HHS NIH Spends $23.4M on IT Licenses from New Tech Solutions, Inc
Contract Overview
Contract Amount: $23,411,528 ($23.4M)
Contractor: NEW Tech Solutions, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2024-11-01
End Date: 2025-12-31
Contract Duration: 425 days
Daily Burn Rate: $55.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IT LICENSES
Place of Performance
Location: FREMONT, ALAMEDA County, CALIFORNIA, 94538
Plain-Language Summary
Department of Health and Human Services obligated $23.4 million to NEW TECH SOLUTIONS, INC. for work described as: IT LICENSES Key points: 1. Significant expenditure on IT licenses highlights reliance on external vendors. 2. Competition method is 'Full and Open', suggesting potential for multiple bidders. 3. Risk of vendor lock-in or overspending exists despite competitive bidding. 4. Sector focus on 'Other Computer Related Services' indicates specialized IT needs.
Value Assessment
Rating: fair
The contract value of $23.4M for 425 days (approx. $55k/day) needs comparison against similar IT license procurements. Without specific license details, a precise benchmark is difficult, but the daily rate appears moderate.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes price discovery and competitive pricing. However, the impact on the final price depends on the number and quality of bids received.
Taxpayer Impact: Taxpayer funds are being used for IT licenses. The effectiveness of the competition in securing the best value will determine the overall taxpayer impact.
Public Impact
Ensures NIH has necessary IT licenses for operations. Supports a technology vendor, potentially fostering innovation. Potential for cost savings if competition drives down prices. Requires ongoing monitoring to ensure continued value and necessity.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price creep over contract duration.
- Dependence on a single vendor for critical IT licenses.
- Need to verify if licenses are actively used and necessary.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type limits cost overruns.
- Clear end date for the contract.
Sector Analysis
This contract falls within the IT sector, specifically 'Other Computer Related Services'. Spending benchmarks for IT licenses vary widely based on software type, volume, and vendor. This expenditure represents a significant investment in IT infrastructure for the NIH.
Small Business Impact
The data does not indicate if small businesses were involved in this procurement. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight is crucial to ensure the NIH is receiving the intended value for these IT licenses and that the vendor is meeting all contractual obligations. Regular performance reviews and audits are recommended.
Related Government Programs
- Other Computer Related Services
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Lack of specific license details hinders value assessment.
- Potential for vendor lock-in despite initial competition.
- Need to confirm active utilization and necessity of licenses.
- Moderate daily rate requires benchmarking against similar contracts.
- Unknown small business participation.
Tags
other-computer-related-services, department-of-health-and-human-services, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $23.4 million to NEW TECH SOLUTIONS, INC.. IT LICENSES
Who is the contractor on this award?
The obligated recipient is NEW TECH SOLUTIONS, 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 $23.4 million.
What is the period of performance?
Start: 2024-11-01. End: 2025-12-31.
What specific IT licenses are being procured, and do they align with NIH's current and future technological needs?
The provided data lacks specificity regarding the exact IT licenses. Understanding the nature of these licenses (e.g., operating systems, specialized software, cloud services) is critical to assess their necessity and alignment with NIH's mission. Without this detail, it's difficult to confirm if the $23.4M expenditure represents optimal value or if alternative, more cost-effective solutions exist.
What was the competitive landscape like for this 'Full and Open' procurement, and did it result in a price advantage?
While 'Full and Open' competition is a positive indicator, the actual price advantage depends on the number and caliber of bids received. If only a few vendors participated, or if the winning bid was close to the maximum allowable price, the competitive advantage might be limited. Further investigation into bid submissions and pricing strategies would clarify the effectiveness of the competition.
How will the effectiveness and utilization of these IT licenses be measured throughout the contract period?
Measuring effectiveness requires establishing clear metrics for license utilization and impact on NIH operations. This could include tracking user adoption, performance improvements, or cost savings compared to previous solutions. Without defined performance indicators and regular monitoring, it's challenging to ascertain if the $23.4M investment is yielding the expected benefits and contributing to NIH's objectives.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - END USER
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: CS-119101-SB
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4179 BUSINESS CENTER DR, FREMONT, CA, 94538
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $46,866,924
Exercised Options: $23,411,528
Current Obligation: $23,411,528
Actual Outlays: $12,274,884
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: HHSN316201500040W
IDV Type: GWAC
Timeline
Start Date: 2024-11-01
Current End Date: 2025-12-31
Potential End Date: 2027-10-31 00:00:00
Last Modified: 2025-12-22
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