NIH awards $10.6M IT support contract to DLH, LLC, under full and open competition

Contract Overview

Contract Amount: $10,580,553 ($10.6M)

Contractor: DLH, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2022-03-01

End Date: 2026-01-24

Contract Duration: 1,425 days

Daily Burn Rate: $7.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INFORMATION TECHNOLOGY BRANCH (ITB) BUSINESS INTELLIGENCE AND REPORTING (BIR) AND END USER INFORMATION TECHNOLOGY SUPPORT SERVICES CONTRACT

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $10.6 million to DLH, LLC for work described as: INFORMATION TECHNOLOGY BRANCH (ITB) BUSINESS INTELLIGENCE AND REPORTING (BIR) AND END USER INFORMATION TECHNOLOGY SUPPORT SERVICES CONTRACT Key points: 1. The contract value of $10.6 million over its period of performance represents a significant investment in IT support services. 2. Full and open competition was utilized, suggesting a robust market response and potential for competitive pricing. 3. The firm-fixed-price contract type shifts performance risk to the contractor, DLH, LLC. 4. This award falls within the Computer Systems Design Services NAICS code, a common category for IT support. 5. The contract duration of 1425 days (approximately 3.9 years) indicates a need for sustained IT support. 6. The award was made via a Delivery Order, suggesting it is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or a similar framework.

Value Assessment

Rating: good

Benchmarking this contract's value requires comparison to similar IT support services contracts within the federal government, particularly those awarded by NIH or other health-related agencies. Given the $10.6 million total value over nearly four years, the annual value is approximately $2.7 million. This appears to be a reasonable figure for comprehensive IT support services, including business intelligence, reporting, and end-user support, especially considering the specialized nature of NIH's research environment. The firm-fixed-price structure also suggests that the contractor has adequately estimated costs and risks.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which indicates that the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. While the specific number of bidders is not provided, the 'full and open' designation generally implies a competitive process with multiple interested parties. This approach is designed to maximize competition and ensure the government receives the best value.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it encourages a wider range of vendors to compete, potentially driving down prices and improving the quality of services offered.

Public Impact

Researchers and staff at the National Institutes of Health (NIH) will benefit from enhanced IT support, enabling smoother operations and access to critical data. The contract delivers essential services including business intelligence, reporting, and end-user IT support, crucial for the functioning of a large research institution. The primary geographic impact is within Maryland, where NIH facilities are located, supporting its operational needs. The contract supports the IT workforce by providing employment opportunities for individuals with expertise in computer systems design and support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the incumbent's solutions become deeply integrated and difficult to replace.
Reliance on a single contractor for critical IT infrastructure could pose a risk if the contractor experiences performance issues or financial instability.
The firm-fixed-price nature, while shifting risk, could lead to contractor cost-cutting measures that impact service quality if not closely monitored.

Positive Signals

The use of full and open competition suggests a healthy market and potential for competitive pricing, benefiting the government.
The firm-fixed-price contract type aligns incentives by placing performance risk on the contractor.
The contract's duration indicates a stable, long-term need for these services, allowing for continuity and expertise development.
DLH, LLC's selection implies they met the technical and performance requirements outlined in the solicitation.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design and related services. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure to support operations and research. Contracts like this are essential for agencies like NIH, which rely heavily on robust IT systems for data management, research collaboration, and administrative functions. Benchmarks for similar contracts often vary widely based on scope, duration, and specific service requirements, but this award appears aligned with typical spending for comprehensive IT support within a large federal agency.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on the small business ecosystem would be through potential subcontracting opportunities if DLH, LLC chooses to engage small businesses for specific components of the work. Without explicit subcontracting plans or goals detailed in the award, it is difficult to assess the direct benefit to small businesses from this particular contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the assigned contract specialist or administrator within the Department of Health and Human Services, specifically the National Institutes of Health. Performance monitoring, adherence to the firm-fixed-price terms, and quality assurance would be key oversight functions. Transparency is generally maintained through contract award databases like FPDS, which provide details on contract value, type, and parties involved. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

IT Support Services
Computer Systems Design Services
Business Intelligence and Reporting
End User Support
Federal IT Contracts
NIH IT Spending

Risk Flags

Potential for scope creep if requirements are not clearly defined.
Risk of contractor performance issues impacting critical NIH operations.
Over-reliance on a single vendor for essential IT services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $10.6 million to DLH, LLC. INFORMATION TECHNOLOGY BRANCH (ITB) BUSINESS INTELLIGENCE AND REPORTING (BIR) AND END USER INFORMATION TECHNOLOGY SUPPORT SERVICES CONTRACT

Who is the contractor on this award?

The obligated recipient is DLH, 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 $10.6 million.

What is the period of performance?

Start: 2022-03-01. End: 2026-01-24.

What is the track record of DLH, LLC in performing similar federal IT support contracts?

DLH, LLC has a significant history of performing federal contracts, including those related to IT services and support. A review of federal procurement data would reveal their past performance ratings, any past performance issues or disputes, and the types of agencies they have served. For this specific contract, the NIH's selection of DLH, LLC suggests that they met the agency's criteria based on past performance or demonstrated capabilities. Further analysis would involve examining their contract history for similar scope and scale, particularly within health-focused agencies, to assess their experience in delivering business intelligence, reporting, and end-user IT support in complex research environments. Their ability to successfully manage firm-fixed-price contracts and meet delivery timelines would be key indicators of their track record.

How does the value of this contract compare to other IT support contracts awarded by NIH or similar agencies?

The total contract value of $10.6 million over approximately 3.9 years equates to an average annual value of roughly $2.7 million. To benchmark this, one would compare it against other IT support and computer systems design services contracts awarded by the National Institutes of Health (NIH) and other agencies within the Department of Health and Human Services (HHS), as well as comparable research-intensive federal bodies like the National Science Foundation or Department of Energy. Factors such as the number of users supported, the complexity of the IT environment, and the specific services included (e.g., cybersecurity, cloud services, specialized research application support) heavily influence contract values. If this contract covers a broad range of standard IT support functions for a significant user base within NIH, its value appears to be within a reasonable range for such a large and critical federal research institution.

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

Key risks include potential performance deficiencies by the contractor (DLH, LLC), leading to disruptions in critical IT services for NIH researchers and staff. Given the firm-fixed-price (FFP) nature, there's also a risk that the contractor might cut corners on quality or service levels to maximize profit, if not adequately monitored. Another risk is the potential for vendor lock-in if the implemented solutions become highly proprietary or difficult to transition away from. Mitigation strategies typically involve robust performance monitoring by the government, clearly defined service level agreements (SLAs), regular performance reviews, and strong contract management by the NIH. The use of full and open competition also mitigates risk by ensuring a competitive market and providing options for future contract awards.

How effective is the chosen contract type (Firm Fixed Price) for delivering these IT support services?

The Firm Fixed Price (FFP) contract type is generally considered effective for well-defined services where the scope of work is clear and unlikely to change significantly. For IT support services like business intelligence, reporting, and end-user support, FFP can be advantageous as it shifts the risk of cost overruns to the contractor, DLH, LLC. This incentivizes the contractor to manage costs efficiently and deliver services within the agreed-upon price. However, effectiveness hinges on the clarity of the SOW and SLAs. If requirements are ambiguous or scope creep occurs, an FFP contract can lead to disputes or pressure the contractor to reduce quality. For NIH, this type likely provides cost certainty, but requires diligent oversight to ensure service quality is maintained.

What are the historical spending patterns for IT support services at NIH, and how does this contract fit?

Historical spending patterns for IT support services at NIH typically show consistent and substantial investment due to the agency's mission-critical research and data management needs. Agencies like NIH rely heavily on advanced IT infrastructure and support to facilitate scientific discovery and collaboration. This $10.6 million contract for business intelligence, reporting, and end-user IT support fits within this pattern of sustained investment. It represents a specific allocation for these crucial functions, likely complementing other IT contracts covering areas such as cybersecurity, network infrastructure, or specialized research computing. Analyzing past NIH IT budgets and contract awards for similar services would provide context on whether this award represents an increase, decrease, or stable level of spending for these particular IT support functions.

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 - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: NIMH22001149

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: DLH Holdings Corp

Address: 6720B ROCKLEDGE DR STE 777, BETHESDA, MD, 20817

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $10,580,553

Exercised Options: $10,580,553

Current Obligation: $10,580,553

Actual Outlays: $10,228,994

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200145W

IDV Type: GWAC

Timeline