HHS awards $24.4M IT contract for executive information systems to EIS, L.L.C., with a 2-year performance period

Contract Overview

Contract Amount: $24,376,867 ($24.4M)

Contractor: Executive Information Systems, L.L.C.

Awarding Agency: Department of Health and Human Services

Start Date: 2024-12-31

End Date: 2026-12-30

Contract Duration: 729 days

Daily Burn Rate: $33.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT LICENSES

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $24.4 million to EXECUTIVE INFORMATION SYSTEMS, L.L.C. for work described as: IT LICENSES Key points: 1. The contract value of $24.4 million over two years suggests a significant investment in IT infrastructure. 2. Competition dynamics for this contract were full and open, indicating a potentially competitive bidding process. 3. The firm fixed-price contract type generally offers cost certainty for the government. 4. Performance is expected to conclude by December 2026, providing a clear timeline for service delivery. 5. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services. 6. The contract was awarded as a delivery order, suggesting it is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or a pre-existing agreement.

Value Assessment

Rating: good

The contract value of $24.4 million over two years for IT licenses and related services appears reasonable given the scope. Benchmarking against similar contracts for executive information systems within federal agencies would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract helps mitigate cost overrun risks for the government, assuming the scope is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically involves a broad solicitation to all eligible responsible sources. This approach is intended to maximize competition and potentially drive down prices. The number of bidders is not specified, but the 'full and open' designation suggests that multiple proposals were likely received and evaluated.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and a wider selection of qualified vendors.

Public Impact

The primary beneficiaries are likely the leadership and administrative staff within the National Institutes of Health (NIH) and potentially other parts of the Department of Health and Human Services (HHS) who utilize executive information systems. The contract will deliver IT licenses and related services essential for managing and accessing critical executive-level data and operational information. The geographic impact is centered in Maryland, where the contractor is located and where the services are likely to be performed or managed. Workforce implications may include the need for specialized IT personnel to manage, maintain, and potentially develop the executive information systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the specific IT licenses are proprietary and difficult to replace.
Dependence on a single contractor for critical executive information systems could pose a risk if performance issues arise.
The broad NAICS code (541519) might indicate a less specialized service, requiring careful monitoring to ensure the delivered solutions meet specific executive needs.

Positive Signals

The use of full and open competition suggests a deliberate effort to find the best value and avoid sole-source limitations.
The firm fixed-price contract type provides cost predictability for the government.
The contract is awarded to a specific entity, Executive Information Systems, L.L.C., indicating a known vendor with a track record that was presumably evaluated.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically focusing on IT services and software licensing. The market for IT services supporting government operations is substantial, with agencies continually seeking solutions to enhance data management, decision-making, and operational efficiency. Comparable spending benchmarks for IT licenses and support services within federal health agencies can vary widely based on the specific technologies and user base, but contracts in the tens of millions are common for enterprise-level solutions.

Small Business Impact

There is no explicit indication that this contract includes a small business set-aside. The contract was awarded under full and open competition. However, the prime contractor, Executive Information Systems, L.L.C., would be assessed for its size status. If the prime contractor is a large business, there may be opportunities for small businesses to participate as subcontractors, depending on the specific requirements and the prime's subcontracting plan.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the program/project managers within the National Institutes of Health (NIH). Performance monitoring, adherence to contract terms, and quality assurance will be key oversight mechanisms. Transparency is generally facilitated through contract databases like FPDS-NG, where basic award information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

HHS IT Modernization Initiatives
NIH Information Technology Services
Federal Civilian Health IT Spending
Executive Decision Support Systems
Government Software Licensing Contracts

Risk Flags

Potential for scope creep due to broad NAICS code.
Dependence on specific IT licenses could lead to vendor lock-in.
Cybersecurity risks associated with executive-level data.
Need for robust performance monitoring to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $24.4 million to EXECUTIVE INFORMATION SYSTEMS, L.L.C.. IT LICENSES

Who is the contractor on this award?

The obligated recipient is EXECUTIVE INFORMATION SYSTEMS, L.L.C..

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 $24.4 million.

What is the period of performance?

Start: 2024-12-31. End: 2026-12-30.

What is the track record of Executive Information Systems, L.L.C. in performing similar federal contracts?

A review of federal procurement data would be necessary to fully assess the track record of Executive Information Systems, L.L.C. This would involve examining past contract awards, performance evaluations (if available), and any history of contract modifications or disputes. Understanding their experience with similar IT services, particularly for executive information systems within health or research agencies, is crucial for evaluating their capability to meet the NIH's requirements. Without specific past performance data, it's difficult to definitively gauge their reliability and expertise in this domain.

How does the awarded value compare to market rates for similar IT licenses and services?

To benchmark the value, one would compare the $24.4 million contract value against industry data for comparable IT licenses and professional services. This involves researching pricing for similar software solutions and the typical rates charged by IT service providers for implementation, maintenance, and support. Factors such as the specific software vendors, the number of users, the level of support required, and the duration of the contract all influence market rates. A detailed analysis would require access to commercial price lists and potentially data from other government agencies that procure similar services.

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

Key risks could include vendor performance issues, scope creep, cybersecurity vulnerabilities, and potential obsolescence of the IT licenses. Mitigation strategies typically involve robust contract management, clear performance metrics, regular progress reviews, and adherence to cybersecurity best practices. The firm fixed-price nature of the contract helps mitigate financial risks related to cost overruns, provided the scope is well-defined. The government's oversight mechanisms, including quality assurance surveillance plans, are designed to identify and address performance risks proactively.

How effective are executive information systems in improving decision-making within federal health agencies?

The effectiveness of executive information systems (EIS) in improving decision-making within federal health agencies is contingent on several factors. When well-designed, implemented, and maintained, EIS can provide executives with timely, relevant, and actionable data, enabling more informed strategic and operational decisions. They can facilitate the monitoring of key performance indicators, identify trends, and support resource allocation. However, effectiveness is diminished if the data is inaccurate, the system is difficult to use, or it doesn't align with the agency's specific decision-making processes. Continuous user feedback and system adaptation are crucial for maximizing their impact.

What has been the historical spending pattern for executive information systems at NIH or HHS?

Analyzing historical spending patterns for executive information systems at NIH or HHS would involve reviewing past contract awards for similar services over several fiscal years. This would help identify trends in contract values, types of services procured, and the contractors frequently engaged. Understanding this history can reveal whether spending has been consistent, increasing, or decreasing, and whether the agency has relied on specific technologies or vendors. Such analysis provides context for the current $24.4 million award and can inform future budget planning and procurement strategies.

What are the implications of the 'Other Computer Related Services' NAICS code for the scope of work?

The NAICS code 541519, 'Other Computer Related Services,' is a broad category that encompasses a wide array of IT services not elsewhere classified. This can include services such as IT consulting, systems integration, custom software development, IT support, and data processing. For this contract, it suggests the scope of work may extend beyond simple software licensing to include implementation, customization, integration with existing systems, and ongoing technical support. The breadth of this code necessitates careful definition and monitoring of the specific deliverables to ensure they align with the intended purpose of supporting executive information needs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - APLLICATIONS

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: 6903 ROCKLEDGE DR STE 760, BETHESDA, MD, 20817

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

Financial Breakdown

Contract Ceiling: $40,054,652

Exercised Options: $24,376,867

Current Obligation: $24,376,867

Actual Outlays: $24,376,867

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA18D0081

IDV Type: FSS

Timeline