HHS Awards $107.6M IT Services Contract to Alphasix, LLC for CDC
Contract Overview
Contract Amount: $107,642,755 ($107.6M)
Contractor: Alphasix, LLC.
Awarding Agency: Department of Health and Human Services
Start Date: 2020-09-01
End Date: 2026-01-31
Contract Duration: 1,978 days
Daily Burn Rate: $54.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: NIOSH INFORMATION TECHNOLOGY SERVICES (NITS)
Place of Performance
Location: ATLANTA, DEKALB County, GEORGIA, 30341
State: Georgia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $107.6 million to ALPHASIX, LLC. for work described as: NIOSH INFORMATION TECHNOLOGY SERVICES (NITS) Key points: 1. Contract Value: $107.6 million over its period of performance. 2. Competition: Awarded under full and open competition. 3. Risk: Potential for cost overruns given Time and Materials pricing. 4. Sector: Information Technology services for a federal health agency.
Value Assessment
Rating: fair
The contract's Time and Materials pricing structure presents a risk for cost control. Benchmarking against similar IT services contracts is difficult without specific labor categories and rates, but the overall value suggests a significant investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a broad search for qualified vendors. This method generally promotes competitive pricing, but the Time and Materials (T&M) pricing model can limit price certainty for the government.
Taxpayer Impact: Taxpayers are exposed to potential cost increases due to the T&M nature of the contract, which lacks a fixed ceiling on labor hours.
Public Impact
Ensures continued IT support for critical public health functions at the CDC. Potential for cost escalation due to T&M pricing could impact budget predictability. Competition ensures a market-driven price, but T&M requires diligent oversight.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing
- Long contract duration (approx. 5.3 years)
- No small business set-aside noted
Positive Signals
- Full and open competition
- Awarded to a single vendor for continuity
Sector Analysis
This contract falls within the IT services sector, specifically supporting a major health agency. Federal IT spending benchmarks vary widely, but contracts of this magnitude often involve complex system maintenance, development, or support.
Small Business Impact
The data indicates this contract was not set aside for small businesses. Further analysis would be needed to determine if small businesses are participating as subcontractors.
Oversight & Accountability
The Time and Materials pricing model necessitates robust government oversight to monitor hours, rates, and ensure efficient service delivery to prevent cost overruns.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Health and Human Services Contracting
- Centers for Disease Control and Prevention Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Lack of defined labor rates makes benchmarking difficult.
- Long contract duration may lead to vendor lock-in or outdated technology.
- No indication of small business participation.
Tags
electronic-computer-manufacturing, department-of-health-and-human-services, ga, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $107.6 million to ALPHASIX, LLC.. NIOSH INFORMATION TECHNOLOGY SERVICES (NITS)
Who is the contractor on this award?
The obligated recipient is ALPHASIX, LLC..
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).
What is the total obligated amount?
The obligated amount is $107.6 million.
What is the period of performance?
Start: 2020-09-01. End: 2026-01-31.
What is the estimated total cost per labor hour or loaded rate for the primary labor categories under this T&M contract?
Without specific details on labor categories and their associated rates, it's impossible to provide a precise per-unit cost. However, federal IT services T&M contracts often range from $75 to $250+ per hour, depending on skill level, location, and complexity. The total value suggests a significant number of hours will be billed.
What are the specific performance metrics and service level agreements (SLAs) in place to mitigate risks associated with Time and Materials pricing?
The provided data does not detail performance metrics or SLAs. Effective oversight would require clearly defined deliverables, quality standards, and penalties for non-performance. These are crucial for managing T&M contracts and ensuring value for taxpayer money.
How will the CDC ensure the effectiveness and efficiency of IT services delivered under this contract, given the potential for scope creep in T&M arrangements?
Effectiveness will likely be measured through user satisfaction, system uptime, and successful project completion. The CDC must implement strong project management, regular performance reviews, and potentially independent verification and validation (IV&V) to control scope and ensure services align with agency needs.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 75D301-20-R-67928
Offers Received: 4
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Alphasix Corporation
Address: 21355 RIDGETOP CIR STE 330, STERLING, VA, 20166
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $107,642,755
Exercised Options: $107,642,755
Current Obligation: $107,642,755
Actual Outlays: $94,759,577
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS35F307AA
IDV Type: FSS
Timeline
Start Date: 2020-09-01
Current End Date: 2026-01-31
Potential End Date: 2026-01-31 00:00:00
Last Modified: 2025-07-02
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