HHS awards $30.1M contract for Cyber Risk Management to ASSYST INC., emphasizing full and open competition

Contract Overview

Contract Amount: $30,127,615 ($30.1M)

Contractor: Assyst Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2024-01-25

End Date: 2027-01-28

Contract Duration: 1,099 days

Daily Burn Rate: $27.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CYBER RISK MANAGEMENT (CRM)

Place of Performance

Location: STERLING, LOUDOUN County, VIRGINIA, 20166

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $30.1 million to ASSYST INC. for work described as: CYBER RISK MANAGEMENT (CRM) Key points: 1. Contract value of $30.1M over approximately 3 years suggests a significant investment in cybersecurity. 2. Full and open competition indicates a potentially competitive bidding process, which can drive better pricing. 3. The contract is a delivery order under a larger contract vehicle, implying a structured procurement process. 4. The fixed-price nature of the contract shifts performance risk to the contractor. 5. The award to ASSYST INC. represents a substantial commitment to a single vendor for critical services. 6. The NAICS code 541519 suggests a broad scope of computer-related services beyond just cybersecurity.

Value Assessment

Rating: good

The contract value of $30.1M over 1099 days averages approximately $27,414 per day. Benchmarking this against similar cyber risk management contracts is challenging without more specific service details. However, the fixed-price structure is generally favorable for the government, as it caps costs. The number of bidders (8) suggests a reasonable level of interest, which can contribute to fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 8 bidders participating. This indicates that the government sought a broad range of potential offerors and allowed all responsible sources to compete. The presence of multiple bidders generally fosters price competition and encourages contractors to offer competitive terms.

Taxpayer Impact: A competitive bidding process like this one is beneficial for taxpayers as it is more likely to result in a fair market price and prevent overspending on essential cybersecurity services.

Public Impact

The primary beneficiary is the Department of Health and Human Services (HHS), ensuring the security of its sensitive data and systems. The services delivered will focus on managing and mitigating cyber risks, protecting patient information and operational continuity. The geographic impact is primarily within Virginia, where the contractor is located, but the services support national healthcare infrastructure. Workforce implications include potential job creation within ASSYST INC. and the cybersecurity sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services become highly specialized and integrated.
Reliance on a single vendor for critical cybersecurity functions could pose a risk if performance degrades.
Scope creep could lead to cost overruns if not managed tightly, despite the fixed-price nature.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Fixed-price contract type shifts risk to the contractor, potentially leading to cost certainty.
Multiple bidders (8) indicate a healthy market interest and potential for competitive pricing.
Contract duration of nearly 3 years allows for stable service delivery and relationship building.

Sector Analysis

The cybersecurity market is a rapidly growing sector driven by increasing digital threats and regulatory requirements. Federal spending in this area is substantial, with agencies like HHS managing vast amounts of sensitive data. This contract fits within the broader IT services sector, specifically focusing on risk management and compliance, which are critical components of any agency's cybersecurity posture. Comparable spending benchmarks would depend on the specific scope of cyber risk management services, but $30.1M over three years is a significant award.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses are unlikely to be direct recipients of this prime contract. However, there may be opportunities for small businesses to subcontract with ASSYST INC., depending on the contractor's subcontracting plan and the specific services required. The overall impact on the small business ecosystem will depend on whether ASSYST INC. actively engages small businesses as partners.

Oversight & Accountability

Oversight for this contract will likely be managed by the Centers for Medicare and Medicaid Services (CMS) within HHS, through contract officers and technical representatives. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated by the public nature of contract awards, though detailed performance metrics are typically internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Cybersecurity Services
IT Professional Services
Risk Management Services
Healthcare IT Contracts
Federal Information Security Management Act (FISMA) Compliance

Risk Flags

Potential for vendor lock-in
Reliance on single vendor for critical functions
Scope creep risk
Data security and privacy concerns

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $30.1 million to ASSYST INC.. CYBER RISK MANAGEMENT (CRM)

Who is the contractor on this award?

The obligated recipient is ASSYST INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).

What is the total obligated amount?

The obligated amount is $30.1 million.

What is the period of performance?

Start: 2024-01-25. End: 2027-01-28.

What is ASSYST INC.'s track record with federal cybersecurity contracts?

ASSYST INC. has a history of performing federal contracts, including those related to IT services and cybersecurity. A deeper dive into their past performance ratings, any past performance issues or awards, and the types of agencies they have served would provide a clearer picture of their capabilities and reliability in the federal space. Examining contract close-out data and any debriefings from previous solicitations could also reveal insights into their competitive positioning and execution.

How does the $30.1M contract value compare to similar cyber risk management contracts awarded by HHS or other agencies?

Without specific details on the scope of services, direct comparison is difficult. However, $30.1M over approximately three years represents a substantial investment. Larger agencies like HHS often award multi-million dollar contracts for comprehensive cybersecurity solutions. To benchmark effectively, one would need to identify contracts with similar objectives (e.g., enterprise-wide risk assessment, vulnerability management, security operations support) and similar contract durations and types. The number of bidders (8) suggests a competitive market, which typically helps align pricing with market rates.

What are the key performance indicators (KPIs) for this cyber risk management contract?

The specific Key Performance Indicators (KPIs) for this contract are not publicly detailed in the provided data. Typically, for cyber risk management, KPIs might include metrics related to incident response times, vulnerability remediation rates, compliance adherence (e.g., NIST, FISMA), reduction in security incidents, and successful completion of risk assessments. The contract's performance work statement (PWS) would outline these specific deliverables and the metrics used to evaluate ASSYST INC.'s performance.

What is the potential risk associated with relying on ASSYST INC. for critical cybersecurity functions?

The primary risks associated with relying on any single contractor for critical cybersecurity functions include potential vendor lock-in, the impact of contractor performance degradation, and the security implications if the contractor itself experiences a breach. For ASSYST INC., risks would be mitigated by strong government oversight, clearly defined performance standards in the contract, and contingency planning. The fixed-price nature shifts some financial risk to the contractor, but operational and security risks remain a concern for the government.

What has been the historical spending trend for cyber risk management services at HHS?

Historical spending trends for cyber risk management at HHS would require analysis of past contract awards within this specific service category. Agencies like HHS, managing vast amounts of sensitive health data, have consistently increased their cybersecurity spending over the years due to evolving threats and regulatory pressures. Examining HHS's budget allocations and contract databases over the past 5-10 years would reveal whether this $30.1M award represents an increase, a decrease, or a stable level of investment in cyber risk management.

How does the fixed-price contract type impact the government's ability to manage costs and ensure quality?

A firm-fixed-price (FFP) contract type is generally advantageous for the government as it establishes a ceiling on costs, providing budget certainty. The contractor assumes the risk of cost overruns. This encourages efficiency and cost control by the contractor. However, for complex services like cybersecurity, FFP can sometimes disincentivize the contractor from going 'above and beyond' standard requirements if it means incurring additional costs. Quality is managed through clearly defined performance standards and acceptance criteria within 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 › Other Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - SECURITY AND COMPLIANCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 22866 SHAW RD, STERLING, VA, 20166

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

Financial Breakdown

Contract Ceiling: $30,127,615

Exercised Options: $30,127,615

Current Obligation: $30,127,615

Actual Outlays: $17,960,311

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA19D00HL

IDV Type: FSS

Timeline