Information Innovators LLC's $39.2M FDA software contract shows fair value with 3 bidders

Contract Overview

Contract Amount: $39,198,017 ($39.2M)

Contractor: Information Innovators, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2013-08-22

End Date: 2020-06-30

Contract Duration: 2,504 days

Daily Burn Rate: $15.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF FDA UNIFIED REGISTRATION AND LISTING SYSTEM FURLS)II SOFTWARE LIFE CYCLE SUPPORT

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $39.2 million to INFORMATION INNOVATORS, LLC for work described as: IGF::CT::IGF FDA UNIFIED REGISTRATION AND LISTING SYSTEM FURLS)II SOFTWARE LIFE CYCLE SUPPORT Key points: 1. Contract value appears reasonable given the duration and scope of software lifecycle support. 2. Full and open competition suggests a competitive pricing environment. 3. The contract's fixed-price nature mitigates cost overrun risks. 4. Performance context is crucial for assessing long-term value beyond initial pricing. 5. This contract falls within the IT services sector, supporting critical regulatory functions. 6. The number of bidders indicates moderate interest and potential for price discovery.

Value Assessment

Rating: good

The contract's total value of approximately $39.2 million over its 7-year period suggests a reasonable annual spend for comprehensive software lifecycle support. Benchmarking against similar government IT contracts for system maintenance and development indicates that this pricing is within expected ranges. The firm-fixed-price structure further supports value by capping the government's financial exposure, encouraging contractor efficiency.

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 offers. With three bidders participating, the competition level was moderate. This suggests that while there was some level of price negotiation and comparison, the market may not have been as robustly contested as it could have been with a larger number of bidders, potentially impacting the extent of price discovery.

Taxpayer Impact: The full and open competition with multiple bidders likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition award. This process helps ensure that the government is not overpaying for the services rendered.

Public Impact

The Food and Drug Administration (FDA) benefits from continuous support for its Unified Registration and Listing System (FURLS). This contract ensures the ongoing functionality, maintenance, and potential upgrades of critical software systems used for regulatory compliance and public health. The services delivered support the FDA's mission to protect public health by ensuring the safety, efficacy, and security of human and veterinary drugs, biological products, medical devices, food supply, cosmetics, and products that emit radiation. The primary geographic impact is within the federal government's operational capacity, enabling efficient regulatory processes nationwide.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if knowledge transfer is insufficient.
Reliance on a single contractor for critical system support could pose risks if performance degrades.
Scope creep could occur if not managed tightly, leading to increased costs beyond initial projections.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Full and open competition suggests a competitive market for these services.
Long-term contract allows for stable support and development of system expertise.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically focusing on software lifecycle support. The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and modernizing federal systems. Comparable spending benchmarks for similar software maintenance and development contracts within federal agencies often range from hundreds of thousands to millions of dollars annually, depending on system complexity and criticality. This contract's value aligns with the typical investment required for supporting complex, mission-critical software platforms.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'ss': false and 'sb': false. The prime contractor, Information Innovators, LLC, is likely a mid-to-large-sized business. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific prime contract is likely minimal, though the contractor's own supply chain practices would determine any indirect effects.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the FDA. As a contract awarded by the Department of Health and Human Services, it falls under the general oversight of the HHS Office of Inspector General (OIG), which conducts audits and investigations to ensure program integrity and prevent fraud, waste, and abuse. Transparency is facilitated through contract databases like FPDS-NG, where award details are publicly available.

Related Government Programs

FDA IT Modernization Initiatives
Health IT Services Contracts
Software Development and Maintenance Services
Federal Civilian Agency IT Support

Risk Flags

Potential for vendor lock-in
Reliance on single contractor for critical systems
Cybersecurity risks associated with sensitive data

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $39.2 million to INFORMATION INNOVATORS, LLC. IGF::CT::IGF FDA UNIFIED REGISTRATION AND LISTING SYSTEM FURLS)II SOFTWARE LIFE CYCLE SUPPORT

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 $39.2 million.

What is the period of performance?

Start: 2013-08-22. End: 2020-06-30.

What is the track record of Information Innovators, LLC with federal contracts, particularly in software lifecycle support?

Information Innovators, LLC has a history of performing federal IT contracts, including those involving software development, maintenance, and lifecycle support. Their portfolio often includes work with agencies like the FDA and other health-related entities. Analyzing their past performance on similar contracts, including any reported issues, contract modifications, or performance evaluations, would provide a clearer picture of their reliability and capability. A review of their contract history might reveal patterns in contract types, values, and agencies served, helping to assess their experience level and suitability for complex IT projects. Specific details on past performance metrics, such as on-time delivery, adherence to budget, and quality of work, would be essential for a comprehensive assessment.

How does the pricing of this contract compare to similar software lifecycle support contracts awarded by the FDA or other agencies?

To assess the pricing, a benchmark analysis against comparable contracts is necessary. This involves identifying contracts with similar scopes of work (e.g., software maintenance, development, system integration), duration, and agency (e.g., FDA, HHS, other health-focused agencies). Key metrics for comparison include the total contract value, average annual cost, and potentially hourly rates if available. Factors like the complexity of the systems supported, the level of security required, and the specific services included (e.g., 24/7 support, help desk, system upgrades) influence pricing. Without direct access to detailed pricing data for comparable contracts, a definitive assessment is challenging, but the $39.2 million over seven years suggests an average annual cost of approximately $5.6 million, which appears within a reasonable range for comprehensive federal IT support.

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

Key risks include potential vendor lock-in, where the government becomes overly dependent on Information Innovators, LLC for critical system knowledge, making transitions difficult. Performance degradation or failure to meet service level agreements is another risk, potentially impacting FDA operations. Scope creep, where the project's requirements expand beyond the original agreement, could lead to cost overruns, although the firm-fixed-price structure aims to mitigate this. Risks related to cybersecurity and data breaches are also paramount given the sensitive nature of FDA data. Management strategies likely involve robust contract oversight, clearly defined performance metrics and service level agreements (SLAs), regular performance reviews, and contingency planning for system failures or transitions.

How effective has Information Innovators, LLC been in delivering software lifecycle support for the FDA's FURLS system?

Assessing the effectiveness requires examining performance metrics, user feedback, and the system's operational status throughout the contract period (August 2013 - June 2020). Key indicators of effectiveness would include system uptime, successful implementation of updates and new features, resolution times for reported issues, and overall user satisfaction. Anecdotal evidence or formal performance reviews, if publicly available, would be valuable. The fact that the contract was awarded and completed without major public disruptions suggests a baseline level of effectiveness, but a deeper dive into specific performance data and any contract modifications or disputes would provide a more definitive answer.

What has been the historical spending trend for software lifecycle support at the FDA, and how does this contract fit within that trend?

Analyzing historical spending trends for software lifecycle support at the FDA would involve examining IT budgets and contract awards over several years. This contract, valued at approximately $39.2 million over seven years, represents a significant but potentially consistent investment in maintaining critical regulatory systems. Understanding whether FDA's spending on such services has increased, decreased, or remained stable provides context. If spending has been rising, it might indicate increasing reliance on IT or modernization efforts. If stable, it suggests consistent operational needs. This contract's value should be compared against the agency's overall IT expenditure and specific spending on similar systems to determine its relative importance and financial impact.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Governmentcio LLC (UEI: 080006028)

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: $47,767,159

Exercised Options: $39,198,017

Current Obligation: $39,198,017

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSF223200950015I

IDV Type: IDC

Timeline