HHS awards $30.3M for computer systems design, with Visual Connections LLC securing the contract

Contract Overview

Contract Amount: $30,308,706 ($30.3M)

Contractor: Visual Connections LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2017-12-22

End Date: 2020-12-21

Contract Duration: 1,095 days

Daily Burn Rate: $27.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PADOS CONTRACT

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $30.3 million to VISUAL CONNECTIONS LLC for work described as: PADOS CONTRACT Key points: 1. Contract value of $30.3 million over three years indicates a significant investment in IT services. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Visual Connections LLC, the sole awardee, will provide computer systems design services. 4. The firm fixed-price contract type suggests that costs were determined upfront, potentially limiting cost overruns. 5. The contract duration of 1095 days (3 years) allows for sustained support and project development. 6. The award falls under the 'Computer Systems Design Services' category, a common area for federal IT spending.

Value Assessment

Rating: good

The contract value of $30.3 million over three years for computer systems design services appears reasonable given the scope of IT support typically required by federal agencies. Benchmarking against similar contracts for IT systems design and integration services would provide a more precise assessment of value for money. The firm fixed-price structure suggests a degree of cost certainty for the government, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. While the data does not specify the number of bids received, this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open competition suggests that the agency sought the best possible solution from the widest range of potential contractors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a robust bidding process and encourages a wider pool of contractors to offer their best pricing and innovative solutions.

Public Impact

The Centers for Medicare and Medicaid Services (CMS) benefits from enhanced computer systems design and support. Federal IT infrastructure and operational capabilities are strengthened through these services. The contract supports the agency's mission to administer Medicare, Medicaid, and the Health Insurance Marketplace. Workforce implications include the potential for specialized IT roles to be filled by Visual Connections LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized and difficult to transition.
Reliance on a single contractor for critical IT systems design could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded a fair price.
Firm fixed-price contract type provides cost predictability for the government.
Contract duration allows for sustained support and project continuity.

Sector Analysis

The federal IT services market is vast and highly competitive, with significant spending allocated to computer systems design and related services. This contract falls within the broader IT services sector, which is crucial for government operations across all agencies. Comparable spending benchmarks for similar IT systems design contracts can vary widely based on complexity, duration, and specific requirements, but a $30.3 million award over three years is a substantial commitment, reflecting the importance of these services to CMS.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for small businesses stemming from a set-aside provision. The focus of this award appears to be on securing the most suitable solution from the broader market, rather than specifically targeting small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Centers for Medicare and Medicaid Services (CMS). The firm fixed-price nature of the contract provides a degree of financial oversight by establishing a ceiling cost. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

IT Systems Modernization
Health Information Technology Services
Federal IT Procurement
Computer Systems Design and Related Services

Risk Flags

Potential for performance issues impacting critical healthcare systems.
Risk of vendor lock-in due to specialized IT knowledge.
Need for robust cybersecurity measures to protect sensitive health data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $30.3 million to VISUAL CONNECTIONS LLC. PADOS CONTRACT

Who is the contractor on this award?

The obligated recipient is VISUAL CONNECTIONS LLC.

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 $30.3 million.

What is the period of performance?

Start: 2017-12-22. End: 2020-12-21.

What is the track record of Visual Connections LLC with federal contracts, particularly within HHS?

Visual Connections LLC has been awarded federal contracts, including this significant $30.3 million delivery order from the Department of Health and Human Services (HHS) for computer systems design services. While this specific award is substantial, a comprehensive analysis of their track record would involve examining their performance on previous contracts, including on-time delivery, quality of services, and adherence to budget. Information on past performance, especially within HHS or CMS, would be crucial to fully assess their reliability and capability for this type of work. Further investigation into their contract history, including any past issues or commendations, would provide a more complete picture of their experience and suitability.

How does the $30.3 million contract value compare to similar IT systems design contracts awarded by federal agencies?

The $30.3 million contract value for three years of computer systems design services is a significant but not unprecedented amount for federal IT procurements. The Centers for Medicare and Medicaid Services (CMS) often engages in large IT contracts due to the complexity of managing national healthcare programs. To benchmark this value effectively, one would compare it to contracts with similar scopes of work, duration, and complexity, particularly those awarded by agencies like HHS, the Department of Veterans Affairs, or the Social Security Administration. Factors such as the specific technical requirements, the level of innovation expected, and the prevailing market rates for specialized IT design services would influence whether this price represents excellent, good, or fair value. Without direct comparable data, it's assessed as 'good' based on the typical scale of such federal IT engagements.

What are the primary risks associated with this contract for the government?

The primary risks associated with this contract include potential performance issues where Visual Connections LLC may not deliver the expected quality or timeliness of computer systems design services, leading to project delays or suboptimal system functionality. There's also a risk of cost escalation if the firm fixed-price contract doesn't adequately account for unforeseen complexities, although this is mitigated by the contract type. Another risk is vendor lock-in, where the government becomes overly dependent on Visual Connections LLC's proprietary knowledge or systems, making future transitions difficult or costly. Finally, security risks related to sensitive health data managed by CMS systems must be considered, requiring robust security protocols and contractor vetting.

How effective is the firm fixed-price contract type in managing costs for this type of IT service?

The firm fixed-price (FFP) contract type is generally considered effective for managing costs in IT services when the scope of work is well-defined and unlikely to change significantly. For computer systems design services, FFP provides cost certainty for the government, as the contractor assumes most of the risk for cost overruns. This incentivizes the contractor to manage their resources efficiently and control expenses. However, if the project requirements evolve substantially or unforeseen technical challenges arise, an FFP contract might limit the government's flexibility to adapt the scope without potentially renegotiating terms, which could be disadvantageous. For a project like this, where the core design services are specified, FFP is a suitable choice for cost control.

What is the historical spending pattern for computer systems design services at CMS?

Historical spending patterns for computer systems design services at the Centers for Medicare and Medicaid Services (CMS) are typically substantial, reflecting the agency's critical role in managing complex healthcare IT systems. CMS consistently invests in IT to support its vast operations, including program administration, data management, and beneficiary services. Annual spending on IT services, including systems design, can fluctuate based on major modernization initiatives, new program implementations, or system upgrades. While specific historical figures for this exact service category require detailed database analysis, it's understood that CMS is a major federal IT consumer, with significant portions of its budget allocated to maintaining and enhancing its technological infrastructure.

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

Solicitation ID: RFPCMS2016SPARC

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2810 LORD BALTIMORE DR W218, WINDSOR MILL, MD, 21244

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $30,308,706

Exercised Options: $30,308,706

Current Obligation: $30,308,706

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSM500201600077I

IDV Type: IDC

Timeline