HHS Awards $43M for NIH IT Service Desk Support, Infrastructure Operations, and Maintenance

Contract Overview

Contract Amount: $43,020,828 ($43.0M)

Contractor: DLH, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2018-01-12

End Date: 2023-12-13

Contract Duration: 2,161 days

Daily Burn Rate: $19.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF SERVICE DESK SUPPORT, INFRASTRUCTURE OPERATIONS AND MAINTENANCE (TASK ORDER BETA)

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $43.0 million to DLH, LLC for work described as: IGF::OT::IGF SERVICE DESK SUPPORT, INFRASTRUCTURE OPERATIONS AND MAINTENANCE (TASK ORDER BETA) Key points: 1. The contract value of $43M over five years indicates a significant investment in IT infrastructure. 2. DLH, LLC secured this contract through full and open competition, suggesting a competitive bidding process. 3. The firm fixed-price contract type aims to control costs, but potential risks include scope creep and vendor lock-in. 4. The sector is IT services, specifically Computer Facilities Management, a critical function for research institutions like NIH.

Value Assessment

Rating: good

The contract value of $43M over five years, averaging $8.6M annually, appears reasonable for comprehensive IT service desk and infrastructure support for a large agency like NIH. Benchmarking against similar large-scale IT support contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, allowing all eligible vendors to bid. This method generally promotes competitive pricing and ensures the government receives the best value. The BPA Call award mechanism suggests it was a competitive call against an existing Blanket Purchase Agreement.

Taxpayer Impact: Full and open competition is expected to yield a fair price, maximizing taxpayer value by leveraging market competition.

Public Impact

Ensures continuity of critical IT services for the National Institutes of Health, supporting vital research and public health initiatives. Provides essential infrastructure operations and maintenance, minimizing downtime and ensuring reliable access to systems for researchers and staff. The contract supports a significant number of IT service desk personnel, impacting user experience and operational efficiency. Potential for innovation in IT service delivery and infrastructure management through competitive vendor solutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope is not managed tightly.
Dependence on a single vendor for critical IT infrastructure.
Risk of service degradation if vendor performance falters.

Positive Signals

Awarded through full and open competition, indicating competitive pricing.
Firm fixed-price contract type helps control costs.
Long-term contract provides stability for essential IT services.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer facilities management. Spending in this area is substantial across federal agencies, with benchmarks varying based on agency size, complexity, and specific service requirements. NIH's extensive research operations likely necessitate robust IT support.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false). While this specific task order may not have directly benefited small businesses, larger prime contracts often have subcontracting goals that could involve small business participation.

Oversight & Accountability

The award process under full and open competition suggests a degree of oversight. However, ongoing monitoring of vendor performance, adherence to contract terms, and cost management by the agency is crucial for accountability and ensuring continued value.

Related Government Programs

Computer Facilities Management Services
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Potential for vendor lock-in.
Risk of scope creep impacting budget.
Dependence on a single vendor for critical IT functions.
Lack of explicit small business subcontracting noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $43.0 million to DLH, LLC. IGF::OT::IGF SERVICE DESK SUPPORT, INFRASTRUCTURE OPERATIONS AND MAINTENANCE (TASK ORDER BETA)

Who is the contractor on this award?

The obligated recipient is DLH, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $43.0 million.

What is the period of performance?

Start: 2018-01-12. End: 2023-12-13.

What is the projected cost per user or per service ticket, and how does it compare to industry benchmarks for similar government IT support contracts?

The provided data does not include per-user or per-ticket cost breakdowns, making direct benchmarking difficult. However, the total contract value of $43M over five years for NIH's IT service desk and infrastructure support suggests an average annual cost of $8.6M. A detailed analysis would require access to the contract's detailed pricing structure and comparison with similar government IT service contracts to assess cost-effectiveness.

What are the key performance indicators (KPIs) for this contract, and how is vendor performance being monitored to mitigate risks related to service quality and responsiveness?

Specific KPIs are not detailed in the provided data. However, for a contract of this nature, typical KPIs would include ticket resolution times, system uptime, user satisfaction ratings, and security compliance. Effective oversight would involve regular performance reviews, service level agreement (SLA) tracking, and potentially independent audits to ensure DLH, LLC meets its contractual obligations and maintains high service standards.

How does the scope of 'Infrastructure Operations and Maintenance' align with current and future technological needs of NIH, and are there provisions for adapting to evolving IT landscapes?

The contract's scope covers essential IT infrastructure operations and maintenance, crucial for current research activities. However, the data doesn't specify provisions for future technological adaptation, such as cloud migration, AI integration, or cybersecurity advancements. The firm fixed-price nature might limit flexibility for incorporating new technologies without contract modifications, highlighting a potential area for review during contract performance.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: DLH Holdings Corp

Address: 6720B ROCKLEDGE DR STE 777, BETHESDA, MD, 20817

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

Financial Breakdown

Contract Ceiling: $46,752,158

Exercised Options: $43,020,828

Current Obligation: $43,020,828

Actual Outlays: $1,029,403

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN268201800004B

IDV Type: BPA

Timeline