NIH awards $9.8M for application development support, with NTT DATA Services Federal Government, LLC as the contractor
Contract Overview
Contract Amount: $9,827,293 ($9.8M)
Contractor: NTT Data Services Federal Government, LLC
Awarding Agency: Department of the Interior
Start Date: 2025-08-15
End Date: 2026-05-30
Contract Duration: 288 days
Daily Burn Rate: $34.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIXED PRICE LEVEL OF EFFORT
Sector: IT
Official Description: NATIONAL INSTITUTES OF HEALTH, NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES (NIAID) OFFICE OF CYBER INFRASTRUCTURE AND COMPUTATIONAL BIOLOGY (OCICB) APPLICATION DEVELOPMENT SUPPORT SERVICES.
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852
State: Maryland Government Spending
Plain-Language Summary
Department of the Interior obligated $9.8 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC for work described as: NATIONAL INSTITUTES OF HEALTH, NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES (NIAID) OFFICE OF CYBER INFRASTRUCTURE AND COMPUTATIONAL BIOLOGY (OCICB) APPLICATION DEVELOPMENT SUPPORT SERVICES. Key points: 1. The contract value of $9.8 million for application development support services appears reasonable for a fixed-price level of effort contract. 2. Full and open competition was utilized, suggesting a competitive bidding process that should promote price discovery. 3. The contract duration of approximately 288 days (2025-08-15 to 2026-05-30) is relatively short-term. 4. The primary agency listed is the Department of the Interior, while the work is for the National Institutes of Health (NIH), indicating a potential inter-agency agreement or administrative detail. 5. The North American Industry Classification System (NAICS) code 541512 points to Computer Systems Design Services, a common area for federal IT support. 6. The contract is a Delivery Order, suggesting it is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle.
Value Assessment
Rating: good
The contract value of $9.8 million for approximately 288 days of application development support is within a reasonable range for specialized IT services. Benchmarking against similar contracts for computer systems design services at NIH or other large federal agencies would provide a more precise value-for-money assessment. However, given the fixed-price level of effort structure, the pricing is likely tied to defined tasks and labor categories, which can offer cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This method generally fosters a competitive environment, allowing multiple vendors to propose solutions and pricing. The number of bidders is not specified, but the use of full and open competition suggests a robust process aimed at achieving the best value for the government.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider range of innovative solutions, potentially reducing overall costs for the government.
Public Impact
The primary beneficiary is the National Institute of Allergy and Infectious Diseases (NIAID) Office of Cyber Infrastructure and Computational Biology (OCICB), which will receive application development support. The services delivered will focus on computer systems design and development, crucial for advancing NIAID's research and computational biology initiatives. The geographic impact is likely concentrated around the contractor's operational base and the NIH facilities, primarily in Maryland (ST: MD, SN: MARYLAND). The contract supports the federal IT workforce by engaging a private sector contractor for specialized application development expertise.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if the 'level of effort' is not strictly managed.
- Dependence on a single contractor for critical application development could pose a risk if performance issues arise.
- Inter-agency transfer of funds or services (Dept. of Interior listed as agency) can sometimes add administrative complexity.
Positive Signals
- Awarded under full and open competition, suggesting a competitive process that likely yielded fair pricing.
- Fixed-price contract type can provide cost certainty for the government.
- Clear end dates (2026-05-30) provide a defined period for service delivery.
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design and related services. The federal government is a significant consumer of these services, with spending often driven by the need for modernizing legacy systems, developing new applications, and providing ongoing IT support for various agencies. The market for such services is competitive, with numerous large and small businesses vying for federal contracts. Benchmarks for similar IT support contracts can vary widely based on complexity, duration, and specific skill sets required.
Small Business Impact
The data indicates that small business participation (SB: false) and set-asides (SS: false) were not primary considerations for this specific contract award. This suggests the contract was competed broadly without specific targets for small businesses. While this contract itself may not directly benefit small businesses through set-asides, the prime contractor, NTT DATA SERVICES FEDERAL GOVERNMENT, LLC, may engage small businesses as subcontractors, depending on their subcontracting plans and the nature of the work required.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program managers within the National Institute of Allergy and Infectious Diseases (NIAID) at NIH. As a delivery order under a larger IDIQ, the underlying contract vehicle likely has its own oversight mechanisms. Transparency is generally maintained through contract award databases like FPDS.gov. The specific Inspector General jurisdiction would depend on the primary funding agency (Department of the Interior) or the performing agency (HHS/NIH), with the HHS OIG being a likely oversight body.
Related Government Programs
- NIH Application Development Services
- NIAID IT Support Contracts
- Computer Systems Design Services Federal Contracts
- Department of the Interior IT Procurement
- Federal Application Modernization Programs
Risk Flags
- Potential for contractor performance issues.
- Risk of scope creep impacting budget and timeline.
- Dependence on specific technical expertise.
Tags
it-services, application-development, computer-systems-design, national-institutes-of-health, niaid, ocicb, fixed-price-level-of-effort, delivery-order, full-and-open-competition, department-of-the-interior, maryland, mid-atlantic
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $9.8 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC. NATIONAL INSTITUTES OF HEALTH, NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES (NIAID) OFFICE OF CYBER INFRASTRUCTURE AND COMPUTATIONAL BIOLOGY (OCICB) APPLICATION DEVELOPMENT SUPPORT SERVICES.
Who is the contractor on this award?
The obligated recipient is NTT DATA SERVICES FEDERAL GOVERNMENT, LLC.
Which agency awarded this contract?
Awarding agency: Department of the Interior (Departmental Offices).
What is the total obligated amount?
The obligated amount is $9.8 million.
What is the period of performance?
Start: 2025-08-15. End: 2026-05-30.
What is the track record of NTT DATA SERVICES FEDERAL GOVERNMENT, LLC with federal contracts, particularly in application development?
NTT DATA SERVICES FEDERAL GOVERNMENT, LLC has a substantial history of performing federal contracts across various agencies and service areas, including IT modernization, application development, and systems integration. Their track record generally indicates experience with large-scale government IT projects. A detailed review of their past performance on similar contracts, including customer satisfaction ratings and any past performance issues, would be necessary for a comprehensive assessment. Their ability to successfully deliver on this specific $9.8 million contract will depend on their resource allocation, project management capabilities, and technical expertise relevant to NIAID's OCICB requirements.
How does the $9.8 million contract value compare to similar application development support services at NIH or other federal agencies?
The $9.8 million contract value for approximately 288 days of application development support is a moderate-sized award within the federal IT services landscape. To benchmark effectively, one would compare this to contracts for similar services (NAICS 541512) awarded by NIH, NIAID, or other agencies like HHS, NSF, or DOD over the past 1-3 years. Factors such as the specific technical requirements, labor categories involved, and contract duration significantly influence pricing. Without more granular data on the scope of work and labor mix, a precise comparison is difficult, but the value appears consistent with typical federal IT support contracts of this nature and duration.
What are the primary risks associated with this contract, and how are they being mitigated?
Key risks include potential performance shortfalls by the contractor, scope creep beyond the defined level of effort, and integration challenges with existing NIH systems. Mitigation strategies typically involve robust contract oversight by the government, clear definition and management of the Statement of Work (SOW), regular performance reviews, and adherence to the fixed-price level of effort structure to control costs. The short duration (less than a year) also limits the long-term exposure to contractor performance issues. The use of full and open competition suggests a selection process that aimed to identify a capable and reliable vendor.
How effective is the 'Fixed Price Level of Effort' contract type for ensuring value and managing costs in application development?
The Fixed Price Level of Effort (FPLE) contract type is designed to provide cost certainty for the government while ensuring the contractor dedicates a specified amount of effort to the project. It is effective when the scope of work is well-defined but the exact quantity of work is uncertain, or when the government wants to limit its financial exposure. For application development, it can be beneficial if the tasks are clearly outlined, but it may require careful monitoring to prevent the contractor from simply expending hours without achieving defined milestones or deliverables efficiently. It strikes a balance between flexibility and cost control, making it a suitable choice for many IT support services.
What is the historical spending pattern for application development support services at NIAID or OCICB?
Historical spending patterns for application development support at NIAID's OCICB would reveal trends in IT investment and reliance on external contractors. Analyzing past contracts under NAICS code 541512 for this specific office or institute would show the typical contract values, durations, and incumbent contractors. This data helps in understanding whether spending has been consistent, increasing, or decreasing, and whether there's a pattern of awarding contracts to specific vendors or through particular competition types. Such analysis is crucial for forecasting future needs and budgeting effectively.
What is the significance of the Department of the Interior being listed as the awarding agency for an NIH contract?
The Department of the Interior (DOI) being listed as the awarding agency for a contract supporting the National Institutes of Health (NIH) typically indicates an 'Economy Act' order or an Interagency Agreement (IAA). Under the Economy Act, one federal agency can procure goods or services from another federal agency on behalf of a third agency. This is often done for efficiency, to leverage existing contracting vehicles, or when one agency has specialized procurement expertise. In this case, DOI's contracting office likely facilitated the procurement for NIH, potentially using an existing DOI contract vehicle or managing the competition process. This arrangement streamlines procurement but adds a layer of administrative coordination.
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 › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIXED PRICE LEVEL OF EFFORT (B)
Evaluated Preference: NONE
Contractor Details
Address: 13880 DULLES CORNER LN STE 200, HERNDON, VA, 20171
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $12,668,466
Exercised Options: $10,557,041
Current Obligation: $9,827,293
Actual Outlays: $3,982,257
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSN316201200017W
IDV Type: GWAC
Timeline
Start Date: 2025-08-15
Current End Date: 2026-05-30
Potential End Date: 2026-07-30 00:00:00
Last Modified: 2026-02-10
More Contracts from NTT Data Services Federal Government, LLC
- Support Services for PEO Subs — $344.8M (Department of Defense)
- (information Technology Infrastructure Support Services (itiss)) — $208.2M (Nuclear Regulatory Commission)
- Ames Consolidated Information Technology Services 2 (acits 2) Contract for IT Support AT Ames Research Center Includes the Following IT Systems and Facility Support, Network Communications System Support, Business Systems Support, Scientific Computing Systems Support and Outreach. Performance Period for the Base IS Sept 1, 2008 Through Sept 30, 2009 — $205.2M (National Aeronautics and Space Administration)
- 200210!025327!1700!BZ005 !naval SEA Systems Command !N0002401D7010 !A!N! !N!0011 !20020703!20030702!175344753!175344753!191692813!n!adi Technology Corporation !1800 N Beauregard ST !alexandria !va!22311!50000!001!11!washington !district of Columbia !D.C. !+000001139368!n!n!000000000000!r499!other Professional Services !S1 !services !2000!NOT Discernable or Classified !541330!E! !5!B!M! !A!D!20060331!B! ! !A! !a!n!u!2!021!b! !Z!N!Z! ! !n!b!n!n! ! !C! !a!a!000!a!b!n! ! ! ! ! ! !0001! — $199.4M (Department of Defense)
- Support to the Niaid Office of CIO Cyber Technologies Support Program — $157.3M (Department of the Interior)
View all NTT Data Services Federal Government, LLC federal contracts →
Other Department of the Interior Contracts
- Department of Health and Human Services, Administration of Children and Families, Office of Refugee Resettlement's Legal Services for Unaccompanied Children — $832.4M (Acacia Center for Justice)
- Military Family Life Counseling Program Igf::ot::igf — $638.8M (MHN Government Services LLC)
- Military Family Life Counseling Program — $637.0M (Magellan Healthcare Inc)
- Grants Program Solutions and Information Technology Support Services — $446.3M (Guidehouse Digital LLC)
- THE Purpose of This Requirement for Grants Program Solutions and IT Support Services IS to Provide Efficient and Effective Grant, Financial, and Contract Management Services, IT Solutions, and Support to the Grantsolutions and ITS Partners — $403.1M (Guidehouse Inc.)