Earlier today, NITAAC released details related to a recent HHS Administration for Children and Families (ACF) Office of the Chief Information Officer (OCIO) extension of a CIO-SP3 task to allow time for a proper recompete.
Awardee: TCG, Inc.
Solicitation Number: 11212025_NIH_NITAAC
Department/Ind. Agency: HEALTH AND HUMAN SERVICES, DEPARTMENT OF
Task/Delivery Order Number: 75N98120F00001
Contract Award Number: HHSN316201200178W
Authority: Only One Source
Nature and/or Description of the Action Being Approved
Acquisition Purpose and Objectives
The current contract period of performance (POP) for HHSN316201200178W / 75N98120F00001 ends on September 17, 2025, requiring a recompete and solicitation for a new award. To allow sufficient time for completion of the new acquisition process, ACF Tech is requesting a 6-month extension of the existing contract. This extension will ensure uninterrupted delivery of critical IT support services from September 18, 2025, through March 17, 2026.
The need for this extension is driven by several factors, including the implementation of the HHS Contract Departmental Efficiency Review (DER), extended approval timelines involving ACF Political Appointees (PAA), and staffing reductions at both ACF Tech and NITAAC, which collectively delayed progress on the recompete effort.
Additionally, on January 21, 2025, the Acting Secretary of HHS issued a directive instructing all HHS Operating Divisions to pause most external correspondence and public communications. This applied agency-wide and included suspending the issuance of documents, notices, solicitations, and other external communications until reviewed and approved by a Presidential Appointee.
In response, Acquisition Alert 2025-02 (Acquisition Guidance on Acting Secretary Memo entitled, “Immediate Pause on Issuing Documents and Public Communications – ACTION”), issued by the Deputy Assistant Secretary for Acquisitions on January 24, 2025, provided acquisition-specific instructions. The alert required all acquisition workforce members to refrain from releasing solicitations, contract actions, GPC and OTA transactions, or engaging in any public vendor communications unless first cleared through the appropriate political channels. This policy remained in effect until rescinded and significantly impacted acquisition planning activities, including those related to this contract renewal.
Given these cumulative circumstances, the requested extension will provide the necessary time to complete the full acquisition lifecycle in accordance with policy and approval protocols while maintaining continuity of mission-critical IT services.
Program Office Review & Affirmation
The costs for this extension are based on the existing contract rates for Option Year 4, which were previously determined to be fair and reasonable by the contracting office. There is no increase in the hourly labor rates for this extension period. The total cost of $5,302,440.19 represents approximately half of the annual cost for Option Year 4 with the current FTEs, which is proportionate for a 6-month extension.
Project Background
ACF Tech is responsible for the execution and governance of all computer and information resource management functions within ACF, advising the ACF Assistant Secretary and Deputy Assistant Secretary for Administration on IT resources and management necessary to support all IT systems and solutions. The ITESS contract provides essential IT support services across ACF Tech and ACF program offices, helping to maintain security standards and spanning functions such as solution delivery, systems architecture, budget, Federal Information Technology Acquisition Reform Act (FITARA), Capital Planning and Investment Control (CPIC) management, acquisition support, enterprise project management, and Agile methodology and tools support services. ITESS serves as the functional integrator necessary to successfully meet IT goals and execute them in support of ACF’s mission.
The task order under contract HHSN316201200178W 75N98120F00001 with TCG, Inc. has a base year, and four one-year option periods. Currently this task order is in the performance period of Option Period 4. The government requests a 6-month extension as it continues the process of developing a competitive follow-on procurement. Market research is being conducted to identify potential sources for the follow-on contract and actions will be taken to maximize competition for the follow-on contract.
This request is for a one-time, 6-month extension to ensure continuity of services while ACF Tech completes the competitive procurement process. The extension period is sufficient and appropriate, as ACF Tech is on schedule to complete the key acquisition milestones required for award within this timeframe.
Specifically, the additional time allows for:
* Finalizing and issuing the solicitation
* Conducting a thorough evaluation of proposals
* Making a timely contract award
* Allowing for a transition period, if a new vendor is selected
