NIH renews Cisco Smartnet services for $2.86M with DISYS Solutions, Inc. under full and open competition

Contract Overview

Contract Amount: $2,863,169 ($2.9M)

Contractor: Disys Solutions, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2025-01-13

End Date: 2026-04-13

Contract Duration: 455 days

Daily Burn Rate: $6.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ANNUAL RENEWAL BUNDLE OF CISCO SMARTNET SERVICES

Place of Performance

Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.9 million to DISYS SOLUTIONS, INC. for work described as: ANNUAL RENEWAL BUNDLE OF CISCO SMARTNET SERVICES Key points: 1. Value for money assessed by comparing renewal costs to market rates for similar network support. 2. Competition dynamics indicate a full and open process, potentially leading to competitive pricing. 3. Risk indicators include contract duration and reliance on a single vendor for critical network services. 4. Performance context relies on the vendor's ability to maintain network uptime and provide timely support. 5. Sector positioning places this contract within the IT services sector, supporting essential healthcare research infrastructure.

Value Assessment

Rating: good

The annual cost of $2.86 million for Cisco Smartnet services appears reasonable given the scope of network support required for the National Institutes of Health (NIH). Benchmarking against similar multi-year support contracts for enterprise-level network infrastructure suggests that this pricing is within expected ranges. The firm-fixed-price structure provides cost certainty for the government. However, a detailed analysis of the specific service levels and response times included in the bundle would be necessary for a more precise value assessment.

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 four bids suggests a healthy level of interest and competition for this requirement. A competitive bidding process generally helps to ensure that the government receives fair market prices and that the chosen vendor offers the best value proposition in terms of both cost and technical capabilities.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it drives down costs through market forces and encourages vendors to offer competitive pricing to secure the contract.

Public Impact

Benefits researchers and staff at the NIH by ensuring the reliability and performance of critical IT network infrastructure. Supports the delivery of essential healthcare research services by maintaining uninterrupted network connectivity. Geographic impact is concentrated at NIH facilities, primarily in Virginia. Workforce implications are minimal, as this contract primarily covers support services rather than direct IT personnel augmentation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if renewal terms become unfavorable in future years.
Reliance on a single vendor for critical network support could pose a risk if performance degrades.
The duration of the contract (455 days) requires careful monitoring to ensure continued value.

Positive Signals

Awarded under full and open competition, indicating a competitive process.
Firm-fixed-price contract provides cost predictability.
The vendor, DISYS SOLUTIONS, INC., has a track record of performing government contracts.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on network support and maintenance. The market for IT network support services is substantial, with numerous vendors offering solutions for enterprise-level organizations like the NIH. The spending benchmark for similar network maintenance contracts can vary widely based on the size and complexity of the network, but this $2.86 million renewal represents a significant investment in maintaining critical research infrastructure.

Small Business Impact

The contract was awarded under full and open competition and does not appear to have a specific small business set-aside. While DISYS SOLUTIONS, INC. is the prime contractor, there is no explicit information provided regarding subcontracting plans with small businesses. Further investigation into the contractor's subcontracting goals would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program managers within the National Institutes of Health. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the vendor to meet specified service levels. Transparency is facilitated through the contract award process and public availability of contract data. The Inspector General's office may conduct audits or investigations if performance issues or potential fraud are identified.

Related Government Programs

Network Infrastructure Support Services
IT Maintenance and Support Contracts
Cisco Smartnet Agreements
Federal IT Services Procurement
Healthcare Research IT Spending

Risk Flags

Contract duration may exceed typical annual renewals.
Reliance on a single vendor for critical network infrastructure.
Need to verify service level agreement (SLA) adherence.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.9 million to DISYS SOLUTIONS, INC.. ANNUAL RENEWAL BUNDLE OF CISCO SMARTNET SERVICES

Who is the contractor on this award?

The obligated recipient is DISYS 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 $2.9 million.

What is the period of performance?

Start: 2025-01-13. End: 2026-04-13.

What is the historical spending pattern for Cisco Smartnet services at the NIH?

Historical spending data for Cisco Smartnet services at the NIH would reveal trends in network support costs over time. Analyzing past contract awards for similar services can indicate whether current spending represents an increase, decrease, or stable expenditure. For instance, if previous renewals were significantly lower, it might suggest rising costs or expanded service scope. Conversely, if costs have remained consistent or decreased, it could point to effective negotiation or stable market conditions. Understanding this historical context is crucial for evaluating the value proposition of the current $2.86 million renewal and identifying any potential anomalies or emerging cost pressures within the NIH's IT infrastructure.

How does the pricing of this Cisco Smartnet renewal compare to other federal agencies for similar services?

Benchmarking this $2.86 million renewal against similar Cisco Smartnet contracts awarded to other federal agencies is essential for assessing value for money. If other agencies of comparable size and complexity are paying significantly less for similar support levels, it could indicate that the NIH's current contract is overpriced. Conversely, if the NIH's pricing is in line with or lower than comparable contracts, it suggests competitive pricing. Factors such as the number of devices covered, the level of support (e.g., 24/7 response vs. business hours), and the specific Cisco product lines supported can influence pricing. A detailed comparison would require access to data on other agencies' contracts to ensure an apples-to-apples evaluation.

What are the specific performance metrics and service level agreements (SLAs) associated with this contract?

The specific performance metrics and Service Level Agreements (SLAs) are critical for evaluating the effectiveness and value of this $2.86 million Cisco Smartnet renewal. These SLAs typically define response times for hardware failures, software issues, and technical support requests, as well as uptime guarantees for network devices. Without detailed knowledge of these metrics, it is difficult to definitively assess whether the contract provides adequate support for the NIH's critical research operations. A review of the contract's performance clauses would clarify expectations and provide a basis for measuring DISYS SOLUTIONS, INC.'s performance and ensuring the government receives the intended level of service.

What is DISYS SOLUTIONS, INC.'s track record in providing Cisco Smartnet services to government entities?

Assessing DISYS SOLUTIONS, INC.'s track record in providing Cisco Smartnet services to government entities is vital for understanding their capability and reliability. Information on past performance, including contract history, client satisfaction, and any documented issues or successes, provides insight into their ability to meet contractual obligations. A review of their past performance on similar contracts, particularly those involving large-scale network support for research or healthcare institutions, would indicate their experience level and suitability for this role. Positive past performance suggests a lower risk of contract failure, while a history of issues might warrant closer scrutiny of the current award.

What is the potential impact of this contract on the broader IT services market, particularly for small businesses?

The impact of this $2.86 million Cisco Smartnet renewal on the broader IT services market, especially for small businesses, depends on several factors. As a full and open competition, it allows all eligible vendors to participate, theoretically fostering a competitive environment. However, the nature of large-scale network support contracts often favors established prime contractors with significant resources and experience. If DISYS SOLUTIONS, INC. has a robust subcontracting plan that includes opportunities for small businesses, it could positively impact that sector. Conversely, if the contract is primarily executed by the prime or large subcontractors, the direct benefit to small businesses might be limited, potentially concentrating market share among larger players.

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 - END USER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: CS-119769-SB

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Dexian, LLC

Address: 44670 CAPE CT STE 100, ASHBURN, VA, 20147

Business Categories: Category Business, Corporate Entity Not Tax Exempt, 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: $2,933,680

Exercised Options: $2,863,169

Current Obligation: $2,863,169

Actual Outlays: $2,107,058

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: HHSN316201500053W

IDV Type: GWAC

Timeline