-08-18. End: 2023-01-09.

What is the track record of Patriot LLC in performing similar federal IT infrastructure and desktop support contracts?

Information regarding Patriot LLC's specific track record on similar federal contracts is not detailed in the provided data. To assess their performance history, one would need to consult federal procurement databases (like FPDS-NG) for past awards, contract performance evaluations (e.g., CPARS), and any reported issues or successes. A thorough review would examine the size, scope, duration, and client agencies of their previous IT support contracts to gauge their experience and reliability in delivering comparable services. Without this external data, it's difficult to definitively evaluate their past performance.

How does the awarded value of $46.4 million compare to similar IT infrastructure contracts awarded by NIH or other agencies?

Comparing the $46.4 million award requires context regarding the contract's scope, duration (1970 days, approx. 5.5 years), and specific services (IT infrastructure and desktop support). For an agency the size and complexity of NIH, this value appears within a plausible range for comprehensive IT support over several years. However, without detailed service level agreements and specific deliverables, a precise benchmark is difficult. Contracts for similar NAICS codes (541512) can range from a few million to hundreds of millions of dollars depending on the agency's needs, the number of users supported, and the technological sophistication required. The Time and Materials (T&M) pricing also introduces variability, making direct comparisons to fixed-price contracts less straightforward.

What are the primary risks associated with the Time and Materials (T&M) pricing structure used in this contract?

The primary risk associated with the Time and Materials (T&M) pricing structure is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements pay the contractor for the actual time and materials used. If not carefully managed and monitored, this can lead to costs exceeding initial estimates, especially if the scope of work expands or inefficiencies arise. For the government, this necessitates robust oversight to ensure labor hours are reasonable and material costs are justified. For Patriot LLC, the risk lies in managing project scope and efficiency to maintain profitability within the T&M framework. This structure can also make budget forecasting more challenging for the agency.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation imply for the bidding process and potential outcomes?

This designation indicates that the solicitation was initially intended for full and open competition, meaning all responsible sources were permitted to submit offers. However, 'after exclusion of sources' suggests that certain potential offerors were excluded from the competition at some stage, possibly due to pre-qualification requirements, specific solicitations, or other regulatory reasons. While it aims to ensure competition among a relevant pool of vendors, it raises questions about whether the exclusion limited the diversity of bidders or potentially excluded highly capable firms. The presence of 3 bidders suggests some competition occurred, but the rationale behind the source exclusion is crucial for understanding the full competitive landscape and its impact on price discovery and value for taxpayers.

How does this contract align with NIH's broader IT modernization and support strategies?

This contract for IT infrastructure and desktop support directly aligns with NIH's fundamental need to maintain and enhance its technological backbone. As a leading research institution, NIH relies heavily on robust, reliable IT systems to support its vast array of scientific endeavors, data management, and administrative functions. Investing in infrastructure and desktop support ensures that researchers have the tools and connectivity they need, minimizing downtime and facilitating collaboration. This award likely represents a component of a larger, ongoing strategy to ensure NIH's IT environment remains current, secure, and capable of supporting its mission-critical operations and future research advancements.

What is the significance of the contract being awarded as a Delivery Order (DO) under a larger contract vehicle?

The 'AW' field indicating 'DELIVERY ORDER' suggests this specific award is a task order issued under a pre-existing indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar multiple-award contract vehicle. This means the underlying contract vehicle itself likely went through a competitive process, establishing terms, conditions, and potentially ceiling prices. Delivery Orders are then used to procure specific quantities of supplies or services up to the IDIQ contract's limits. This approach allows agencies to procure needed services more efficiently and rapidly once the initial contract is in place, often leveraging pre-negotiated rates. The specific IDIQ contract vehicle under which this DO was issued would provide further context on the overall procurement strategy.

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: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 9520 BERGER RD STE 212, COLUMBIA, MD, 21046

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $46,428,214

Exercised Options: $46,428,214

Current Obligation: $46,428,214

Actual Outlays: $11,813,734

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200065W

IDV Type: GWAC

Timeline