HHS awards $17.2M for Wide Area Network Services to Zayo Group LLC, enhancing NIH connectivity
Contract Overview
Contract Amount: $17,203,514 ($17.2M)
Contractor: Zayo Group LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2022-05-16
End Date: 2026-05-15
Contract Duration: 1,460 days
Daily Burn Rate: $11.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: WIDE AREA NETWORK SERVICES
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $17.2 million to ZAYO GROUP LLC for work described as: WIDE AREA NETWORK SERVICES Key points: 1. Contract awarded to Zayo Group LLC for WAN services. 2. Significant investment in telecommunications infrastructure for NIH. 3. Potential for cost savings through competitive bidding. 4. Focus on wired telecommunications carriers sector.
Value Assessment
Rating: good
The contract value of $17.2M over four years appears reasonable for comprehensive Wide Area Network services. Benchmarking against similar large-scale federal network contracts suggests this pricing is competitive, especially considering the scope and duration.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust price discovery process. This method likely ensured the government received competitive bids and achieved a fair market price for the services.
Taxpayer Impact: Taxpayers benefit from competitive pricing achieved through an open bidding process, ensuring efficient use of federal funds for essential network services.
Public Impact
Ensures reliable and high-speed internet access for critical health research at NIH. Supports data transfer for medical research, public health initiatives, and administrative functions. Modernizes federal IT infrastructure, improving operational efficiency. Contributes to the digital backbone of a major health agency.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Positive Signals
- Full and open competition ensures best value.
- Contract supports critical health research infrastructure.
- Long-term contract provides stability for network services.
Sector Analysis
This contract falls within the Wired Telecommunications Carriers sector, a critical component of federal IT infrastructure. Spending in this area is essential for maintaining secure and efficient communication networks across government agencies.
Small Business Impact
The data does not indicate specific subcontracting opportunities for small businesses. Further analysis would be needed to determine if small businesses are participating in the fulfillment of this contract.
Oversight & Accountability
The contract is managed by the Department of Health and Human Services, National Institutes of Health. Standard federal procurement oversight processes should apply to ensure performance and adherence to contract terms.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Time and Materials pricing can lead to cost overruns if not managed.
- Dependence on a single vendor for critical network infrastructure.
- Potential for scope creep without strict oversight.
Tags
wired-telecommunications-carriers, department-of-health-and-human-services, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $17.2 million to ZAYO GROUP LLC. WIDE AREA NETWORK SERVICES
Who is the contractor on this award?
The obligated recipient is ZAYO GROUP 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 $17.2 million.
What is the period of performance?
Start: 2022-05-16. End: 2026-05-15.
What is the specific scope of 'Wide Area Network Services' covered by this contract?
The 'Wide Area Network Services' likely encompass the provision, management, and maintenance of network infrastructure connecting various NIH facilities. This includes high-bandwidth data circuits, routing, security, and potentially cloud connectivity, ensuring seamless communication for research, data sharing, and operational needs across geographically dispersed locations.
Are there any identified risks associated with Zayo Group LLC's performance or the Time and Materials pricing structure?
Risks could include potential cost overruns with Time and Materials if not closely monitored, and reliance on a single vendor for critical infrastructure. Performance risks are mitigated by the full and open competition, suggesting Zayo was selected based on capability and price. Ongoing oversight is crucial to manage these potential issues effectively.
How does this investment in WAN services contribute to the overall effectiveness of NIH's research and public health missions?
Robust and reliable WAN services are foundational to modern research. This contract ensures NIH can handle large data sets, facilitate collaboration among researchers, and support telehealth initiatives. It directly enhances the agency's ability to conduct cutting-edge research and disseminate critical public health information efficiently and securely.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
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: 1401 WYNKOOP ST STE 500, DENVER, CO, 80202
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $23,927,454
Exercised Options: $17,203,514
Current Obligation: $17,203,514
Actual Outlays: $11,051,033
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS35F070CA
IDV Type: FSS
Timeline
Start Date: 2022-05-16
Current End Date: 2026-05-15
Potential End Date: 2027-05-16 00:00:00
Last Modified: 2026-04-09
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