HHS Spends $29M on NIH Mainframe Hosting & Storage Services via BPA Call
Contract Overview
Contract Amount: $28,990,179 ($29.0M)
Contractor: Soft Tech Consulting, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2015-12-28
End Date: 2019-11-30
Contract Duration: 1,433 days
Daily Burn Rate: $20.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF - ANTHONY TRANG 6555 RS/3SW15 - 8016923 - HOSTING&STORAGE SERVICES(MAINFRAME)
Place of Performance
Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $29.0 million to SOFT TECH CONSULTING, INC. for work described as: IGF::OT::IGF - ANTHONY TRANG 6555 RS/3SW15 - 8016923 - HOSTING&STORAGE SERVICES(MAINFRAME) Key points: 1. Significant investment in critical IT infrastructure for NIH. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Firm Fixed Price contract type mitigates cost overrun risk. 4. The contract supports custom computer programming services, a key IT function.
Value Assessment
Rating: good
The $29 million contract for hosting and storage services appears reasonable given the duration and the nature of mainframe support. Benchmarking against similar large-scale IT infrastructure contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under a BPA Call with full and open competition, indicating a robust price discovery process. This method allows multiple vendors to compete, driving competitive pricing.
Taxpayer Impact: Taxpayer funds are being used for essential IT services supporting a major health agency. The competitive nature of the award suggests efficient use of funds.
Public Impact
Ensures continuity of critical health research data and systems. Supports the operational needs of the National Institutes of Health. Mainframe services are vital for legacy systems in many government agencies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with specialized mainframe services.
- Aging technology may require significant maintenance investment.
- Dependence on a single BPA Call for critical infrastructure.
Positive Signals
- Full and open competition promotes fair pricing.
- Firm Fixed Price contract provides cost certainty.
- Long-term contract supports stable operations.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on data center operations and mainframe support. Spending on IT infrastructure for federal agencies is substantial, with significant portions allocated to maintaining legacy systems and cloud migration.
Small Business Impact
The contract was awarded to SOFT TECH CONSULTING, INC., and the data indicates the small business flag is false. Therefore, this specific award did not directly benefit small businesses.
Oversight & Accountability
The contract was awarded via a BPA Call, which typically has established oversight mechanisms. Further review of NIH's internal controls and the specific BPA's oversight procedures would be necessary for a complete assessment.
Related Government Programs
- Custom Computer Programming Services
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Potential for technology obsolescence
- Dependence on legacy systems
- Vendor lock-in risk
- Limited visibility into specific service costs within the BPA call
Tags
custom-computer-programming-services, department-of-health-and-human-services, va, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $29.0 million to SOFT TECH CONSULTING, INC.. IGF::OT::IGF - ANTHONY TRANG 6555 RS/3SW15 - 8016923 - HOSTING&STORAGE SERVICES(MAINFRAME)
Who is the contractor on this award?
The obligated recipient is SOFT TECH CONSULTING, INC..
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 $29.0 million.
What is the period of performance?
Start: 2015-12-28. End: 2019-11-30.
What is the long-term strategy for modernizing NIH's mainframe infrastructure?
The long-term strategy for modernizing NIH's mainframe infrastructure is crucial for ensuring future operational efficiency and cost-effectiveness. Without a clear modernization plan, the agency risks continued high maintenance costs and potential system obsolescence. Understanding the roadmap, including potential migration to cloud-based solutions or updated hardware, is key to assessing the value of ongoing mainframe investments.
How does the cost of this mainframe hosting compare to industry benchmarks for similar services?
Comparing the cost of this mainframe hosting to industry benchmarks is essential for evaluating value for money. Factors like data volume, processing power, and service level agreements influence pricing. If this contract's cost per unit or overall price significantly deviates from market rates, it could indicate either an exceptional deal or potential overspending, warranting further investigation into the specific service components and contract terms.
What are the risks associated with relying on a single BPA Call for such critical infrastructure?
Relying on a single BPA Call for critical mainframe hosting and storage presents several risks. It could limit future competitive opportunities if the BPA expires or is not renewed. Furthermore, it concentrates risk with the specific vendor and contracting vehicle, potentially reducing leverage in negotiations or during service disruptions. Diversifying procurement strategies or ensuring robust contingency plans are vital to mitigate these risks.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5133 GAGNE CT, FAIRFAX, VA, 22030
Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $55,993,122
Exercised Options: $28,990,179
Current Obligation: $28,990,179
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HHSN276201500004B
IDV Type: BPA
Timeline
Start Date: 2015-12-28
Current End Date: 2019-11-30
Potential End Date: 2020-12-31 00:00:00
Last Modified: 2024-06-07
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