HHS awards $25.1M contract for Data Center 2 services to Icahn School of Medicine at Mount Sinai

Contract Overview

Contract Amount: $25,127,364 ($25.1M)

Contractor: Icahn School of Medicine AT Mount Sinai

Awarding Agency: Department of Health and Human Services

Start Date: 2022-09-29

End Date: 2027-02-28

Contract Duration: 1,613 days

Daily Burn Rate: $15.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DATA CENTER 2 - ISMMS

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10029

State: New York Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $25.1 million to ICAHN SCHOOL OF MEDICINE AT MOUNT SINAI for work described as: DATA CENTER 2 - ISMMS Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of over 1600 days indicates a long-term need for these services. 3. The firm-fixed-price structure aims to provide cost certainty for the government. 4. The awardee, Icahn School of Medicine, may bring specialized expertise to public health data management. 5. The contract falls under the administration of public health programs, highlighting its critical function. 6. The geographic location in New York may indicate a regional focus for data center operations.

Value Assessment

Rating: good

Benchmarking the value of this contract requires more granular data on the specific services provided. However, the firm-fixed-price structure is generally favorable for cost control. Comparing the total award amount to similar data center services contracts within the federal government would provide a clearer picture of its value. The duration suggests a significant investment, and the pricing should reflect efficient resource utilization and economies of scale.

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 presence of three bidders suggests a moderate level of competition. While more bidders would typically lead to better price discovery, three bidders still provide a basis for comparison and negotiation, potentially leading to a reasonable price for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation. This approach ensures that the government is not locked into a single provider, allowing for potentially better value and service.

Public Impact

The primary beneficiary is the Centers for Disease Control and Prevention (CDC), which will receive essential data center services. The contract supports the administration of public health programs, crucial for national health initiatives. Services delivered likely include data storage, processing, and management, vital for public health research and operations. The geographic impact is centered in New York, where the contractor is located, potentially supporting local IT infrastructure and workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to vendor lock-in if not managed carefully.
Reliance on a single data center location might pose risks in case of local disruptions.
Firm-fixed-price contracts can sometimes disincentivize cost-saving innovations by the contractor.

Positive Signals

Award to a known institution like Icahn School of Medicine suggests a degree of reliability and established infrastructure.
Full and open competition indicates a deliberate effort to secure the best possible offer.
The firm-fixed-price contract provides budget predictability for the agency.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically focusing on data center operations and administration of public health programs. The federal government is a significant consumer of IT services, with substantial spending allocated to data management, cloud computing, and infrastructure. Comparable spending benchmarks would involve analyzing other federal contracts for similar data center support services, considering factors like scale, duration, and specific technical requirements.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). This suggests that the primary competition was likely among larger entities or institutions. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem in supporting this significant federal contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Centers for Disease Control and Prevention (CDC) and the Department of Health and Human Services (HHS). Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified services within the agreed budget. Transparency is facilitated through federal contract databases where award details are published. The Inspector General for HHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

HHS IT Services
CDC Data Management Contracts
Federal Data Center Modernization Initiative
Public Health Informatics Contracts

Risk Flags

Long contract duration may limit flexibility for technological upgrades.
Potential for vendor lock-in over the contract's lifespan.
Geographic concentration of data center operations could pose localized risk.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $25.1 million to ICAHN SCHOOL OF MEDICINE AT MOUNT SINAI. DATA CENTER 2 - ISMMS

Who is the contractor on this award?

The obligated recipient is ICAHN SCHOOL OF MEDICINE AT MOUNT SINAI.

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 $25.1 million.

What is the period of performance?

Start: 2022-09-29. End: 2027-02-28.

What is the specific nature of the 'Data Center 2 - ISMMS' services being procured?

The provided data indicates the contract is for 'Data Center 2 - ISMMS' and falls under the 'Administration of Public Health Programs' NAICS code. While the specific services are not detailed, this strongly suggests the contract supports critical IT infrastructure for managing, storing, and processing public health data. This could encompass a range of functions including server hosting, network management, data security, backup and recovery, and potentially specialized data analytics support, all essential for the operational needs of agencies like the CDC.

How does the $25.1 million award compare to historical spending on similar data center services by the CDC?

To accurately compare, we would need historical data on similar contracts awarded by the CDC for data center services. Factors such as contract duration, scope of services, and inflation would need to be considered. However, a $25.1 million award over approximately 4.4 years (1613 days) suggests an average annual expenditure of roughly $5.7 million. This figure can be benchmarked against other large-scale IT infrastructure contracts within HHS or other federal agencies to assess if it represents a competitive or outlier cost for comparable services.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for a data center services contract, typical SLAs would likely include metrics related to system uptime and availability (e.g., 99.99% uptime), response times for technical support, data backup and recovery success rates, and security compliance adherence. The firm-fixed-price nature of the contract implies that meeting these defined performance standards is a core requirement for successful contract execution and payment.

What is the track record of the Icahn School of Medicine at Mount Sinai in performing federal IT contracts?

The Icahn School of Medicine at Mount Sinai is a well-established academic medical institution. While primarily known for research and healthcare, its IT department would possess significant infrastructure and expertise. Its track record specifically with large federal IT contracts, particularly data center operations, would need to be reviewed through federal procurement databases (like FPDS or SAM.gov) to assess past performance, any reported issues, and successful delivery on similar government agreements. This award suggests they have met the qualifications for this specific procurement.

What are the potential risks associated with a long-term (1613-day) firm-fixed-price contract for data center services?

A long-term, firm-fixed-price contract for data center services presents several potential risks. For the government, the primary risk is that technology may rapidly evolve, making the contracted services or infrastructure outdated before the contract ends, potentially leading to suboptimal performance or the need for costly modifications. For the contractor, the risk lies in underestimating costs or facing unforeseen operational challenges over the extended period, which could erode profit margins if they cannot adjust pricing. Additionally, long-term commitments can sometimes reduce flexibility for the agency to adapt to changing needs or adopt newer, more cost-effective solutions that emerge during the contract's life.

How does the 'Administration of Public Health Programs' NAICS code influence the type of data and services managed under this contract?

The North American Industry Classification System (NAICS) code 923120, 'Administration of Public Health Programs,' signifies that the contract directly supports the governmental functions related to public health. This implies the data managed is likely sensitive and critical, pertaining to disease surveillance, health statistics, research data, and program administration. Consequently, the services procured must adhere to stringent data security, privacy (e.g., HIPAA compliance if applicable), and integrity standards. The focus is on enabling the effective execution and oversight of public health initiatives through robust data management and IT support.

Industry Classification

NAICS: Public Administration › Administration of Human Resource Programs › Administration of Public Health Programs

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 75D301-22-R-72244

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: ONE GUSTAVE L LEVY PL, NEW YORK, NY, 10029

Business Categories: Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Higher Education (Private)

Financial Breakdown

Contract Ceiling: $25,127,364

Exercised Options: $25,127,364

Current Obligation: $25,127,364

Actual Outlays: $18,355,418

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Timeline