HHS awards $7.78M for web cache services, highlighting potential for cost savings through competition

Contract Overview

Contract Amount: $7,783,780 ($7.8M)

Contractor: Software Information Resource Corp.

Awarding Agency: Department of Health and Human Services

Start Date: 2021-08-10

End Date: 2024-07-31

Contract Duration: 1,086 days

Daily Burn Rate: $7.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AKAMAI WEB CACHE SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20037

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $7.8 million to SOFTWARE INFORMATION RESOURCE CORP. for work described as: AKAMAI WEB CACHE SERVICES Key points: 1. Value for money appears reasonable given the service duration and fixed-price nature. 2. Strong competition was present, with 6 bidders vying for the contract. 3. Risk indicators are low, with a fixed-price contract and established service provider. 4. Performance context suggests a need for reliable web caching to support public health data. 5. Sector positioning is within IT services, specifically cloud and network infrastructure support.

Value Assessment

Rating: good

The contract's total value of $7.78 million over approximately three years suggests a moderate annual spend. Benchmarking against similar web caching services is challenging without more granular data on service levels and scope. However, the fixed-price nature of the contract provides cost certainty. The presence of multiple bidders indicates a competitive market, which typically drives better pricing.

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 a robust bidding process. Six bidders participated, suggesting a healthy level of market interest and competition for this type of service. The significant number of bidders likely contributed to price discovery and ensured the government received competitive offers.

Taxpayer Impact: The strong competition ensures that taxpayer dollars are being used efficiently, as multiple vendors vied to offer the best price and service. This competitive environment helps prevent overpayment and encourages innovation among service providers.

Public Impact

The Centers for Disease Control and Prevention (CDC) benefits from enhanced web performance and data delivery. Services delivered include critical web cache services to support public health information dissemination. Geographic impact is national, supporting CDC's online presence and data accessibility for all users. Workforce implications are minimal, as this is a service contract rather than a direct hiring initiative.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, indicating a fair and transparent process.
Fixed-price contract type provides cost predictability and limits financial risk.
Multiple bidders (6) suggest a competitive market and potential for good value.
Contract duration of over 3 years allows for stable service provision.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on network infrastructure and content delivery optimization. The market for web caching and content delivery network (CDN) services is substantial, with numerous providers offering solutions to government and commercial entities. Spending in this area is driven by the increasing demand for fast, reliable access to online information and services.

Small Business Impact

The data does not indicate any specific small business set-aside or subcontracting requirements for this contract. Given the nature of web caching services, it's possible that larger, specialized firms dominate this market segment. Further analysis would be needed to determine if small businesses had opportunities to participate as prime contractors or subcontractors.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program managers within the CDC. As a fixed-price contract, financial oversight focuses on ensuring deliverables meet specifications. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not be publicly available.

Related Government Programs

Web Hosting Services
Content Delivery Network (CDN) Services
Cloud Infrastructure Services
IT Network Management

Risk Flags

Potential for vendor lock-in despite initial competition.
Reliance on a single vendor for critical web infrastructure.
Need for ongoing market analysis to ensure continued competitive pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $7.8 million to SOFTWARE INFORMATION RESOURCE CORP.. AKAMAI WEB CACHE SERVICES

Who is the contractor on this award?

The obligated recipient is SOFTWARE INFORMATION RESOURCE CORP..

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 $7.8 million.

What is the period of performance?

Start: 2021-08-10. End: 2024-07-31.

What is the historical spending pattern for web cache services by the CDC?

Analyzing historical spending on web cache services by the CDC requires access to detailed procurement data over multiple fiscal years. Without this specific data, it's difficult to establish a precise trend. However, the increasing reliance on digital platforms for public health information dissemination suggests a likely upward trend or sustained investment in related infrastructure. The current $7.78 million award over approximately three years indicates a significant, ongoing commitment to ensuring robust online service delivery. Future analysis could involve comparing this award to previous contracts for similar services to identify any increases or decreases in spending and to understand the evolution of the CDC's needs and the market's offerings in web caching technology.

How does the pricing of this contract compare to market rates for similar web cache services?

Directly comparing the pricing of this $7.78 million contract to market rates for similar web cache services is challenging without detailed specifications of the service levels, bandwidth, geographic coverage, and support included. Web cache services can vary significantly in cost based on these factors. However, the presence of six bidders in a full and open competition suggests that the pricing achieved is likely competitive within the market. The fixed-price nature of the contract also provides a degree of cost certainty. To perform a more precise benchmark, one would need to gather quotes from commercial providers for comparable service packages and evaluate the specific technical requirements met by Akamai Web Cache Services under this contract.

What is the track record of SOFTWARE INFORMATION RESOURCE CORP. in providing similar IT services to the federal government?

SOFTWARE INFORMATION RESOURCE CORP. (SIRC) has a history of providing IT services to the federal government. While this specific award is for Akamai Web Cache Services, SIRC's broader contract portfolio would reveal their experience with various IT solutions. A thorough review of their past performance, including contract values, agencies served, and types of services rendered, is crucial for assessing their capability and reliability. Examining past performance evaluations, if available, would provide insights into their success in meeting contract requirements, managing projects, and delivering quality services. Understanding SIRC's established relationships and performance history with government agencies can help gauge their suitability for complex IT service delivery.

What are the potential risks associated with relying on a single vendor for web cache services, even with competition?

While this contract was awarded competitively, the ongoing service delivery relies on Akamai Web Cache Services. Potential risks include vendor lock-in, where switching providers becomes difficult or costly due to proprietary technology or integration complexities. Dependence on a single vendor can also reduce leverage in future negotiations, potentially leading to price increases. Furthermore, unforeseen technical issues, security vulnerabilities, or changes in the vendor's business strategy could impact service continuity. Although competition was present at the award stage, maintaining ongoing market awareness and periodically re-evaluating the competitive landscape are essential to mitigate these long-term risks and ensure continued value for the government.

How does this contract contribute to the CDC's overall mission of public health data dissemination?

This contract directly supports the CDC's mission by ensuring the efficient and reliable delivery of public health information online. Web cache services significantly improve website performance by storing frequently accessed data closer to end-users, reducing latency and load times. This enhanced accessibility is critical for disseminating timely health alerts, research findings, and public guidance, especially during health crises. By optimizing data delivery, the CDC can reach a wider audience more effectively, ensuring that vital information is readily available to the public, healthcare professionals, and researchers, thereby contributing to informed decision-making and improved public health outcomes.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - COMPUTE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 75D301-21-Q-72982

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 730 24TH ST NW STE 3, WASHINGTON, DC, 20037

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $7,800,572

Exercised Options: $7,800,572

Current Obligation: $7,783,780

Actual Outlays: $7,570,481

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD74B

IDV Type: GWAC

Timeline