HHS Awards $27.1M Contract for Corn Farming Services to American Management Systems Incorporated
Contract Overview
Contract Amount: $27,115,591 ($27.1M)
Contractor: American Management Systems Incorporated
Awarding Agency: Department of Health and Human Services
Start Date: 2002-12-15
End Date: 2008-02-08
Contract Duration: 1,881 days
Daily Burn Rate: $14.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Place of Performance
Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $27.1 million to AMERICAN MANAGEMENT SYSTEMS INCORPORATED for work described as: Key points: 1. Contract value of $27.1M over 1881 days. 2. Full and open competition was utilized. 3. Potential risk associated with the Cost Plus Award Fee contract type. 4. Spending is within the IT sector, though the specific service 'Corn Farming' is unusual.
Value Assessment
Rating: fair
The contract value of $27.1M over nearly 5 years suggests a significant investment. Benchmarking against similar IT services contracts is difficult due to the unusual service description.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the Cost Plus Award Fee structure can lead to higher costs if not managed carefully.
Taxpayer Impact: Taxpayer funds are utilized for this contract. The effectiveness of the spending depends on the actual services delivered and their necessity.
Public Impact
Public funds are being spent on services described as 'Corn Farming' by the Centers for Medicare and Medicaid Services. The duration of the contract (over 5 years) indicates a long-term commitment of resources. Transparency regarding the specific nature and benefit of 'Corn Farming' services within a healthcare agency is limited.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Unusual service description ('Corn Farming') for a healthcare agency.
- Cost Plus Award Fee contract type can incentivize cost overruns.
- Long contract duration may reduce flexibility.
Positive Signals
- Awarded under full and open competition.
- Contract has a defined start and end date.
Sector Analysis
The contract falls under the Information Technology (IT) sector, with a significant value of $27.1M. Benchmarks for IT services vary widely, but this value is substantial for a single contract.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors.
Oversight & Accountability
Oversight would be crucial to ensure the 'Corn Farming' services are necessary, effectively delivered, and that the Cost Plus Award Fee structure does not lead to excessive costs.
Related Government Programs
- Corn Farming
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Unusual service description ('Corn Farming').
- Cost Plus Award Fee contract type.
- Long contract duration (1881 days).
- Lack of clarity on performance metrics for award fee.
- Potential for misallocation of funds if service is not essential.
Tags
corn-farming, department-of-health-and-human-services, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $27.1 million to AMERICAN MANAGEMENT SYSTEMS INCORPORATED. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is AMERICAN MANAGEMENT SYSTEMS INCORPORATED.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).
What is the total obligated amount?
The obligated amount is $27.1 million.
What is the period of performance?
Start: 2002-12-15. End: 2008-02-08.
What specific services does 'Corn Farming' entail within the context of the Centers for Medicare and Medicaid Services, and what is the justification for this expenditure?
The specific nature of 'Corn Farming' services within CMS is unclear and highly unusual for a healthcare administration agency. It is essential to understand if this relates to data management, agricultural health initiatives, or a misclassification. Without clarification, assessing the value and necessity of this $27.1M expenditure is impossible.
What are the potential risks associated with a Cost Plus Award Fee contract for 'Corn Farming' services, and how are they mitigated?
Cost Plus Award Fee contracts carry inherent risks of cost escalation as the contractor is reimbursed for costs plus an award fee based on performance. For an unusual service like 'Corn Farming,' defining objective performance metrics for the award fee is challenging, potentially leading to inflated costs without clear benefit. Robust oversight and clearly defined, measurable performance standards are critical mitigation strategies.
How does the full and open competition for this contract ensure effective price discovery and value for taxpayers, given the unique service description?
Full and open competition is designed to foster a competitive environment, theoretically leading to better pricing. However, the effectiveness of price discovery for 'Corn Farming' services is questionable without a clear understanding of the service itself. If the service is highly specialized or poorly defined, potential bidders may struggle to accurately price their proposals, potentially undermining the benefits of competition.
Industry Classification
NAICS: Agriculture, Forestry, Fishing and Hunting › Oilseed and Grain Farming › Corn Farming
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Address: 12601 FAIR LAKES CIR, FAIRFAX, VA, 22033
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $17,571,718
Exercised Options: $27,115,591
Current Obligation: $27,115,591
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2002-12-15
Current End Date: 2008-02-08
Potential End Date: 2008-02-08 00:00:00
Last Modified: 2019-09-26
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