HHS SAS Enterprise License Agreement awarded to Executive Information Systems, L.L.C. for over $26.7M

Contract Overview

Contract Amount: $26,728,590 ($26.7M)

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

Awarding Agency: Department of Health and Human Services

Start Date: 2018-12-22

End Date: 2020-02-12

Contract Duration: 417 days

Daily Burn Rate: $64.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: HHS SAS ENTERPRISE LICENSE AGREEMENT BASE YEAR 12/31/2017-12/30/2018

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $26.7 million to EXECUTIVE INFORMATION SYSTEMS, L.L.C. for work described as: HHS SAS ENTERPRISE LICENSE AGREEMENT BASE YEAR 12/31/2017-12/30/2018 Key points: 1. The contract value represents a significant investment in enterprise software solutions for the National Institutes of Health. 2. The award was made under full and open competition, suggesting a robust market for these services. 3. The duration of the base year was 417 days, slightly exceeding a standard calendar year. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. The North American Industry Classification System (NAICS) code 334111 indicates a focus on electronic computer manufacturing, though the service is likely software-related. 6. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or a pre-existing agreement. 7. The base year cost per day was approximately $64,097.

Value Assessment

Rating: fair

Benchmarking the value of this specific enterprise license agreement is challenging without more detailed service scope and comparable vendor pricing. The base year cost of approximately $26.7 million for a 417-day period suggests a substantial investment. However, without knowing the specific software functionalities, user base size, and the level of support included, a direct comparison to similar contracts is difficult. The firm fixed-price nature provides cost certainty for the government, but the overall value for money depends on the realized benefits and operational efficiencies gained from the SAS enterprise license.

Cost Per Unit: $64,097 per day (base year)

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is generally expected to foster price discovery and encourage vendors to offer competitive pricing. The number of bidders is not specified, but the open competition suggests a healthy market for SAS enterprise licenses and related support services.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it typically leads to more competitive pricing and a wider range of solutions, potentially resulting in better value for the government's investment.

Public Impact

The primary beneficiaries are the researchers, scientists, and administrative staff within the National Institutes of Health who rely on SAS software for data analysis, statistical modeling, and reporting. The contract delivers access to a comprehensive suite of SAS software licenses and potentially associated support services, enabling critical research and operational functions. The geographic impact is concentrated within the facilities of the National Institutes of Health, primarily in Maryland. The contract supports the IT infrastructure and analytical capabilities necessary for the NIH's mission of advancing health and biomedical research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with enterprise software solutions.
Reliance on a single vendor for critical analytical tools could pose risks if the vendor's product roadmap or support changes unfavorably.
The significant cost necessitates ongoing evaluation of usage and return on investment to ensure continued value.

Positive Signals

Awarded through full and open competition, indicating market availability and potential for competitive pricing.
Firm Fixed Price contract type provides cost certainty for the government.
Supports critical research and operational functions within a leading health research agency.

Sector Analysis

The market for enterprise analytics software, including SAS, is a significant segment of the broader IT sector. Companies like SAS provide powerful tools for data management, advanced analytics, business intelligence, and predictive modeling, used across various industries including healthcare, finance, and government. The federal government is a major consumer of such software, often procuring licenses through large enterprise agreements to standardize capabilities and achieve economies of scale. Spending benchmarks for similar enterprise-wide software licenses can vary widely based on the number of users, modules included, and support levels, but multi-million dollar annual expenditures are common for large federal agencies.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the prime contractor is Executive Information Systems, L.L.C., the nature of an enterprise license agreement for a major software suite like SAS often involves direct procurement from the software vendor or their authorized resellers. There is no explicit information provided regarding subcontracting plans or opportunities for small businesses within this specific award, though larger IT contracts often have subcontracting requirements.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the National Institutes of Health's contracting officers and program managers. They are responsible for monitoring contractor performance, ensuring compliance with contract terms, and verifying that the delivered software and services meet the specified requirements. Transparency is facilitated through contract award databases like FPDS. While no specific Inspector General (IG) jurisdiction is mentioned for this particular award, the HHS Office of Inspector General generally oversees HHS spending for waste, fraud, and abuse.

Related Government Programs

HHS IT Services Contracts
NIH Software Licensing Agreements
Enterprise Resource Planning (ERP) Systems
Data Analytics Software Procurement
Federal Civilian Agency IT Spending

Risk Flags

Potential for vendor lock-in
Significant annual expenditure requires ongoing value assessment
Reliance on a single software provider for critical functions

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $26.7 million to EXECUTIVE INFORMATION SYSTEMS, L.L.C.. HHS SAS ENTERPRISE LICENSE AGREEMENT BASE YEAR 12/31/2017-12/30/2018

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 $26.7 million.

What is the period of performance?

Start: 2018-12-22. End: 2020-02-12.

What is the track record of Executive Information Systems, L.L.C. with federal contracts, particularly with HHS?

Executive Information Systems, L.L.C. has a history of receiving federal contracts, primarily with the Department of Health and Human Services (HHS). Analyzing their contract portfolio reveals a pattern of providing IT services and solutions. However, the scale and nature of this specific $26.7 million SAS enterprise license agreement suggest a significant engagement. Further investigation into their past performance on similar large-scale software licensing or enterprise IT projects would be necessary to fully assess their capabilities and reliability in managing such a substantial contract. Reviewing past performance evaluations and any documented issues or successes would provide a clearer picture of their track record.

How does the cost of this SAS enterprise license compare to similar government-wide agreements or other agency procurements?

Directly comparing the cost of this specific SAS enterprise license agreement to others is challenging without detailed information on the scope of services, number of users, specific SAS modules licensed, and the duration of the agreement beyond the base year. Federal agencies often negotiate enterprise licenses differently based on their specific needs and bargaining power. However, the base year cost of approximately $26.7 million, translating to roughly $64,097 per day, indicates a substantial investment. Government-wide contract vehicles or large agency-specific agreements for similar comprehensive analytics platforms can range from tens to hundreds of millions of dollars annually. Benchmarking would require access to detailed pricing data from comparable contracts, which is often not publicly available in full detail.

What are the primary risks associated with a large enterprise software license agreement like this for the NIH?

Key risks associated with this large enterprise software license agreement include vendor lock-in, where the NIH becomes heavily reliant on SAS, making future transitions to alternative solutions costly and complex. There's also the risk of underutilization, where the full capabilities of the licensed software are not leveraged, leading to inefficient spending. Technical risks include integration challenges with existing IT infrastructure and potential cybersecurity vulnerabilities. Furthermore, changes in SAS's product strategy, pricing models, or support services could negatively impact the NIH's long-term operational capabilities. Ensuring robust contract management, regular performance reviews, and exploring open-source or alternative solutions periodically are crucial mitigation strategies.

How effective is the SAS software in supporting the NIH's mission of advancing health and biomedical research?

SAS software is widely recognized as a powerful tool for statistical analysis, data mining, and business intelligence, which are critical functions for health and biomedical research. The NIH utilizes such tools for analyzing large datasets from clinical trials, genomic studies, epidemiological research, and public health surveillance. The effectiveness of this specific license hinges on how well the SAS platform enables researchers to derive meaningful insights, accelerate discoveries, and improve health outcomes. While the software itself is capable, its effectiveness is ultimately determined by the skills of the users, the quality of the data, and the integration of SAS into the NIH's research workflows. Positive outcomes would be evidenced by accelerated research timelines, validated findings, and improved public health initiatives.

What has been the historical spending trend for SAS software or similar analytics platforms at HHS or NIH?

Historical spending on SAS software and similar advanced analytics platforms by HHS and its components like NIH has likely been substantial and potentially increasing, reflecting the growing importance of data-driven research and decision-making in healthcare. Agencies often consolidate software licenses under enterprise agreements to gain better control over costs and standardize capabilities. Without specific historical data for this contract vehicle, it's difficult to pinpoint exact trends. However, the general trend across federal agencies has been a significant investment in data analytics capabilities to manage large volumes of health data, conduct research, and improve operational efficiency. This often involves multi-year contracts for enterprise licenses, with annual spending fluctuating based on renewals, new requirements, and budget allocations.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

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

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $35,718,439

Exercised Options: $26,728,590

Current Obligation: $26,728,590

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F0170K

IDV Type: FSS

Timeline