HHS awards $23M for high-performance computing to New Tech Solutions, Inc. for rapid imaging data analysis

Contract Overview

Contract Amount: $23,025 ($23.0K)

Contractor: NEW Tech Solutions, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2021-06-07

End Date: 2021-07-07

Contract Duration: 30 days

Daily Burn Rate: $768/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NHLBI EM CORE REQUIRES HIGH PERFORMANCE COMPUTER IN ORDER TO PROCESS AND ANALYZE LARGE VOLUME IMAGING DATASETS RAPIDLY TO FULFILL THE REQUIREMENTS OF MAKING RAPID DECISIONS ON PROJECT FEASIBILITY AND DIRECTION.

Place of Performance

Location: FREMONT, ALAMEDA County, CALIFORNIA, 94538

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $23,025.31 to NEW TECH SOLUTIONS, INC. for work described as: NHLBI EM CORE REQUIRES HIGH PERFORMANCE COMPUTER IN ORDER TO PROCESS AND ANALYZE LARGE VOLUME IMAGING DATASETS RAPIDLY TO FULFILL THE REQUIREMENTS OF MAKING RAPID DECISIONS ON PROJECT FEASIBILITY AND DIRECTION. Key points: 1. Contract supports critical NHLBI research by enabling rapid analysis of large imaging datasets. 2. Focus on high-performance computing suggests a need for advanced technological capabilities. 3. The short duration (30 days) indicates a specific, time-sensitive project requirement. 4. Fixed-price contract type aims to control costs for this specific delivery order. 5. Contractor's role in providing essential computing infrastructure highlights its importance in research support. 6. The award falls under 'Other Computer Related Services,' indicating a specialized IT function.

Value Assessment

Rating: good

The contract value of $23.03 million for a 30-day delivery order for high-performance computing services appears substantial. Benchmarking against similar large-scale computing infrastructure procurements would be necessary for a precise value assessment. However, given the specialized nature of high-performance computing required for rapid analysis of large imaging datasets, the pricing may reflect the advanced technology and expertise involved. The firm fixed-price structure provides cost certainty for this specific order.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 3 bidders suggests a competitive environment for this specialized service. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of solutions and drives down prices through market forces, ensuring the government receives the best value.

Public Impact

Researchers at the National Heart, Lung, and Blood Institute (NHLBI) benefit from accelerated data analysis capabilities. The contract enables faster decision-making on project feasibility and research direction. Services delivered are critical for advancing medical imaging research. The geographic impact is primarily within the research institutions utilizing these computing resources, likely concentrated in areas with significant biomedical research presence. Workforce implications may include the need for specialized IT personnel to manage and operate the high-performance computing infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if this specific hardware/software solution becomes deeply integrated into research workflows.
Reliance on a single vendor for critical computing infrastructure could pose risks if the vendor experiences financial instability or service disruptions.
The rapid turnaround time for the delivery order might indicate a rushed procurement process, potentially limiting thorough vetting of all aspects.

Positive Signals

Award to a single vendor for a specific delivery order simplifies management and ensures a focused effort.
The use of a firm fixed-price contract provides cost predictability for this acquisition.
Full and open competition suggests a robust market exists for these specialized services.

Sector Analysis

The contract falls within the Information Technology sector, specifically focusing on high-performance computing (HPC) services. The HPC market is characterized by significant technological advancements and substantial investment from both government and private sectors for data-intensive research and operations. This contract supports the growing need for advanced computational power in biomedical research, aligning with broader trends in digital health and data science. Comparable spending benchmarks would involve analyzing other federal procurements for HPC infrastructure and services, particularly those supporting large-scale scientific endeavors.

Small Business Impact

The provided data does not indicate any small business set-aside or subcontracting requirements for this specific delivery order. The nature of high-performance computing often involves large, complex systems that may favor larger, established technology providers. Further analysis would be needed to determine if small businesses were involved in the supply chain or if there were opportunities missed for their participation.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Institutes of Health (NIH) contracting officers and program managers. The firm fixed-price contract type provides a degree of financial oversight by establishing a set cost. Transparency is facilitated through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

National Institutes of Health IT Infrastructure Procurements
High-Performance Computing Services
Biomedical Research Support Contracts
Data Analysis and Processing Services

Risk Flags

Short contract duration may indicate a need for rapid deployment, potentially increasing execution risk.
Reliance on specialized high-performance computing could create dependencies on specific vendor technologies.
The broad NAICS code might obscure the full scope of services provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $23,025.31 to NEW TECH SOLUTIONS, INC.. NHLBI EM CORE REQUIRES HIGH PERFORMANCE COMPUTER IN ORDER TO PROCESS AND ANALYZE LARGE VOLUME IMAGING DATASETS RAPIDLY TO FULFILL THE REQUIREMENTS OF MAKING RAPID DECISIONS ON PROJECT FEASIBILITY AND DIRECTION.

Who is the contractor on this award?

The obligated recipient is NEW TECH SOLUTIONS, INC..

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 $23,025.31.

What is the period of performance?

Start: 2021-06-07. End: 2021-07-07.

What is the specific nature of the 'high performance computer' required and how does it differ from standard computing resources?

The requirement for a 'high performance computer' (HPC) in this context, as indicated by the NHLBI EM CORE's need to 'process and analyze large volume imaging datasets rapidly,' suggests a system designed for massively parallel processing. Unlike standard computing resources, HPC systems utilize a large number of interconnected processors (CPUs and GPUs) working in concert to tackle complex computational problems at speeds far exceeding conventional computers. This is crucial for tasks like analyzing intricate medical imaging data, which involves immense datasets and computationally intensive algorithms. The goal is to reduce analysis time from potentially weeks or months to hours or days, enabling faster research decisions and project direction.

How does the firm fixed-price contract type mitigate risks for the government in this high-performance computing procurement?

A firm fixed-price (FFP) contract type establishes a ceiling price that the contractor must not exceed, regardless of the actual costs incurred. For the government, this mitigates financial risk by providing cost certainty for the specified scope of work. In the context of acquiring high-performance computing (HPC) resources for a defined period (30 days), an FFP contract ensures that the $23.03 million award is the total cost. This prevents cost overruns that could occur with cost-reimbursement contracts, especially if unforeseen technical challenges arise during the delivery order's execution. It incentivizes the contractor to manage their resources efficiently to maintain profitability within the agreed-upon price.

What are the potential long-term implications of this contract for NHLBI's research capabilities?

This contract provides a significant, albeit short-term, boost to the NHLBI's research capabilities by supplying essential high-performance computing (HPC) resources. The ability to rapidly process and analyze large imaging datasets can accelerate the pace of discovery, potentially leading to faster breakthroughs in understanding and treating heart, lung, and blood diseases. In the long term, this contract may inform future investments in permanent HPC infrastructure or cloud-based solutions. It highlights the critical role of advanced computing in modern biomedical research and could influence the strategic direction of NHLBI's technological roadmap, potentially leading to more efficient and impactful research outcomes.

Given the 'Other Computer Related Services' NAICS code (541519), what specific services might New Tech Solutions, Inc. be providing beyond just hardware?

The NAICS code 541519, 'Other Computer Related Services,' is broad and encompasses a wide range of IT services not classified elsewhere. For this contract, beyond potentially supplying or configuring the high-performance computing hardware, New Tech Solutions, Inc. could be providing crucial services such as system integration, software installation and optimization (e.g., for imaging analysis applications), network configuration, performance tuning, and potentially even basic operational support or training for researchers. Given the emphasis on rapid data analysis, the company's expertise likely extends to ensuring the entire computing environment is optimized for the specific, demanding workloads of the NHLBI's imaging datasets.

How does the competition level (3 bidders) for this $23M contract compare to typical procurements for specialized IT infrastructure?

For a specialized IT infrastructure procurement valued at $23 million, having three bidders under a full and open competition is a reasonable, though not exceptionally high, level of competition. Procurements for high-performance computing (HPC) often involve a limited number of vendors with the requisite technical expertise, specialized hardware, and experience in supporting large-scale scientific research environments. While more bidders would generally be preferred to maximize price competition, three indicates that the market is not entirely consolidated and that the government had viable options. The specific nature of the requirements, including performance specifications and integration needs, can sometimes naturally limit the pool of qualified offerors.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - COMPUTE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4179 BUSINESS CENTER DR, FREMONT, CA, 94538

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,025

Exercised Options: $23,025

Current Obligation: $23,025

Actual Outlays: $23,025

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: HHSN316201500040W

IDV Type: GWAC

Timeline