HHS Awards $9.5M for ITESS Base Period to TCG Inc. under Full and Open Competition
Contract Overview
Contract Amount: $48,432,164 ($48.4M)
Contractor: TCG Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2020-09-17
End Date: 2025-12-01
Contract Duration: 1,901 days
Daily Burn Rate: $25.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: TCG ITESS 2020 HHS ACF ITESS BASE PERIOD AWARD 09/18/2020-09/17/2021. BASE PERIOD INCREMENT 1 AWARD VALUE: $2,448,755.67. BASE PERIOD INCREMENT 2 AWARD VALUE: $7,092,907. TOTAL BASE PERIOD AWARD VALUE $9,541,662.40. TOTAL TASK ORDER LIFECYLE $50
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20201
Plain-Language Summary
Department of Health and Human Services obligated $48.4 million to TCG INC for work described as: TCG ITESS 2020 HHS ACF ITESS BASE PERIOD AWARD 09/18/2020-09/17/2021. BASE PERIOD INCREMENT 1 AWARD VALUE: $2,448,755.67. BASE PERIOD INCREMENT 2 AWARD VALUE: $7,092,907. TOTAL BASE PERIOD AWARD VALUE $9,541,662.40. TOTAL TASK ORDER LIFECYLE $50 Key points: 1. The contract, awarded to TCG Inc., focuses on Computer Systems Design Services. 2. It was awarded under a full and open competition, indicating a competitive bidding process. 3. The total base period award value is $9,541,662.40, with a potential task order lifecycle value of $50 million. 4. The contract duration extends to December 1, 2025. 5. The agency responsible is the Department of Health and Human Services.
Value Assessment
Rating: good
The base period award of $9.54 million appears reasonable for computer systems design services. Benchmarking against similar large-scale IT service contracts would provide a more definitive assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a competitive process was initiated, though specific details on source exclusion are not provided. This method generally promotes price discovery.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary IT services.
Public Impact
Ensures continued IT support services for the Department of Health and Human Services. Supports the agency's mission through computer systems design and related services. The contract's duration and potential value indicate a significant investment in IT infrastructure. Awarded through a competitive process, aiming for best value for taxpayers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific details on 'exclusion of sources' in the competition.
- Potential for cost overruns if not managed effectively, given the long duration.
- Reliance on a single vendor for a significant IT services contract.
Positive Signals
- Awarded through full and open competition.
- Clear definition of services (Computer Systems Design Services).
- Significant potential value indicates a substantial need and market responsiveness.
Sector Analysis
This contract falls within the Information Technology sector, specifically Computer Systems Design Services. Spending in this area is substantial across federal agencies, supporting critical operations and modernization efforts.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, small businesses were likely not primary awardees, though they may participate as subcontractors.
Oversight & Accountability
The award is managed by the Department of Health and Human Services. Oversight would involve monitoring contract performance, adherence to terms, and financial accountability to ensure effective use of funds.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Time and Materials contract type.
- Potential for scope creep.
- Limited information on source exclusion.
- Long contract duration.
Tags
computer-systems-design-services, department-of-health-and-human-services, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $48.4 million to TCG INC. TCG ITESS 2020 HHS ACF ITESS BASE PERIOD AWARD 09/18/2020-09/17/2021. BASE PERIOD INCREMENT 1 AWARD VALUE: $2,448,755.67. BASE PERIOD INCREMENT 2 AWARD VALUE: $7,092,907. TOTAL BASE PERIOD AWARD VALUE $9,541,662.40. TOTAL TASK ORDER LIFECYLE $50
Who is the contractor on this award?
The obligated recipient is TCG 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 $48.4 million.
What is the period of performance?
Start: 2020-09-17. End: 2025-12-01.
What specific IT systems or services does TCG Inc. provide under this contract?
The contract specifies 'Computer Systems Design Services' (NAICS 541512). While the exact scope isn't detailed, this typically includes designing, developing, and integrating computer hardware and software systems. Specific deliverables would be outlined in the task orders issued under this contract.
What are the risks associated with the 'TIME AND MATERIALS' contract type?
Time and Materials (T&M) contracts can pose a risk of cost escalation if not closely monitored, as the government pays for direct labor hours at specified hourly rates and actual costs of materials. This necessitates robust oversight to ensure efficiency and prevent scope creep.
How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' impact overall value?
This procurement method suggests that while the competition was initially intended to be full and open, certain sources were later excluded. This could potentially limit the breadth of competition and may impact the final price discovery compared to a purely unrestricted full and open competition.
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
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 7348 GEORGIA AVENUE NW, WASHINGTON, DC, 20012
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $48,432,164
Exercised Options: $48,432,164
Current Obligation: $48,432,164
Actual Outlays: $39,502,628
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $1,682,221
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSN316201200178W
IDV Type: GWAC
Timeline
Start Date: 2020-09-17
Current End Date: 2025-12-01
Potential End Date: 2025-12-01 00:00:00
Last Modified: 2026-04-08
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