HHS Awards $25.8M for NIH Business Systems Support to General Dynamics IT

Contract Overview

Contract Amount: $25,797,117 ($25.8M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2007-09-28

End Date: 2011-09-30

Contract Duration: 1,463 days

Daily Burn Rate: $17.6K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: OTHER (APPLIES TO AWARDS WHERE NONE OF THE ABOVE APPLY)

Sector: IT

Official Description: TASK ORDER# C-2573, NEW COMPETE FOR BUSINESS SYSTEMS AND TECHNOLOGIES SUPPORT FOR ORF AND THE ORS

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $25.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: TASK ORDER# C-2573, NEW COMPETE FOR BUSINESS SYSTEMS AND TECHNOLOGIES SUPPORT FOR ORF AND THE ORS Key points: 1. General Dynamics IT secured a significant contract for critical NIH business systems and technologies. 2. The award was a competitive delivery order, indicating a marketplace for these services. 3. Potential risks include vendor lock-in and the need for ongoing performance monitoring. 4. The IT services sector is characterized by rapid technological change and high demand.

Value Assessment

Rating: good

The contract value of $25.8 million over approximately four years appears reasonable for comprehensive business systems and technologies support. Benchmarking against similar IT support contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This was a competitive delivery order, suggesting that multiple vendors had the opportunity to bid. The competitive nature likely contributed to price discovery and a more favorable outcome for the government.

Taxpayer Impact: Taxpayer funds were used competitively, aiming for value in IT support services for the National Institutes of Health.

Public Impact

Ensures continuity of essential business systems and technologies for NIH operations. Supports critical research and administrative functions within the National Institutes of Health. Leverages private sector expertise for government IT infrastructure management. Potential for improved efficiency and effectiveness in NIH's technological capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (approx. 4 years) could lead to scope creep or outdated technology if not managed.
Vendor performance needs continuous monitoring to ensure service level agreements are met.
Reliance on a single vendor for critical systems poses a risk.

Positive Signals

Competitive award process suggests fair market pricing was sought.
Contract supports vital functions of a major health research agency.
General Dynamics IT is a well-established government contractor.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. Spending in this area is substantial across federal agencies, driven by the need for modernizing legacy systems and implementing new digital solutions.

Small Business Impact

The data indicates this was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought through subcontracting opportunities.

Oversight & Accountability

The competitive nature of the delivery order suggests a degree of oversight in the procurement process. Ongoing contract management and performance reviews by NIH are crucial for accountability.

Related Government Programs

Computer Systems Design Services
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Potential for vendor lock-in.
Need for continuous performance monitoring.
Risk of technology obsolescence over the contract term.
Dependence on a single vendor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $25.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. TASK ORDER# C-2573, NEW COMPETE FOR BUSINESS SYSTEMS AND TECHNOLOGIES SUPPORT FOR ORF AND THE ORS

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 $25.8 million.

What is the period of performance?

Start: 2007-09-28. End: 2011-09-30.

What specific performance metrics were established to ensure the effectiveness of the business systems and technologies support provided by General Dynamics IT?

The contract likely includes Service Level Agreements (SLAs) and Key Performance Indicators (KPIs) to measure the effectiveness of the support. These would typically cover aspects like system uptime, response times for issue resolution, and successful implementation of new technologies. Regular performance reviews would assess adherence to these metrics.

How does the cost of this contract compare to industry benchmarks for similar IT support services, considering the scope and duration?

Without specific details on the services rendered and the exact technical environment, a precise benchmark is difficult. However, the competitive award suggests the pricing was deemed fair relative to market rates at the time of award. A post-award analysis comparing actual costs to industry averages for comparable support levels would be informative.

What measures are in place to mitigate the risk of vendor lock-in and ensure flexibility for future technology upgrades or vendor changes?

Contractual clauses regarding data ownership, intellectual property, and transition assistance are key. The government should ensure clear exit strategies and requirements for knowledge transfer. Maintaining internal expertise and fostering an environment where multiple vendors can integrate with NIH systems can also reduce lock-in.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: OTHER (APPLIES TO AWARDS WHERE NONE OF THE ABOVE APPLY) (3)

Evaluated Preference: NONE

Contractor Details

Parent Company: Csra LLC (UEI: 080011988)

Address: 4300 FAIR LAKES CT, FAIRFAX, VA, 22033

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

Financial Breakdown

Contract Ceiling: $25,797,117

Exercised Options: $25,797,117

Current Obligation: $25,797,117

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 263010050

IDV Type: IDC

Timeline