HHS awards $22M for ADP Systems Development Services to OAO Corporation over 2.3 years
Contract Overview
Contract Amount: $21,985,821 ($22.0M)
Contractor: OAO Corporation
Awarding Agency: Department of Health and Human Services
Start Date: 2001-10-09
End Date: 2008-02-29
Contract Duration: 2,334 days
Daily Burn Rate: $9.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ADP SYSTEMS DEVELOPMENT SERVICES
Place of Performance
Location: GREENBELT, PRINCE GEORGES County, MARYLAND, 20770
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $22.0 million to OAO CORPORATION for work described as: ADP SYSTEMS DEVELOPMENT SERVICES Key points: 1. Contract value of $21.99M for ADP systems development. 2. OAO Corporation is the sole awardee. 3. Contract type is Firm Fixed Price. 4. Services provided under NAICS code 541519 (Other Computer Related Services).
Value Assessment
Rating: fair
The contract value of $21.99M over 2.3 years suggests a moderate annual spend. Benchmarking against similar ADP system development contracts would be necessary to assess pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: The $21.99M expenditure represents taxpayer funds allocated for critical IT infrastructure and services within the NIH.
Public Impact
Supports the National Institutes of Health's IT infrastructure. Ensures continued development and maintenance of essential ADP systems. Impacts the efficiency and effectiveness of health research operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (2.3 years) may limit flexibility.
- Lack of specific performance metrics in provided data.
- Potential for cost overruns if scope changes.
Positive Signals
- Firm Fixed Price contract provides cost certainty.
- Full and open competition suggests potential for competitive pricing.
- Awarded to a single entity for continuity of services.
Sector Analysis
The IT services sector is crucial for government operations. Spending on ADP systems development is common, with benchmarks varying widely based on complexity and scope.
Small Business Impact
The provided data does not indicate if small businesses were involved in subcontracting opportunities for this contract.
Oversight & Accountability
Oversight would typically involve regular performance reviews and financial audits by the contracting officer and relevant oversight bodies to ensure contract compliance and value.
Related Government Programs
- Other Computer Related Services
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Potential for scope creep impacting cost and schedule.
- Lack of detailed performance data for assessment.
- Long-term reliance on a single vendor.
- Limited visibility into subcontractor participation.
Tags
other-computer-related-services, department-of-health-and-human-services, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $22.0 million to OAO CORPORATION. ADP SYSTEMS DEVELOPMENT SERVICES
Who is the contractor on this award?
The obligated recipient is OAO CORPORATION.
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 $22.0 million.
What is the period of performance?
Start: 2001-10-09. End: 2008-02-29.
What was the specific scope of work for ADP systems development, and how did it align with NIH's strategic IT goals?
The provided data lacks details on the specific scope of work. A comprehensive analysis would require reviewing the contract's SOW to understand the exact ADP systems development tasks, deliverables, and their alignment with NIH's broader IT modernization and research support objectives. This information is crucial for assessing the contract's strategic value.
Were there any performance issues or contract modifications during the 2.3-year period that impacted cost or schedule?
The data does not specify any performance issues or modifications. A thorough risk assessment would involve examining contract performance reports, modification history, and any disputes or challenges encountered during the contract's lifecycle. Understanding these factors is key to evaluating the overall effectiveness and potential risks associated with this award.
How did the final cost compare to initial estimates or industry benchmarks for similar ADP system development projects?
Without initial estimates or detailed industry benchmarks for comparable projects, a direct comparison is not possible. The $21.99M award value provides a total cost, but its efficiency can only be assessed against detailed project requirements and market rates for similar services. Further investigation into pricing structures and competitor bids would be needed.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 7500 GREENWAY CENTER DR #, GREENBELT, MD, 20770
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $39,986,102
Exercised Options: $21,483,756
Current Obligation: $21,985,821
Contract Characteristics
Commercial Item: SERVICES PURSUANT TO FAR 12.102(G)
Timeline
Start Date: 2001-10-09
Current End Date: 2008-02-29
Potential End Date: 2008-02-29 00:00:00
Last Modified: 2019-04-23
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