CDC awards $62M Application Hosting Support task

**Updated 8.7.17

Update on the $62M CDC App Hosting Protest Denial – GAO.gov

“DIGEST

  1. Protest alleging that the agency failed to perform a price realism evaluation is denied, where the fixed-price, time-and-materials solicitation did not obligate the agency to perform a price realism evaluation.
  2. Protest challenging the agency’s technical evaluation is denied, where the agency had a reasonable basis for its evaluation of the awardee’s proposal.
  3. Protest challenging the agency’s price evaluation is denied, where the agency reasonably evaluated the awardee’s price proposal.
  4. Protest challenging agency’s selection of lower-rated, lower-priced proposal for award is denied, where agency reasonably determined that protester’s higher technical evaluation did not warrant associated price premium.

DECISION

HP Enterprise Services, LLC (HPES), of Herndon, Virginia, protests the award of a task order to Dell Services Federal Government, Inc. (Dell), of Herndon, Virginia, by the Department of Health and Human Services (HHS), Centers for Disease Control and Prevention (CDC) under request for task order proposals (RFTOP) No. 2016-CIMS-OCOO-ITSO-ITI-272, which was issued by the CDC to acquire information technology and support services.  The protester contends that the agency failed to perform a required price realism evaluation and that the agency’s price and technical evaluation of the awardee’s proposal was flawed.[1]  HPES also contends that the best-value determination was unreasonable.

We deny the protest.

BACKGROUND

On May 10, 2016, the CDC issued the…”

G2X TAKE: Any firm with a large upcoming re-compete can benefit by reading the blow by blow details related to this latest protest denial as both a good reminder and with at least one takeaway that firms may want to try and influence prior to any upcoming solicitation release.

We won’t try to judge the merits of the challenge nor the strategic bid approach taken by either party here, but any insight firms can glean as to how the final awardee was able to bid at such a big discount ($88M vs $62M) and win makes this worth a read.

One immediate strategy that comes through loud and clear from GAO is that without language that specifies a price realism evaluation will take place, agencies are not required to conduct one and GAO will not force the action. It may well have had no bearing here, but expect to see some incumbent firms and government leaders working to influence having this language inserted into future solicitations, giving them the opportunity to evaluate this as a factor if they deem it is required or desired


**Updated June 23, 2017

G2X TAKE: In what has been a back and forth battle with CDC changing their initial award decision, GAO is not siding with incumbent on this one. The latest protest on this large and strategic contract to provide a range of Application Hosting and Enterprise File and Data Center Services has been denied. 

You can track all of the prior activity related to this award and protest in the thread below, but it appears that the latest challenge put forth by DXC (formerly HPE) has fallen on deaf ears. This is a big win for Dell Services, who was acquired by NTT Data last Fall. Their ability to bid and win this contract at a fraction of the price of what DXC bid will and should be of interest to other CDC CIMS primes who are preparing for upcoming re-competes. 


Updated March 13, 2017

G2X TAKE: Turnabout appears to be fair play, as only a few days removed from the announcement of a new contract award at CDC that is a direct result of a successful protest, the incumbent has now levied their own challenge.

Initially awarded as an $88M contract last Fall to the incumbent, HPE, a second bidder, Dell Services (Now NTT Data), filed a protest that by all accounts was rather successful as the CDC revisited their decision and recently re-awarded this contract for a wide range of services including “application hosting, file storage, operations monitoring, data center support and cloud management” to NTT Data for $62M.

Post 2nd award, this week HPE (soon to be DXC Technology) filed their own action with GAO. Details remains scarce as to the grounds for the protest at this time. This protest is expected to be resolved no later than Jun 21, 2017. 


Posted February 26, 2017

G2X TAKE: When the $3B acquisition was announced last Fall, we have to assume that the odds of wining this played no part in the valuation, but this is a nice surprise for this newly emerging large Federal Health IT company as they wrestled this key contract away from the incumbent.

It has been reported that Dell Services, who was acquired by NTT Data last Fall, was just awarded this 4.5 year $62.3M task at CDC. This task to provide a range of Application Hosting and Enterprise File and Data Center Services is understood to have been previously awarded last Fall, but was protested, with CDC taking corrective action. Given the strategic nature of this contract, we will not be surprised to see this challenged once again. CDC is typically very tight with their information, so any additional insight is always appreciated and welcome at scoop@g2xchange.com 

The acquisition of this CIO-SP3, CDC CIMS and Alliant Prime has clearly pushed this international and technology services firms into the category of new large Federal Health IT players to keep an eye on in 2017/18. We should note that this group has been aggressively recruiting senior growth execs to target Federal Health.

 

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