Key Details: In late January 2026, the National Institutes of Health’s IT Acquisition and Assessment Center(NITAAC) officially cancelled the CIO-SP4 contract vehicle. This $50 billion government-wide IT contract vehicle experienced nearly five years of delays and hundreds of protests, ultimately leading to its cancellation. NITAAC noted that the contract vehicle was cancelled to align with federal directives and President Trump’s Executive Order 14240, titled “Eliminating Waste and SavingTaxpayer Dollars by Consolidating Procurement”. Government contractors are encouraged to review this article to determine how to adjust strategies in the aftermath.
Background on CIO-SP4
The Chief InformationOfficer-Solutions and Partners 4 (CIO-SP4) contract vehicle was intended to be a major Government-Wide Acquisition Contract (GWAC) for IT solutions across the federal government. It was intended to succeed the CIO-SP3 contract, which was widely used for health and information technology acquisitions and was planned to expire in 2022. The CIO-SP4 was structured as an indefinite-delivery, indefinite-quantity (IDIQ) contract with a $50 billion ceiling value and an expected 10-year period of performance. Its broad scope included IT and digital services ranging from health-related IT to general modernization projects for federal agencies.
CIO-SP4 Cancellation
NITAAC’s public explanation for the cancellation of the contract vehicle centers on strategic consolidation of federal contracts. As noted above, the cancellation was intended to align withEO 14240 and OMB Memorandum M-25-31. These directives issued by the executive branch encouraged moving toward common contract solutions managed by agencies such as the General Services Administration (GSA) to avoid duplication of effort and improve efficiency. As such, NITAAC concluded that the IT services covered by CIO-SP4 were duplicative of existing GSA government-wide contracts. Additionally, NITAAC will transition the current CIO-SP3 contract to GSA management.
Conclusion and Action Plan
The cancellation of CIO-SP4 is undoubtedly disruptive for many contractors, especially those who invested significant time and resources preparing bids or protests. However, the work under CIO-SP4 is not going away; it will be redistributed across other contract vehicles. Additionally, the NITAAC intends to extend the existing CIO-SP3vehicle through April 29, 2027, to ensure continuity of ongoing projects. To navigate this post CIO-SP4 environment, government contractors can consider the following action steps and lessons learned:
- Diversify your contract vehicle portfolio and avoid reliance on a single large contract vehicle for federal business.
- Stay ahead of policy shifts, government-wide acquisition policies, and executive orders that may impact contract availability.
- Engage early and provide feedback during the solicitation process.
- Prepare for delays and costs in big procurements, as complex contracts often face protests or schedule slips.
The cancellation of the CIO-SP4highlights the dynamic nature of the government contracting industry. For further information and expertise, contact Ryan & Wetmore today.
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About Peter Ryan
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Peter T. Ryan co-founded Ryan & Wetmore in 1988 with business partner Michael J. Wetmore. Peter provides clients with the best strategies for success. His expertise extends across various industries. Peter obtained a Master of Business Administration in Finance from the University of Baltimore and a Bachelor of Arts in Accounting from the Catholic University of America.
About Rosie Cheng
Senior Finance Consultant
Rosie Cheng is a Senior Finance Consultant at Ryan & Wetmore. She focuses on government contracting services and produces many of the firm’s government contracting newsletters. Rosie earned her Master of Science in Management from Georgetown University and a BBA from William and Mary.
