HHS awarded NTT DATA $42.7M for data analysis tools and systems, with a fixed-price contract
Contract Overview
Contract Amount: $42,668,436 ($42.7M)
Contractor: NTT Data Fedhealth, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2014-09-19
End Date: 2020-03-21
Contract Duration: 2,010 days
Daily Burn Rate: $21.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIXED PRICE LEVEL OF EFFORT
Sector: IT
Official Description: IGF::CL::IGF FOR CLOSELY ASSOCIATED PURPOSE OF AWARD: TO AWARD CONTRACT FOR DATA ANALYSIS TOOLS AND SYSTEMS RESEARCH REPORTING AND ANALYSIS SYSTEM DEVELOPMENT (DATA SYSTEMS) AND TO FULLY FUND THE BASE PERIOD.
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $42.7 million to NTT DATA FEDHEALTH, INC. for work described as: IGF::CL::IGF FOR CLOSELY ASSOCIATED PURPOSE OF AWARD: TO AWARD CONTRACT FOR DATA ANALYSIS TOOLS AND SYSTEMS RESEARCH REPORTING AND ANALYSIS SYSTEM DEVELOPMENT (DATA SYSTEMS) AND TO FULLY FUND THE BASE PERIOD. Key points: 1. The contract utilized a fixed-price level of effort structure, which can provide cost certainty but may limit flexibility. 2. Competition was full and open after exclusion of sources, indicating a broad search for qualified vendors. 3. The contract duration of approximately 2010 days (2014-2020) suggests a substantial, long-term need for these services. 4. The primary service category is Computer Systems Design Services, aligning with the stated purpose of data analysis tools and systems. 5. The award was a delivery order, implying it was part of a larger contract vehicle. 6. The contract was not set aside for small businesses, suggesting the scope or nature of services may not have been conducive to such set-asides.
Value Assessment
Rating: fair
The total award amount of $42.7 million over approximately five years for data analysis tools and systems development appears to be within a reasonable range for complex IT projects of this nature. Benchmarking against similar contracts for computer systems design services would provide a more precise assessment of value for money. The fixed-price level of effort contract type suggests an attempt to control costs, but the ultimate value depends on the efficiency of service delivery and the actual effort expended.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition after exclusion of sources.' This indicates that while the competition was intended to be broad, specific sources may have been excluded for documented reasons. The exact number of bidders is not provided, but the 'full and open' designation suggests a competitive process was initiated, aiming to solicit proposals from a wide range of qualified vendors.
Taxpayer Impact: A full and open competition, even with exclusions, generally promotes price discovery and can lead to more competitive pricing for taxpayers compared to sole-source or limited competition awards.
Public Impact
The primary beneficiaries are likely researchers and analysts within the National Institutes of Health (NIH) and potentially other parts of the Department of Health and Human Services (HHS). The contract delivers data analysis tools, systems development, and reporting capabilities, enhancing the agency's ability to process and interpret health-related data. The geographic impact is primarily within Maryland, where the contractor is located and likely where the services are performed or managed. Workforce implications include the employment of IT professionals, data analysts, and system developers by the contractor, NTT DATA FEDHEALTH, INC.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific details on the number of bidders in the 'full and open after exclusion' process makes it difficult to fully assess the competitive intensity.
- The fixed-price level of effort contract type can sometimes lead to less incentive for the contractor to innovate or exceed basic requirements if not carefully managed.
- Without performance metrics or quality evaluations, it's challenging to definitively assess the contractor's track record on this specific award.
Positive Signals
- The use of 'full and open competition' suggests an effort to find the best value and technically capable vendor.
- The contract's duration indicates a sustained need and potentially successful delivery of services over an extended period.
- The award to a known entity like NTT DATA FEDHEALTH, INC. may suggest a level of established capability and past performance, though not explicitly detailed here.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design and data analysis services. The market for such services is large and competitive, with numerous firms offering specialized solutions. The $42.7 million award is a significant but not exceptionally large contract within the federal IT landscape, representing a typical investment for agencies seeking to enhance their data processing and analytical capabilities. Comparable spending benchmarks would involve looking at other federal contracts for similar IT system development and data analytics support.
Small Business Impact
This contract was not awarded as a small business set-aside, as indicated by the 'ss' (small business set-aside) field being false. This suggests that the requirement was likely too large in scope or complexity, or that the competition was structured in a way that favored larger, established prime contractors. There is no direct information provided on subcontracting plans or their impact on the small business ecosystem for this specific award.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program office within the National Institutes of Health (NIH). The fixed-price level of effort contract type requires monitoring of performance and effort expended to ensure compliance with the contract terms. Transparency is generally provided through federal procurement databases like FPDS.gov, which lists contract awards. Specific Inspector General (IG) jurisdiction would depend on whether the NIH or HHS IG has identified this contract or its subject matter as an area of interest for audit or investigation.
Related Government Programs
- Federal IT Services
- Data Analytics Contracts
- Health IT Systems
- Computer Systems Design Services
- NIH IT Procurement
- HHS IT Contracts
Risk Flags
- Contract awarded under 'full and open competition after exclusion of sources' - requires understanding the rationale for exclusions.
- Fixed Price Level of Effort contract type - potential for less contractor incentive for efficiency if not managed closely.
- No specific performance metrics provided - difficult to assess contractor performance objectively.
- Contract duration of ~5 years - requires ongoing monitoring and potential for evolving requirements.
Tags
it, computer-systems-design-services, data-analysis, health-and-human-services, national-institutes-of-health, maryland, fixed-price-level-of-effort, delivery-order, full-and-open-competition, large-contract, research-and-development, it-modernization
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $42.7 million to NTT DATA FEDHEALTH, INC.. IGF::CL::IGF FOR CLOSELY ASSOCIATED PURPOSE OF AWARD: TO AWARD CONTRACT FOR DATA ANALYSIS TOOLS AND SYSTEMS RESEARCH REPORTING AND ANALYSIS SYSTEM DEVELOPMENT (DATA SYSTEMS) AND TO FULLY FUND THE BASE PERIOD.
Who is the contractor on this award?
The obligated recipient is NTT DATA FEDHEALTH, 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 $42.7 million.
What is the period of performance?
Start: 2014-09-19. End: 2020-03-21.
What was the specific nature of the 'data analysis tools and systems' developed or procured under this contract?
The contract, "DATA ANALYSIS TOOLS AND SYSTEMS RESEARCH REPORTING AND ANALYSIS SYSTEM DEVELOPMENT (DATA SYSTEMS)", indicates a focus on building or enhancing systems for the collection, processing, analysis, and reporting of data. This could encompass a wide range of functionalities, such as data warehousing, business intelligence tools, statistical analysis software, data visualization platforms, and custom-built applications designed to meet specific research or operational needs within the NIH. The exact nature would depend on the detailed requirements outlined in the original contract statement of work, which is not fully detailed here but implies a comprehensive approach to data management and utilization for research purposes.
How does the $42.7 million award compare to other federal contracts for similar computer systems design services?
The $42.7 million award over approximately five years for computer systems design services is a substantial contract, but it is not an outlier within the federal IT landscape. Many federal agencies award contracts in the tens to hundreds of millions of dollars for complex IT system development, integration, and support. To provide a precise comparison, one would need to benchmark against contracts with similar scope (e.g., data systems development, research support systems), duration, and agency (e.g., other health or science-focused agencies like NIH, CDC, NSF). The average federal contract for computer systems design services can vary widely, but this award falls within the upper-middle range for a single, significant project.
What were the key performance indicators (KPIs) or metrics used to evaluate the success of this contract?
The provided data does not include specific Key Performance Indicators (KPIs) or metrics used to evaluate the success of this contract. Typically, for a contract of this nature (Computer Systems Design Services, Fixed Price Level of Effort), KPIs might include system uptime, data accuracy rates, successful completion of development milestones, user satisfaction surveys, adherence to project timelines, and the effectiveness of the reporting and analysis features developed. The contracting officer and program manager would have been responsible for monitoring these aspects against the contract's statement of work and performance standards.
What is NTT DATA FEDHEALTH, INC.'s general track record with federal contracts, particularly within HHS?
NTT DATA FEDHEALTH, INC. is a significant federal contractor with a substantial history of awards, particularly within the Department of Health and Human Services (HHS) and its various agencies, including the National Institutes of Health (NIH). Their portfolio often includes IT services, system modernization, data analytics, and health IT solutions. While this specific award represents a large sum, their overall track record generally indicates experience in delivering complex IT projects for federal health agencies. A deeper analysis would involve reviewing their performance ratings on past contracts, any past performance issues or commendations, and the breadth of services they have provided across different federal entities.
Were there any identified risks or challenges associated with this contract, and how were they managed?
The provided data does not explicitly detail risks or challenges encountered during the performance of this contract. However, common risks in IT system development contracts include scope creep, technical challenges, integration issues with existing systems, data security vulnerabilities, and contractor performance issues. The fixed-price level of effort contract type attempts to mitigate cost overrun risks for the government, but risks related to schedule delays or quality deficiencies would still need active management by the program office. The 'full and open competition after exclusion of sources' might suggest that certain initial potential bidders were excluded due to specific technical or capability requirements, implying a risk assessment was performed early on.
How has federal spending on computer systems design services evolved over the period of this contract (2014-2020)?
Federal spending on computer systems design services generally saw a significant increase between 2014 and 2020, driven by the ongoing digital transformation initiatives across government agencies. Agencies increasingly relied on IT modernization, cloud migration, data analytics, and cybersecurity enhancements. Contracts like this one, focused on developing and improving data systems, reflect this trend. The overall federal IT budget grew substantially during this period, with a notable portion allocated to system design, development, and integration services to support agency missions and improve operational efficiencies.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: NIHJT2010002
Offers Received: 1
Pricing Type: FIXED PRICE LEVEL OF EFFORT (B)
Evaluated Preference: NONE
Contractor Details
Address: 1660 INTERNATIONAL DR, FL 1, MCLEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $55,923,366
Exercised Options: $42,668,436
Current Obligation: $42,668,436
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSN316201200160W
IDV Type: GWAC
Timeline
Start Date: 2014-09-19
Current End Date: 2020-03-21
Potential End Date: 2024-04-05 00:00:00
Last Modified: 2024-07-25
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