HHS awards $2.6M for CDC cloud consultation, with Steampunk Inc. as prime
Contract Overview
Contract Amount: $2,588,020 ($2.6M)
Contractor: Steampunk, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2025-09-25
End Date: 2026-12-18
Contract Duration: 449 days
Daily Burn Rate: $5.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 19
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: NITAAC CDC CLOUD CONSULTATION SERVICES
Place of Performance
Location: ATLANTA, DEKALB County, GEORGIA, 30341
State: Georgia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $2.6 million to STEAMPUNK, INC. for work described as: NITAAC CDC CLOUD CONSULTATION SERVICES Key points: 1. Value for money appears reasonable given the specialized nature of cloud consultation services. 2. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 3. Risk indicators are moderate, with a fixed-price contract type mitigating cost overrun risks. 4. Performance context is within IT services, specifically cloud consultation for a major health agency. 5. Sector positioning is within the government IT services market, focusing on cloud infrastructure.
Value Assessment
Rating: good
The contract value of approximately $2.6 million for cloud consultation services over a 449-day period is within a reasonable range for specialized IT support. Benchmarking against similar contracts for cloud advisory services indicates that pricing for this type of expertise can vary significantly based on scope and duration. The firm fixed-price nature of this award helps to control costs and provides a predictable expense for the agency. Without specific details on the deliverables, a precise value-for-money assessment is challenging, but the competitive award process suggests a fair market price was likely achieved.
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 19 bids suggests a robust level of competition for this requirement. A competitive bidding process generally leads to better price discovery and encourages vendors to offer their most competitive terms and pricing to win the contract. This approach is beneficial for the government in securing services at a favorable cost.
Taxpayer Impact: The high number of bidders in this full and open competition indicates that taxpayers are likely benefiting from a more cost-effective solution. The competitive pressure drives down prices and encourages innovation, ensuring that federal funds are used efficiently.
Public Impact
The Centers for Disease Control and Prevention (CDC) will benefit from enhanced cloud strategy and implementation. Services delivered include expert consultation on cloud computing environments, potentially improving data management and accessibility. The geographic impact is national, supporting the CDC's mission across the United States. Workforce implications may include the need for internal staff to collaborate with and leverage the expertise provided by the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if initial consultation requirements are not clearly defined.
- Dependence on contractor expertise could limit long-term internal capability development if not managed proactively.
- Ensuring data security and privacy during cloud migration and consultation phases is critical.
Positive Signals
- Award to a single, experienced contractor (Steampunk, Inc.) can lead to focused expertise and efficient service delivery.
- Firm fixed-price contract type provides cost certainty for the agency.
- Full and open competition suggests a well-defined requirement and a market capable of meeting it.
Sector Analysis
The government's IT services sector is a significant market, with cloud computing services representing a rapidly growing segment. Agencies are increasingly migrating to cloud environments to enhance scalability, flexibility, and cost-efficiency. This contract for cloud consultation services fits within this broader trend, supporting the CDC's modernization efforts. Comparable spending benchmarks for cloud consulting vary widely, but contracts of this size are common for specialized advisory roles within federal agencies.
Small Business Impact
This contract was not set aside for small businesses, and the prime contractor, Steampunk, Inc., is not identified as a small business in the provided data. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless Steampunk, Inc. voluntarily engages small businesses for subcontracting opportunities.
Oversight & Accountability
Oversight for this contract will likely be managed by the contracting officer and program managers within the CDC. The firm fixed-price nature of the award provides a degree of accountability by linking payment to defined deliverables. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.
Related Government Programs
- CDC IT Modernization Efforts
- Federal Cloud Computing Strategy
- HHS IT Services Procurement
- General Services Administration (GSA) IT Schedule Contracts
Risk Flags
- Potential for vendor lock-in if recommendations are too specific to proprietary solutions.
- Ensuring alignment with evolving federal cloud security mandates (e.g., FedRAMP).
Tags
it-services, cloud-computing, consulting, department-of-health-and-human-services, centers-for-disease-control-and-prevention, steampunk-inc, firm-fixed-price, full-and-open-competition, delivery-order, georgia, mid-tier-contract, it-modernization
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $2.6 million to STEAMPUNK, INC.. NITAAC CDC CLOUD CONSULTATION SERVICES
Who is the contractor on this award?
The obligated recipient is STEAMPUNK, INC..
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 $2.6 million.
What is the period of performance?
Start: 2025-09-25. End: 2026-12-18.
What specific cloud platforms or technologies is Steampunk, Inc. expected to consult on for the CDC?
The provided data does not specify the exact cloud platforms or technologies Steampunk, Inc. is expected to consult on. However, given the general trend in government IT, consultations could involve major cloud providers such as Amazon Web Services (AWS), Microsoft Azure, or Google Cloud Platform (GCP). The scope likely includes advising on cloud architecture, migration strategies, security best practices, cost optimization, and potentially hybrid or multi-cloud environments. Further details would typically be found in the Statement of Work (SOW) or Performance Work Statement (PWS) associated with the contract, which are not included in the summary data.
How does the $2.6 million contract value compare to typical cloud consultation spending at the CDC or similar agencies?
The $2.6 million contract value for 449 days of cloud consultation services is a moderate investment for a federal agency like the CDC. Cloud consulting costs can vary significantly based on the complexity of the agency's existing infrastructure, the desired outcomes (e.g., full migration vs. optimization), and the level of expertise required. For large agencies with extensive IT operations, such as the CDC, this amount is reasonable for specialized advisory services. Benchmarking against similar contracts for cloud strategy and implementation support within HHS or other large federal departments would provide a more precise comparison, but this figure does not appear excessively high or low in the context of government IT consulting.
What are the primary risks associated with this contract, and how are they mitigated?
Primary risks include potential scope creep if the consultation objectives are not precisely defined, leading to cost overruns or delays, although the firm fixed-price (FFP) structure mitigates direct cost overrun risk for the government. Another risk is the potential for the contractor's recommendations to be overly complex or not fully aligned with the CDC's long-term operational capabilities, requiring significant internal adaptation. Mitigation strategies include a detailed Statement of Work (SOW), clear performance metrics, regular progress reviews, and ensuring the CDC retains strong project management oversight. The FFP contract itself is a key mitigation tool, as it places the financial risk of cost overruns on the contractor.
What is Steampunk, Inc.'s track record with federal contracts, particularly in cloud services?
The provided data indicates Steampunk, Inc. is the prime contractor for this $2.6 million CDC cloud consultation services contract. To assess their track record, one would need to examine their past performance on federal contracts, specifically those involving cloud computing, IT modernization, and consultation services. Information on contract vehicles used (e.g., GSA Schedules), past performance evaluations (e.g., CPARS), and the total value and duration of previous awards would be crucial. Without access to these broader contract history details, it's difficult to provide a comprehensive assessment of their specific track record in this domain.
How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type differ from standard full and open competition?
The award type 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that while the competition was intended to be full and open, certain sources (vendors or types of vendors) were excluded from the initial solicitation or bidding process. This exclusion must be justified based on specific regulatory reasons, such as national security, unique capabilities, or prior performance issues. Standard full and open competition typically means all responsible sources are permitted to compete without restriction. The exclusion of sources implies a more tailored, though still competitive, approach, potentially narrowing the field of bidders based on pre-determined criteria, which could impact the breadth of competition and potentially the final price.
What are the expected performance outcomes or deliverables for this cloud consultation contract?
The provided summary data does not detail the specific performance outcomes or deliverables for this contract. Typically, cloud consultation contracts involve the delivery of strategic plans, architectural designs, migration roadmaps, security assessments, cost-benefit analyses, and implementation guidance. For the CDC, these deliverables would likely focus on optimizing their cloud infrastructure, enhancing data analytics capabilities, improving disaster recovery, and ensuring compliance with federal regulations. The exact nature of the deliverables would be defined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS).
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 - COMPUTE
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 75D301-25-R-73368
Offers Received: 19
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1753 PINNACLE DR STE 900, MCLEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $49,899,221
Exercised Options: $2,588,020
Current Obligation: $2,588,020
Actual Outlays: $5,688
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 75N98120D00251
IDV Type: GWAC
Timeline
Start Date: 2025-09-25
Current End Date: 2026-12-18
Potential End Date: 2028-09-17 00:00:00
Last Modified: 2026-03-12
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