CMS awards $48.8M contract for NPPES software development and operational support to Reli Group Inc

Contract Overview

Contract Amount: $48,774,412 ($48.8M)

Contractor: Reli Group Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2020-09-24

End Date: 2025-06-29

Contract Duration: 1,739 days

Daily Burn Rate: $28.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE PURPOSE OF THIS CONTRACT IS FOR CMS TO OBTAIN SOFTWARE DEVELOPMENT, MAINTENANCE, AND OPERATIONAL SUPPORT AND ENUMERATOR SERVICES FOR THE NPPES PROGRAM. THE SUPPORT SERVICES SHALL CONTINUE WITH THE CURRENT SYSTEM AND BUSINESS GOALS.

Place of Performance

Location: CATONSVILLE, BALTIMORE County, MARYLAND, 21228

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $48.8 million to RELI GROUP INC for work described as: THE PURPOSE OF THIS CONTRACT IS FOR CMS TO OBTAIN SOFTWARE DEVELOPMENT, MAINTENANCE, AND OPERATIONAL SUPPORT AND ENUMERATOR SERVICES FOR THE NPPES PROGRAM. THE SUPPORT SERVICES SHALL CONTINUE WITH THE CURRENT SYSTEM AND BUSINESS GOALS. Key points: 1. Contract focuses on essential software development, maintenance, and operational support for the National Provider Identifier (NPI) registry. 2. The award was made under full and open competition, indicating a broad market search. 3. A firm-fixed-price contract type suggests that the contractor bears the primary risk for cost overruns. 4. The contract duration of approximately 5 years (1739 days) provides a stable period for service delivery. 5. The National Provider Identifier (NPI) registry is critical for healthcare provider identification and billing. 6. This contract supports the ongoing functionality and business goals of the NPPES program.

Value Assessment

Rating: good

The contract's value of $48.8 million over nearly five years for comprehensive software development, maintenance, and operational support for the NPPES program appears reasonable. Benchmarking against similar IT support contracts for large government databases suggests this pricing is within expected ranges. The firm-fixed-price structure shifts cost risk to the contractor, which can be advantageous for the government if managed effectively. Further analysis would require comparing specific service deliverables and performance metrics to industry standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, meaning all responsible sources were permitted to submit offers. The presence of 7 bidders suggests a competitive marketplace for these specialized IT services. A competitive process like this generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award. The number of bidders indicates sufficient market interest and capability.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently by leveraging market forces to secure competitive pricing and quality services for the NPPES program.

Public Impact

Healthcare providers benefit from a stable and functional NPPES system, crucial for billing and identification. The contract ensures the continued operation and maintenance of the National Provider Identifier registry. The services delivered support the broader healthcare ecosystem by maintaining accurate provider data. Workforce implications include the need for skilled software developers, maintenance personnel, and operational support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed throughout the contract lifecycle.
Reliance on a single contractor for critical operational support could pose a risk if performance degrades.
Ensuring continued alignment with evolving healthcare IT standards and regulations will be important.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Full and open competition suggests a robust selection process and potential for competitive pricing.
Long-term contract duration allows for stability and continuity of essential services.
The NPPES program is a critical component of the healthcare infrastructure.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the IT industry supporting government operations. The market for such services is large and competitive, with numerous firms capable of providing software development, maintenance, and operational support. Government spending in this area is substantial, driven by the need to maintain and modernize complex IT systems. This contract for the NPPES program represents a portion of the federal government's investment in maintaining critical healthcare data infrastructure.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of small business subcontracting requirements. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small businesses for subcontracting opportunities. Further review of the contract's subcontracting plan would be necessary to fully assess its impact on small businesses.

Oversight & Accountability

Oversight for this contract is likely managed by the Centers for Medicare and Medicaid Services (CMS) program officials and contracting officers. Performance monitoring, quality assurance reviews, and adherence to contract terms would be key oversight mechanisms. Transparency is facilitated through contract award databases, but detailed operational performance data may not be publicly available. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Healthcare IT Modernization Programs
Provider Data Management Systems
National Health Information Infrastructure
CMS IT Support Services
Federal Health Data Registries

Risk Flags

Potential for cost overruns if scope is not well-defined under FFP.
Risk of performance degradation if contractor's capabilities are overestimated.
Dependency on contractor for critical system operations.
Need for continuous monitoring of evolving healthcare IT standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $48.8 million to RELI GROUP INC. THE PURPOSE OF THIS CONTRACT IS FOR CMS TO OBTAIN SOFTWARE DEVELOPMENT, MAINTENANCE, AND OPERATIONAL SUPPORT AND ENUMERATOR SERVICES FOR THE NPPES PROGRAM. THE SUPPORT SERVICES SHALL CONTINUE WITH THE CURRENT SYSTEM AND BUSINESS GOALS.

Who is the contractor on this award?

The obligated recipient is RELI GROUP INC.

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 $48.8 million.

What is the period of performance?

Start: 2020-09-24. End: 2025-06-29.

What is the historical spending trend for the NPPES program and similar IT support contracts within CMS?

Analyzing historical spending for the NPPES program requires access to detailed budget data and previous contract awards. However, general trends in federal IT spending, particularly within healthcare agencies like CMS, show a consistent and often increasing investment in software development, maintenance, and operational support. Agencies are under pressure to modernize legacy systems, enhance cybersecurity, and improve data management capabilities. Contracts for services like those awarded to Reli Group Inc. are typical for maintaining and evolving critical systems. Benchmarking against similar contracts for large-scale database management and software lifecycle support within CMS or other HHS agencies would provide a clearer picture of whether this $48.8 million award represents an increase, decrease, or stable level of investment for the NPPES program.

How does Reli Group Inc.'s track record with government contracts compare to other bidders for this NPPES support services contract?

Evaluating Reli Group Inc.'s track record involves examining their past performance on federal contracts, particularly those involving software development, maintenance, and operational support for large-scale systems. Data from contract databases can reveal their history of on-time delivery, quality of work, and adherence to budget. Comparing this to the performance records of the other six bidders would provide context for CMS's selection. A contractor with a strong, relevant performance history is generally preferred to mitigate risk. If Reli Group Inc. has a documented history of successful, similar projects, it strengthens the justification for their award. Conversely, any past performance issues, such as missed deadlines or quality deficiencies, would warrant closer scrutiny of the selection rationale and risk mitigation strategies.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract, and how will performance be measured?

The specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) for this contract are not detailed in the provided data but are crucial components of the contract's Statement of Work (SOW). Typically, for software development and operational support, KPIs might include system uptime percentages, response times for issue resolution, software defect rates, and project milestone completion. SLAs define the acceptable performance thresholds for these metrics. CMS will likely measure Reli Group Inc.'s performance against these agreed-upon KPIs and SLAs through regular reporting, system monitoring, and potentially user feedback. Failure to meet these metrics could result in penalties, reduced payment, or contract termination, underscoring the importance of clearly defined and measurable performance standards for ensuring the effective delivery of services and value for taxpayer money.

What is the potential risk associated with the firm-fixed-price (FFP) contract type for this complex IT support requirement?

The firm-fixed-price (FFP) contract type places the primary responsibility for cost control on the contractor, Reli Group Inc. This is generally advantageous for the government as it provides budget certainty. However, for complex IT support requiring ongoing development and maintenance, an FFP contract can introduce risks if the scope of work is not precisely defined or if unforeseen technical challenges arise. If the contractor underestimates the effort or encounters significant hurdles, they may struggle to deliver within the fixed price, potentially leading to quality compromises or requests for contract modifications. CMS's risk mitigation would involve a very detailed SOW, robust oversight, and clear change management processes to address any necessary scope adjustments.

How does the $48.8 million contract value compare to the total lifecycle cost of the NPPES program, and what is the projected return on investment?

The $48.8 million represents the estimated cost for the software development, maintenance, and operational support services over the contract's duration (approximately 5 years). To assess its relation to the total lifecycle cost of the NPPES program, one would need to consider all associated costs, including previous and future sustainment, infrastructure, personnel, and potential system upgrades beyond this contract's scope. The return on investment (ROI) for the NPPES program is primarily measured by its effectiveness in supporting healthcare operations, ensuring accurate provider identification, facilitating efficient billing, and enabling regulatory compliance. A well-functioning NPPES system, supported by this contract, indirectly contributes to the efficiency and integrity of the entire healthcare payment system, representing a significant, albeit often intangible, ROI.

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: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5520 RESEARCH PARK DRIVE, SUITE 105, CATONSVILLE, MD, 21228

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $49,977,811

Exercised Options: $48,774,412

Current Obligation: $48,774,412

Actual Outlays: $40,442,396

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSM500201700045I

IDV Type: IDC

Timeline