NIH's $41.6M contract for ERA Systems Engineering Support Services awarded to ICF Z-TECH, INC

Contract Overview

Contract Amount: $41,600,913 ($41.6M)

Contractor: ICF Z-Tech, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2008-07-01

End Date: 2013-06-30

Contract Duration: 1,825 days

Daily Burn Rate: $22.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: TITLE: ERA SYSTEMS ENGINEERING SUPPORT SERVICESCONTRACT TYPE: COST PLUS FIXED FEECONTRACT TERM: JULY 1, 2008 - JUNE 30, 2009 WITH 4 SUCCESSIVE ONE YEAR OPTIONS.CURRENT OBLIGATION: $2,800,000.00CAN 8339273

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20894

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $41.6 million to ICF Z-TECH, INC. for work described as: TITLE: ERA SYSTEMS ENGINEERING SUPPORT SERVICESCONTRACT TYPE: COST PLUS FIXED FEECONTRACT TERM: JULY 1, 2008 - JUNE 30, 2009 WITH 4 SUCCESSIVE ONE YEAR OPTIONS.CURRENT OBLIGATION: $2,800,000.00CAN 8339273 Key points: 1. The contract, valued at $41.6 million over its potential term, focuses on computer systems design services. 2. Awarded through full and open competition, this contract saw 6 bidders, suggesting a competitive market. 3. The contract term spans from July 1, 2008, to June 30, 2013, indicating a long-term need for these services. 4. The current obligation is $2.8 million, with the total potential value reaching $41.6 million. 5. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control but requires careful oversight. 6. The primary agency is the Department of Health and Human Services, specifically the National Institutes of Health. 7. The North American Industry Classification System (NAICS) code is 541512, for Computer Systems Design Services.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or detailed cost breakdowns. The Cost Plus Fixed Fee (CPFF) structure, while common, can lead to higher costs if not managed diligently. Comparing the total potential value of $41.6 million against the services rendered over five years requires a deeper dive into the scope of work and deliverables. The current obligation of $2.8 million suggests that the full potential value may not have been realized or that the contract is in its early stages of expenditure.

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 bids. With 6 bidders, the competition level appears moderate, suggesting that while there was interest, it may not represent the full spectrum of potential providers in the market. This level of competition generally supports price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it likely resulted in a more competitive price and a wider range of innovative solutions being considered.

Public Impact

The National Institutes of Health (NIH) benefits from enhanced computer systems design and engineering support. Services delivered are critical for the operational efficiency and technological advancement of NIH's IT infrastructure. The contract's impact is primarily within the federal health research sector, supporting scientific endeavors. Workforce implications include potential support for specialized IT and engineering roles within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contracts require robust oversight to ensure costs are reasonable and fixed fees are justified.
The long contract duration (5 years) necessitates continuous monitoring for performance and evolving needs.
Lack of specific performance metrics in the provided data makes it difficult to assess value for money.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent procurement process.
Multiple bidders (6) suggest a healthy level of market interest and potential for competitive pricing.
The contract supports critical functions within the National Institutes of Health, a key federal agency.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a vital component of the IT industry. The market for such services is large and competitive, with numerous firms offering specialized expertise. This contract represents a portion of the federal government's investment in maintaining and upgrading its complex IT infrastructure, particularly within the health and research domain. Comparable spending benchmarks would typically involve analyzing other large-scale IT support contracts awarded by federal agencies for similar services.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The competition was full and open, meaning small businesses could have bid if they met the qualifications, but the primary focus was not on their participation through a set-aside. The impact on the small business ecosystem is neutral in terms of direct set-aside benefits.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would typically involve rigorous monitoring of incurred costs, contractor performance against the statement of work, and justification of the fixed fee. The Department of Health and Human Services, through the National Institutes of Health, would be responsible for contract administration and oversight. Transparency would be enhanced through regular reporting requirements and potential audits. Inspector General jurisdiction would apply if any concerns regarding fraud, waste, or abuse arise.

Related Government Programs

NIH IT Support Services
Federal Health IT Contracts
Computer Systems Design Services
Cost Plus Fixed Fee Contracts
Department of Health and Human Services IT Procurement

Risk Flags

Cost Plus Fixed Fee structure requires diligent oversight.
Potential for cost overruns inherent in CPFF contracts.
Long contract duration necessitates ongoing performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $41.6 million to ICF Z-TECH, INC.. TITLE: ERA SYSTEMS ENGINEERING SUPPORT SERVICESCONTRACT TYPE: COST PLUS FIXED FEECONTRACT TERM: JULY 1, 2008 - JUNE 30, 2009 WITH 4 SUCCESSIVE ONE YEAR OPTIONS.CURRENT OBLIGATION: $2,800,000.00CAN 8339273

Who is the contractor on this award?

The obligated recipient is ICF Z-TECH, 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 $41.6 million.

What is the period of performance?

Start: 2008-07-01. End: 2013-06-30.

What is the detailed breakdown of the $41.6 million total potential value across the contract's duration?

The provided data indicates a total potential value of $41,600,913.12 for the contract, which has a duration from July 1, 2008, to June 30, 2013 (1825 days or 5 years). The current obligation is listed as $2,800,000.00. Without a detailed schedule of values or annual funding allocations, it's impossible to provide an exact breakdown per year. However, the total potential value suggests an average annual potential expenditure of approximately $8.32 million. The current obligation of $2.8 million indicates that either the contract is relatively new in its spending cycle, or that not all available funding has been obligated yet. Further details on task orders or funding increments would be needed for a precise year-by-year breakdown.

How does the number of bidders (6) compare to similar IT support contracts awarded by NIH or HHS?

A benchmark of 6 bidders for an IT support services contract awarded through full and open competition by NIH or HHS suggests a moderately competitive environment. For large-scale, complex IT services, the number of bidders can vary significantly. Contracts requiring highly specialized expertise or involving substantial dollar values might attract fewer bidders due to high barriers to entry (e.g., technical capabilities, past performance requirements, security clearances). Conversely, more commoditized IT services could see a larger pool of interested parties. Without specific comparative data on similar-sized and scoped contracts from NIH/HHS, it's difficult to definitively label 6 bidders as high or low. However, it indicates sufficient market interest to facilitate price discovery and vendor selection.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for this type of service?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract structure for IT systems engineering support services is the potential for cost overruns without a direct proportional benefit to the government. In a CPFF contract, the contractor is reimbursed for allowable costs plus a predetermined fixed fee. While the fixed fee incentivizes the contractor to control costs (as it doesn't increase with higher costs), there's less incentive than in fixed-price contracts to minimize costs aggressively. If the contractor's cost estimates are inaccurate or if unforeseen complexities arise, the government may end up paying more than anticipated. Robust government oversight is crucial to scrutinize allowable costs, ensure efficiency, and verify that the fixed fee remains appropriate for the level of effort and risk undertaken by the contractor.

What is the historical spending pattern for this specific contract or similar contracts at NIH?

The provided data shows a current obligation of $2.8 million against a total potential value of $41.6 million for the ERA Systems Engineering Support Services contract (July 1, 2008 - June 30, 2013). This suggests that as of the data's snapshot, spending was relatively low compared to the total potential. To understand historical spending patterns, one would need access to the contract's funding history over its life cycle, showing annual obligations and expenditures. Without this granular data, we can only infer that the spending may have been gradual or that the data reflects an earlier point in the contract's term. Analyzing historical spending on similar large-scale IT support contracts at NIH would reveal trends in contract values, durations, and funding profiles within the agency's IT procurement landscape.

How does the contractor, ICF Z-TECH, INC., perform on other federal contracts?

Information regarding ICF Z-TECH, INC.'s performance on other federal contracts is not provided in the data snippet. A comprehensive assessment of the contractor's track record would require accessing databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) to review past performance evaluations, identify any issues or commendations, and understand their history with delivering similar services to government agencies. This information is crucial for evaluating the reliability and capability of the contractor for the ERA Systems Engineering Support Services contract.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: ICF International, Inc. (UEI: 139001544)

Address: 1803 RESEARCH BLVD STE 301, ROCKVILLE, MD, 20850

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $76,440,340

Exercised Options: $41,600,913

Current Obligation: $41,600,913

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline