NIH contract for cloud support services awarded to Acumen LLC for over $35.9M, with a 5-year period of performance

Contract Overview

Contract Amount: $35,986,290 ($36.0M)

Contractor: Acumen LLC

Awarding Agency: Department of the Interior

Start Date: 2021-09-27

End Date: 2026-03-26

Contract Duration: 1,641 days

Daily Burn Rate: $21.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: THE PRIMARY OBJECTIVES OF THIS CONTRACT IS TO PROVIDE NIH-NIA WITH 'LINKAGE, REVIEW, AND CLOUD SUPPORT SERVICES FOR NIA STUDIES.'

Place of Performance

Location: BURLINGAME, SAN MATEO County, CALIFORNIA, 94010

State: California Government Spending

Plain-Language Summary

Department of the Interior obligated $36.0 million to ACUMEN LLC for work described as: THE PRIMARY OBJECTIVES OF THIS CONTRACT IS TO PROVIDE NIH-NIA WITH 'LINKAGE, REVIEW, AND CLOUD SUPPORT SERVICES FOR NIA STUDIES.' Key points: 1. Value for money appears fair given the extended performance period and the specialized nature of cloud support services. 2. Competition dynamics indicate a full and open process, suggesting a competitive bidding environment. 3. Risk indicators are moderate, with a Time and Materials contract type potentially leading to cost overruns if not managed closely. 4. Performance context is tied to supporting NIH-NIA studies, implying a critical role in research data management. 5. Sector positioning is within administrative management and general management consulting, a broad category encompassing specialized IT support. 6. The contract's duration of over 5 years suggests a long-term need for these services.

Value Assessment

Rating: fair

The contract value of approximately $36 million over five years for cloud support services for NIH-NIA studies appears reasonable. Benchmarking against similar contracts for specialized IT support and cloud management services is challenging without more specific details on the scope of work. However, the duration and the nature of the services suggest a significant undertaking. The Time and Materials (T&M) pricing structure warrants close monitoring to ensure cost efficiency and prevent scope creep, which could inflate the overall cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but the open competition suggests a robust process aimed at achieving the best value. This approach generally leads to more competitive pricing and a wider selection of qualified contractors.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of securing services at a competitive market rate, thereby optimizing the use of public funds.

Public Impact

The National Institute on Aging (NIA) at NIH is the primary beneficiary, receiving essential cloud support for its studies. Services delivered include linkage, review, and cloud support, crucial for managing and analyzing research data. The geographic impact is national, supporting federal research initiatives across the United States. Workforce implications are indirect, primarily supporting the research and administrative staff at NIH-NIA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type can lead to cost overruns if not diligently managed and monitored for scope creep.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's performance effectiveness.
The broad NAICS code (541611) for Administrative Management and General Management Consulting Services may obscure the highly specialized IT nature of the work.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded a fair price.
The contract has a significant period of performance (over 5 years), indicating a stable, long-term need for these critical services.
The contract supports vital research activities for the National Institute on Aging (NIA), contributing to public health advancements.

Sector Analysis

This contract falls within the administrative management and general management consulting services sector, specifically supporting IT functions related to cloud services for research. The market for cloud support and data management services for government agencies is substantial and growing, driven by the increasing digitization of operations and research. Comparable spending benchmarks would typically be found within IT services contracts for cloud infrastructure, data analytics, and research support, often awarded to specialized technology firms.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from set-aside provisions. The prime contractor, Acumen LLC, is responsible for its own subcontracting decisions.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the National Institute on Aging (NIA). The Time and Materials (T&M) nature of the contract necessitates robust oversight to track labor hours, material costs, and ensure adherence to the Statement of Work. Transparency is facilitated through contract award databases, but detailed performance reporting and Inspector General jurisdiction would depend on specific contract clauses and agency policies.

Related Government Programs

NIH Cloud Computing Services
Federal Research Data Management
IT Support Services for Government Agencies
Administrative Management Consulting

Risk Flags

Time and Materials contract type poses a risk of cost overruns.
Long contract duration may limit flexibility and access to newer technologies.
Potential for vendor lock-in due to reliance on a single provider.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $36.0 million to ACUMEN LLC. THE PRIMARY OBJECTIVES OF THIS CONTRACT IS TO PROVIDE NIH-NIA WITH 'LINKAGE, REVIEW, AND CLOUD SUPPORT SERVICES FOR NIA STUDIES.'

Who is the contractor on this award?

The obligated recipient is ACUMEN LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $36.0 million.

What is the period of performance?

Start: 2021-09-27. End: 2026-03-26.

What is the specific nature of the 'linkage, review, and cloud support services' provided under this contract, and how do they contribute to NIH-NIA's research objectives?

The 'linkage, review, and cloud support services' are critical for enabling the National Institute on Aging (NIA) to manage and analyze complex research data. 'Linkage' likely refers to connecting disparate datasets, such as those from clinical trials, genomic studies, or demographic surveys, to create a more comprehensive view. 'Review' implies quality control, validation, and potentially the summarization or interpretation of this data. 'Cloud support services' encompass the infrastructure, platforms, and tools necessary to store, process, and secure this sensitive research data in a cloud environment. These services directly support NIA's mission by facilitating advanced data analytics, fostering collaboration among researchers, and ensuring the integrity and accessibility of valuable research findings, ultimately accelerating discoveries in aging and age-related diseases.

How does the Time and Materials (T&M) contract type compare to other pricing structures for similar cloud support services, and what are the implications for cost control?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to evolve, as might be the case with research support services. Unlike fixed-price contracts, T&M reimburses the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. While T&M offers flexibility, it carries a higher risk of cost overruns for the government if not managed meticulously. For cloud support services, a firm-fixed-price contract might be more suitable if the service level agreements (SLAs) and deliverables are well-defined. However, the dynamic nature of cloud technologies and research needs can make fixed-price contracts challenging. Effective cost control under a T&M contract relies heavily on stringent oversight, detailed reporting, and clear limitations on liability or maximum contract value to prevent uncontrolled spending.

What is Acumen LLC's track record with federal contracts, particularly those involving IT support and cloud services for research institutions?

Acumen LLC has a history of performing federal contracts, though the provided data does not detail their specific expertise in cloud services for research institutions. Their NAICS code (541611) suggests a focus on administrative and management consulting, which can encompass IT strategy and support. To fully assess their track record, a deeper dive into their past performance evaluations, contract history with agencies like NIH or other research bodies, and any specialized certifications in cloud technologies (e.g., AWS, Azure, Google Cloud) would be necessary. Understanding their experience with similar data sensitivity and research requirements is crucial for evaluating their capability to meet NIH-NIA's needs effectively.

Given the $35.9M value and 5-year duration, how does this contract's spending compare to other federal investments in similar IT support or cloud services for research?

The $35.9 million contract value over approximately five years, averaging around $7.2 million annually, places this contract in the mid-to-large tier for specialized IT support services within the federal government. Comparing it directly requires understanding the specific scope and complexity of the services. Federal spending on cloud services and IT support for research is substantial, with many agencies investing heavily in data infrastructure and analytics platforms. For instance, other large federal research initiatives or agencies like the National Science Foundation (NSF) or Department of Energy (DOE) may have contracts of similar or larger magnitudes for high-performance computing, data storage, and advanced analytics. The key differentiator here is the focus on NIH-NIA's specific research needs, which may involve unique data types and analytical requirements.

What are the potential risks associated with relying on a single contractor, Acumen LLC, for critical cloud support services over an extended period?

Relying on a single contractor for critical cloud support services over an extended period introduces several potential risks. Firstly, there's a risk of vendor lock-in, where the government becomes heavily dependent on Acumen's proprietary systems or processes, making it difficult and costly to switch providers if performance issues arise or better alternatives emerge. Secondly, a lack of ongoing competition can reduce the incentive for the contractor to innovate or maintain competitive pricing throughout the contract's life. Thirdly, if Acumen experiences financial instability, key personnel departures, or strategic shifts, it could disrupt the continuity of essential services. Finally, the government might miss out on advancements or cost efficiencies offered by other cloud service providers in the market. Mitigating these risks often involves robust contract management, clear performance metrics, and contingency planning.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - PLATFORM

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140D0421Q0263

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 500 AIRPORT BLVD, BURLINGAME, CA, 94010

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $52,964,743

Exercised Options: $46,471,299

Current Obligation: $35,986,290

Actual Outlays: $32,451,916

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS10F0133S

IDV Type: FSS

Timeline