HHS awards $34M for FDA IT integration services to Information Innovators, LLC

Contract Overview

Contract Amount: $34,174,215 ($34.2M)

Contractor: Information Innovators, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2011-03-01

End Date: 2017-02-28

Contract Duration: 2,191 days

Daily Burn Rate: $15.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: REGULATORY BUSINESS INFORMATION SERVICES (RBIS) SYSTEM INTEGRATION SERVICES

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $34.2 million to INFORMATION INNOVATORS, LLC for work described as: REGULATORY BUSINESS INFORMATION SERVICES (RBIS) SYSTEM INTEGRATION SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of approximately 6 years indicates a long-term need for these services. 3. Fixed-price contract type may offer cost certainty for the government. 4. The award was a delivery order, suggesting it was part of a larger contract vehicle. 5. The North American Industry Classification System (NAICS) code 541519 points to specialized computer services. 6. The contractor, Information Innovators, LLC, has secured this significant award.

Value Assessment

Rating: fair

The total award amount of $34.17 million over nearly six years for IT integration services appears to be within a reasonable range for such a long-term, complex project. Benchmarking against similar large-scale IT integration contracts within federal agencies would provide a clearer picture of value for money. The fixed-price nature of the contract offers some predictability, but the absence of detailed performance metrics or cost breakdowns makes a definitive value assessment challenging without further data. The contract was awarded as a delivery order, implying it was placed against an existing contract vehicle, which could have its own pre-negotiated rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this specific award. While full and open competition is generally preferred for maximizing price discovery and ensuring fair access to government contracts, the low number of bidders could suggest potential barriers to entry or a niche market for these specialized IT integration services.

Taxpayer Impact: A competitive bidding process, even with a limited number of bidders, generally leads to better pricing for taxpayers compared to sole-source awards. It encourages contractors to offer their best prices to win the contract.

Public Impact

The Food and Drug Administration (FDA) benefits from enhanced IT systems and integration. Services delivered likely support the FDA's mission to protect public health by ensuring the safety, efficacy, and security of human and veterinary drugs, etc. The primary geographic impact is within the FDA's operational locations, likely concentrated in Maryland. The contract supports IT professionals and potentially other roles involved in system integration and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) may indicate potential for higher prices than a more robustly competed contract.
Long contract duration (approx. 6 years) increases the risk of scope creep or evolving technological needs not being fully addressed.
Fixed-price contracts can sometimes lead to quality compromises if not carefully managed and monitored.
Specific details on performance metrics and deliverables are not readily available, hindering a full assessment of effectiveness.

Positive Signals

Awarded through full and open competition, which is a positive indicator for fairness and potential value.
Fixed-price contract type provides budget certainty for the government.
The contractor, Information Innovators, LLC, has secured a significant federal contract, suggesting capability.
The delivery order mechanism implies the contract was placed against an established, potentially pre-vetted, contract vehicle.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on system integration. The federal IT services market is substantial, with agencies continually investing in modernizing and integrating their complex systems. This contract for the FDA likely supports critical public health functions by ensuring seamless operation of its IT infrastructure. Comparable spending benchmarks would involve looking at other large-scale IT integration projects within health and human services agencies or other regulatory bodies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor is Information Innovators, LLC, which is not specified as a small business in the provided data. The impact on the small business ecosystem is neutral in terms of set-aside opportunities for this specific award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the FDA. Accountability measures are inherent in the contract terms, including performance standards and payment schedules tied to deliverables. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

FDA IT Modernization Programs
HHS IT Services Contracts
Federal Civilian Agency IT Integration
Health Information Technology Services
Regulatory Agency IT Support

Risk Flags

Limited Competition
Potential for Scope Creep
Performance Monitoring Gaps (data unavailable)

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $34.2 million to INFORMATION INNOVATORS, LLC. REGULATORY BUSINESS INFORMATION SERVICES (RBIS) SYSTEM INTEGRATION SERVICES

Who is the contractor on this award?

The obligated recipient is INFORMATION INNOVATORS, 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 $34.2 million.

What is the period of performance?

Start: 2011-03-01. End: 2017-02-28.

What is the track record of Information Innovators, LLC with federal contracts, particularly within HHS or FDA?

Information Innovators, LLC has a history of federal contracting, including awards from agencies like the Department of Health and Human Services (HHS). While this specific $34.17 million award for RBIS system integration is significant, a deeper dive into their contract portfolio would reveal their experience with similar IT services, project sizes, and performance history. Analyzing past performance reviews, any contract disputes, or awards for exceptional performance would provide a more comprehensive understanding of their reliability and capability as a federal contractor. Their success on this FDA contract suggests they met the agency's requirements and expectations during the bidding process.

How does the per-unit cost or overall value of this contract compare to similar IT integration services procured by other federal agencies?

Without specific line-item costs or detailed service descriptions, a precise per-unit cost comparison is difficult. However, the total award of approximately $34.17 million over nearly six years for comprehensive IT integration services for a major agency like the FDA is substantial. To benchmark value, one would compare this contract's total value and duration against other large-scale IT modernization and integration projects within civilian agencies, particularly those in the healthcare or regulatory sectors. Factors like the complexity of the systems being integrated, the level of customization required, and the specific IT services included (e.g., software development, network integration, cybersecurity) would influence comparability. A higher number of bidders in similar competitive procurements might suggest lower average contract values due to increased price pressure.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract, and how has the contractor performed against them?

The provided data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, such details are outlined in the contract's statement of work (SOW) or performance work statement (PWS). These metrics would define the expected quality, timeliness, and effectiveness of the IT integration services. Performance against these KPIs/SLAs would be monitored by the FDA's contracting officer's representative (COR). Without access to performance reports or contract close-out documentation, it is impossible to assess how well Information Innovators, LLC has met these specific requirements. The absence of readily available performance data makes a thorough risk assessment challenging.

What is the historical spending trend for RBIS system integration services at the FDA or HHS, and does this contract represent an increase or decrease?

Analyzing historical spending for RBIS (Regulatory Business Information Services) system integration at the FDA or HHS would require accessing historical contract databases over several fiscal years. This single award of $34.17 million over approximately six years represents a significant investment in IT integration for the FDA. To determine if it's an increase or decrease, one would need to aggregate spending on similar services in prior years. Factors influencing spending trends include agency priorities, budget allocations, the lifecycle of existing systems, and the urgency of modernization needs. A sustained or increasing trend in such contracts might indicate a growing reliance on integrated IT systems for regulatory functions.

What are the potential risks associated with a fixed-price contract for complex IT integration services, and how are they mitigated?

Fixed-price contracts, while offering cost certainty to the government, carry inherent risks for complex IT integration projects. One primary risk is that the contractor may underestimate the scope or complexity, leading to reduced quality, scope creep without additional funding, or contractor financial distress. Conversely, if the contractor overestimates, the government may pay a premium. For this contract, risks could include unforeseen technical challenges, integration issues with legacy systems, or evolving regulatory requirements impacting the IT infrastructure. Mitigation strategies employed by the government typically involve a well-defined SOW, robust oversight by the COR, phased delivery schedules, and clear change management processes. The contractor's own risk management practices are also crucial for successful project completion.

Given the 'Other Computer Related Services' NAICS code, what specific types of IT integration services are typically encompassed?

The NAICS code 541519, 'Other Computer Related Services,' is a broad category that encompasses a wide range of IT services not classified under more specific codes. For IT integration, this could include services such as: designing and integrating computer systems, installing hardware and software, providing IT consulting, managing IT infrastructure, developing custom software solutions to link different systems, and providing technical support for integrated systems. For the FDA's RBIS system, these services likely involve ensuring that various databases, software applications, and hardware components work together seamlessly to support regulatory business processes, data management, and reporting.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Governmentcio LLC

Address: 7400 FULLERTON RD STE 210, SPRINGFIELD, VA, 22153

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

Financial Breakdown

Contract Ceiling: $34,174,215

Exercised Options: $34,174,215

Current Obligation: $34,174,215

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSF223200950015I

IDV Type: IDC

Timeline