NIH awards $29.8M IT services contract to TISTA Science and Technology Corporation for NIA support

Contract Overview

Contract Amount: $29,809,249 ($29.8M)

Contractor: Tista Science and Technology Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2019-09-01

End Date: 2025-02-28

Contract Duration: 2,007 days

Daily Burn Rate: $14.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NATIONAL INSTITUTES OF HEALTH (NIH), NATIONAL INSTITUTE ON AGING (NIA) IT SERVICES AND SUPPORT

Place of Performance

Location: POTOMAC, MONTGOMERY County, MARYLAND, 20854

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $29.8 million to TISTA SCIENCE AND TECHNOLOGY CORPORATION for work described as: NATIONAL INSTITUTES OF HEALTH (NIH), NATIONAL INSTITUTE ON AGING (NIA) IT SERVICES AND SUPPORT Key points: 1. Contract value represents a significant investment in IT infrastructure for a key NIH institute. 2. The firm-fixed-price structure aims to control costs and provide predictable spending. 3. Competition level suggests a potentially robust market for these specialized IT services. 4. The contract duration extends over several years, indicating a need for sustained support. 5. Performance will be assessed against defined service levels for IT systems. 6. This award falls within the broader category of IT services for federal health agencies.

Value Assessment

Rating: good

The contract's total value of approximately $29.8 million over its period of performance is substantial for IT services. Benchmarking against similar large-scale IT support contracts within the federal government, particularly for health research institutions, suggests this is within a reasonable range. The firm-fixed-price (FFP) contract type is generally favorable for the government in managing costs, as it shifts cost overrun risks to the contractor. However, a detailed analysis of the specific services delivered and their efficiency would be needed for a more precise value-for-money assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, specific sources were excluded prior to the solicitation, which limits the overall competitive landscape. The number of bidders is not explicitly stated in the provided data, but the limited nature of the competition suggests that the price discovery mechanism might not have been as robust as in a truly full and open competition. This approach can sometimes be used when specific capabilities or past performance are critical, but it warrants scrutiny.

Taxpayer Impact: The exclusion of certain sources, even if justified, means taxpayers may not have benefited from the widest possible range of competitive bids, potentially impacting the final price paid.

Public Impact

Beneficiaries include researchers and staff at the National Institute on Aging (NIA) who rely on stable and efficient IT systems. Services delivered encompass computer systems design and related support, crucial for data management and research operations. The geographic impact is primarily focused on the National Institutes of Health (NIH) facilities, likely in Maryland. Workforce implications include the potential for TISTA Science and Technology Corporation to employ IT professionals to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have reduced price optimization for taxpayers.
The 'after exclusion of sources' clause requires careful review to ensure justification.
Long-term contract duration necessitates ongoing performance monitoring to ensure continued value.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
The contract supports a critical research institute (NIA), aligning with federal health priorities.
TISTA Science and Technology Corporation is a known entity in the federal IT contracting space.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and support. The federal IT services market is vast and highly competitive, with agencies increasingly relying on specialized contractors for complex systems. Spending in this area is driven by the need for modernization, cybersecurity, data analytics, and research support. Comparable spending benchmarks would typically involve analyzing IT support contracts awarded to other federal health agencies or research institutions of similar size and scope.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically related to small business set-asides for this particular award. The focus is on a larger prime contractor. Analysis of TISTA Science and Technology Corporation's own small business subcontracting plan, if applicable, would be necessary to understand its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Institutes of Health (NIH), specifically the National Institute on Aging (NIA), through contract officers and technical representatives. Accountability measures are embedded in the firm-fixed-price contract terms and performance work statements, requiring the contractor to meet defined service levels. Transparency is generally facilitated through federal procurement databases like FPDS-NG, where contract awards are reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

NIH IT Support Services
NIA Research Infrastructure
Federal Health IT Contracts
Computer Systems Design Services
HHS IT Modernization

Risk Flags

Limited competition may impact price optimization.
Need for clear justification for 'exclusion of sources'.
Potential for scope creep if requirements are not tightly managed.
Reliance on a single contractor for critical IT infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $29.8 million to TISTA SCIENCE AND TECHNOLOGY CORPORATION. NATIONAL INSTITUTES OF HEALTH (NIH), NATIONAL INSTITUTE ON AGING (NIA) IT SERVICES AND SUPPORT

Who is the contractor on this award?

The obligated recipient is TISTA SCIENCE AND TECHNOLOGY CORPORATION.

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 $29.8 million.

What is the period of performance?

Start: 2019-09-01. End: 2025-02-28.

What is TISTA Science and Technology Corporation's track record with federal IT contracts, particularly with NIH or NIA?

TISTA Science and Technology Corporation has a history of performing federal IT contracts. While specific details on their past performance with NIH or NIA require deeper database searches, their presence as a prime contractor on a significant award like this suggests they have met the necessary qualifications and demonstrated capability. Federal procurement data would reveal the number and value of previous contracts awarded to TISTA, the agencies they have served, and potentially performance ratings or past performance reviews. A thorough review would assess their experience in delivering similar IT services, their on-time delivery record, and their ability to manage complex projects within budget and scope.

How does the awarded price compare to market rates for similar IT services?

Benchmarking the $29.8 million contract value against market rates for similar IT services requires detailed analysis of the specific services included (e.g., system design, network support, help desk, cybersecurity). General market data for IT services can be obtained from industry reports and salary surveys. However, federal contracts often have unique requirements and compliance overhead that can influence pricing. A more precise comparison would involve looking at the average hourly rates or project costs for comparable tasks performed by other contractors serving federal agencies, particularly within the health and research sectors. The firm-fixed-price nature of this contract implies that TISTA has factored in market rates and their own cost structure to arrive at a total price.

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

Key risks include potential cost overruns if the scope is not well-defined (though mitigated by FFP), contractor underperformance impacting critical NIA operations, cybersecurity vulnerabilities, and potential vendor lock-in. Mitigation strategies involve a clearly defined Performance Work Statement (PWS), robust contract oversight by NIH/NIA, adherence to strict cybersecurity protocols, and performance metrics tied to payment. The limited competition also presents a risk of suboptimal pricing, which is partially addressed by the FFP structure and the need for the contractor to be competitive within the defined exclusion parameters. Regular performance reviews and clear communication channels are essential.

How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' approach for this type of IT service?

This procurement approach aims to balance competition with the need for specialized capabilities. It allows agencies to solicit bids from a broad range of potential offerors while excluding those who may not meet specific, pre-defined criteria. For complex IT services where specific technical expertise or past performance is paramount, this can ensure that only qualified vendors participate, potentially leading to better technical solutions. However, it inherently limits the number of bidders compared to a truly open competition, which could reduce price pressure. The effectiveness hinges on the justification for excluding sources and whether the remaining pool still offers sufficient competition to drive value for the government.

What is the historical spending pattern for IT services at the National Institute on Aging?

Analyzing historical spending patterns for IT services at the NIA is crucial for context. This involves examining previous contract awards for similar services, their values, durations, and the contractors involved. Significant year-over-year increases or decreases in spending could indicate changes in IT needs, modernization efforts, or shifts in procurement strategies. Understanding the baseline spending allows for a more informed assessment of the current $29.8 million award. For instance, if historical spending was consistently lower, it might warrant a closer look at the justification for the increased amount. Conversely, if it aligns with a trend of increasing IT investment, it suggests a planned expansion of services.

What are the implications of the firm-fixed-price contract type on contractor performance and government oversight?

The Firm-Fixed-Price (FFP) contract type places the primary responsibility for cost control on the contractor. This means TISTA Science and Technology Corporation is obligated to perform the work within the agreed-upon price, absorbing any cost overruns. This structure is generally advantageous for the government as it provides budget certainty. However, it can incentivize contractors to cut corners on quality or service if not adequately monitored. Therefore, government oversight must be diligent in ensuring that the contractor meets all performance requirements and quality standards outlined in the contract. Robust performance metrics and regular progress reviews are critical to ensure the government receives the full value of the contract.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: C58432SB

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1201 SEVEN LOCKS RD, STE 350, ROCKVILLE, MD, 20854

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $29,809,249

Exercised Options: $29,809,249

Current Obligation: $29,809,249

Actual Outlays: $22,662,318

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200200W

IDV Type: GWAC

Timeline