Interior's $115M MEDCHART system contract awarded to ASM Research, LLC, for IT services

Contract Overview

Contract Amount: $115,409,993 ($115.4M)

Contractor: ASM Research, LLC

Awarding Agency: Department of the Interior

Start Date: 2018-09-13

End Date: 2024-03-04

Contract Duration: 1,999 days

Daily Burn Rate: $57.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MEDICAL ELECTRONIC DATA CARE HEALTH AND READINESS TRACKING (MEDCHART) SYSTEM

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $115.4 million to ASM RESEARCH, LLC for work described as: MEDICAL ELECTRONIC DATA CARE HEALTH AND READINESS TRACKING (MEDCHART) SYSTEM Key points: 1. Value for money assessed through comparison to similar IT system development contracts. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators include contract duration and the nature of IT system development. 4. Performance context relies on the successful implementation and adoption of the MEDCHART system. 5. Sector positioning within IT services, specifically computer systems design. 6. The contract's value represents a significant investment in departmental IT infrastructure.

Value Assessment

Rating: good

The contract value of approximately $115.4 million over its period of performance appears reasonable for a comprehensive IT system development and support contract of this nature. Benchmarking against similar large-scale IT system procurements by federal agencies suggests that the pricing is within an expected range, considering the complexity and duration. The firm-fixed-price contract type provides cost certainty for the government, although it places the cost risk on the contractor. Further detailed cost analysis would be needed to definitively assess value for money, but initial indicators are positive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of multiple bidders (3 noted) in such a competitive environment generally leads to better price discovery and a wider range of technical solutions. The government received three offers, suggesting a healthy level of interest and competition for this significant IT services requirement.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and encourages innovation from a broader pool of contractors, leading to potentially better value.

Public Impact

The MEDCHART system is intended to benefit the Department of the Interior's personnel by improving data management and readiness tracking. Services delivered include computer systems design and related services for the MEDCHART system. The geographic impact is primarily within the Department of the Interior's operational areas. Workforce implications include the need for skilled IT professionals to develop, implement, and maintain the system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (1999 days) could lead to scope creep or evolving technological needs not fully addressed.
Reliance on a single contractor for an extended period may limit future flexibility or access to newer technologies.
The complexity of medical electronic data systems necessitates robust change management and quality assurance.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that likely yielded a fair price.
Firm-fixed-price contract type provides budget certainty for the government.
The contract aims to modernize critical data tracking and readiness systems for the agency.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. The federal IT services market is substantial, with agencies consistently investing in modernizing their systems. Comparable spending benchmarks for large-scale IT system development and integration projects within government agencies can range from tens to hundreds of millions of dollars, depending on scope and complexity. This contract's value aligns with significant IT modernization efforts.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, large businesses like ASM Research, LLC, are the primary awardees. There is no explicit information on subcontracting plans for small businesses within this data snippet. The lack of a small business set-aside means opportunities for small business participation may be limited unless proactively pursued through subcontracting by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Interior. Accountability measures are inherent in the firm-fixed-price contract structure, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated through contract databases like FPDS, which provide public access to award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of the Interior IT Modernization Initiatives
Federal Health IT Systems Development
Computer Systems Design Services Contracts
Large-Scale IT System Integration Projects

Risk Flags

Long contract duration
Complexity of IT system development
Potential for technological obsolescence

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $115.4 million to ASM RESEARCH, LLC. MEDICAL ELECTRONIC DATA CARE HEALTH AND READINESS TRACKING (MEDCHART) SYSTEM

Who is the contractor on this award?

The obligated recipient is ASM RESEARCH, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $115.4 million.

What is the period of performance?

Start: 2018-09-13. End: 2024-03-04.

What is the track record of ASM Research, LLC, in delivering similar large-scale IT systems for federal agencies?

ASM Research, LLC, has a history of performing IT services for federal agencies. While specific details on past performance for systems directly comparable to MEDCHART require deeper investigation into contract databases and performance reviews, their presence as an awardee on this significant contract suggests they possess the capabilities and experience deemed necessary by the Department of the Interior. Analyzing their portfolio of past federal IT contracts, including their size, complexity, and client agencies, would provide a clearer picture of their expertise in areas such as system design, development, integration, and maintenance, particularly for sensitive data management systems.

How does the cost per day or per year of this contract compare to industry benchmarks for similar IT system development and maintenance?

Calculating a precise cost per day or year requires dividing the total contract value ($115,409,992.60) by the contract duration (1999 days). This yields approximately $57,733 per day, or roughly $21 million per year. Benchmarking this figure against industry standards for large-scale federal IT system development and ongoing maintenance is complex, as costs vary significantly based on system complexity, security requirements, user base, and the specific services included (e.g., software development, hardware, integration, support). However, for a comprehensive system like MEDCHART, this annual cost appears to be within a plausible range for major government IT projects, though a detailed breakdown of labor categories, overhead, and profit margins would be needed for a definitive comparison.

What are the primary risks associated with the long duration of this contract (1999 days)?

The extended duration of 1999 days (approximately 5.5 years) for the MEDCHART system contract presents several risks. Firstly, technological obsolescence is a significant concern; IT systems and standards evolve rapidly, and a system designed and implemented over such a long period may become outdated before its full lifecycle is realized. Secondly, scope creep is a common risk in long-term projects, where requirements may change or expand beyond the original intent, potentially leading to cost overruns or schedule delays if not managed effectively. Thirdly, maintaining contractor performance and engagement over an extended period can be challenging, requiring robust oversight and performance management. Finally, the agency's strategic IT priorities might shift, making the contracted system less aligned with future needs.

How effective is the firm-fixed-price (FFP) contract type in managing costs for a complex IT system like MEDCHART?

The firm-fixed-price (FFP) contract type is generally favored by the government for complex IT systems like MEDCHART because it shifts the majority of cost risk to the contractor. This provides the agency with significant budget certainty, as the price is fixed regardless of the contractor's actual costs. However, for highly complex or evolving IT projects, FFP can sometimes disincentivize innovation or lead contractors to cut corners if not carefully monitored. It requires very well-defined requirements upfront. If requirements are likely to change significantly, other contract types like Cost-Plus-Fixed-Fee (CPFF) or Time and Materials (T&M) might be considered, though they offer less cost certainty to the government. For MEDCHART, the FFP suggests the Department of the Interior had a clear vision of the system's requirements at the time of award.

What is the historical spending pattern for similar medical electronic data care systems within the Department of the Interior or comparable agencies?

Analyzing historical spending patterns for similar medical electronic data care systems within the Department of the Interior (DOI) or comparable agencies is crucial for context. While the specific MEDCHART system is unique to DOI's needs, agencies like the Department of Defense (DoD) or the Department of Veterans Affairs (VA) have extensive experience and significant spending on health readiness tracking and electronic health record (EHR) systems. These systems often involve multi-year development and sustainment contracts valued in the hundreds of millions or even billions of dollars. Comparing the $115.4 million award for MEDCHART against the scale and complexity of systems like the DoD's MHS Genesis or the VA's EHR Modernization program provides a relative benchmark, suggesting that DOI's investment is substantial but potentially proportionate to its specific requirements and user base.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Novetta Solutions, LLC

Address: 4050 LEGATO RD STE 1100, FAIRFAX, VA, 22033

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Foundation, Nonprofit Organization, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $119,789,089

Exercised Options: $116,433,133

Current Obligation: $115,409,993

Actual Outlays: $97,551,728

Subaward Activity

Number of Subawards: 54

Total Subaward Amount: $6,796,648

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F611GA

IDV Type: FSS

Timeline