HHS awards $26.9M for IT security services, with Cyberdata Technologies Inc. securing the contract

Contract Overview

Contract Amount: $26,874,905 ($26.9M)

Contractor: Cyberdata Technologies, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2019-01-10

End Date: 2024-07-09

Contract Duration: 2,007 days

Daily Burn Rate: $13.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF SECURITY SERVICES CONTRACT

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20170

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $26.9 million to CYBERDATA TECHNOLOGIES, INC. for work described as: IGF::OT::IGF SECURITY SERVICES CONTRACT Key points: 1. Contract value of $26.9 million over its period of performance. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The contract is for computer systems design services, a critical area for federal IT. 4. Performance period spans over five years, suggesting a long-term need for these services. 5. The contract type is Firm Fixed Price, which helps in cost control. 6. The agency is the Department of Health and Human Services (HHS), a large federal entity.

Value Assessment

Rating: good

The contract value of $26.9 million for five years of IT security services appears reasonable given the scope of work for a federal agency like HHS. Benchmarking against similar IT security contracts within the federal government would provide a more precise value-for-money assessment. The Firm Fixed Price contract type is generally favorable for cost predictability. Without specific details on the deliverables and service levels, a definitive value assessment is challenging, but the overall amount is within expected ranges for such services.

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,' which suggests that while the initial intent might have involved specific sources, the final award was made through a broad competitive process. The presence of two bids indicates some level of competition, though a higher number of bidders would typically lead to more robust price discovery and potentially better pricing for the government. The specific details of the exclusion of sources and the subsequent competition are not fully elaborated here.

Taxpayer Impact: A competitive award process, even with a limited number of bidders, generally benefits taxpayers by encouraging multiple companies to offer their best pricing and technical solutions. This helps ensure the government receives a fair market price for the services rendered.

Public Impact

The primary beneficiaries are the Department of Health and Human Services, which receives essential IT security services to protect its data and systems. The services delivered include computer systems design, crucial for maintaining and enhancing the security posture of federal health information systems. The geographic impact is primarily within the operational scope of HRSA and potentially other HHS components, likely supporting federal employees and contractors. Workforce implications may include the employment of cybersecurity professionals and IT specialists by the contractor, Cyberdata Technologies, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition with only two bidders could potentially lead to higher costs than a more robustly competed contract.
The 'After Exclusion of Sources' clause warrants further investigation to understand if it limited the competitive pool unnecessarily.
Reliance on a single contractor for critical IT security services can create vendor lock-in and reduce future negotiating leverage.

Positive Signals

The contract is Firm Fixed Price, which provides cost certainty and reduces the risk of cost overruns for the government.
Awarded to Cyberdata Technologies, Inc., a company with experience in federal contracting.
The contract duration of over five years suggests a stable and ongoing need for these critical security services.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design and security services. The federal IT market is substantial, with agencies consistently investing in cybersecurity to protect sensitive data and critical infrastructure. This contract represents a portion of HHS's broader IT spending, aimed at maintaining the integrity and confidentiality of health-related information. Comparable spending benchmarks for IT security services vary widely based on scope, complexity, and duration, but contracts in the tens of millions are common for large federal agencies.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'sb': false. There is no explicit information provided regarding subcontracting plans or their impact on the small business ecosystem. Given the nature of the services and the prime contractor, it's possible that larger, established firms were the primary focus of this competition. Further analysis would be needed to determine if any small business subcontracting opportunities were mandated or voluntarily pursued.

Oversight & Accountability

Oversight for this contract would typically be managed by the Health Resources and Services Administration (HRSA) contracting officers and program managers within HHS. The Firm Fixed Price nature of the contract provides a degree of accountability by fixing the cost. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

HHS IT Security Contracts
Federal Cybersecurity Services
Computer Systems Design Services
Health Information Technology Contracts
General Services Administration (GSA) IT Schedule Contracts

Risk Flags

Limited Competition
Potential for Vendor Lock-in
Cybersecurity Risk Exposure

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $26.9 million to CYBERDATA TECHNOLOGIES, INC.. IGF::OT::IGF SECURITY SERVICES CONTRACT

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 (Health Resources and Services Administration).

What is the total obligated amount?

The obligated amount is $26.9 million.

What is the period of performance?

Start: 2019-01-10. End: 2024-07-09.

What is the track record of Cyberdata Technologies, Inc. in performing similar federal IT security contracts?

Cyberdata Technologies, Inc. has a history of performing federal contracts, including those related to IT services. Analyzing their past performance on similar contracts, particularly those involving cybersecurity and systems design for agencies like HHS or other health-related entities, would provide insight into their capabilities and reliability. Reviewing past performance evaluations and any reported issues or successes would be crucial. Their experience with Firm Fixed Price contracts and adherence to delivery schedules are key indicators. A deeper dive into their contract history would reveal the scale and complexity of projects they have successfully managed, offering a clearer picture of their suitability for this current award.

How does the awarded price of $26.9 million compare to market rates for similar IT security services?

Benchmarking the $26.9 million award against market rates for similar IT security services requires detailed analysis of the contract's scope, deliverables, and service level agreements. Factors such as the number of personnel, required expertise, security clearances, and the specific technologies involved significantly influence pricing. Comparing this contract's total value and its duration (over five years) to industry reports, commercial IT security service pricing, and other federal IT security contracts of comparable size and complexity would be necessary. Without specific task order details, a precise comparison is difficult, but the amount appears within a reasonable range for a large federal agency's comprehensive IT security needs over several years.

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

Key risks include potential cybersecurity threats to HHS systems, contractor performance issues, and the possibility of cost overruns if the Firm Fixed Price structure is not managed effectively. Mitigation strategies likely involve robust oversight from HRSA, adherence to strict security protocols by Cyberdata Technologies, Inc., and clear performance metrics defined in the contract. The limited competition (two bidders) also presents a risk of suboptimal pricing. The government mitigates this through contract clauses that allow for adjustments or termination if performance is unsatisfactory. Continuous monitoring of the contractor's security posture and service delivery is essential.

How effective is the 'Full and Open Competition After Exclusion of Sources' approach in ensuring value for taxpayers?

The effectiveness of 'Full and Open Competition After Exclusion of Sources' in ensuring taxpayer value is nuanced. While it aims to broaden competition after an initial, potentially narrower, consideration, the exclusion itself can limit the pool of potential bidders. If the exclusion was based on legitimate, well-defined criteria that genuinely narrowed the field to the most capable vendors, and the subsequent competition among those vendors was robust, it can still yield good value. However, if the exclusion was arbitrary or overly restrictive, it could stifle competition, potentially leading to higher prices than a truly unrestricted full and open competition. The fact that only two bids were received suggests the exclusion may have had a significant impact on the competitive landscape.

What is the historical spending pattern for IT security services at HHS or HRSA?

Analyzing historical spending patterns for IT security services at HHS or HRSA is crucial for context. This involves examining previous contract awards for similar services, their values, durations, and the contractors involved. Understanding whether spending has been consistent, increasing, or decreasing provides insight into the agency's priorities and budget allocation for cybersecurity. Comparing the current $26.9 million award to past expenditures can reveal trends, identify potential cost efficiencies or escalations, and help assess if this contract represents a significant shift or a continuation of established spending levels. Data from sources like FPDS would be essential for this analysis.

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: 2

Pricing Type: FIRM FIXED PRICE (J)

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: $68,965,212

Exercised Options: $26,874,905

Current Obligation: $26,874,905

Actual Outlays: $18,108,140

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200126W

IDV Type: GWAC

Timeline