HHS awards $93M for HPMS website maintenance to SOFTRAMS LLC over 5 years
Contract Overview
Contract Amount: $93,070,364 ($93.1M)
Contractor: Softrams LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2018-05-14
End Date: 2023-02-13
Contract Duration: 1,736 days
Daily Burn Rate: $53.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 12
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: HEALTH PLAN MANAGEMENT SYSTEM (HPMS) - WEBSITE MAINTENANCE, OPERATIONS,&SUPPORT TASK ORDER
Place of Performance
Location: ASHBURN, LOUDOUN County, VIRGINIA, 20148
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $93.1 million to SOFTRAMS LLC for work described as: HEALTH PLAN MANAGEMENT SYSTEM (HPMS) - WEBSITE MAINTENANCE, OPERATIONS,&SUPPORT TASK ORDER Key points: 1. The contract value of $93M over 5 years represents a significant investment in IT infrastructure. 2. SOFTRAMS LLC secured this award through full and open competition. 3. Potential risks include vendor lock-in and the need for continuous performance monitoring. 4. The IT sector, particularly healthcare IT, sees substantial spending on system maintenance and support.
Value Assessment
Rating: good
The contract's firm fixed price structure suggests a clear understanding of costs. Benchmarking against similar large-scale IT support contracts would provide further validation of its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, allowing multiple vendors to bid. This competitive process generally leads to better price discovery and value for the government.
Taxpayer Impact: The competitive nature of this award is expected to yield a fair price, minimizing unnecessary taxpayer expenditure.
Public Impact
Ensures continued operation of the Health Plan Management System (HPMS), critical for Medicare and Medicaid. Supports the digital infrastructure for healthcare plan administration and beneficiary services. Maintains the website's functionality, security, and user accessibility for stakeholders.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for scope creep in long-term IT support contracts.
- Reliance on a single vendor for critical system operations.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract type.
- Long-term contract provides stability for system operations.
Sector Analysis
This contract falls within the IT services sector, specifically custom computer programming and website maintenance. Spending in this area is substantial across federal agencies to support critical digital services and data management.
Small Business Impact
The data indicates the awardee is SOFTRAMS LLC, and it does not specify if small businesses were involved as subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The Centers for Medicare and Medicaid Services (CMS) is responsible for overseeing this contract. Standard government oversight mechanisms for IT contracts, including performance reviews and audits, would apply.
Related Government Programs
- Custom Computer Programming Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Potential for vendor lock-in.
- Long-term reliance on a single vendor.
- Need for detailed performance metrics.
- Complexity of healthcare IT systems.
Tags
custom-computer-programming-services, department-of-health-and-human-services, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $93.1 million to SOFTRAMS LLC. HEALTH PLAN MANAGEMENT SYSTEM (HPMS) - WEBSITE MAINTENANCE, OPERATIONS,&SUPPORT TASK ORDER
Who is the contractor on this award?
The obligated recipient is SOFTRAMS 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 $93.1 million.
What is the period of performance?
Start: 2018-05-14. End: 2023-02-13.
What is the specific performance benchmark for the website maintenance and support, and how is it measured?
The provided data does not detail specific performance benchmarks or Key Performance Indicators (KPIs) for the HPMS website maintenance. Typically, such contracts would include metrics related to uptime, response times, security incident resolution, and user satisfaction. CMS would monitor these metrics to ensure SOFTRAMS LLC meets its contractual obligations and delivers the expected level of service.
What is the risk of vendor lock-in with SOFTRAMS LLC for this critical system?
There is a moderate risk of vendor lock-in given the long-term nature of the contract and the specialized knowledge required for the HPMS. To mitigate this, CMS should ensure clear data ownership, facilitate knowledge transfer, and maintain competitive re-competition strategies for future contract awards to encourage ongoing performance improvements.
How does the cost of this contract compare to industry standards for similar IT support services?
Without detailed breakdowns of services provided and specific performance levels, a direct cost comparison is challenging. However, the firm fixed price and full and open competition suggest an effort to align costs with market rates. Benchmarking against similar government or private sector contracts for large-scale health IT system maintenance would be necessary for a definitive assessment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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: 12
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 161 FORT EVANS RD NE, LEESBURG, VA, 20176
Business Categories: Category Business, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $97,707,480
Exercised Options: $93,070,364
Current Obligation: $93,070,364
Actual Outlays: $36,192,433
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $24,408,642
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS35F372DA
IDV Type: FSS
Timeline
Start Date: 2018-05-14
Current End Date: 2023-02-13
Potential End Date: 2023-05-13 00:00:00
Last Modified: 2025-04-18
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