Digicon Corporation awarded $15.2M for IT Support Services, option year 2, by NIH
Contract Overview
Contract Amount: $15,205,994 ($15.2M)
Contractor: Digicon Corporation
Awarding Agency: Department of Health and Human Services
Start Date: 2007-09-28
End Date: 2012-12-20
Contract Duration: 1,910 days
Daily Burn Rate: $8.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: OTHER (APPLIES TO AWARDS WHERE NONE OF THE ABOVE APPLY)
Sector: IT
Official Description: IT SUPPORT SERVICES FOR DIGICON'S CIO-SP2I, TASK ORDER #NIH-NEI-2005-C-2449 - REQUEST TO EXERCISE OPTION YEAR 2 FOR ADDITIONAL FUNDING. (TERRY WILLIAMS/ITMB/NEI, BLDG. 5635 FISHERS LANE, STE 1700, ROCKVILLE, MD 20892; (301) 435-8856)
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $15.2 million to DIGICON CORPORATION for work described as: IT SUPPORT SERVICES FOR DIGICON'S CIO-SP2I, TASK ORDER #NIH-NEI-2005-C-2449 - REQUEST TO EXERCISE OPTION YEAR 2 FOR ADDITIONAL FUNDING. (TERRY WILLIAMS/ITMB/NEI, BLDG. 5635 FISHERS LANE, STE 1700, ROCKVILLE, MD 20892; (301) 435-8856) Key points: 1. Value for money assessed through comparison to similar IT support contracts. 2. Competition dynamics indicate a full and open competition was utilized. 3. Risk indicators include contract duration and potential for scope creep. 4. Performance context is IT support for the National Eye Institute. 5. Sector positioning is within IT services, specifically computer systems design.
Value Assessment
Rating: good
The contract value of $15.2 million for IT support services appears reasonable when benchmarked against similar government IT service contracts. While specific per-unit cost data is not provided, the overall award amount aligns with the scope of services typically required for supporting a federal agency's IT infrastructure and operations. The duration of the contract, spanning multiple years, suggests a stable and ongoing need for these services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition, suggesting that multiple vendors had the opportunity to bid. The specific number of bidders is not detailed, but the 'full and open' designation implies a competitive process designed to solicit the best value from the market. This approach generally leads to more favorable pricing and service offerings for the government.
Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that drives down costs and encourages innovation among potential contractors.
Public Impact
The National Eye Institute (NEI) benefits from continued IT support services. Services delivered include computer systems design and IT support. Geographic impact is primarily within Rockville, Maryland, where NEI is located. Workforce implications include the potential for continued employment for IT professionals supporting NEI.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if scope is not managed effectively.
- Reliance on a single contractor for critical IT infrastructure.
- Risk of vendor lock-in if transition planning is inadequate.
Positive Signals
- Established contractor with a history of serving federal agencies.
- Awarded through a competitive process, indicating market validation.
- Clear statement of work for IT support services.
Sector Analysis
The IT support services sector is a significant component of federal spending, with agencies relying heavily on contractors for specialized expertise in areas like computer systems design. This contract fits within the broader category of IT professional services, which includes a wide range of support functions from help desk operations to complex system integration. Benchmarks for similar contracts often vary based on the specific services, duration, and agency, but this award appears to be within a typical range for comprehensive IT support.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to Digicon Corporation, a larger entity, suggests that the primary focus was on securing comprehensive IT support services rather than specifically promoting small business participation through this particular contract vehicle.
Oversight & Accountability
Oversight for this contract would typically be managed by the National Institutes of Health (NIH) contracting officers and program managers. Accountability measures are embedded in the contract's performance standards and delivery schedules. Transparency is facilitated through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- CIO-SP2i GWAC
- IT Professional Services
- Computer Systems Design Services
Risk Flags
- Potential for scope creep
- Contract duration
- Reliance on single vendor
Tags
it-services, computer-systems-design, department-of-health-and-human-services, national-institutes-of-health, rockville-maryland, full-and-open-competition, delivery-order, option-year, large-business, it-support
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $15.2 million to DIGICON CORPORATION. IT SUPPORT SERVICES FOR DIGICON'S CIO-SP2I, TASK ORDER #NIH-NEI-2005-C-2449 - REQUEST TO EXERCISE OPTION YEAR 2 FOR ADDITIONAL FUNDING. (TERRY WILLIAMS/ITMB/NEI, BLDG. 5635 FISHERS LANE, STE 1700, ROCKVILLE, MD 20892; (301) 435-8856)
Who is the contractor on this award?
The obligated recipient is DIGICON 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 $15.2 million.
What is the period of performance?
Start: 2007-09-28. End: 2012-12-20.
What is Digicon Corporation's track record with federal IT contracts, particularly with the NIH?
Digicon Corporation has a history of performing IT support services for federal agencies, including the National Institutes of Health (NIH). This specific task order, NIH-NEI-2005-C-2449, indicates a continued relationship for IT support at the National Eye Institute (NEI). While the provided data focuses on this single task order, a comprehensive review would involve examining Digicon's performance history across all its federal awards, including past performance evaluations, any contract disputes, and the timeliness and quality of services rendered. Their ability to secure an option year exercise suggests satisfactory performance on the initial period of the contract.
How does the $15.2 million award compare to other IT support contracts of similar scope and duration?
The $15.2 million award for IT support services over approximately five years (from the initial award date to the option year end date) is within a reasonable range for comprehensive IT support for a federal institute like the National Eye Institute. Comparable contracts for similar services, such as computer systems design and IT support, can range from several million to tens of millions of dollars depending on the complexity of the systems, the number of users supported, and the specific services required (e.g., network management, cybersecurity, help desk, application development). Without detailed scope-of-work comparisons, a precise benchmark is difficult, but the value appears aligned with the expected needs of an agency like NEI.
What are the primary risks associated with this contract, and how are they being mitigated?
Key risks associated with this IT support contract include potential cost overruns if the scope of work expands beyond the initial estimates, vendor lock-in if transition planning is not robust, and performance issues if the contractor fails to meet service level agreements. Mitigation strategies typically involve strong contract management by the NIH, including regular performance reviews, clear change control processes, and defined performance metrics. The exercise of an option year suggests that initial performance has met expectations, reducing immediate performance risk. However, ongoing vigilance in contract oversight is crucial to manage scope and cost.
How effective has this contract been in ensuring the operational continuity of NEI's IT systems?
The effectiveness of this contract in ensuring operational continuity for NEI's IT systems is primarily indicated by the exercise of the option year for additional funding. This suggests that the services provided by Digicon Corporation have been satisfactory and are deemed necessary for the continued operation of NEI's IT infrastructure. While specific metrics on system uptime, incident resolution times, or user satisfaction are not detailed in the provided data, the renewal and extension of the contract imply that the contractor is meeting the essential requirements for maintaining the functionality and availability of NEI's IT environment.
What are the historical spending patterns for IT support services at the NIH, and how does this contract fit within them?
The NIH, as a large research and healthcare agency within the Department of Health and Human Services, consistently spends significant amounts on IT support services to manage its complex research data, administrative systems, and network infrastructure. Historical spending patterns show a substantial and ongoing investment in IT to support its mission. This $15.2 million contract for IT support at NEI represents a portion of that overall IT expenditure. It aligns with the agency's broader strategy of leveraging external expertise for specialized IT functions, allowing internal staff to focus on core research and health initiatives.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: MISCELLANEOUS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: OTHER (APPLIES TO AWARDS WHERE NONE OF THE ABOVE APPLY) (3)
Evaluated Preference: NONE
Contractor Details
Address: 460 HERNDON PKWY STE 250, HERNDON, VA, 20170
Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $17,996,255
Exercised Options: $16,608,317
Current Obligation: $15,205,994
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 263010063
IDV Type: IDC
Timeline
Start Date: 2007-09-28
Current End Date: 2012-12-20
Potential End Date: 2012-12-28 00:00:00
Last Modified: 2024-11-23
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