HHS awards NTT DATA $45.3M for NIAID cybersecurity support, with 3 bidders

Contract Overview

Contract Amount: $45,277,829 ($45.3M)

Contractor: NTT Data Fedhealth, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2019-02-14

End Date: 2024-08-15

Contract Duration: 2,009 days

Daily Burn Rate: $22.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: THE PROCUREMENT IS ACCESS TO CONTRACT PERSONNEL THAT HAVE THE REQUIRED SUBJECT MATTER EXPERTISE SME AND SKILL SETS APPROPRIATE TO ASSISTING IN DISCHARGING THE UNIQUE AND SPECIALIZED DUTIES FOR THE EXECUTION OF THE NIAID CYBERSECURITY AND OPERATIONS ASSURANCE PROGRAM COAP. THE PROGRAM SUPPORTS NIAID PROGRAMS OF RESEARCH AND RESEARCH TRAINING INVOLVING CAUSES, DIAGNOSES, TREATMENT AND PREVENTION OF EMERGING AND RE-EMERGING IMMUNOLOGIC AND INFECTIOUS DISEASES AND BIO DEFENSE.

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $45.3 million to NTT DATA FEDHEALTH, INC. for work described as: THE PROCUREMENT IS ACCESS TO CONTRACT PERSONNEL THAT HAVE THE REQUIRED SUBJECT MATTER EXPERTISE SME AND SKILL SETS APPROPRIATE TO ASSISTING IN DISCHARGING THE UNIQUE AND SPECIALIZED DUTIES FOR THE EXECUTION OF THE NIAID CYBERSECURITY AND OPERATIONS ASSURANCE PROGRAM COAP. THE PRO… Key points: 1. Contract provides essential cybersecurity and operations assurance for NIAID's disease research. 2. NTT DATA FEDHEALTH, INC. selected for specialized subject matter expertise. 3. Full and open competition indicates a robust bidding process. 4. Contract duration spans over 5 years, suggesting long-term support needs. 5. The award is a delivery order under a larger contract vehicle. 6. Focus on emerging and re-emerging infectious diseases highlights critical public health mission.

Value Assessment

Rating: good

The contract value of $45.3 million over approximately 5.5 years for cybersecurity and operations assurance for NIAID appears reasonable given the specialized nature of the support. Benchmarking against similar IT support contracts for federal research agencies suggests this pricing is within expected ranges. The time and materials pricing structure allows for flexibility in addressing evolving cybersecurity threats and operational needs.

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 allowed to bid. With three bidders participating, the competition level suggests a healthy market for these specialized cybersecurity services. This level of competition generally promotes price discovery and encourages vendors to offer competitive terms.

Taxpayer Impact: The competitive nature of this procurement is beneficial for taxpayers, as it likely resulted in a more favorable price and better service terms than a sole-source award would have.

Public Impact

NIAID's critical research into infectious diseases and biodefense is safeguarded by enhanced cybersecurity. Public health initiatives are supported through the reliable operation of NIAID's IT infrastructure. Researchers and staff have access to secure systems, enabling uninterrupted scientific progress. The contract ensures the integrity and confidentiality of sensitive research data. Geographic impact is primarily within Maryland, where NIAID's operations are centered. Workforce implications include the need for skilled cybersecurity professionals within NTT DATA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in time and materials contracts if not closely managed.
Reliance on a single contractor for critical cybersecurity functions could pose a risk if performance degrades.
Ensuring continuous alignment with evolving cybersecurity best practices and threat landscapes.

Positive Signals

Award to an established IT services provider with demonstrated capabilities.
Full and open competition suggests a competitive market and potential for value.
Contract supports a vital public health mission, aligning with national priorities.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on cybersecurity and IT operations support. The federal government is a significant consumer of these services, with substantial spending allocated to maintaining secure and efficient IT infrastructure across various agencies. Comparable spending benchmarks for cybersecurity services for large federal research institutions often run into tens of millions of dollars annually, reflecting the complexity and criticality of the mission.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, and the prime contractor, NTT DATA FEDHEALTH, INC., is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Further analysis would be needed to determine if subcontracting opportunities exist and how effectively small businesses are being integrated into the supply chain for this contract.

Oversight & Accountability

Oversight for this contract is likely managed by the National Institutes of Health (NIH) contracting officers and program managers. The Department of Health and Human Services (HHS) Office of Inspector General (OIG) may conduct audits or investigations into the contract's performance and financial management. Transparency is generally maintained through contract award databases and public reporting, though specific performance metrics may not always be publicly disclosed.

Related Government Programs

NIH IT Support Services
HHS Cybersecurity Initiatives
Federal Cybersecurity Contracts
Research and Development IT Operations

Risk Flags

Time and Materials Contract
Cybersecurity Reliance
Long-Term IT Support

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $45.3 million to NTT DATA FEDHEALTH, INC.. THE PROCUREMENT IS ACCESS TO CONTRACT PERSONNEL THAT HAVE THE REQUIRED SUBJECT MATTER EXPERTISE SME AND SKILL SETS APPROPRIATE TO ASSISTING IN DISCHARGING THE UNIQUE AND SPECIALIZED DUTIES FOR THE EXECUTION OF THE NIAID CYBERSECURITY AND OPERATIONS ASSURANCE PROGRAM COAP. THE PROGRAM SUPPORTS NIAID PROGRAMS OF RESEARCH AND RESEARCH TRAINING INVOLVING CAUSES, DIAGNOSES, TREATMENT AND PREVENTION OF EMERGING AND RE-EMERGING IMMUNOLOGIC AND INFECTIOUS DISEASES AND BIO DEFENSE.

Who is the contractor on this award?

The obligated recipient is NTT DATA FEDHEALTH, 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 $45.3 million.

What is the period of performance?

Start: 2019-02-14. End: 2024-08-15.

What is the track record of NTT DATA FEDHEALTH, INC. in performing similar federal cybersecurity contracts?

NTT DATA FEDHEALTH, INC. has a significant history of performing IT and cybersecurity services for federal agencies, including the Department of Health and Human Services (HHS). Their experience often includes system design, integration, operations, and cybersecurity support for complex research and healthcare missions. Reviewing past performance evaluations and contract awards for NTT DATA FEDHEALTH, INC. would provide further insight into their capabilities and reliability in delivering similar services. Their portfolio typically demonstrates an ability to manage large-scale IT projects and adhere to stringent government security requirements, which is crucial for a contract supporting NIAID's critical research.

How does the awarded value compare to similar cybersecurity contracts for federal research agencies?

The awarded value of approximately $45.3 million over 5.5 years for NIAID cybersecurity and operations assurance is within the expected range for specialized IT support services at a major federal research institution. Similar contracts supporting agencies like the National Science Foundation (NSF) or the National Institutes of Health (NIH) itself for critical infrastructure protection and IT operations often fall within a similar financial bracket. Factors influencing this value include the complexity of the research environment, the sensitivity of the data, the required level of expertise, and the duration of the support. The time and materials nature of this contract also allows for adjustments based on evolving needs, which can impact the final expenditure.

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

Key risks include potential overruns in a time and materials contract if scope is not tightly managed, the contractor's ability to keep pace with rapidly evolving cybersecurity threats, and the potential for single-point-of-failure if the contractor's performance falters. Mitigation strategies likely involve robust contract oversight by NIH program managers, regular performance reviews, clear definition of tasks and deliverables, and potentially requiring the contractor to demonstrate continuous adaptation to new security protocols and threat intelligence. The competitive award process itself also serves as a risk mitigation by selecting a vendor with a proven track record.

How effective is this contract in supporting NIAID's mission of advancing research on infectious diseases?

This contract is crucial for supporting NIAID's mission by ensuring the operational integrity and security of the IT systems that underpin its research. Reliable cybersecurity and operations assurance prevent disruptions, protect sensitive research data, and maintain the confidentiality of findings. By providing the necessary technical expertise, the contract enables NIAID researchers to focus on their scientific endeavors without being hindered by IT vulnerabilities or operational failures. The continuity of these services directly contributes to the uninterrupted progress of research into causes, diagnoses, treatment, and prevention of immunologic and infectious diseases.

What are the historical spending patterns for cybersecurity and IT operations support at NIAID or similar NIH institutes?

Historical spending patterns for cybersecurity and IT operations support at NIAID and comparable NIH institutes typically show a consistent and often increasing trend, reflecting the growing reliance on digital infrastructure and the escalating threat landscape. Annual expenditures for such services can range from several million to tens of millions of dollars, depending on the institute's size, research portfolio, and IT complexity. These contracts are often awarded through competitive processes, with durations typically spanning multiple years to ensure continuity. The trend reflects a strategic investment in safeguarding critical research data and maintaining operational resilience against cyber threats.

What is the significance of the 'Computer Systems Design Services' NAICS code for this contract?

The North American Industry Classification System (NAICS) code 541512, 'Computer Systems Design Services,' signifies that the primary purpose of this contract is to provide expertise in designing, developing, integrating, and managing computer systems. For NIAID's cybersecurity and operations assurance program, this means the contractor is expected to not only maintain existing systems but also to advise on and implement improvements, security architectures, and operational efficiencies. This code encompasses a broad range of IT services, including consulting, system integration, and IT project management, all of which are essential for ensuring a robust and secure IT environment for cutting-edge biomedical research.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: NIHJT2010002

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1660 INTERNATIONAL DR, FL 1, MCLEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $51,761,261

Exercised Options: $45,277,829

Current Obligation: $45,277,829

Actual Outlays: $22,730,466

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200160W

IDV Type: GWAC

Timeline