HHS awards $136.8M for IT support, with 3 bidders competing for a firm-fixed-price contract

Contract Overview

Contract Amount: $136,843,295 ($136.8M)

Contractor: Intellibridge, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2015-08-20

End Date: 2019-05-31

Contract Duration: 1,380 days

Daily Burn Rate: $99.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF TECHNOLOGY, ENGINEERING, AND DEVELOPMENT SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $136.8 million to INTELLIBRIDGE, LLC for work described as: IGF::CT::IGF TECHNOLOGY, ENGINEERING, AND DEVELOPMENT SUPPORT SERVICES Key points: 1. The contract value of $136.8 million represents a significant investment in IT support services. 2. Competition was robust with three bidders, suggesting a healthy market for these services. 3. The firm-fixed-price contract type shifts performance risk to the contractor. 4. The contract duration of 1380 days (approx. 3.8 years) indicates a long-term need for these services. 5. The primary service category is Computer Systems Design Services, a critical area for government operations. 6. The contract was awarded to Intellibridge, LLC, a key contractor in this domain.

Value Assessment

Rating: good

The total award of $136.8 million for IT support services over approximately 3.8 years appears reasonable given the scope. Benchmarking against similar large-scale IT support contracts within federal agencies suggests that pricing structures for firm-fixed-price agreements of this nature are generally competitive when multiple bidders are involved. Without specific details on the deliverables and service levels, a precise per-unit cost comparison is challenging, but the overall value seems aligned with market expectations for comprehensive IT support.

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. With three bidders participating, the competition level suggests a moderately competitive environment. This level of competition is generally sufficient to drive reasonable pricing, but the exclusion of specific sources might limit the full potential for price discovery and innovation compared to unrestricted full and open competition.

Taxpayer Impact: The moderate competition level means taxpayers likely received a fair price, but there may have been opportunities for even greater savings or more innovative solutions had all potential sources been included.

Public Impact

The primary beneficiaries are the various components within the Department of Health and Human Services (HHS), which receive enhanced IT infrastructure and support. Services delivered include computer systems design, engineering, and development support, crucial for the agency's operational efficiency. The geographic impact is centered in the District of Columbia, where the agency's primary operations are located. The contract supports a workforce skilled in IT systems design and support, contributing to the federal IT employment landscape.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific technologies or methodologies are mandated.
Risk of scope creep if requirements are not clearly defined and managed.
Dependence on a single contractor for critical IT infrastructure could pose a risk if performance falters.

Positive Signals

Firm-fixed-price contract structure incentivizes contractor efficiency and cost control.
Multiple bidders indicate a healthy market and potential for competitive pricing.
Long-term contract duration suggests a stable and predictable IT support environment for the agency.

Sector Analysis

The federal IT services market is vast and highly competitive, with agencies like HHS being major consumers. This contract falls within the Computer Systems Design Services NAICS code (541512), a segment characterized by a mix of large prime contractors and specialized small businesses. Spending in this sector is driven by the government's continuous need to modernize IT infrastructure, enhance cybersecurity, and support digital transformation initiatives. Comparable contracts often involve significant dollar values due to the complexity and criticality of federal IT systems.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any specific subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal. However, the prime contractor, Intellibridge, LLC, may engage small businesses as subcontractors, which would indirectly benefit them. Further analysis of subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Office of the Assistant Secretary for Administration at HHS. Performance monitoring, adherence to contract terms, and quality assurance are standard oversight mechanisms. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

HHS IT Modernization Initiatives
Federal Civilian Agency IT Support Contracts
Computer Systems Design and Related Services
Information Technology Professional Services

Risk Flags

Potential for limited competition due to source exclusion.
Risk of scope creep in long-term IT service contracts.
Dependence on contractor performance for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $136.8 million to INTELLIBRIDGE, LLC. IGF::CT::IGF TECHNOLOGY, ENGINEERING, AND DEVELOPMENT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is INTELLIBRIDGE, LLC.

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 $136.8 million.

What is the period of performance?

Start: 2015-08-20. End: 2019-05-31.

What is the track record of Intellibridge, LLC with federal contracts, particularly within HHS?

Intellibridge, LLC has a history of securing federal contracts, primarily within the IT services domain. A review of federal procurement data indicates they have been awarded numerous contracts across various agencies, including significant work with HHS. Their portfolio often includes services related to IT modernization, system integration, and technical support. While specific performance metrics for past contracts are not detailed here, their consistent ability to win and perform on federal contracts suggests a level of established capability and client satisfaction. Further due diligence would involve examining past performance evaluations and any reported issues or commendations on previous awards to fully assess their track record.

How does the $136.8 million award compare to similar IT support contracts awarded by HHS or other large federal agencies?

The $136.8 million award for IT support services over approximately 3.8 years is substantial, placing it in the mid-to-large tier for federal IT contracts. HHS, being a large agency with complex IT needs, frequently awards contracts in this range for system design, development, and support. When compared to similar contracts for computer systems design services (NAICS 541512) awarded by agencies like the Department of Defense or the General Services Administration, this award appears to be within the expected range for comprehensive, long-term IT support. The firm-fixed-price structure and the inclusion of three bidders suggest a competitive process that likely resulted in a value commensurate with market rates for such extensive services.

What are the primary risks associated with a firm-fixed-price contract of this magnitude and duration?

The primary risk with a firm-fixed-price (FFP) contract of this magnitude and duration lies in potential scope creep and the contractor's ability to manage costs effectively over the long term. While FFP shifts cost risk to the contractor, if the government's requirements evolve significantly beyond the initial scope, change orders can become extensive and costly, potentially negating the initial cost savings. For the contractor, unforeseen technical challenges or market fluctuations in labor or technology costs could impact profitability. For the government, there's a risk that the contractor might cut corners on quality to maintain margins if not adequately monitored. Robust contract management and clear definition of deliverables are crucial to mitigate these risks.

What is the significance of the 'Full and Open Competition After Exclusion of Sources' award type?

The 'Full and Open Competition After Exclusion of Sources' award type signifies that the solicitation was intended for all responsible sources, but specific sources were excluded from consideration. This is often done for reasons such as national security, proprietary data concerns, or specific program requirements that only certain entities can meet. While it represents a form of competition, it is less broad than unrestricted full and open competition. The presence of three bidders indicates that despite exclusions, a reasonable number of capable vendors were available and interested, suggesting that the exclusions did not unduly stifle competition to the point of a sole-source award, but it does mean that the government may not have benefited from the widest possible pool of potential offerors.

How does this contract contribute to HHS's overall IT infrastructure and mission objectives?

This contract directly supports HHS's mission objectives by ensuring the reliable functioning and potential enhancement of its critical IT infrastructure. Computer Systems Design Services are fundamental to maintaining and upgrading the complex systems that manage health data, support public health initiatives, and facilitate agency operations. By outsourcing these services to Intellibridge, LLC, HHS can leverage specialized expertise and resources to maintain operational continuity, improve system performance, and potentially implement new technological solutions. This allows HHS personnel to focus on their core public health and healthcare responsibilities, rather than day-to-day IT system management and development.

What are the potential implications for workforce development and IT skill sets within the federal government?

Contracts like this, focused on IT systems design and support, have several implications for federal IT workforce development. Firstly, they rely on specialized skills that may be in high demand and short supply within the government, necessitating reliance on contractors. Secondly, they can create opportunities for federal employees to work alongside contractor teams, fostering knowledge transfer and upskilling. Thirdly, the contract's duration suggests a stable demand for these IT skills, potentially influencing training programs and career path development for federal IT professionals. However, it also raises questions about the long-term strategy for building in-house IT capabilities versus continued outsourcing.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1430 SPRING HILL RD STE 200, MC LEAN, VA, 22102

Business Categories: Category Business, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Not Designated a Small Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $142,328,522

Exercised Options: $137,089,100

Current Obligation: $136,843,295

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200181W

IDV Type: GWAC

Timeline