NCI IT BPA for Infrastructure and Operations awarded to Octo Consulting Group for over $30M, with 5 bidders

Contract Overview

Contract Amount: $30,039,047 ($30.0M)

Contractor: Octo Consulting Group LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2023-06-12

End Date: 2026-06-11

Contract Duration: 1,095 days

Daily Burn Rate: $27.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NATIONAL CANCER INSTITUTE (NCI) INFORMATION TECHNOLOGY (IT) BLANKET PURCHASE AGREEMENT (BPA) - IT INFRASTRUCTURE AND OPERATIONS

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $30.0 million to OCTO CONSULTING GROUP LLC for work described as: NATIONAL CANCER INSTITUTE (NCI) INFORMATION TECHNOLOGY (IT) BLANKET PURCHASE AGREEMENT (BPA) - IT INFRASTRUCTURE AND OPERATIONS Key points: 1. Value for money appears fair given the firm-fixed-price structure and competitive award. 2. Competition dynamics show a healthy number of bidders (5), suggesting a competitive market for these services. 3. Risk indicators are moderate, with a firm-fixed-price contract type generally mitigating cost overrun risks. 4. Performance context is within IT infrastructure and operations, a critical but standard service area for research institutions. 5. Sector positioning is within the Health IT sub-sector, supporting the National Cancer Institute's mission. 6. The contract duration of 3 years (1095 days) provides stability for service delivery.

Value Assessment

Rating: fair

The total award amount of approximately $30 million over three years for IT infrastructure and operations services is within a reasonable range for a federal agency of the National Cancer Institute's size. The firm-fixed-price contract type suggests that the pricing was determined upfront and is less susceptible to cost overruns compared to cost-plus contracts. Benchmarking against similar IT support contracts for research institutions would provide a more precise value assessment, but the competitive nature of the award (5 bidders) implies that pricing was likely market-driven.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with five distinct bidders vying for the opportunity. The presence of multiple bidders indicates a robust market for IT infrastructure and operations services, allowing the government to solicit proposals from a wide range of qualified vendors. This level of competition is generally expected to drive more competitive pricing and encourage innovation from the participating companies.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are being used efficiently by fostering a competitive environment that can lead to better pricing and service quality.

Public Impact

The National Cancer Institute (NCI) benefits from enhanced IT infrastructure and operations, supporting its research and administrative functions. Services delivered include IT infrastructure support, crucial for the continuity and advancement of cancer research. The geographic impact is primarily within the NCI's operational locations, likely supporting researchers and staff nationwide. Workforce implications include the direct employment of personnel by Octo Consulting Group to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if transition planning is inadequate at contract end.
Reliance on a single contractor for critical IT infrastructure could pose a risk if performance degrades.
Ensuring continued alignment with evolving NCI IT strategies requires proactive contract management.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Award to a single contractor streamlines management and accountability for IT services.
The BPA call structure allows for flexibility in task order issuance within the defined scope.

Sector Analysis

The IT services sector is a significant component of federal spending, with agencies increasingly relying on external contractors for specialized support. This contract falls within the IT infrastructure and operations sub-sector, which is essential for maintaining the digital backbone of research institutions like the National Cancer Institute. Comparable spending benchmarks for similar IT support contracts within the Department of Health and Human Services or other large federal research agencies would provide further context on the scale and pricing of this award.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses indicated in the provided data. The award to Octo Consulting Group, a mid-sized to large business, suggests that the primary focus was on securing comprehensive IT services. Further analysis of the contract's subcontracting plan, if available, would be necessary to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the National Institutes of Health (NIH) contracting officers and program managers, who are responsible for monitoring performance, ensuring compliance with contract terms, and approving task orders. Transparency is facilitated through contract databases like FPDS. Accountability measures are embedded in the firm-fixed-price structure and performance expectations outlined in the BPA. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

NIH IT Support Services
NCI Research IT Infrastructure
HHS Enterprise IT Services
Federal Civilian Agency IT Modernization

Risk Flags

Potential for scope creep if requirements are not clearly defined in task orders.
Dependency on contractor performance for critical research operations.
Ensuring data security and privacy within the IT infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $30.0 million to OCTO CONSULTING GROUP LLC. NATIONAL CANCER INSTITUTE (NCI) INFORMATION TECHNOLOGY (IT) BLANKET PURCHASE AGREEMENT (BPA) - IT INFRASTRUCTURE AND OPERATIONS

Who is the contractor on this award?

The obligated recipient is OCTO CONSULTING GROUP LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $30.0 million.

What is the period of performance?

Start: 2023-06-12. End: 2026-06-11.

What is the track record of Octo Consulting Group with the National Institutes of Health and similar federal agencies?

Octo Consulting Group has a history of performing IT services for federal agencies, including the Department of Health and Human Services (HHS) and its sub-agencies like the National Institutes of Health (NIH). Their past performance typically involves providing a range of IT solutions, from cloud migration and cybersecurity to data analytics and software development. Analyzing their specific performance ratings on previous NIH contracts, if publicly available through sources like the Contractor Performance Assessment Reporting System (CPARS), would offer a more detailed understanding of their reliability and quality of service. A review of their contract history would also reveal the types and scale of projects they have successfully managed, providing context for their capability to handle the NCI's IT infrastructure and operations needs.

How does the per-contractor cost compare to similar IT infrastructure and operations contracts within HHS?

Without specific per-unit cost breakdowns or detailed service level agreements for this BPA call, a direct per-contractor cost comparison is challenging. However, the total award of approximately $30 million over three years for comprehensive IT infrastructure and operations services for an entity like the National Cancer Institute suggests a significant investment. To benchmark effectively, one would need to identify comparable contracts within HHS or other large research-focused agencies that procure similar IT services. Key metrics for comparison would include the number of users supported, the scope of infrastructure managed (e.g., data centers, cloud services, network complexity), and the specific services provided (e.g., help desk, system administration, cybersecurity). The firm-fixed-price nature of this award implies that pricing was negotiated upfront, and the competitive bidding process (5 bidders) suggests that the pricing is likely aligned with market rates for such services.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential performance issues from the contractor, changes in NCI's IT requirements that may not be fully captured by the current BPA call, and the risk of vendor lock-in. Performance risks are mitigated through the firm-fixed-price contract type, which incentivizes the contractor to deliver services efficiently, and through ongoing contract oversight by NIH program managers. Changes in requirements are managed through the BPA call mechanism, allowing for task orders to be issued within the scope, and potentially through contract modifications if significant deviations occur. Vendor lock-in is a longer-term concern that requires proactive planning for future contract transitions, including knowledge transfer and ensuring interoperability of systems. The competitive award process also helps mitigate risks by selecting a vendor with a demonstrated capability.

How effective is the current IT infrastructure and operations support likely to be in advancing NCI's research mission?

The effectiveness of the IT infrastructure and operations support in advancing the NCI's research mission hinges on several factors. A well-managed IT environment, as intended by this contract, is crucial for enabling researchers to access data, utilize computational resources, and collaborate effectively. The contract's focus on infrastructure and operations suggests a foundational level of support that should ensure system reliability, security, and availability. However, the ultimate effectiveness will depend on the contractor's ability to adapt to evolving technological needs, provide responsive support, and integrate new solutions that enhance research capabilities. The competitive award and firm-fixed-price structure aim to ensure a baseline level of quality and efficiency, but continuous monitoring of service performance against NCI's specific research objectives is essential for maximizing its impact.

What has been the historical spending trend for IT infrastructure and operations at NCI or NIH over the past five years?

Analyzing historical spending trends for IT infrastructure and operations at the NCI or NIH over the past five years would provide valuable context for the current $30 million BPA award. This would involve examining annual IT expenditures, identifying major contract vehicles, and noting any significant shifts in spending patterns, such as increased investment in cloud services, cybersecurity, or specific research computing infrastructure. Understanding these trends can reveal whether the current spending represents an increase, decrease, or stable level of investment in IT support. It can also highlight areas where spending has been concentrated and whether this contract aligns with or deviates from those historical priorities. Accessing detailed budget data and contract databases (like FPDS) for previous years would be necessary for a comprehensive historical analysis.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10780 PARKRIDGE BLVD FL 4, RESTON, VA, 20191

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $39,147,844

Exercised Options: $30,039,047

Current Obligation: $30,039,047

Actual Outlays: $25,978,975

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75N91023A00009

IDV Type: BPA

Timeline