HHS awarded $65M for NIH software engineering, with 1 bid in a competitive delivery order

Contract Overview

Contract Amount: $65,052,706 ($65.1M)

Contractor: TAJ Technologies, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2008-06-13

End Date: 2013-09-13

Contract Duration: 1,918 days

Daily Burn Rate: $33.9K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TAS::75 4554::TAS BI: TAJ (MAIN):SOFTWARE ENGINEERING SERVICES TO SUPPORT THE DESIGN, DEVELOPMENT, PROGRAMMING, AND MAINTENANCE OF NCBI SOFTWARE AND DATABASE PROJECTS.

Place of Performance

Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55425

State: Minnesota Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $65.1 million to TAJ TECHNOLOGIES, INC. for work described as: TAS::75 4554::TAS BI: TAJ (MAIN):SOFTWARE ENGINEERING SERVICES TO SUPPORT THE DESIGN, DEVELOPMENT, PROGRAMMING, AND MAINTENANCE OF NCBI SOFTWARE AND DATABASE PROJECTS. Key points: 1. The contract value of $65 million over five years represents a significant investment in critical IT infrastructure. 2. While awarded as a competitive delivery order, the low number of bids raises questions about the breadth of competition. 3. The firm-fixed-price contract type suggests a defined scope, but potential for cost overruns exists if requirements evolve. 4. The duration of the contract (over 5 years) indicates a long-term need for these specialized software services. 5. The specialized nature of the work (NCBI software and database projects) suggests a need for highly skilled contractors. 6. The contract's focus on software development and maintenance aligns with ongoing needs for digital health infrastructure.

Value Assessment

Rating: fair

The contract value of $65 million over five years for software engineering services appears within a reasonable range for large-scale IT projects supporting critical research infrastructure like the NCBI. However, without specific benchmarks for similar NCBI-specific projects or detailed breakdowns of labor categories and hours, a precise value-for-money assessment is challenging. The firm-fixed-price structure provides cost certainty, but the actual value realized depends heavily on the contractor's efficiency and the government's effective management of scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded as a competitive delivery order, implying that a broader contract vehicle was previously competed. However, the data indicates only one bid was received for this specific order. This limited competition could suggest challenges in the market for these specialized services, or potential issues with the solicitation or pre-qualification process. A single bidder may not represent the best possible price discovery for the government.

Taxpayer Impact: A single bid in a competitive process limits the government's ability to secure the most competitive pricing, potentially leading to higher costs for taxpayers.

Public Impact

Taxpayers benefit from the continued development and maintenance of the National Center for Biotechnology Information (NCBI) databases and software, which are crucial for biomedical research. Researchers worldwide gain access to updated and reliable bioinformatics tools and data, accelerating scientific discovery. The contract supports the development of digital health infrastructure essential for public health initiatives. The contract likely supports a specialized workforce of software engineers and database administrators within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (1 bid) may indicate potential market challenges or solicitation issues, impacting price discovery.
The long contract duration could lead to scope creep or evolving requirements that are not fully captured in the initial fixed price.
Reliance on a single vendor for critical software maintenance could pose risks if the vendor faces financial or operational difficulties.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government, assuming scope is well-defined.
The contract supports a vital national resource (NCBI) that underpins significant scientific and medical advancements.
The award to Taj Technologies, Inc. indicates a vendor capable of handling complex software engineering projects for a major federal agency.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on software engineering and database management for a scientific research organization. The market for such specialized services is competitive, with numerous firms offering IT solutions. However, contracts supporting unique government research platforms like the NCBI often require highly specialized expertise, potentially narrowing the field of qualified bidders. Comparable spending benchmarks would typically be found within IT services for federal research and development agencies, often measured by the total IT spending of agencies like NIH.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). While this specific award did not directly benefit small businesses through a set-aside, the prime contractor, Taj Technologies, Inc., may engage small businesses as subcontractors. The extent of small business subcontracting would depend on the contractor's internal policies and the specific requirements of the project, which are not detailed here. Without explicit subcontracting goals, the direct impact on the small business ecosystem from this particular contract is likely minimal.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Institutes of Health (NIH) contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and managing any modifications or disputes. Transparency is facilitated through contract databases like FPDS. While specific Inspector General (IG) jurisdiction for this particular contract isn't explicitly stated, the HHS Office of Inspector General (OIG) generally has oversight over all HHS spending to detect fraud, waste, and abuse.

Related Government Programs

NIH IT Services Contracts
Biotechnology Research Support
NCBI Database Development
Federal Software Engineering Services
Health Information Technology

Risk Flags

Limited competition (1 bid)
Long contract duration
Potential for scope creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $65.1 million to TAJ TECHNOLOGIES, INC.. TAS::75 4554::TAS BI: TAJ (MAIN):SOFTWARE ENGINEERING SERVICES TO SUPPORT THE DESIGN, DEVELOPMENT, PROGRAMMING, AND MAINTENANCE OF NCBI SOFTWARE AND DATABASE PROJECTS.

Who is the contractor on this award?

The obligated recipient is TAJ TECHNOLOGIES, 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 $65.1 million.

What is the period of performance?

Start: 2008-06-13. End: 2013-09-13.

What is the track record of Taj Technologies, Inc. in performing similar large-scale software engineering contracts for federal agencies?

Taj Technologies, Inc. has a history of performing IT services for federal agencies, including software development and maintenance. While this specific contract with NIH for NCBI projects is substantial, their broader federal contracting experience would need to be reviewed to fully assess their capability. A deeper dive into their past performance evaluations, contract history, and any reported issues or successes on similar projects would provide a clearer picture of their reliability and expertise in handling complex, long-term software engineering endeavors. Examining their financial stability and capacity to scale resources for such a significant undertaking would also be crucial for a comprehensive assessment.

How does the awarded price compare to market rates for similar software engineering services supporting scientific databases?

Benchmarking the $65 million contract value against market rates for similar software engineering services supporting scientific databases is complex without more granular data. Factors such as the specific technologies used, the level of expertise required (e.g., bioinformatics specialists), security clearances, and the geographic location of the work all influence pricing. Generally, specialized IT services for federal research institutions command premium rates due to the unique requirements and the need for highly skilled personnel. A comprehensive comparison would involve analyzing data from similar contracts awarded by NIH or other research-focused agencies, as well as consulting industry reports on IT service costs. The firm-fixed-price nature suggests a negotiated rate, but its competitiveness hinges on the bidding environment and the government's negotiation leverage.

What are the primary risks associated with a single bid in a competitive delivery order for critical IT infrastructure?

A single bid in a competitive delivery order presents several key risks. Firstly, it significantly weakens the government's negotiating position, potentially leading to higher prices than if multiple bids were received. This lack of competition can obscure true market value. Secondly, it raises concerns about the adequacy of the solicitation process; perhaps the requirements were too narrow, the pre-qualification criteria too stringent, or the market awareness insufficient, thereby deterring other capable vendors. Thirdly, it concentrates risk on the single bidder; if they fail to perform adequately, encounter financial difficulties, or experience key personnel departures, the government has limited alternatives for continuity of operations for critical IT infrastructure like the NCBI. This can lead to project delays, cost overruns, and degraded service quality.

How effective has the NCBI software and database maintenance been under previous contracts, and what does this imply for the current award?

Assessing the effectiveness of previous NCBI software and database maintenance is crucial for understanding the value proposition of this current $65 million contract. Historical performance data, including metrics on system uptime, bug resolution times, successful feature deployments, and user satisfaction, would provide insight into the contractor's capabilities and the overall health of the NCBI platform. If past performance has been strong, it suggests a well-understood and effectively managed system, making the current award a continuation of a successful partnership. Conversely, if there have been significant issues, the current contract may be an opportunity to rectify past problems or may indicate underlying challenges with the platform itself that require substantial investment and careful oversight. Without specific historical performance data, it's difficult to definitively gauge effectiveness.

What is the historical spending pattern for software engineering services at the NIH, and how does this contract fit within that trend?

Historical spending on software engineering services at the NIH is substantial, reflecting the agency's reliance on robust IT infrastructure to support its vast research endeavors. The NIH consistently invests heavily in developing and maintaining complex databases, analytical tools, and research platforms. This $65 million contract for NCBI support aligns with that established pattern of significant IT investment. It represents a portion of the NIH's overall IT budget, likely categorized under research infrastructure or data management. Analyzing trends in NIH IT spending over the past decade would reveal whether investments in software engineering are increasing, decreasing, or remaining stable, and how this specific contract's value compares to previous awards for similar services. Such analysis helps contextualize the current expenditure within the agency's broader strategic priorities and budget allocations.

Industry Classification

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

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7900 INTERNATIONAL DR STE 405, MINNEAPOLIS, MN, 55425

Business Categories: 8(a) Program Participant, Category Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $72,403,005

Exercised Options: $65,052,706

Current Obligation: $65,052,706

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F5458H

IDV Type: FSS

Timeline