NIDDK awards $25.9M contract for computer systems design services to Onpoint Consulting, Inc

Contract Overview

Contract Amount: $25,924,909 ($25.9M)

Contractor: Onpoint Consulting, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2021-05-25

End Date: 2025-05-24

Contract Duration: 1,460 days

Daily Burn Rate: $17.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: NIDDK COMMUNICATIONS SUPPORT

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $25.9 million to ONPOINT CONSULTING, INC. for work described as: NIDDK COMMUNICATIONS SUPPORT Key points: 1. Contract value of $25.9M over 3 years suggests a significant investment in IT support. 2. Full and open competition indicates a potentially competitive bidding process. 3. Time and Materials contract type may pose cost control challenges if not managed closely. 4. The contract is for computer systems design services, a critical function for research institutions. 5. Awarded by the National Institutes of Health (NIH), a major health research agency. 6. The contractor, Onpoint Consulting, Inc., has secured this significant award.

Value Assessment

Rating: good

The contract value of $25.9 million over approximately 3 years for computer systems design services appears reasonable given the scope and duration. Benchmarking against similar IT support contracts within federal health agencies would provide a more precise value-for-money assessment. The Time and Materials pricing structure necessitates diligent oversight to ensure costs remain within expected parameters and do not escalate due to inefficiencies or scope creep. Without specific performance metrics or detailed cost breakdowns, a definitive value assessment is challenging, but the overall investment aligns with the needs of a large research institution like NIH.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The fact that it was competed openly is a positive sign for price discovery and potentially achieving a fair market price. The number of bidders is not specified, but open competition generally leads to a more robust selection process and better outcomes for the government compared to sole-source or limited competition awards.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down prices through market forces and encourages a wider range of innovative solutions.

Public Impact

The National Institute of Diabetes and Digestive and Kidney Diseases (NIDDK) is the primary beneficiary, receiving essential IT support. Services include computer systems design, crucial for managing and analyzing research data. The contract's geographic impact is centered in Maryland, where the awardee is located. The contract supports the federal workforce by providing necessary technological infrastructure and expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored for efficiency and scope.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's performance potential.
The duration of the contract (1460 days) is substantial, requiring sustained oversight to ensure continued value.

Positive Signals

Awarded through full and open competition, indicating a potentially competitive and fair pricing process.
The contract supports a critical function (computer systems design) for a major research agency (NIH).
The contractor, Onpoint Consulting, Inc., has secured a significant federal contract, suggesting a level of established capability.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design. The federal IT services market is substantial, with agencies consistently investing in technology to support their missions. This contract with NIH represents a portion of that spending, aimed at enhancing research capabilities through robust IT infrastructure. Comparable spending benchmarks would involve looking at other large federal contracts for IT support and systems design awarded to similar-sized firms within the health and science sectors.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. The primary focus of this award is on the capabilities of the prime contractor, Onpoint Consulting, Inc. Analysis of potential subcontracting opportunities would require further investigation into the contractor's specific teaming arrangements and procurement practices.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Institutes of Health (NIH) contracting officers and program managers. Accountability measures are typically embedded within the contract terms, including performance standards, reporting requirements, and payment schedules tied to deliverables. Transparency is facilitated through federal contract databases like FPDS, where award details are publicly available. The Inspector General for the Department of Health and Human Services would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

NIH IT Support Contracts
Federal Computer Systems Design Services
Health Research IT Modernization
Department of Health and Human Services IT Procurement

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Need for robust oversight to manage scope creep and ensure efficiency.
Dependence on contractor performance for critical IT infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $25.9 million to ONPOINT CONSULTING, INC.. NIDDK COMMUNICATIONS SUPPORT

Who is the contractor on this award?

The obligated recipient is ONPOINT CONSULTING, 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 $25.9 million.

What is the period of performance?

Start: 2021-05-25. End: 2025-05-24.

What is the track record of Onpoint Consulting, Inc. in performing similar federal IT contracts?

A thorough review of Onpoint Consulting, Inc.'s past performance is crucial for assessing their capability to successfully execute this $25.9 million contract. This would involve examining their history with federal agencies, particularly the Department of Health and Human Services and the National Institutes of Health. Key areas to investigate include their successful completion of prior computer systems design and IT support contracts, adherence to schedules and budgets, and client satisfaction ratings. Analyzing past contract awards and modifications can reveal patterns in their project management and technical expertise. Furthermore, understanding any past performance issues, contract disputes, or corrective actions taken against the company would provide a more balanced perspective on their reliability and competence.

How does the awarded amount compare to similar computer systems design contracts within the federal government?

The awarded amount of $25.9 million for computer systems design services over approximately three years needs to be benchmarked against comparable federal contracts. This involves identifying similar contracts awarded by agencies like NIH or other health-focused research institutions for comparable services. Factors to consider in the comparison include the contract duration, scope of work, complexity of the systems involved, and the size and experience of the awarded contractor. If this contract's value per year or per service hour is significantly higher or lower than similar contracts, it could indicate either exceptional value or potential overpricing. Accessing historical contract data from sources like the Federal Procurement Data System (FPDS) is essential for conducting such a comparative analysis.

What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude?

Time and Materials (T&M) contracts, like the one awarded to Onpoint Consulting, Inc., carry inherent risks, particularly for a contract valued at $25.9 million. The primary risk is cost escalation, as the government pays for the actual labor hours and materials used, plus a fixed fee or labor rate. Without stringent oversight and well-defined task orders, contractors may have less incentive to control costs or improve efficiency, potentially leading to expenditures exceeding initial estimates. Scope creep is another significant risk; T&M contracts can make it easier for requirements to expand without a formal re-negotiation of the contract ceiling. To mitigate these risks, the contracting agency must implement robust monitoring of labor hours, material costs, and task order performance, ensuring clear deliverables and efficient resource utilization.

What is the expected impact of this contract on NIDDK's research capabilities and data management?

This contract is expected to significantly enhance NIDDK's research capabilities by ensuring the availability of robust, reliable, and modern computer systems. Effective computer systems design and support are fundamental to managing the vast amounts of data generated by biomedical research, facilitating data analysis, collaboration among researchers, and the secure storage of sensitive information. Improved IT infrastructure can accelerate the pace of discovery, enable the use of advanced analytical tools, and support the dissemination of research findings. Ultimately, this investment in IT services aims to strengthen NIDDK's mission of advancing the understanding and treatment of diabetes, digestive, and kidney diseases.

How has federal spending on computer systems design services evolved over the past five years, and where does this contract fit?

Federal spending on computer systems design services has generally seen a steady increase over the past five years, driven by the ongoing digital transformation across government agencies and the need to modernize legacy systems. Agencies are increasingly relying on external expertise to design, implement, and manage complex IT infrastructures. This $25.9 million contract awarded to Onpoint Consulting, Inc. by NIH fits within this trend, representing a significant investment by a major health research agency in critical IT support. It reflects the broader federal emphasis on leveraging advanced technological solutions to improve operational efficiency, enhance data security, and support mission-critical functions, particularly in the scientific and healthcare domains.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 4250 N FAIRFAX DR SUITE 600, ARLINGTON, VA, 22203

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,708,642

Exercised Options: $25,924,909

Current Obligation: $25,924,909

Actual Outlays: $25,066,416

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200038W

IDV Type: GWAC

Timeline