HHS awards $54.2M for IT consulting, with Gartner Inc. securing the contract

Contract Overview

Contract Amount: $54,202,506 ($54.2M)

Contractor: Gartner, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2020-09-10

End Date: 2025-05-31

Contract Duration: 1,724 days

Daily Burn Rate: $31.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT SUBSCRIPTION AND CONSULTING SUPPORT SERVICES

Place of Performance

Location: FREMONT, ALAMEDA County, CALIFORNIA, 94538

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $54.2 million to GARTNER, INC. for work described as: IT SUBSCRIPTION AND CONSULTING SUPPORT SERVICES Key points: 1. Value for money assessed against market benchmarks for similar IT consulting services. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators are monitored through contract performance and delivery order structure. 4. Performance context is evaluated based on the scope of IT subscription and consulting support. 5. Sector positioning places this contract within the broader IT services market for healthcare research. 6. The contract's duration and fixed-price nature provide cost predictability.

Value Assessment

Rating: good

The contract value of $54.2 million over its period of performance appears reasonable for IT subscription and consulting support services. Benchmarking against similar large-scale IT service contracts within federal agencies suggests that the pricing is within expected ranges, especially considering the specialized nature of consulting and subscription services. The firm fixed-price structure helps in managing costs and provides a degree of certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but a full and open competition generally suggests a robust bidding process. This level of competition is favorable for price discovery and ensures that the government receives offers from a wide range of qualified vendors.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it is expected to yield more competitive pricing and a wider selection of innovative solutions, ultimately leading to better value for public funds.

Public Impact

The National Institutes of Health (NIH) benefits from enhanced IT capabilities and expert consulting. Services delivered include IT subscriptions and specialized consulting support for research initiatives. The geographic impact is primarily within the NIH's operational centers, supporting federal research. Workforce implications may involve leveraging external expertise to augment internal IT and research support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if consulting services are not clearly defined.
Reliance on a single contractor for critical IT support could pose a risk if performance falters.

Positive Signals

Firm fixed-price contract provides cost certainty.
Full and open competition suggests a competitive market was leveraged.
Long-term contract allows for sustained support and relationship building.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on consulting and subscription services. The IT services market for government agencies is substantial, with significant spending allocated to software, hardware, and professional services. This contract aligns with the broader trend of federal agencies outsourcing specialized IT functions to leverage external expertise and maintain cutting-edge technological capabilities, particularly within research-intensive organizations like NIH.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses are unlikely to be direct beneficiaries of this award. However, the prime contractor, Gartner, Inc., may engage small businesses as subcontractors, depending on their subcontracting plans and the specific needs of the services provided. The absence of a small business set-aside means the primary focus was on obtaining the best value from the broader market.

Oversight & Accountability

Oversight for this contract is likely managed by the contracting officers and program managers within the National Institutes of Health. Performance will be monitored against the terms and conditions of the delivery order and the overarching contract. Transparency is facilitated through contract databases like FPDS. While specific IG jurisdiction is not detailed, the HHS Office of Inspector General would have oversight authority over potential fraud, waste, or abuse related to federal contracts.

Related Government Programs

IT Professional Services
Software and Utilities
Information Technology Consulting
Cloud Computing Services
Research and Development Support

Risk Flags

Contract Duration
Vendor Lock-in Potential
Scope Definition Clarity

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $54.2 million to GARTNER, INC.. IT SUBSCRIPTION AND CONSULTING SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is GARTNER, 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 $54.2 million.

What is the period of performance?

Start: 2020-09-10. End: 2025-05-31.

What is Gartner, Inc.'s track record with the federal government, particularly with the Department of Health and Human Services?

Gartner, Inc. has a significant history of contracting with the federal government across various agencies, including HHS. Their awards typically span IT research, advisory services, and consulting. For HHS specifically, Gartner has secured numerous contracts over the years, often related to IT strategy, market intelligence, and technology adoption. Analyzing past performance on similar contracts would reveal their reliability, quality of service, and adherence to contractual obligations. A review of contract databases would show the volume and value of their federal awards, providing insight into their established presence and experience within the government IT landscape.

How does the awarded amount of $54.2 million compare to similar IT consulting contracts awarded by NIH or other federal health agencies?

The $54.2 million awarded to Gartner, Inc. for IT subscription and consulting support services by NIH needs to be benchmarked against comparable contracts. Similar large-scale IT consulting and subscription agreements within federal health agencies can range widely depending on the scope, duration, and specific services. For instance, contracts for enterprise-wide IT strategy, cybersecurity consulting, or large software subscriptions can easily reach tens of millions of dollars over several years. Without specific details on the exact services and duration, a precise comparison is difficult, but the amount is consistent with significant IT support engagements for major federal research institutions.

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

Primary risks for this contract include potential over-reliance on a single vendor (Gartner, Inc.) for critical IT functions, the possibility of scope creep if consulting deliverables are not tightly managed, and ensuring the value derived from subscription services aligns with evolving needs. Mitigation strategies likely involve robust contract management by NIH officials, clear definition and monitoring of performance work statements, regular progress reviews, and potentially incorporating flexibility clauses for adapting services. The firm fixed-price nature also mitigates cost overrun risks for the government, shifting that risk to the contractor.

How effective has Gartner, Inc. been in delivering IT subscription and consulting services in previous federal engagements?

Gartner, Inc.'s effectiveness in previous federal engagements is generally considered strong, given their continued success in securing government contracts. They are a well-established research and advisory firm known for providing market insights and strategic guidance on technology. Past performance evaluations, where available in federal databases, would offer specific data points on their timeliness, quality of deliverables, and customer satisfaction. Agencies often leverage Gartner for their expertise in understanding technology trends, vendor landscapes, and best practices, suggesting a high level of perceived effectiveness in their core offerings.

What are the historical spending patterns for IT subscription and consulting services at NIH?

Historical spending patterns for IT subscription and consulting services at NIH have shown a consistent and significant investment in these areas. NIH, as a leading biomedical research agency, relies heavily on advanced IT infrastructure and expert guidance to support its vast research endeavors. Spending typically increases with the complexity of research projects, the need for data management and analytics, and the adoption of new technologies. Analyzing past years' spending on similar contract vehicles and service categories would reveal trends in IT modernization, cloud adoption, and the utilization of external expertise, indicating a sustained demand for such services.

Does the 'Other Computer Related Services' NAICS code (541519) adequately capture the scope of services provided under this contract?

The NAICS code 541519, 'Other Computer Related Services,' is a broad category that can encompass a wide range of IT services beyond traditional software development or hardware support. For a contract involving IT subscription and consulting, this code is often appropriate as it can include services like IT strategy, market research, advisory services, and specialized IT support that don't fit neatly into more specific codes. However, the adequacy depends on the precise mix of services. If the contract heavily emphasizes subscription-based research or specific consulting methodologies unique to Gartner, this code serves as a reasonable, albeit general, classification.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 56 TOP GALLANT RD, STAMFORD, CT, 06902

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

Financial Breakdown

Contract Ceiling: $61,036,777

Exercised Options: $54,202,506

Current Obligation: $54,202,506

Actual Outlays: $45,383,207

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA18D008L

IDV Type: FSS

Timeline