HHS awards $11.1M for computer systems design, with 7 bids received

Contract Overview

Contract Amount: $11,125,023 ($11.1M)

Contractor: Cyberdata Technologies, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2025-02-01

End Date: 2027-01-31

Contract Duration: 729 days

Daily Burn Rate: $15.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: CYBERDATA TECHNOLOGIES INC.

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20170

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $11.1 million to CYBERDATA TECHNOLOGIES, INC. for work described as: CYBERDATA TECHNOLOGIES INC. Key points: 1. Contract value appears reasonable given the scope of computer systems design services. 2. Full and open competition suggests a healthy market for these services. 3. Potential risks include performance issues or cost overruns common in IT projects. 4. This contract supports critical IT infrastructure for the National Institutes of Health. 5. The contractor, Cyberdata Technologies Inc., operates within the IT services sector.

Value Assessment

Rating: good

The contract value of $11.1 million for computer systems design services over approximately two years appears to be within a reasonable range for the scope of work. Benchmarking against similar contracts for IT services at NIH and other health agencies would provide a more precise value-for-money assessment. The Time and Materials pricing structure, while flexible, necessitates careful monitoring to ensure costs remain controlled and aligned with project milestones.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple vendors were solicited and allowed to bid. With seven bidders participating, the competition level suggests a robust market for these specialized computer systems design services. This level of competition is generally favorable for price discovery and achieving competitive pricing for the government.

Taxpayer Impact: The strong competition among seven bidders is beneficial for taxpayers, as it likely drove down the final contract price and encouraged innovative solutions from the participating companies.

Public Impact

The primary beneficiaries are the National Institutes of Health (NIH), which will receive enhanced computer systems design services. Services delivered will include design, development, and implementation of IT systems to support NIH's research and administrative functions. The geographic impact is primarily within the NIH's operational locations, likely supporting research facilities and administrative offices. Workforce implications may include the need for specialized IT personnel employed by the contractor and potentially internal NIH IT staff for oversight and integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in IT projects leading to cost overruns.
Dependence on contractor performance for critical IT system functionality.
Ensuring adequate cybersecurity measures are implemented and maintained.

Positive Signals

Award to an established contractor with experience in government IT services.
Competitive bidding process likely secured favorable pricing.
Clear contract duration provides a defined period for service delivery.

Sector Analysis

The IT services sector, particularly computer systems design, is a significant area of federal spending. Agencies like NIH rely heavily on sophisticated IT infrastructure to support their vast research and operational needs. This contract fits within the broader category of IT support services, which includes system design, integration, and maintenance. Comparable spending benchmarks for similar IT design services at large federal research institutions would typically range from several million to tens of millions of dollars annually, depending on complexity.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, and the contractor, CYBERDATA TECHNOLOGIES INC., is not explicitly identified as a small business in the provided snippet. Therefore, there are no direct small business set-aside implications. Subcontracting opportunities for small businesses may exist at the discretion of the prime contractor, but this is not guaranteed by the contract terms provided.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the program office within the National Institutes of Health. Accountability measures will be tied to the performance metrics and deliverables outlined in the contract. Transparency is facilitated through contract award databases and reporting requirements. While specific Inspector General jurisdiction isn't detailed, the HHS OIG typically has oversight over agency spending.

Related Government Programs

NIH IT Modernization Efforts
HHS IT Services Contracts
Federal Health IT Spending
Computer Systems Design Services
Information Technology Support

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Dependence on contractor's technical expertise and performance.
Need for strong government oversight to manage scope and effort.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $11.1 million to CYBERDATA TECHNOLOGIES, INC.. CYBERDATA TECHNOLOGIES INC.

Who is the contractor on this award?

The obligated recipient is CYBERDATA TECHNOLOGIES, 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 $11.1 million.

What is the period of performance?

Start: 2025-02-01. End: 2027-01-31.

What is the track record of CYBERDATA TECHNOLOGIES INC. with federal contracts, particularly within the Department of Health and Human Services?

A thorough review of federal procurement data (e.g., FPDS) would be necessary to assess CYBERDATA TECHNOLOGIES INC.'s track record. This would involve examining past contract awards, performance evaluations (Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or terminations. Understanding their experience with similar IT services, especially within the health sector and specifically for NIH, is crucial. A history of successful project completion, on-time delivery, and within-budget performance would indicate a lower risk profile for this current award. Conversely, a pattern of performance issues or cost overruns on previous contracts would raise concerns about their capability to execute this new $11.1 million award effectively.

How does the awarded price compare to market rates for similar computer systems design services?

To benchmark the value for money, the awarded contract price of $11.1 million needs to be compared against market rates for comparable computer systems design services. This involves analyzing data from similar government contracts (e.g., through FPDS or specialized market intelligence reports) and private sector IT service pricing. Factors such as the specific technologies involved, the complexity of the systems to be designed, the required skill sets, and the labor rates in the relevant geographic area (Virginia, in this case) must be considered. The Time and Materials (T&M) pricing structure adds complexity, as the final cost depends on actual hours worked and material costs. A comparison would ideally look at the estimated labor hours and rates against industry averages to determine if the government is receiving a fair and reasonable price for the anticipated effort.

What are the key performance indicators (KPIs) and deliverables for this contract, and how will performance be measured?

The specific Key Performance Indicators (KPIs) and deliverables for this contract are not detailed in the provided data but would be explicitly defined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). Typically, for computer systems design services, KPIs might include system uptime, response times, successful integration of new components, adherence to design specifications, and user satisfaction. Deliverables could range from design documents, system architecture blueprints, prototypes, testing reports, to implemented and functional IT systems. Performance measurement would likely involve regular progress reviews, acceptance testing of deliverables by NIH personnel, and potentially formal performance evaluations at key milestones or contract close-out. The effectiveness of these measures is critical for ensuring the contractor meets NIH's requirements.

What is the historical spending trend for computer systems design services at NIH, and how does this award fit within that trend?

Analyzing historical spending data for computer systems design services at the National Institutes of Health (NIH) is essential to contextualize this $11.1 million award. This involves examining NIH's budget allocations and actual expenditures for similar IT services over the past several fiscal years. Trends might reveal whether spending in this category is increasing, decreasing, or remaining stable. Understanding this trend helps determine if this award represents a typical investment, a significant increase, or a decrease in NIH's commitment to such services. For instance, if NIH has consistently spent $10-15 million annually on similar services, this award aligns well. However, if historical spending was significantly lower, it might warrant further investigation into the reasons for the increase, such as new initiatives or expanded requirements.

What are the potential risks associated with a Time and Materials (T&M) contract for computer systems design, and what mitigation strategies are in place?

Time and Materials (T&M) contracts, like the one awarded to CYBERDATA TECHNOLOGIES INC., carry inherent risks, primarily the potential for cost overruns if not managed diligently. Unlike fixed-price contracts, T&M contracts pay the contractor for direct labor hours at specified hourly rates and for the cost of materials. This structure can incentivize longer project durations or inefficient work practices if oversight is lacking. Key risks include uncontrolled scope creep, inflated labor hours, and excessive material costs. Mitigation strategies typically involve robust government oversight, including detailed monitoring of labor hours and materials used, clearly defined ceilings on total contract cost, and strong program management to ensure the scope remains aligned with objectives. Regular progress reviews and performance assessments are crucial for early detection of potential issues.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: C-119383-SB

Offers Received: 7

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 455 SPRINGPARK PL STE 300, HERNDON, VA, 20170

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $16,829,705

Exercised Options: $11,125,023

Current Obligation: $11,125,023

Actual Outlays: $2,433,146

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200126W

IDV Type: GWAC

Timeline