HHS awarded $32.7M for undersea network and nuclear command control, with 2 bidders competing

Contract Overview

Contract Amount: $32,700,466 ($32.7M)

Contractor: Cambridge International Systems Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2014-09-25

End Date: 2018-09-28

Contract Duration: 1,464 days

Daily Burn Rate: $22.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF UNDERSEA ENTERPRISE NETWORK AND NUCLEAR COMMAND CONTROL AND COMMUNICATIONS

Place of Performance

Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860

State: Hawaii Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $32.7 million to CAMBRIDGE INTERNATIONAL SYSTEMS INC. for work described as: IGF::CT::IGF UNDERSEA ENTERPRISE NETWORK AND NUCLEAR COMMAND CONTROL AND COMMUNICATIONS Key points: 1. Value for money appears fair given the specialized nature of the services. 2. Competition dynamics show a limited but present competitive landscape. 3. Risk indicators are moderate, with a long performance period. 4. Performance context suggests a need for robust oversight due to complexity. 5. Sector positioning is within IT services, specifically focused on critical infrastructure support.

Value Assessment

Rating: fair

The contract's value of $32.7 million over approximately four years for specialized IT services is within a reasonable range for government contracts of this nature. Benchmarking against similar contracts for command and control systems or secure network infrastructure would provide a more precise value assessment. However, the fixed-price nature suggests an attempt to control costs, though the final expenditure depends on delivery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, certain sources were excluded, potentially limiting the pool of bidders. With two bidders participating, the competition level suggests a moderately competitive environment. This level of competition can lead to price discovery but may not achieve the optimal pricing that a broader, fully open competition might yield.

Taxpayer Impact: The limited competition may have resulted in a higher price for taxpayers than if more vendors had been able to bid. However, the presence of two bidders still provided some leverage to negotiate pricing.

Public Impact

The primary beneficiaries are agencies requiring secure and reliable undersea network and nuclear command, control, and communications (NC3) capabilities. Services delivered include computer systems design and related technical support for critical infrastructure. The geographic impact is likely focused on national security operations and command centers, with potential implications for Hawaii. Workforce implications involve specialized IT professionals with security clearances and expertise in complex network systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs in complex IT systems.
Risk of vendor lock-in due to specialized nature of the technology.
Dependence on a limited number of qualified vendors for future support.

Positive Signals

Firm Fixed Price contract type helps control costs.
Long performance period allows for stable service delivery.
Awarded to a vendor with demonstrated capabilities in IT services.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on specialized network design and support services crucial for national security. The market for such services is characterized by high barriers to entry due to security requirements and technical expertise. Comparable spending benchmarks would likely be found in other defense or intelligence community IT procurements requiring secure, resilient communication networks.

Small Business Impact

The contract data indicates that small business participation was not a primary focus, as the 'ss' (small business set-aside) and 'sb' (small business) flags are false. This suggests the procurement was not specifically targeted towards small businesses. There is no explicit information on subcontracting plans for small businesses, which could represent a missed opportunity to engage the small business ecosystem in supporting critical national security IT infrastructure.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services' Office of the Assistant Secretary for Administration, with potential involvement from program-specific oversight bodies within the agencies utilizing the NC3 systems. Accountability measures would be tied to the firm fixed-price contract terms and delivery schedules. Transparency is generally limited for contracts involving national security, but contract award data is publicly available.

Related Government Programs

Defense Information Systems Network (DISN)
Nuclear Command, Control, and Communications (NC3) Modernization Programs
Secure Communications Infrastructure Contracts
Undersea Cable Network Services

Risk Flags

Limited competition may impact price.
Specialized nature of services could lead to vendor lock-in.
Long performance period requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $32.7 million to CAMBRIDGE INTERNATIONAL SYSTEMS INC.. IGF::CT::IGF UNDERSEA ENTERPRISE NETWORK AND NUCLEAR COMMAND CONTROL AND COMMUNICATIONS

Who is the contractor on this award?

The obligated recipient is CAMBRIDGE INTERNATIONAL SYSTEMS INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $32.7 million.

What is the period of performance?

Start: 2014-09-25. End: 2018-09-28.

What is the track record of Cambridge International Systems Inc. in delivering complex IT and command control systems for federal agencies?

Cambridge International Systems Inc. (CIS) has a history of providing IT and engineering services to various government agencies, including the Department of Defense and the Department of Homeland Security. Their experience often involves complex systems integration, network engineering, and cybersecurity solutions. For contracts similar to the IGF Undersea Enterprise Network and Nuclear Command Control and Communications, CIS's past performance would be evaluated based on their ability to meet stringent security requirements, deliver reliable systems, and manage projects within budget and schedule. A review of their contract history, including any past performance evaluations or awards, would be necessary to fully assess their suitability for such critical infrastructure support.

How does the $32.7 million award compare to similar government contracts for undersea network and nuclear command control systems?

The $32.7 million award for undersea network and nuclear command control (NC3) systems over approximately four years represents a significant investment, but its value is context-dependent. NC3 systems are highly specialized, requiring advanced technology, stringent security protocols, and robust reliability, which inherently drives up costs. Comparing this to similar contracts requires identifying procurements with comparable scope, complexity, and security classifications. For instance, contracts for secure global communication networks or critical infrastructure protection within defense or intelligence agencies might offer benchmarks. However, the unique nature of undersea networks and NC3 systems means direct comparisons can be challenging, and the price may be considered fair if it reflects the specialized requirements and limited vendor pool.

What are the primary risks associated with a contract of this nature, and how are they mitigated?

The primary risks associated with this contract include technological obsolescence, cybersecurity threats, potential for cost overruns if scope management is weak, and vendor lock-in due to specialized knowledge. Mitigation strategies typically involve robust contract oversight, phased delivery schedules with performance milestones, strong cybersecurity measures integrated into the system design and operation, and clear change management processes to control scope creep. The firm fixed-price contract type itself acts as a risk mitigation tool by placing the cost burden on the contractor for defined scope. Furthermore, ensuring redundancy and contingency planning for critical NC3 functions is paramount.

What is the historical spending pattern for undersea network and nuclear command control systems by the Department of Health and Human Services?

The Department of Health and Human Services (HHS) is not typically the primary agency associated with procuring undersea network and nuclear command control (NC3) systems; these functions are more commonly managed by agencies like the Department of Defense (DoD) or the National Nuclear Security Administration (NNSA). The award to HHS for this specific service, identified under NAICS code 541512 (Computer Systems Design Services), suggests a potential unique requirement or a support role rather than direct management of strategic NC3 assets. Historical spending by HHS in this niche area is likely minimal or non-existent, making this contract an outlier. Understanding the specific justification for HHS's involvement would be key to analyzing its spending patterns in this domain.

How does the 'Full and Open Competition After Exclusion of Sources' procurement method impact cost and innovation compared to traditional full and open competition?

The 'Full and Open Competition After Exclusion of Sources' (FOCAES) method, as used here, allows for competition among all responsible sources, but with specific exclusions. This means that while multiple vendors could theoretically bid, certain entities were deemed ineligible for reasons often related to national security, proprietary technology, or specific program requirements. Compared to traditional full and open competition, FOCAES can lead to a smaller pool of bidders, potentially reducing price competition and limiting the breadth of innovative solutions considered. However, it can also ensure that only highly qualified and vetted vendors participate, which might be crucial for sensitive or complex procurements where specialized expertise is paramount. The impact on cost and innovation depends heavily on the justification for the exclusions and the number of eligible bidders.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: NIHJT2010002

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2300 CLARENDON BLVD STE 705, ARLINGTON, VA, 22201

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $38,351,179

Exercised Options: $32,714,944

Current Obligation: $32,700,466

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200059W

IDV Type: GWAC

Timeline