HHS FDA Awards $22.1M Task Order to Harvard Pilgrim for Computing Infrastructure
Contract Overview
Contract Amount: $22,108,351 ($22.1M)
Contractor: Harvard Pilgrim Health Care Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2025-03-28
End Date: 2026-03-28
Contract Duration: 365 days
Daily Burn Rate: $60.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: TASK ORDER 2.0 EXT 7
Place of Performance
Location: WELLESLEY HILLS, NORFOLK County, MASSACHUSETTS, 02481
Plain-Language Summary
Department of Health and Human Services obligated $22.1 million to HARVARD PILGRIM HEALTH CARE INC for work described as: TASK ORDER 2.0 EXT 7 Key points: 1. Significant award to a single provider for essential IT services. 2. Competition method appears robust, but specific pricing details are limited. 3. Potential risk associated with vendor lock-in for critical infrastructure. 4. Spending aligns with the broader IT sector's demand for cloud and data services.
Value Assessment
Rating: good
The award amount of $22.1M over one year appears reasonable given the scope of computing infrastructure and data processing services. Benchmarking against similar large-scale IT service contracts is necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure services at a fair market price for critical FDA operations.
Public Impact
Ensures continued operation of essential FDA computing and data processing capabilities. Supports the FDA's mission in regulating food and drugs through reliable IT infrastructure. Potential for innovation and improved service delivery through contracted IT expertise.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential over-reliance on a single vendor for critical infrastructure.
- Need for ongoing performance monitoring to ensure value for money.
Positive Signals
- Awarded through full and open competition.
- Supports a critical government function (FDA).
Sector Analysis
This contract falls within the IT sector, specifically focusing on computing infrastructure and data processing. Spending in this area is substantial across federal agencies, driven by modernization efforts and increasing data demands.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this particular task order. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The award is managed by the Department of Health and Human Services (HHS) for the Food and Drug Administration (FDA). Standard government oversight processes for task orders and contract performance are expected to be in place.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of Health and Human Services Contracting
- Food and Drug Administration Programs
Risk Flags
- Potential for cost creep due to Time and Materials pricing.
- Dependence on a single vendor for critical IT infrastructure.
- Need for robust performance monitoring and contract management.
- Limited visibility into subcontractor utilization (if any).
Tags
computing-infrastructure-providers-data-, department-of-health-and-human-services, ma, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $22.1 million to HARVARD PILGRIM HEALTH CARE INC. TASK ORDER 2.0 EXT 7
Who is the contractor on this award?
The obligated recipient is HARVARD PILGRIM HEALTH CARE INC.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Food and Drug Administration).
What is the total obligated amount?
The obligated amount is $22.1 million.
What is the period of performance?
Start: 2025-03-28. End: 2026-03-28.
What is the specific breakdown of services included in this task order and how do they align with the FDA's strategic IT goals?
The task order covers 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services.' This likely includes cloud hosting, data storage, network management, and potentially specialized processing for FDA's regulatory and research functions. Alignment with strategic goals would depend on the FDA's current IT modernization roadmap, focusing on scalability, security, and data analytics capabilities.
What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract to ensure effective service delivery?
While not detailed in the provided data, typical KPIs and SLAs for such contracts would include uptime guarantees (e.g., 99.9%), data security compliance (e.g., FISMA), response times for incidents, and performance metrics for data processing and hosting. The FDA would monitor these metrics to ensure Harvard Pilgrim meets its contractual obligations and provides reliable services.
How does the pricing structure (Time and Materials) compare to fixed-price or other contract types for similar IT infrastructure services?
Time and Materials (T&M) contracts offer flexibility but can lead to cost overruns if not closely managed, as costs are based on actual labor hours and material expenses. For IT infrastructure, fixed-price contracts might offer more cost certainty for defined scopes, while T&M is often used for evolving requirements or when the scope is difficult to define upfront. The government's ability to control costs with T&M relies heavily on robust oversight and negotiation.
Industry Classification
NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 93 WORCESTER ST, WELLESLEY, MA, 02481
Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $22,108,351
Exercised Options: $22,108,351
Current Obligation: $22,108,351
Actual Outlays: $9,013,270
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 75F40119D10037
IDV Type: IDC
Timeline
Start Date: 2025-03-28
Current End Date: 2026-03-28
Potential End Date: 2026-03-28 00:00:00
Last Modified: 2026-02-19
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