AHRQ awards $6.4M cloud hosting and security contract to Communications Training Analysis Corporation

Contract Overview

Contract Amount: $6,395,708 ($6.4M)

Contractor: Communications Training Analysis Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2023-06-15

End Date: 2026-06-14

Contract Duration: 1,095 days

Daily Burn Rate: $5.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: AHRQ CLOUD ENCLAVE HOSTING & SECURITY COMPLIANCE SUPPORT

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $6.4 million to COMMUNICATIONS TRAINING ANALYSIS CORPORATION for work described as: AHRQ CLOUD ENCLAVE HOSTING & SECURITY COMPLIANCE SUPPORT Key points: 1. Contract value represents a moderate investment in essential IT infrastructure for healthcare research. 2. Full and open competition suggests a healthy market for these specialized cloud services. 3. Potential risks include vendor lock-in and the need for ongoing security vigilance. 4. Performance context is tied to supporting the Agency for Healthcare Research and Quality's mission. 5. This contract falls within the IT services sector, specifically custom computer programming. 6. The contract duration of three years allows for stable service provision.

Value Assessment

Rating: good

The contract value of $6.4 million over three years appears reasonable for cloud hosting and security compliance support. Benchmarking against similar government contracts for specialized IT services is necessary for a definitive value assessment. However, the absence of specific performance metrics or detailed cost breakdowns makes a precise value-for-money evaluation challenging at this stage. The pricing structure, based on Time and Materials, can sometimes lead to cost overruns if not closely managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of six bids suggests a competitive marketplace for these services. A competitive bidding process generally leads to better pricing and service offerings for the government, as contractors strive to present their most attractive proposals. The level of competition here is a positive sign for price discovery and ensuring taxpayer funds are used efficiently.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely drove down costs and encouraged innovative solutions. It signals that the government secured a fair market price for critical cloud hosting and security services.

Public Impact

The primary beneficiary is the Agency for Healthcare Research and Quality (AHRQ), which will receive enhanced cloud hosting and security compliance support. This contract directly supports AHRQ's mission to produce evidence to make healthcare safer, higher quality, and more accessible. The services delivered will ensure the secure and reliable operation of AHRQ's IT systems and data. The geographic impact is primarily within Virginia, where the contractor is located, but the services support a national healthcare research agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation with Time and Materials pricing if not rigorously monitored.
Reliance on a single vendor for critical cloud infrastructure could pose long-term risks.
Ensuring continuous compliance with evolving security standards requires proactive management.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Contract duration of three years provides stability for service delivery.
The contractor's specialization in custom computer programming services aligns with the contract's needs.

Sector Analysis

The IT services sector, particularly custom computer programming and cloud services, is a significant area of federal spending. This contract fits within the broader category of government IT modernization efforts, aiming to improve efficiency and security. Comparable spending benchmarks for cloud hosting and security compliance support vary widely based on scope and service level agreements, but this $6.4 million award over three years appears to be within a typical range for a specialized agency requirement.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses. The award to a single entity suggests that small businesses may not have been primary bidders or subcontractors on this particular delivery order. Further analysis would be needed to determine if opportunities exist within the contractor's supply chain for small business participation.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program managers within AHRQ. The contract's performance will be monitored against defined deliverables and service level agreements. Transparency is facilitated through contract award databases, though detailed operational oversight mechanisms are internal to the agency. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

AHRQ IT Infrastructure Support
Federal Cloud Computing Services
Cybersecurity Compliance Contracts
Custom Software Development Services

Risk Flags

Time and Materials Pricing
Cybersecurity Risk
Vendor Lock-in Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $6.4 million to COMMUNICATIONS TRAINING ANALYSIS CORPORATION. AHRQ CLOUD ENCLAVE HOSTING & SECURITY COMPLIANCE SUPPORT

Who is the contractor on this award?

The obligated recipient is COMMUNICATIONS TRAINING ANALYSIS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Agency for Healthcare Research and Quality).

What is the total obligated amount?

The obligated amount is $6.4 million.

What is the period of performance?

Start: 2023-06-15. End: 2026-06-14.

What is the track record of Communications Training Analysis Corporation with federal contracts, particularly in cloud hosting and security?

A review of federal procurement data indicates that Communications Training Analysis Corporation (CTAC) has a history of receiving federal contracts, primarily within the Department of Health and Human Services (HHS). While specific details on their cloud hosting and security compliance expertise require deeper investigation into past performance reports and contract specifics, their award by AHRQ for these services suggests they possess the necessary qualifications. It is important to examine past contract performance, including any awards, penalties, or customer satisfaction ratings, to fully assess their reliability and capability in delivering on this current $6.4 million contract over its three-year duration.

How does the $6.4 million contract value compare to similar cloud hosting and security contracts awarded by HHS or other agencies?

The $6.4 million contract value for three years of cloud hosting and security compliance support is a moderate figure within the federal IT landscape. To benchmark effectively, one would compare it against contracts of similar scope, duration, and service complexity awarded by agencies like HHS, NIH, or CMS. Factors such as the number of users supported, data sensitivity levels, specific compliance frameworks (e.g., FedRAMP, HIPAA), and the inclusion of advanced security features would influence pricing. Without a detailed scope of work and service level agreement, a precise comparison is difficult, but the value appears aligned with specialized IT support for a research-focused agency.

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

Key risks include potential cost overruns due to the Time and Materials (T&M) pricing structure, vendor lock-in if the chosen cloud environment is proprietary, and the ever-present threat of cybersecurity breaches or compliance failures. Mitigation strategies typically involve rigorous oversight of T&M hours, clear performance metrics, defined exit strategies, and robust security protocols. AHRQ's contracting officers and technical monitors are responsible for ensuring CTAC adheres to security requirements and manages costs effectively. Regular audits and compliance checks are crucial for mitigating risks related to security and regulatory adherence.

How effective is the 'full and open competition' approach in ensuring value for money for this specific contract?

The 'full and open competition' approach is generally considered the most effective method for ensuring value for money in federal contracting. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices and encourages innovation. With six bidders participating in this procurement, AHRQ likely received a range of proposals, allowing them to select the best combination of technical capability and cost. This competitive pressure incentivizes the winning contractor, CTAC, to perform efficiently and deliver high-quality services to justify their bid and secure future opportunities.

What are the historical spending patterns for AHRQ's IT infrastructure and security services?

Analyzing historical spending patterns for AHRQ's IT infrastructure and security services would provide crucial context for this $6.4 million award. Understanding previous investments in similar services, the types of contracts awarded (e.g., fixed-price, T&M), and the contractors involved can reveal trends in technology adoption, cost efficiencies, and potential areas of recurring need. If AHRQ has consistently spent similar amounts on comparable services, it suggests this award is in line with established operational requirements. Conversely, a significant deviation might warrant further investigation into the reasons for increased or decreased spending.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 3120 FAIRVIEW PARK DR, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,748,820

Exercised Options: $6,395,708

Current Obligation: $6,395,708

Actual Outlays: $5,518,727

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F256CA

IDV Type: FSS

Timeline