HHS awards $26.8M for data management support, raising value-for-money questions

Contract Overview

Contract Amount: $26,816,889 ($26.8M)

Contractor: ICF Incorporated, L.L.C.

Awarding Agency: Department of Health and Human Services

Start Date: 2011-06-29

End Date: 2016-01-31

Contract Duration: 1,677 days

Daily Burn Rate: $16.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: SCIENTIFIC&PROGRAMMATIC SUPPORT FOR DATA MGT FOR DHAP

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30329

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $26.8 million to ICF INCORPORATED, L.L.C. for work described as: SCIENTIFIC&PROGRAMMATIC SUPPORT FOR DATA MGT FOR DHAP Key points: 1. Contract value appears moderate for IT support services, but detailed benchmarking is needed. 2. Full and open competition suggests a healthy market, but the number of bidders is not specified. 3. Performance risk indicators are not immediately apparent from the provided data. 4. The contract duration of nearly 5 years is substantial for IT support. 5. This contract falls within the IT services sector, specifically computer systems design. 6. No small business set-aside was utilized, indicating potential missed opportunities for smaller firms.

Value Assessment

Rating: fair

The contract's total value of $26.8 million over approximately 4.6 years averages to about $5.8 million annually. Without specific details on the scope of services, it's difficult to definitively benchmark this against similar contracts. However, for IT systems design and support, this annual spend is within a plausible range, though a deeper dive into the specific deliverables and market rates for comparable services would be necessary to assess true value for money. The Time and Materials pricing structure can sometimes lead to cost overruns if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is generally a positive sign for market engagement and potentially competitive pricing. However, the number of bids received (3) is on the lower side for a full and open competition, which might suggest less robust interest than anticipated or a highly specialized niche. This level of competition provides some assurance of fair pricing, but a smaller number of bidders could indicate less downward pressure on costs.

Taxpayer Impact: A full and open competition, even with a limited number of bidders, generally benefits taxpayers by ensuring that the government has explored the market. However, with only three bidders, there's a possibility that more competitive pricing could have been achieved with broader participation.

Public Impact

The Centers for Disease Control and Prevention (CDC) benefits from enhanced data management capabilities. Services delivered include scientific and programmatic support for data management, crucial for public health initiatives. The contract's geographic impact is primarily within the agency's operational centers, likely in Georgia. Workforce implications include the potential for skilled IT professionals to support critical public health data infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost escalation if not closely monitored.
A relatively low number of bidders (3) in a full and open competition might indicate limited market interest or a concentrated market.
The contract duration of nearly 5 years is long, potentially locking in costs and limiting flexibility for future technological advancements.

Positive Signals

Awarded under full and open competition, suggesting a broad market solicitation.
The contract supports critical data management functions for a key public health agency (CDC).
The total value, while substantial, is spread over a significant period, suggesting a steady investment in essential services.

Sector Analysis

This contract falls within the Information Technology (IT) professional services sector, specifically Computer Systems Design Services (NAICS 541512). This sector is characterized by a wide range of companies, from large system integrators to specialized software developers. The market size for government IT services is substantial, with agencies like HHS being significant spenders. This contract represents a portion of the broader federal spending on IT support, aiming to ensure the integrity and usability of critical public health data.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (SB is false). Given the nature of IT support and data management services, there is often a segment of the market composed of small and medium-sized enterprises capable of performing such work. The absence of a small business set-aside means that opportunities for these firms to compete directly or subcontract may have been limited, potentially impacting the broader small business ecosystem within this IT service category.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Centers for Disease Control and Prevention's contracting officers and program managers. The Department of Health and Human Services also has an Office of Inspector General (OIG) that provides audit and investigative oversight for federal programs and contracts. Transparency is generally facilitated through contract databases like FPDS, but detailed performance metrics and specific oversight activities are often internal to the agency.

Related Government Programs

CDC Data Modernization Initiative
HHS Health Information Technology Services
Federal Health IT Spending
Government IT Support Contracts
Public Health Data Infrastructure

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Limited number of bidders (3) in a full and open competition may indicate reduced price competition.
Long contract duration (nearly 5 years) could lead to technological obsolescence or missed opportunities for more innovative solutions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $26.8 million to ICF INCORPORATED, L.L.C.. SCIENTIFIC&PROGRAMMATIC SUPPORT FOR DATA MGT FOR DHAP

Who is the contractor on this award?

The obligated recipient is ICF INCORPORATED, L.L.C..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $26.8 million.

What is the period of performance?

Start: 2011-06-29. End: 2016-01-31.

What specific data management services were provided under this contract, and how did they contribute to the CDC's mission?

The contract, valued at approximately $26.8 million, was for 'SCIENTIFIC&PROGRAMMATIC SUPPORT FOR DATA MGT FOR DHAP' (Division of Health and Preventive Promotion). This implies services related to the scientific and programmatic aspects of managing data for the DHAP. These services likely included data collection, cleaning, analysis, storage, security, and reporting, all crucial for supporting public health initiatives, disease surveillance, research, and policy development within the CDC. The specific contribution would be enabling the DHAP to effectively utilize its data assets for evidence-based decision-making, program evaluation, and public health interventions. Without more granular detail on the 'scientific and programmatic support,' it's hard to quantify the exact impact, but it's fundamental to the agency's operational effectiveness.

How does the $26.8 million total contract value compare to other similar IT support contracts awarded by the CDC or HHS during the 2011-2016 period?

The total contract value of $26.8 million over its 1677-day (approx. 4.6 years) duration equates to an average annual spend of roughly $5.8 million. During the 2011-2016 period, the federal government, and specifically HHS/CDC, were significant investors in IT services. While $5.8 million annually for specialized data management support is not exceptionally high in the context of large federal IT procurements, it represents a considerable investment. Comparable contracts could range from enterprise-wide IT infrastructure support to specific application development or data analytics projects. To provide a precise comparison, one would need to analyze the scope, duration, and specific services of other contracts within the same NAICS code (541512) awarded by similar agencies during that timeframe. However, this value suggests a sustained, mid-level investment in a critical function.

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

Primary risks for a contract of this nature and duration often include scope creep, cost overruns (especially with Time and Materials pricing), contractor performance issues, data security breaches, and technological obsolescence. Given the Time and Materials (T&M) pricing structure, the risk of cost escalation due to inefficient labor or extended timelines is significant if not managed rigorously through detailed work breakdown structures, regular progress reviews, and strong oversight. Contractor performance risk is mitigated through performance metrics, quality assurance surveillance plans (QASPs), and potential award fees or penalties. Data security is paramount for health data, requiring robust cybersecurity measures and compliance with HIPAA and other regulations. Technological obsolescence is a risk inherent in long-term IT contracts, potentially mitigated by incorporating flexibility clauses or regular technology refresh cycles, though this is not explicitly detailed in the provided data.

Given the 'full and open competition' award type, why were there only 3 bidders, and what does this imply for price discovery?

The fact that only three bidders responded to a 'full and open competition' for this contract could stem from several factors. The market for highly specialized scientific and programmatic data management support might be concentrated among a few key players. Alternatively, the contract's specific requirements, location, or security needs might have deterred broader participation. It's also possible that the solicitation period was insufficient, or the pre-bid information did not adequately reach all potential bidders. With only three bidders, the competitive pressure might be less intense than if there were five or more. This could lead to less aggressive pricing, as the winning contractor faces a smaller pool of rivals. While still a competitive process, the price discovery might not have reached its full potential compared to a scenario with more robust market engagement.

What is the track record of ICF Incorporated, L.L.C. as a federal contractor, particularly in IT and data management services?

ICF Incorporated, L.L.C. (now ICF) has a long and extensive history as a federal contractor across various agencies, including HHS, Department of Defense, and others. They are known for providing a wide range of services, including IT, data analytics, program management, and scientific research support. Their track record generally includes successful execution of large-scale government contracts. For IT and data management, ICF has been involved in projects related to health IT, environmental data, and public safety. While specific performance details for every contract are not publicly available, their sustained presence and continued awards suggest a generally positive performance history and capability to meet federal requirements. However, as with any large contractor, individual contract performance can vary, and a deeper review of past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) would provide more specific insights.

How does the Time and Materials (T&M) pricing structure potentially impact the overall cost-effectiveness of this contract?

The Time and Materials (T&M) pricing structure, used in this contract, bases payment on the direct labor hours at specified hourly rates, plus the actual cost of materials. While T&M contracts offer flexibility, especially when the scope of work is not clearly defined at the outset or is expected to evolve, they carry a higher risk of cost overruns for the government. Unlike fixed-price contracts, the total cost is not predetermined. If the contractor's labor is inefficient, if the project takes longer than anticipated, or if material costs increase unexpectedly, the final price can escalate significantly. For the government, cost-effectiveness hinges on rigorous oversight, clear task orders, effective project management, and strong controls to ensure that labor hours and material costs are reasonable and directly related to the work performed. Without such controls, T&M contracts can become less cost-effective than other pricing arrangements.

Industry Classification

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

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 2010N11852

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: ICF International, Inc.

Address: 9300 LEE HWY, FAIRFAX, VA, 22031

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $191,897,710

Exercised Options: $33,672,400

Current Obligation: $26,816,889

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: HHSD200201037215I

IDV Type: IDC

Timeline