HHS awards $31.3M for World Trade Center Health Program data center services to Icahn School of Medicine

Contract Overview

Contract Amount: $31,262,664 ($31.3M)

Contractor: Icahn School of Medicine AT Mount Sinai

Awarding Agency: Department of Health and Human Services

Start Date: 2017-04-01

End Date: 2022-09-30

Contract Duration: 2,008 days

Daily Burn Rate: $15.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF:: WORLD TRADE CENTER HEALTH PROGRAM - DATA CENTER SERVICES

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10029

State: New York Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $31.3 million to ICAHN SCHOOL OF MEDICINE AT MOUNT SINAI for work described as: IGF::OT::IGF:: WORLD TRADE CENTER HEALTH PROGRAM - DATA CENTER SERVICES Key points: 1. Contract awarded for essential data center services supporting the WTC Health Program. 2. The contract value represents a significant investment in maintaining critical health data infrastructure. 3. Competition dynamics suggest a robust bidding process for these specialized services. 4. Performance context is crucial given the sensitive nature of health data managed. 5. Sector positioning places this contract within the broader IT services for healthcare domain. 6. Risk indicators may include data security, system uptime, and compliance with health regulations.

Value Assessment

Rating: good

The contract value of approximately $31.3 million over its period of performance appears reasonable for comprehensive data center services supporting a vital public health program. Benchmarking against similar contracts for large-scale data management and hosting in the federal sector would provide further context. The firm-fixed-price structure suggests that the government has a clear understanding of the scope and cost, potentially leading to better value realization.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of three bidders suggests a competitive market for these specialized IT infrastructure services. A competitive process generally leads to better pricing and service offerings for the government.

Taxpayer Impact: The full and open competition likely resulted in a more favorable price for taxpayers by leveraging market forces to drive down costs and improve service quality.

Public Impact

Beneficiaries include first responders, survivors, and their families enrolled in the World Trade Center Health Program. Services delivered ensure the reliable operation and maintenance of data centers crucial for program administration and record-keeping. Geographic impact is primarily focused on supporting the program's operations, with potential implications for data accessibility nationwide. Workforce implications may involve IT professionals managing and maintaining the data center infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if contract terms are not carefully managed.
Ensuring continuous system availability and data integrity is paramount.
Compliance with evolving data privacy and security regulations (e.g., HIPAA) requires ongoing vigilance.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Firm-fixed-price contract provides cost certainty for the government.
Long-term contract duration allows for stable service provision.
Contractor's role in supporting a critical public health program demonstrates alignment with national priorities.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on data center services, cloud computing infrastructure, and related hosting. The market for such services is highly competitive, with numerous providers offering scalable solutions. Federal spending in this area is substantial, driven by the need for secure, reliable, and cost-effective data management across various agencies. Comparable spending benchmarks would typically involve analyzing IT infrastructure contracts awarded by agencies like HHS, DOD, and VA for similar scope and scale.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, the prime contractor may engage small businesses for subcontracting opportunities. Analysis of subcontracting plans would be necessary to determine the extent of small business participation. The overall impact on the small business ecosystem depends on whether the prime contractor actively seeks out and utilizes small business capabilities for specialized IT services.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the Centers for Disease Control and Prevention (CDC) and the Department of Health and Human Services (HHS). Accountability measures are embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract databases and public reporting, though specific operational details may be sensitive. The Inspector General's office for HHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

World Trade Center Health Program
Federal Health IT Spending
Data Center Infrastructure Services
Health Information Management Systems

Risk Flags

Data Security and Privacy Compliance
System Availability and Uptime
Contractor Performance Monitoring
Regulatory Adherence (HIPAA)

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $31.3 million to ICAHN SCHOOL OF MEDICINE AT MOUNT SINAI. IGF::OT::IGF:: WORLD TRADE CENTER HEALTH PROGRAM - DATA CENTER SERVICES

Who is the contractor on this award?

The obligated recipient is ICAHN SCHOOL OF MEDICINE AT MOUNT SINAI.

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 $31.3 million.

What is the period of performance?

Start: 2017-04-01. End: 2022-09-30.

What is the track record of Icahn School of Medicine at Mount Sinai in managing federal IT contracts, particularly those involving sensitive data?

Icahn School of Medicine at Mount Sinai, as a major academic medical institution, has experience in managing complex IT systems and data. While specific details on their federal contract performance history require deeper database analysis, their role as a healthcare provider suggests familiarity with stringent data security and privacy regulations like HIPAA. Their ability to secure and manage the data center services for the World Trade Center Health Program indicates a capacity to handle critical infrastructure. Further investigation would involve reviewing past performance evaluations and any reported issues on similar federal contracts to fully assess their track record.

How does the awarded amount of $31.3 million compare to similar federal data center service contracts?

The $31.3 million awarded amount for data center services over approximately five years (from April 2017 to September 2022) needs to be benchmarked against comparable federal contracts. Factors such as the scope of services (e.g., colocation, managed services, cloud integration), data volume, security requirements, and geographic location significantly influence pricing. Contracts for large federal agencies with extensive data needs can range from tens to hundreds of millions of dollars. Without specific details on the service level agreements and the exact infrastructure provided, a precise comparison is challenging. However, for a program supporting a specific health initiative, this figure appears to be within a plausible range, assuming comprehensive service delivery.

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

Key risks for this contract include data breaches and security vulnerabilities, system downtime impacting program operations, and non-compliance with health data regulations (e.g., HIPAA). Mitigation strategies likely involve robust cybersecurity measures, redundant infrastructure for high availability, regular system audits and penetration testing, and strict adherence to data governance policies. The firm-fixed-price nature of the contract also helps mitigate cost overrun risks for the government. The contractor's expertise in handling sensitive health information and the oversight provided by HHS are crucial in managing these risks.

How effective has the World Trade Center Health Program been in delivering its services, and how does this data center contract contribute to that effectiveness?

The World Trade Center Health Program aims to provide comprehensive health care and monitoring for individuals exposed to toxins at the World Trade Center site. Its effectiveness is measured by its ability to enroll eligible individuals, provide timely and appropriate medical services, and manage the vast amount of health data generated. This data center services contract is fundamental to the program's effectiveness by ensuring the secure storage, accessibility, and integrity of patient records and program data. Reliable IT infrastructure is essential for efficient program administration, claims processing, and ongoing health surveillance, directly supporting the program's mission.

What are the historical spending patterns for data center services within the Department of Health and Human Services?

HHS, like many large federal agencies, has consistently invested significant funds in IT infrastructure, including data center services. Historical spending patterns reveal a trend towards modernization, consolidation, and increased reliance on cloud-based solutions, alongside traditional data center management. Spending fluctuates based on specific program needs, technology upgrades, and shifts in federal IT strategy (e.g., towards shared services or cloud-first policies). Analyzing HHS's overall IT budget and specific contracts for data center operations over the past decade would show a substantial and ongoing commitment to maintaining robust data infrastructure to support its diverse public health missions.

What is the potential impact of this contract on the broader IT services market, particularly for healthcare-focused providers?

This contract, awarded to a prominent medical institution, highlights the critical role of specialized IT infrastructure in supporting public health initiatives. It signals continued demand for secure, reliable data center services within the healthcare sector. For the broader IT services market, it underscores the importance of demonstrating expertise in handling sensitive health data and complying with stringent regulatory requirements. The competitive nature of the award suggests that providers capable of meeting these demands can secure significant federal contracts, potentially influencing market strategies and investments in healthcare IT solutions.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 2016N18002

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mount Sinai Health System, Inc.

Address: ONE GUSTAVE L LEVY PL, NEW YORK, NY, 10029

Business Categories: Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Higher Education (Private)

Financial Breakdown

Contract Ceiling: $31,390,422

Exercised Options: $31,390,422

Current Obligation: $31,262,664

Actual Outlays: $6,546,523

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline