HHS CDC Awards $20.1M for On-Premises Application Hosting to Digital Management LLC
Contract Overview
Contract Amount: $20,075,775 ($20.1M)
Contractor: Digital Management LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2023-09-11
End Date: 2026-05-10
Contract Duration: 972 days
Daily Burn Rate: $20.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ON-PREMISES APPLICATION HOSTING
Place of Performance
Location: ATLANTA, DEKALB County, GEORGIA, 30329
State: Georgia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $20.1 million to DIGITAL MANAGEMENT LLC for work described as: ON-PREMISES APPLICATION HOSTING Key points: 1. The contract is for computer systems design services, specifically on-premises application hosting. 2. Digital Management LLC is the awardee for this delivery order. 3. The contract duration is 972 days, ending May 10, 2026. 4. The total award amount is $20,075,775.16. 5. This is a Firm Fixed Price contract.
Value Assessment
Rating: good
The award amount of $20.1M over approximately 2.7 years appears reasonable for on-premises application hosting services. Benchmarking against similar large-scale IT infrastructure contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple vendors had the opportunity to bid.
Taxpayer Impact: Full and open competition generally ensures taxpayer funds are used efficiently by fostering a competitive environment that drives down costs.
Public Impact
Ensures continued operation of critical health applications. Supports the Centers for Disease Control and Prevention's mission. Provides essential IT infrastructure for public health data management. Potential for service disruptions if hosting is not managed effectively.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Vendor lock-in potential
- Cybersecurity risks associated with hosting sensitive data
- Dependency on vendor's technical expertise
Positive Signals
- Established vendor with a track record
- Firm Fixed Price contract provides cost certainty
- Full and open competition ensures market access
Sector Analysis
The IT services sector, particularly application hosting, is a significant area of government spending. Benchmarks for similar contracts vary widely based on scope, duration, and specific services required.
Small Business Impact
The data indicates this contract was not set aside for small businesses and does not specify small business participation. Larger IT service contracts often involve prime contractors who may subcontract to small businesses.
Oversight & Accountability
The contract is a delivery order under a larger contract vehicle, implying prior oversight. Further oversight would focus on performance metrics, security compliance, and adherence to the firm fixed price.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- Centers for Disease Control and Prevention Programs
Risk Flags
- Potential for vendor lock-in
- Cybersecurity risks
- Dependency on vendor's technical expertise
- Service continuity risks
Tags
computer-systems-design-services, department-of-health-and-human-services, ga, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $20.1 million to DIGITAL MANAGEMENT LLC. ON-PREMISES APPLICATION HOSTING
Who is the contractor on this award?
The obligated recipient is DIGITAL MANAGEMENT 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 $20.1 million.
What is the period of performance?
Start: 2023-09-11. End: 2026-05-10.
What is the specific scope of 'on-premises application hosting' covered by this contract?
The contract likely covers the provision and management of physical or virtual server infrastructure, operating systems, middleware, and related services required to host specific applications within the government's own data centers or facilities. This includes ensuring uptime, performance, security, and maintenance of the hosting environment.
What are the primary risks associated with relying on Digital Management LLC for this critical hosting service?
Key risks include potential vendor performance issues leading to application downtime, cybersecurity vulnerabilities if data protection measures are inadequate, and challenges in transitioning services if the contract is not renewed or is terminated. Dependency on the vendor's expertise for maintenance and upgrades also poses a risk.
How effectively does this contract support the CDC's mission-critical functions?
The contract directly supports the CDC's mission by ensuring the availability and performance of essential applications used for public health data analysis, disease surveillance, and response coordination. Effective execution of the hosting services is crucial for uninterrupted operations and timely public health interventions.
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 - DATA CENTER
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1600 INTERNATIONAL DR STE 500, MC LEAN, VA, 22102
Business Categories: Category Business, Limited Liability Corporation, Minority Owned Business, Not Designated a Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $20,075,775
Exercised Options: $20,075,775
Current Obligation: $20,075,775
Actual Outlays: $14,088,084
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 47QTCK18D0019
IDV Type: GWAC
Timeline
Start Date: 2023-09-11
Current End Date: 2026-05-10
Potential End Date: 2026-05-10 00:00:00
Last Modified: 2025-08-21
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