NIH may have narrowed the CIO-SP3 field

The buzz is that National Institutes for Health officials have made a clear step closer to an award announcement on its massive $20 billion Chief Information Officer-Solutions and Partners 3 (CIO-SP3) governmentwide acquisition contract.

NIH officials have asked companies for information on their cost accounting systems to check if the firms comply with regulations. The question is a sign that the selection process may have narrowed the field of contractors, one insider said.

This is a key component not just of contract compliance, but the ability of CIO-SP3 to offer cost-plus-an-inventive orders. Although they are not as favorable as fixed-price contracts, the Office of Federal Procurement Policy is pushing hard for the cost-plus contracts as an alternative to time-and-materials contracts.

Contractors will have show proof that they have approved cost accounting systems. Here, experienced contractors will certainly have an edge because developing an appropriate system takes some time and usually trial and error, another insider said.

NIH has been working on CIO-SP3 for several years, leaving companies, large and small, in suspense for what might be ahead.

Posted by Matthew Weigelt on Jul 19, 2011 at 11:27 AM