HHS awarded $43.4M for EIS SAS Enterprise Agreement, impacting IT infrastructure and data analytics

Contract Overview

Contract Amount: $43,369,685 ($43.4M)

Contractor: Executive Information Systems, L.L.C.

Awarding Agency: Department of Health and Human Services

Start Date: 2008-12-22

End Date: 2012-06-30

Contract Duration: 1,286 days

Daily Burn Rate: $33.7K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CIT: EXECUTIVE INFORMATION SYSTEMS - SAS HHS ENTERPRISE AGREEMENT - BASE YEAR - BASE EFFORT - POP-12/31/08 - 12/30/09

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20827

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $43.4 million to EXECUTIVE INFORMATION SYSTEMS, L.L.C. for work described as: CIT: EXECUTIVE INFORMATION SYSTEMS - SAS HHS ENTERPRISE AGREEMENT - BASE YEAR - BASE EFFORT - POP-12/31/08 - 12/30/09 Key points: 1. The contract value of $43.4M for the base year suggests a significant investment in enterprise information systems. 2. Competition dynamics for this contract are not fully detailed, but the award type indicates a competitive process. 3. Performance risk appears moderate given the established nature of enterprise agreements and the vendor's role. 4. This contract positions the National Institutes of Health (NIH) to leverage advanced data analytics capabilities. 5. The duration of the contract, extending beyond the base year, indicates a long-term need for these services.

Value Assessment

Rating: good

The $43.4 million award for the base year of the EIS SAS Enterprise Agreement represents a substantial investment by HHS. Benchmarking this against similar enterprise-level software agreements for large federal agencies is challenging without more granular data on scope and user base. However, the firm fixed-price nature suggests that the government has a clear understanding of the costs involved. The value proposition likely centers on providing critical data analytics and business intelligence tools to support the vast operations of the National Institutes of Health.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded as a 'COMPETITIVE DELIVERY ORDER,' indicating that it was competed through a full and open process. While the specific number of bidders is not provided, the competitive nature of the award suggests that multiple vendors had the opportunity to propose solutions. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing for its IT needs.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

Federal researchers and administrators at NIH benefit from enhanced data analysis and reporting capabilities. The contract delivers essential software and support for executive information systems, crucial for operational decision-making. The geographic impact is primarily within the National Institutes of Health, supporting its Maryland-based operations and potentially other facilities. Workforce implications include enabling IT professionals and data analysts to utilize advanced tools, potentially improving productivity and research outcomes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the SAS platform becomes deeply integrated across NIH systems.
Reliance on a single vendor for critical enterprise information systems could pose a risk if the vendor experiences financial or operational difficulties.
Ensuring adequate training and adoption across diverse user groups within NIH will be crucial for realizing the full value of the investment.

Positive Signals

The firm fixed-price contract provides cost certainty for the government.
The competitive award process suggests that the selected vendor offered a strong value proposition.
The long-term nature of the contract indicates a strategic commitment to robust data analytics capabilities.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on enterprise software and data analytics solutions. The market for such enterprise agreements is dominated by a few major software providers, with SAS being a significant player. Federal spending in this area is substantial, driven by the need for agencies to manage vast amounts of data for operational efficiency, research, and compliance. Comparable spending benchmarks would involve looking at other large federal IT enterprise agreements for similar software suites.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a large enterprise agreement, it is likely that the primary award went to a large business. However, the prime contractor, EXECUTIVE INFORMATION SYSTEMS, L.L.C., may engage small businesses for subcontracting opportunities to fulfill specific aspects of the contract, though this is not detailed here. The impact on the small business ecosystem would depend on the extent of any subcontracting efforts.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program managers within the National Institutes of Health. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified software and support. Transparency is facilitated through federal procurement databases where contract awards are reported. The Inspector General for the Department of Health and Human Services would have jurisdiction to investigate any potential fraud, waste, or abuse related to this spending.

Related Government Programs

HHS Enterprise Software Licensing
NIH IT Infrastructure Modernization
Federal Data Analytics Platforms
Executive Information Systems Contracts

Risk Flags

Potential for vendor lock-in
Reliance on single vendor for critical systems
User adoption and training challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $43.4 million to EXECUTIVE INFORMATION SYSTEMS, L.L.C.. CIT: EXECUTIVE INFORMATION SYSTEMS - SAS HHS ENTERPRISE AGREEMENT - BASE YEAR - BASE EFFORT - POP-12/31/08 - 12/30/09

Who is the contractor on this award?

The obligated recipient is EXECUTIVE INFORMATION SYSTEMS, L.L.C..

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 $43.4 million.

What is the period of performance?

Start: 2008-12-22. End: 2012-06-30.

What is the track record of EXECUTIVE INFORMATION SYSTEMS, L.L.C. with federal contracts, particularly within HHS?

EXECUTIVE INFORMATION SYSTEMS, L.L.C. has a history of federal contracting, with this specific award representing a significant portion of their reported contract value. Analyzing their broader federal contract portfolio would reveal their experience across different agencies and contract types. For this particular contract, their ability to deliver on the SAS Enterprise Agreement is crucial. A deeper dive into past performance reviews and any documented issues on previous contracts would provide further insight into their reliability and capability to meet the demanding requirements of an agency like NIH. Their success here likely hinges on their expertise in managing complex software deployments and providing ongoing support for enterprise-level solutions.

How does the $43.4 million base year cost compare to similar enterprise software agreements within the federal government?

Directly comparing the $43.4 million base year cost to similar federal enterprise software agreements requires careful consideration of scope, user base, and specific software functionalities. Enterprise agreements for major software suites like SAS can vary significantly. For large agencies like HHS, with extensive research and administrative needs, this figure might be within a reasonable range, especially if it covers a broad spectrum of users and advanced analytical capabilities. However, without knowing the exact number of users, the specific modules licensed, and the support services included, a precise benchmark is difficult. Benchmarking against other large agency software procurements, particularly those for data analytics and business intelligence platforms, would be necessary for a more accurate assessment of value for money.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks associated with this contract include potential vendor lock-in, where NIH becomes heavily reliant on SAS software, making future transitions costly and complex. Another risk is the effective adoption and utilization of the software across diverse user groups within NIH; a lack of training or user buy-in could diminish the return on investment. Performance risk also exists, related to the vendor's ability to provide timely and effective support and updates. Mitigation strategies likely involve robust contract management, clear performance metrics, regular vendor reviews, and comprehensive training programs. The firm fixed-price nature of the contract helps mitigate cost overrun risks for the government, shifting that burden to the contractor.

How effective has this contract been in supporting NIH's data analytics and research objectives?

Assessing the effectiveness of this contract requires analyzing NIH's performance metrics and outcomes related to data analytics and research since its inception. If the contract has successfully enabled researchers to access and analyze data more efficiently, leading to faster discoveries or improved operational insights, then it has been effective. Conversely, if there have been persistent issues with software performance, accessibility, or support, its effectiveness would be questionable. Data on the number of research projects supported, the types of analyses enabled, and user satisfaction surveys would provide a clearer picture. The long-term duration suggests a perceived value, but ongoing evaluation is necessary to confirm its contribution to NIH's mission.

What are the historical spending patterns for enterprise information systems at HHS or NIH?

Historical spending patterns for enterprise information systems at HHS and NIH would likely show a consistent and significant investment in IT infrastructure and software solutions. Agencies of this size and scope require robust systems for data management, analysis, and operational support. Spending typically increases over time due to evolving technological needs, expansion of services, and the need for software upgrades and maintenance. Analyzing past contracts for similar enterprise agreements, including those for data warehousing, business intelligence, and specialized research software, would reveal trends in spending levels, contract durations, and the types of vendors utilized. This context helps in evaluating whether the current $43.4 million award is an anomaly or part of a sustained investment strategy.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6901 ROCKLEDGE DR STE 600, BETHESDA, MD, 20817

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $43,369,685

Exercised Options: $43,369,685

Current Obligation: $43,369,685

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F0170K

IDV Type: FSS

Timeline