HHS awards $34M for FDA Information Security Program support to CNI Federal Services

Contract Overview

Contract Amount: $34,047,690 ($34.0M)

Contractor: CNI Federal Services, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2008-09-12

End Date: 2011-08-16

Contract Duration: 1,068 days

Daily Burn Rate: $31.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: NEW TASK FOR OPERATIONS RESPONSE (O R) ARCHITECTURE ENGINEERING (A E) AND RISK COMPLIANCE (R C) SUPPORT FOR FDA INFORMATION SECURITY PROGRAM TO 2

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $34.0 million to CNI FEDERAL SERVICES, LLC for work described as: NEW TASK FOR OPERATIONS RESPONSE (O R) ARCHITECTURE ENGINEERING (A E) AND RISK COMPLIANCE (R C) SUPPORT FOR FDA INFORMATION SECURITY PROGRAM TO 2 Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. Duration of over three years suggests a need for sustained support. 3. Contract type is Time and Materials, which can pose cost control challenges. 4. The award was made to CNI Federal Services, LLC. 5. The contract falls under Computer Facilities Management Services. 6. The contract was awarded by the Food and Drug Administration (FDA).

Value Assessment

Rating: questionable

Benchmarking the value for this specific contract is challenging due to the lack of publicly available comparable sole-source awards for similar services. The Time and Materials (T&M) contract type, while flexible, can lead to higher costs if not managed diligently, as it reimburses labor hours and material costs directly. Without detailed breakdowns of labor categories, rates, and material markups, a precise value-for-money assessment is difficult. However, the total award amount of $34 million over approximately three years suggests a significant investment in information security infrastructure and services for the FDA.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not openly competed. This approach is typically used when only one responsible source can provide the required services. The lack of competition means that the government did not benefit from a range of proposals and potentially lower prices that could arise from a competitive bidding process. The specific reasons for the sole-source award are not detailed in the provided data.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the government does not have the benefit of competitive pricing. This limits the government's ability to negotiate the best possible price.

Public Impact

The primary beneficiary of this contract is the Food and Drug Administration (FDA), which receives essential support for its information security program. The services delivered are critical for maintaining the confidentiality, integrity, and availability of sensitive FDA data and systems. This contract supports the FDA's mission to protect public health by ensuring the security of its digital infrastructure. The contract's geographic impact is primarily within the FDA's operational locations, likely concentrated in Maryland where the contractor is based.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially impacting cost-effectiveness.
Time and Materials contract type carries inherent risks of cost overruns if not closely monitored.
Lack of detailed performance metrics in the provided data makes it difficult to assess service quality.
The contract duration is substantial, requiring ongoing vigilance in oversight.

Positive Signals

Focus on information security is crucial for protecting sensitive public health data.
The contract supports a critical government agency (FDA) with essential IT services.
The award is to a specific company, CNI Federal Services, LLC, indicating a defined relationship for service provision.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer facilities management and information security. The market for IT security services is substantial and growing, driven by increasing cyber threats and regulatory requirements. The FDA's need for robust information security is paramount given the sensitive nature of health data it manages. Comparable spending benchmarks for IT security support within federal agencies are often in the millions of dollars, reflecting the complexity and criticality of these services.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) was not a factor in this award, with both values set to false. This suggests that the contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mandated within the award details. Consequently, the direct impact on the small business ecosystem from this particular contract is likely minimal, unless CNI Federal Services voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the FDA responsible for information security. The Time and Materials contract type necessitates close monitoring of labor hours, rates, and material costs to ensure compliance and prevent overspending. Transparency is enhanced through contract reporting mechanisms, though specific details on Inspector General involvement or detailed public reporting are not provided in this data snippet.

Related Government Programs

FDA Information Security Program
Department of Health and Human Services IT Services
Federal Information Security Management Act (FISMA) Compliance Support
Computer Facilities Management Services
Cybersecurity Support Contracts

Risk Flags

Sole-source award limits competition.
Time and Materials contract type can lead to cost overruns.
Lack of detailed performance metrics.
Limited public information on justification for sole-source.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $34.0 million to CNI FEDERAL SERVICES, LLC. NEW TASK FOR OPERATIONS RESPONSE (O R) ARCHITECTURE ENGINEERING (A E) AND RISK COMPLIANCE (R C) SUPPORT FOR FDA INFORMATION SECURITY PROGRAM TO 2

Who is the contractor on this award?

The obligated recipient is CNI FEDERAL SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Food and Drug Administration).

What is the total obligated amount?

The obligated amount is $34.0 million.

What is the period of performance?

Start: 2008-09-12. End: 2011-08-16.

What is the specific justification for the sole-source award of this contract?

The provided data does not specify the exact justification for the sole-source award. Generally, sole-source contracts are awarded when only one responsible source is available to provide the required supplies or services. This could be due to unique capabilities, proprietary technology, urgent and compelling needs where competition is not feasible, or other specific circumstances outlined in federal acquisition regulations. Without further documentation, the precise reason for CNI Federal Services being the sole provider remains unknown.

How does the Time and Materials (T&M) contract type compare to other contract types in terms of cost control for IT services?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change. They reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials and services. While offering flexibility, T&M contracts carry a higher risk of cost overruns compared to fixed-price contracts, as the total cost is not predetermined. Effective oversight, detailed tracking of hours and expenses, and clear ceiling limitations are crucial for controlling costs under T&M agreements. Other contract types, like Firm-Fixed-Price (FFP), offer greater cost certainty but require a well-defined scope.

What is the historical spending pattern for FDA's information security support?

The provided data only details one specific contract award of $34,047,689.82 to CNI Federal Services, LLC, spanning from September 12, 2008, to August 16, 2011. To understand historical spending patterns, one would need to analyze all prior and subsequent contracts awarded by the FDA for information security support, including their values, durations, and the contractors involved. This single data point does not provide sufficient information to establish a trend or pattern in FDA's historical spending on this service.

What are the key performance indicators (KPIs) used to measure the success of this contract?

The provided data snippet does not include specific Key Performance Indicators (KPIs) or performance metrics for this contract. In a typical government contract, especially for IT services and information security, KPIs would be defined in the Performance Work Statement (PWS) or Statement of Work (SOW). These might include metrics related to system uptime, incident response times, vulnerability remediation rates, compliance adherence, and user satisfaction. Without access to the full contract documentation, the specific measures of success for CNI Federal Services' performance are not available.

What is the track record of CNI Federal Services, LLC with government contracts, particularly within HHS or FDA?

The provided data identifies CNI Federal Services, LLC as the contractor for this specific FDA Information Security Program support contract. To assess their overall track record, a broader analysis of their contract history with the federal government, particularly the Department of Health and Human Services (HHS) and the Food and Drug Administration (FDA), would be necessary. This would involve reviewing past performance evaluations, contract values, types of services rendered, and any instances of contract disputes or awards. The current data only confirms their role in this single, sole-source award.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Chickasaw Nation (UEI: 070848361)

Address: 2600 JOHN SAXON BLVD STE 2219, NORMAN, OK, 04

Business Categories: 8(a) Program Participant, Category Business, Government, Native American Tribal Government, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Tribally Owned Firm

Financial Breakdown

Contract Ceiling: $34,047,690

Exercised Options: $34,047,690

Current Obligation: $34,047,690

Parent Contract

Parent Award PIID: HHSF223200850012I

IDV Type: IDC

Timeline