NIH awards $507K for fiber optic lease and maintenance to ZAYO GROUP LLC, extending services for computational biology

Contract Overview

Contract Amount: $507,525 ($507.5K)

Contractor: Zayo Group LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-10

End Date: 2027-04-09

Contract Duration: 364 days

Daily Burn Rate: $1.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ZAYO (AMBIS #2275614) - NIAID/OCICB/OEB 12-MONTH FIBER OPTIC LEASE/MAINTENANCE FOR THE OFFICE OF CYBER INFRASTRUCTURE AND COMPUTATIONAL BIOLOGY. QUOTE: ZAYO BAN 12506 AND 11613 RENEWAL AND REINSTATEMENT. POP: 4/10/2026 - 4/9/2027.

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $507,524.52 to ZAYO GROUP LLC for work described as: ZAYO (AMBIS #2275614) - NIAID/OCICB/OEB 12-MONTH FIBER OPTIC LEASE/MAINTENANCE FOR THE OFFICE OF CYBER INFRASTRUCTURE AND COMPUTATIONAL BIOLOGY. QUOTE: ZAYO BAN 12506 AND 11613 RENEWAL AND REINSTATEMENT. POP: 4/10/2026 - 4/9/2027. Key points: 1. The contract represents a renewal and reinstatement of existing fiber optic services, suggesting continuity rather than new capability acquisition. 2. The fixed-price contract structure provides cost certainty for the duration of the 12-month period. 3. The award is a delivery order under a larger contract vehicle, indicating a streamlined procurement process. 4. The service is essential for the Office of Cyber Infrastructure and Computational Biology, supporting critical research operations. 5. The geographic location in Maryland is noted, potentially impacting local infrastructure and service providers. 6. The contract's value is relatively modest within the broader context of federal IT and telecommunications spending.

Value Assessment

Rating: good

The contract value of approximately $507,524 for a 12-month fiber optic lease and maintenance appears reasonable given the specialized nature of the service and the provider. Benchmarking against similar federal contracts for dedicated fiber optic circuits in the Maryland region would provide a more precise value assessment. However, as a renewal, the pricing is likely influenced by existing market rates and the contractor's established service delivery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The fact that this is a renewal suggests that ZAYO GROUP LLC was likely the incumbent provider and successfully competed against other potential bidders. The level of competition, while not explicitly detailed by the number of bids received, is generally positive for price discovery and ensuring fair market value.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices and encourages innovation.

Public Impact

The Office of Cyber Infrastructure and Computational Biology (OCICB) at NIH benefits from uninterrupted, high-speed data connectivity. Researchers and staff within OCICB will continue to have access to essential network services for data analysis and computational tasks. The services support critical scientific research and development in computational biology, potentially leading to advancements in health and medicine. The contract's impact is localized to the NIH facilities in Maryland where the fiber optic services are deployed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases upon future renewals if competition diminishes.
Dependence on a single vendor for critical network infrastructure.
Risk of service disruptions if maintenance is not performed optimally.

Positive Signals

Award to an established vendor with a track record of service delivery.
Fixed-price contract provides budget predictability.
Continuation of essential services supporting critical research operations.

Sector Analysis

The telecommunications sector, specifically wired telecommunications carriers, is a vital component of federal IT infrastructure. This contract falls under the broader category of network services, which are essential for government operations, research, and data management. The market for dedicated fiber optic services is competitive, with several national and regional providers. Federal agencies often rely on these services for high-bandwidth, low-latency connectivity required for advanced computing and data-intensive applications, similar to those used in computational biology.

Small Business Impact

This contract does not appear to have a small business set-aside. As a renewal of services, it is unlikely to involve significant subcontracting opportunities for small businesses unless ZAYO GROUP LLC has specific small business subcontracting goals in place for this particular service. The primary impact on the small business ecosystem would be indirect, through the overall demand for telecommunications infrastructure and services.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. As a delivery order under an existing contract vehicle, it likely adheres to the terms and conditions established during the initial competition. Transparency is maintained through public contract databases. Oversight would typically involve the contracting officer's representative (COR) monitoring service delivery and performance, and potentially the NIH Office of Inspector General if any irregularities were suspected.

Related Government Programs

Federal Information Technology Acquisition Reform Act (FITARA)
NIH IT Modernization Initiatives
Broadband Infrastructure Programs
Telecommunications Services Contracts

Risk Flags

Potential for service interruption impacting critical research.
Vendor lock-in and potential future price increases.
Dependence on third-party infrastructure for sensitive data transmission.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $507,524.52 to ZAYO GROUP LLC. ZAYO (AMBIS #2275614) - NIAID/OCICB/OEB 12-MONTH FIBER OPTIC LEASE/MAINTENANCE FOR THE OFFICE OF CYBER INFRASTRUCTURE AND COMPUTATIONAL BIOLOGY. QUOTE: ZAYO BAN 12506 AND 11613 RENEWAL AND REINSTATEMENT. POP: 4/10/2026 - 4/9/2027.

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 $507,524.52.

What is the period of performance?

Start: 2026-04-10. End: 2027-04-09.

What is ZAYO GROUP LLC's track record with the federal government, particularly with NIH?

ZAYO GROUP LLC has a history of providing telecommunications services to various federal agencies. While specific details on their performance with NIH for this particular fiber optic lease are not fully elaborated in the provided data, the renewal of this contract suggests a satisfactory performance history. Federal procurement databases would contain more granular information on their past awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any potential issues encountered on previous contracts. Generally, incumbent contractors who win renewals have demonstrated an ability to meet the agency's technical requirements and service level agreements.

How does the $507,524 cost compare to similar fiber optic leases for federal agencies?

Directly comparing the $507,524 cost requires detailed knowledge of the specific fiber optic service specifications (e.g., bandwidth, latency, route diversity, Service Level Agreements) and the geographic location's market rates. However, for a 12-month lease of dedicated fiber optic connectivity supporting critical infrastructure like NIH's OCICB, this amount is within a plausible range. Federal agencies often pay a premium for guaranteed uptime, dedicated circuits, and robust maintenance. Benchmarking against other federal contracts for similar services in the Maryland region, or against commercial rates for comparable enterprise-level fiber services, would be necessary for a definitive value assessment. The fact that it's a renewal may indicate competitive pricing relative to the market.

What are the primary risks associated with this fiber optic lease contract?

Key risks include potential service disruptions due to unforeseen network issues or maintenance failures, which could impact critical research operations. Another risk is vendor lock-in, where reliance on a single provider for essential infrastructure might limit future flexibility or lead to price escalations in subsequent contract periods if competition is not maintained. There's also a risk related to the security of the data transmitted over the fiber optic lines, although this is mitigated by federal security standards and the contractor's obligations. Finally, the long-term availability and upgradeability of the specific fiber optic infrastructure could pose a risk if the provider's network evolution does not align with NIH's future needs.

How effective is this contract in supporting the mission of the Office of Cyber Infrastructure and Computational Biology?

This contract is highly effective in supporting the mission of the OCICB by providing the essential, high-capacity, and reliable network connectivity required for its operations. Computational biology relies heavily on processing vast datasets, running complex simulations, and collaborating across networks. Uninterrupted access to robust fiber optic services ensures that researchers can perform these tasks without significant delays or outages. The continuity provided by this renewal signifies that the current service meets the agency's needs, enabling the OCICB to advance its research goals in areas like genomics, bioinformatics, and systems biology.

What are the historical spending patterns for similar telecommunications services at NIH?

Historical spending patterns for telecommunications services at NIH, and federal agencies broadly, show a consistent and significant investment in network infrastructure. Agencies procure a wide range of services, including dedicated fiber optic lines, internet access, and managed network services, to support their diverse operational and research needs. Spending often increases over time due to growing data demands and the need for higher bandwidth. Contracts like this one for fiber optic leases are recurring necessities. Analyzing NIH's historical obligations for telecommunications over the past 5-10 years would reveal trends in contract values, types of services procured, and primary vendors, providing context for the current award's value and duration.

What is the potential impact of this contract on cybersecurity for the NIH?

This contract directly impacts NIH's cybersecurity posture by providing the underlying network infrastructure. High-speed, reliable fiber optic connectivity is crucial for transmitting sensitive research data securely. The effectiveness of cybersecurity measures often depends on the quality and integrity of the network. While the contract itself is for leasing and maintenance, the service provider (ZAYO GROUP LLC) must adhere to federal security requirements for network infrastructure. Potential cybersecurity risks could arise from physical breaches of the fiber lines or vulnerabilities within the network equipment, necessitating robust monitoring and incident response protocols from both the contractor and NIH.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - DELIVERY

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: 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: $507,525

Exercised Options: $507,525

Current Obligation: $507,525

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F070CA

IDV Type: FSS

Timeline