HHS awarded $22.7M to Computer Sciences Corporation for IT services, with no competition

Contract Overview

Contract Amount: $22,722,912 ($22.7M)

Contractor: Computer Sciences Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2007-09-04

End Date: 2012-09-02

Contract Duration: 1,825 days

Daily Burn Rate: $12.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: OTHER (NONE OF THE ABOVE)

Sector: IT

Official Description: IS: PLEASE AMEND CSC 467FZ601508 TO ADD FUNDS IN THE AMOUNT OF $3,500,000. PLEASE USE CAN: 8374282.

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20894

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $22.7 million to COMPUTER SCIENCES CORPORATION for work described as: IS: PLEASE AMEND CSC 467FZ601508 TO ADD FUNDS IN THE AMOUNT OF $3,500,000. PLEASE USE CAN: 8374282. Key points: 1. Contract awarded without competition, raising questions about potential overpayment and value for money. 2. Significant contract duration of 5 years suggests a long-term need for services. 3. The contract was awarded to a single large business, with no indication of small business participation. 4. Services provided under this contract are categorized as 'Other', lacking specific detail. 5. The contract's value is substantial, warranting scrutiny of its necessity and performance. 6. Geographic location in Maryland may indicate a focus on specific NIH facilities or regional support.

Value Assessment

Rating: questionable

The contract's total value of $22.7 million over five years, awarded without competition, makes a direct value-for-money assessment difficult. Without benchmark data or comparison to similar sole-source contracts, it's hard to determine if the pricing was competitive or represented a fair market value. The lack of competitive bidding means there was no market pressure to drive down costs. Further analysis would require understanding the specific services rendered and their criticality to NIH operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This indicates that only one vendor, Computer Sciences Corporation, was considered capable of fulfilling the requirement. The lack of competition limits the government's ability to explore alternative solutions or leverage market dynamics to achieve better pricing. It suggests a specific, perhaps unique, capability or relationship was deemed necessary.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to ensure the lowest possible price. This contract's value of over $22 million without competition warrants careful review to ensure public funds are used efficiently.

Public Impact

The National Institutes of Health (NIH) likely benefited from the IT services provided, ensuring operational continuity and support for its research and administrative functions. The services delivered are broadly categorized as 'Other', implying a range of IT support, maintenance, or development activities crucial for NIH's mission. The contract's performance was centered in Maryland, suggesting a focus on supporting NIH facilities or personnel within that state. The contract likely supported a workforce of IT professionals employed by Computer Sciences Corporation, contributing to the IT services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and suboptimal value for taxpayer dollars.
The broad 'Other' category for service type lacks transparency regarding the specific IT functions performed.
The significant contract value without competitive bidding necessitates a thorough review of the justification for sole-source award.

Positive Signals

Award to a large, established contractor like Computer Sciences Corporation may indicate a history of reliable service delivery.
The contract duration of five years suggests a stable, long-term engagement, potentially leading to efficiencies through sustained support.
The contract was awarded by the Department of Health and Human Services (HHS), a major federal agency, implying alignment with significant public health initiatives.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically supporting the operational needs of a major federal health research agency. The IT services market is vast and highly competitive, but sole-source awards bypass typical market dynamics. Comparable spending benchmarks for IT services within federal health agencies can vary widely based on the scope and complexity of services, but a $22.7 million award over five years for non-competed services would typically be subject to significant justification and oversight.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'sb': false. There is also no information provided regarding subcontracting plans or actual performance with small businesses. The award to a single large business, Computer Sciences Corporation, suggests that small businesses were not directly involved in fulfilling this prime contract, potentially limiting their opportunities within this specific procurement.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services (HHS) and the National Institutes of Health (NIH). As a sole-source award, it likely underwent internal review and justification processes within HHS. Transparency regarding the specific services, performance metrics, and justification for the sole-source award would be key to assessing accountability. Inspector General oversight would apply if any concerns regarding fraud, waste, or abuse arise.

Related Government Programs

HHS IT Services Contracts
NIH IT Support
Sole Source IT Procurements
Large Business IT Contracts
Federal IT Services

Risk Flags

Sole-source award without clear justification
Lack of transparency in service description
Potential for inflated pricing due to no competition
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $22.7 million to COMPUTER SCIENCES CORPORATION. IS: PLEASE AMEND CSC 467FZ601508 TO ADD FUNDS IN THE AMOUNT OF $3,500,000. PLEASE USE CAN: 8374282.

Who is the contractor on this award?

The obligated recipient is COMPUTER SCIENCES CORPORATION.

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 $22.7 million.

What is the period of performance?

Start: 2007-09-04. End: 2012-09-02.

What specific IT services were provided under this contract, and how did they support the NIH's mission?

The provided data categorizes the contract under 'PT': 'OTHER (NONE OF THE ABOVE)', offering no specific details on the IT services rendered. To understand the support provided, one would need to access the contract's statement of work (SOW) or performance work statement (PWS). These documents would detail the scope of services, such as IT infrastructure management, software development, cybersecurity, help desk support, or data management, and explain how these services directly contributed to the National Institutes of Health's research, administrative, and operational objectives. Without this information, the contract's impact and necessity remain unclear.

What was the justification for awarding this contract on a sole-source basis to Computer Sciences Corporation?

The data indicates the contract was 'NOT COMPETED', signifying a sole-source award. Federal procurement regulations typically require competitive bidding unless specific exceptions apply, such as the existence of only one responsible source, urgent and compelling needs, or specialized capabilities. The justification for this sole-source award would likely be documented in a Justification and Approval (J&A) document. This document would detail why Computer Sciences Corporation was the only viable option, potentially citing proprietary technology, unique expertise, or a critical need for continuity of services that could not be met through competition within the required timeframe. Accessing this J&A is crucial for understanding the rationale.

How does the total contract value of $22.7 million compare to similar IT service contracts awarded by NIH or other HHS agencies?

Comparing this $22.7 million contract value requires context regarding its duration (5 years) and the specific IT services provided. Without knowing the exact services, a direct comparison is challenging. However, for a five-year IT services contract, this value is substantial but not necessarily outside the norm for large federal agencies like NIH, especially if it encompasses a broad range of support, infrastructure, or development. Benchmarking would ideally involve looking at other sole-source or competed IT contracts of similar scope and duration within HHS or other health-focused agencies. The lack of competition here, however, means this value was not tested against market alternatives, making a true value comparison difficult.

What is Computer Sciences Corporation's track record with the federal government, particularly with HHS and NIH?

Computer Sciences Corporation (CSC), now part of DXC Technology, has a long history of contracting with the U.S. federal government, including significant work with the Department of Health and Human Services (HHS) and its various agencies like the National Institutes of Health (NIH). Their track record typically involves providing a wide array of IT services, including systems integration, cloud computing, cybersecurity, and application development. While specific performance details for this particular $22.7 million contract are not provided, CSC's general profile suggests they are a major federal IT contractor capable of handling large-scale, complex requirements. A deeper dive would involve reviewing past performance evaluations and contract histories for CSC within HHS.

What are the potential risks associated with a sole-source IT contract of this magnitude and duration?

The primary risks associated with a sole-source IT contract of this magnitude ($22.7 million over 5 years) include potential overpricing due to the absence of competitive pressure, reduced incentive for the contractor to innovate or improve service quality, and a lack of flexibility if requirements change significantly. There's also a risk of vendor lock-in, making it difficult and costly to switch providers later. Furthermore, the lack of transparency inherent in sole-source awards can obscure potential inefficiencies or performance issues. Ensuring robust oversight and clear performance metrics becomes even more critical to mitigate these risks.

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: OTHER (NONE OF THE ABOVE) (3)

Evaluated Preference: NONE

Contractor Details

Address: 2100 E GRAND AVE, EL SEGUNDO, CA, 36

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $22,722,912

Exercised Options: $22,722,912

Current Obligation: $22,722,912

Parent Contract

Parent Award PIID: 26301D0049

IDV Type: IDC

Timeline