NIH CIO-SP3 Contract for IT Services Awarded to DLH, LLC for $8.5M, Ending August 2026
Contract Overview
Contract Amount: $8,496,726 ($8.5M)
Contractor: DLH, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2025-08-27
End Date: 2026-02-26
Contract Duration: 183 days
Daily Burn Rate: $46.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: NATIONAL INSTITUTES OF HEALTH (NIH), OFFICE OF INFORMATION TECHNOLOGY (OIT), CIO-SP3 IT SERVICE
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $8.5 million to DLH, LLC for work described as: NATIONAL INSTITUTES OF HEALTH (NIH), OFFICE OF INFORMATION TECHNOLOGY (OIT), CIO-SP3 IT SERVICE Key points: 1. The contract is for IT services under the CIO-SP3 vehicle. 2. DLH, LLC is the awardee, with the contract ending in February 2026. 3. The contract was not competed, raising potential concerns about price discovery. 4. The sector is Information Technology, a significant area of federal spending.
Value Assessment
Rating: fair
The award amount of $8.5M for 183 days suggests a high daily rate. Benchmarking against similar IT service contracts under CIO-SP3 would be necessary for a precise assessment, but the lack of competition makes direct comparison difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This approach can lead to higher prices as there is no market pressure to ensure the most cost-effective solution is chosen.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these IT services.
Public Impact
Federal agencies rely on IT services for critical operations, impacting program delivery. The CIO-SP3 vehicle is a widely used government-wide contract for IT solutions. Lack of competition can hinder innovation and limit opportunities for other qualified vendors. Transparency in contracting is crucial for public trust and efficient use of funds.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potentially high cost due to no competition
- Short contract duration may indicate a specific need or a placeholder
Positive Signals
- Utilizes a government-wide contract vehicle (CIO-SP3)
- Clear end date for the contract
Sector Analysis
The Information Technology sector represents a substantial portion of federal spending. This contract falls under computer systems design services, a common requirement for agencies managing complex IT infrastructures.
Small Business Impact
The data indicates this contract was not awarded to a small business (sb: false). This means opportunities for small businesses to participate in this specific contract were limited or non-existent.
Oversight & Accountability
The use of a government-wide acquisition contract (GWAC) like CIO-SP3 generally implies some level of pre-competition and oversight. However, the specific award mechanism (not competed) warrants further scrutiny regarding the justification for sole-sourcing.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Lack of competition
- Potential for overpayment
- Limited transparency in pricing
- No small business participation
Tags
computer-systems-design-services, department-of-health-and-human-services, md, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $8.5 million to DLH, LLC. NATIONAL INSTITUTES OF HEALTH (NIH), OFFICE OF INFORMATION TECHNOLOGY (OIT), CIO-SP3 IT SERVICE
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 $8.5 million.
What is the period of performance?
Start: 2025-08-27. End: 2026-02-26.
What was the justification for not competing this contract, and how does the awarded price compare to similar sole-source IT service contracts?
The justification for not competing this contract is not provided in the data. To assess value, a comparison with other sole-source IT service contracts for similar services and durations, particularly those awarded under the CIO-SP3 vehicle, would be necessary. Without this benchmark, it's difficult to definitively state if the $8.5M price is reasonable.
What are the risks associated with awarding IT services on a sole-source basis, especially for a significant amount like $8.5 million?
The primary risk of sole-source awards is the potential for inflated pricing due to the absence of competitive pressure. Other risks include reduced innovation, limited vendor choice, and the possibility of receiving a less optimal solution. For a contract of this value, these risks are amplified, potentially leading to inefficient use of taxpayer funds.
How effective is the CIO-SP3 vehicle in ensuring competitive pricing when contracts are not competed?
The CIO-SP3 vehicle itself is designed to facilitate competition for IT services. However, its effectiveness in ensuring competitive pricing is diminished when individual task orders are not competed. While the vehicle provides a pre-vetted pool of vendors, a sole-source award bypasses the competitive process, negating the vehicle's primary cost-saving mechanism for that specific procurement.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
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, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $11,747,316
Exercised Options: $8,496,726
Current Obligation: $8,496,726
Actual Outlays: $6,830,754
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-08-27
Current End Date: 2026-02-26
Potential End Date: 2026-02-26 00:00:00
Last Modified: 2025-12-29
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