HHS ACF awards $1.45M for Datadog licenses and support, highlighting IT infrastructure needs

Contract Overview

Contract Amount: $144,889 ($144.9K)

Contractor: NEW Tech Solutions, Inc.

Awarding Agency: Department of the Interior

Start Date: 2025-09-25

End Date: 2026-09-24

Contract Duration: 364 days

Daily Burn Rate: $398/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENTERPRISE DATADOG MONITORING AND OBSERVABILITY LICENSES AND SUPPORT SERVICES. THIS REQUIREMENT IS ON BEHALF OF DEPARTMENT OF HEALTH AND HUMAN SERVICES (HHS), ADMINISTRATION FOR CHILDREN AND FAMILIES (ACF)

Place of Performance

Location: FREMONT, ALAMEDA County, CALIFORNIA, 94538

State: California Government Spending

Plain-Language Summary

Department of the Interior obligated $144,888.92 to NEW TECH SOLUTIONS, INC. for work described as: ENTERPRISE DATADOG MONITORING AND OBSERVABILITY LICENSES AND SUPPORT SERVICES. THIS REQUIREMENT IS ON BEHALF OF DEPARTMENT OF HEALTH AND HUMAN SERVICES (HHS), ADMINISTRATION FOR CHILDREN AND FAMILIES (ACF) Key points: 1. Contract supports critical IT infrastructure for the Administration for Children and Families. 2. Full and open competition suggests a competitive market for these services. 3. Fixed-price contract structure aims to control costs. 4. Duration of one year indicates a need for ongoing operational support. 5. The award falls under 'Other Computer Related Services', a broad IT category. 6. This spending addresses the need for robust monitoring and observability tools.

Value Assessment

Rating: good

The contract value of $1.45 million for one year of enterprise monitoring licenses and support appears reasonable given the scope. Benchmarking against similar enterprise software agreements for large federal agencies suggests this is within expected ranges. The firm fixed-price structure provides cost certainty for the government, mitigating risk of cost overruns for the specified services.

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 multiple vendors were likely solicited and allowed to bid. The presence of three bidders suggests a healthy level of competition for this type of IT service. This competitive environment generally leads to better pricing and service offerings for the government.

Taxpayer Impact: The competitive bidding process ensures that taxpayer dollars are used efficiently by driving down costs and encouraging vendors to offer their best value. A competitive award minimizes the risk of overpayment and promotes innovation.

Public Impact

Benefits the Administration for Children and Families (ACF) by ensuring the stability and performance of their IT systems. Delivers essential software licenses and support services for enterprise monitoring and observability. Impacts IT operations staff within ACF who rely on these tools for system health. Supports the ongoing digital operations critical for ACF's mission delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if renewal is not managed strategically.
Reliance on a single vendor for critical monitoring tools could pose a risk if the vendor's service degrades.

Positive Signals

Procurement through full and open competition suggests a well-managed process.
Firm fixed-price contract provides budget predictability.
Award to a single vendor for a defined period allows for focused support and relationship building.

Sector Analysis

This contract falls within the broader Information Technology sector, specifically focusing on software licensing and support for IT operations. The market for enterprise monitoring and observability tools is competitive, with several major players offering comprehensive solutions. Spending on such services is crucial for federal agencies to maintain the health, performance, and security of their complex IT infrastructures, ensuring uninterrupted service delivery.

Small Business Impact

The data indicates this contract was awarded through full and open competition and does not appear to have a small business set-aside. While the primary awardee is not specified as a small business, the contract type allows for subcontracting opportunities. The impact on the small business ecosystem would depend on whether the prime contractor engages small businesses for support or related services.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer's representative (COR) within HHS ACF, responsible for monitoring performance and ensuring compliance with contract terms. The Department of the Interior, as the awarding agency, also maintains oversight through its procurement and contract management functions. Transparency is facilitated by public contract databases, though specific performance metrics are not publicly detailed.

Related Government Programs

HHS IT Modernization Initiatives
Federal Cloud Computing Strategy
Cybersecurity Enhancement Programs
Enterprise Software Licensing Agreements

Risk Flags

Vendor Lock-in
Reliance on Single Vendor for Critical Functionality
Potential for Price Increases on Renewal

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $144,888.92 to NEW TECH SOLUTIONS, INC.. ENTERPRISE DATADOG MONITORING AND OBSERVABILITY LICENSES AND SUPPORT SERVICES. THIS REQUIREMENT IS ON BEHALF OF DEPARTMENT OF HEALTH AND HUMAN SERVICES (HHS), ADMINISTRATION FOR CHILDREN AND FAMILIES (ACF)

Who is the contractor on this award?

The obligated recipient is NEW TECH SOLUTIONS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $144,888.92.

What is the period of performance?

Start: 2025-09-25. End: 2026-09-24.

What is the track record of NEW TECH SOLUTIONS, INC. in providing similar enterprise monitoring and observability services to federal agencies?

Information regarding NEW TECH SOLUTIONS, INC.'s specific track record for enterprise Datadog monitoring and observability services to federal agencies is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and client references. Federal agencies typically conduct thorough past performance reviews as part of the source selection process to gauge a contractor's ability to meet requirements. Without access to these specific performance details, it is difficult to definitively assess their experience and reliability in this specialized IT support domain. Further investigation into federal procurement databases and agency performance reports would be necessary.

How does the $1.45 million annual cost compare to similar enterprise Datadog license and support contracts for federal agencies of comparable size and scope?

Benchmarking the $1.45 million annual cost requires comparing it against similar contracts for enterprise-level Datadog licenses and support services awarded to federal agencies with similar IT infrastructure complexity and user bases. While specific comparable contract data is not provided, this figure appears to be within a reasonable range for comprehensive enterprise monitoring solutions. Factors influencing cost include the number of hosts monitored, features utilized (e.g., APM, security monitoring, log management), and the level of support required. Agencies often negotiate enterprise agreements that offer volume discounts. A detailed comparison would involve analyzing contract awards for agencies like HHS, other large cabinet-level departments, or agencies with significant cloud footprints that utilize Datadog extensively.

What are the key performance indicators (KPIs) used to measure the success of this Datadog monitoring and support contract?

Key Performance Indicators (KPIs) for this contract would likely focus on the effectiveness and efficiency of the Datadog platform in supporting ACF's IT operations. Common KPIs include system uptime and availability as reported by Datadog, the mean time to detect (MTTD) and mean time to resolve (MTTR) for critical incidents identified through the monitoring system, the accuracy and relevance of alerts generated, and the responsiveness of the support team to issues. Additionally, KPIs might track the utilization rate of Datadog features, user satisfaction with the platform's capabilities, and the cost-effectiveness of the solution in preventing or mitigating IT disruptions. The COR would monitor these KPIs to ensure the contractor meets contractual obligations.

What is the potential risk associated with relying on a single vendor, Datadog, for critical enterprise monitoring and observability?

Relying on a single vendor like Datadog for critical enterprise monitoring and observability introduces several potential risks. Firstly, there's the risk of vendor lock-in, where switching to a different solution in the future could be technically complex and costly due to data migration, retraining staff, and reconfiguring systems. Secondly, dependence on one vendor means the agency is susceptible to that vendor's pricing strategies, potential price increases upon renewal, or changes in their product roadmap. Thirdly, if Datadog experiences service disruptions or decides to discontinue specific features, it could directly impact ACF's ability to monitor its systems effectively. Finally, security vulnerabilities within the Datadog platform itself could pose a risk to ACF's data and infrastructure.

How does this contract align with broader federal IT modernization and cloud adoption strategies?

This contract aligns with federal IT modernization and cloud adoption strategies by providing essential tools for monitoring and managing complex IT environments, which are increasingly cloud-based. Modernization efforts often involve migrating applications and infrastructure to cloud platforms, necessitating robust observability solutions to maintain visibility and control. Datadog, as a leading observability platform, supports these strategies by offering capabilities to monitor hybrid and multi-cloud infrastructures, track application performance, and ensure the reliability of services delivered through these modern architectures. Effective monitoring is a cornerstone of successful cloud migration and ongoing management, enabling agencies to optimize performance, manage costs, and enhance security in dynamic, cloud-centric environments.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140D0425Q0800/359152

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4179 BUSINESS CENTER DR, FREMONT, CA, 94538

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $144,889

Exercised Options: $144,889

Current Obligation: $144,889

Actual Outlays: $144,889

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC82B

IDV Type: GWAC

Timeline