HHS Awards $40.5M Task Order to SOFTRAMS LLC for Medicaid Drug Program IT Services
Contract Overview
Contract Amount: $40,494,365 ($40.5M)
Contractor: Softrams LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2021-02-05
End Date: 2024-12-05
Contract Duration: 1,399 days
Daily Burn Rate: $28.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MEDICAID DRUG PROGRAM (MDP) TASK ORDER
Place of Performance
Location: LEESBURG, LOUDOUN County, VIRGINIA, 20176
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $40.5 million to SOFTRAMS LLC for work described as: MEDICAID DRUG PROGRAM (MDP) TASK ORDER Key points: 1. The contract is for Computer Systems Design Services, supporting the Medicaid Drug Program. 2. SOFTRAMS LLC, a small business, is the awardee. 3. The contract was awarded under full and open competition. 4. The total value is $40.5 million over a period of 1399 days.
Value Assessment
Rating: good
The contract's firm fixed price structure provides cost certainty. Benchmarking against similar IT services contracts for government programs suggests the pricing is within a reasonable range, though specific per-unit cost data is not provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, allowing all eligible vendors to bid. This competitive process is expected to drive fair pricing and ensure the government receives the best value.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential IT services supporting the Medicaid Drug Program.
Public Impact
Ensures continued operation and support for the critical Medicaid Drug Program IT infrastructure. Supports the Centers for Medicare and Medicaid Services (CMS) in managing drug benefits and costs. Potential for improved efficiency and effectiveness in drug program administration through IT services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in complex IT projects.
- Reliance on a single vendor for critical IT services.
- Ensuring continued performance and service delivery throughout the contract duration.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract provides cost predictability.
- Supports a vital government healthcare program.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on computer systems design and integration services for a healthcare program. Spending benchmarks for similar government IT contracts indicate a significant investment is typical for such complex systems.
Small Business Impact
SOFTRAMS LLC is identified as a small business, and its award under this significant contract demonstrates opportunities for small businesses in the federal IT services market. The agency's commitment to utilizing small businesses is evident.
Oversight & Accountability
The Centers for Medicare and Medicaid Services (CMS) is responsible for overseeing this contract. Standard government oversight mechanisms, including performance monitoring and financial reviews, should be in place to ensure accountability and proper execution.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Vendor Lock-in Potential
- Cybersecurity Risks
- Performance Dependency
- Budget Overruns if Scope Expands
Tags
computer-systems-design-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 $40.5 million to SOFTRAMS LLC. MEDICAID DRUG PROGRAM (MDP) 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 $40.5 million.
What is the period of performance?
Start: 2021-02-05. End: 2024-12-05.
What specific IT systems or functionalities does this task order cover within the Medicaid Drug Program?
The task order likely encompasses a range of computer systems design services, potentially including software development, system integration, maintenance, and support for the Medicaid Drug Program's IT infrastructure. This could involve managing databases, user interfaces, data analytics tools, and ensuring the overall security and performance of the systems critical for drug program operations and oversight.
What are the key performance indicators (KPIs) used to measure the success of SOFTRAMS LLC's services?
Key performance indicators would typically include metrics related to system uptime, response times for critical functions, successful data processing, adherence to security protocols, and timely delivery of project milestones. The contract likely specifies these KPIs, with performance evaluations conducted regularly to ensure the vendor meets or exceeds expectations.
How does this contract contribute to the overall goals of the Medicaid Drug Program?
This contract directly supports the operational effectiveness of the Medicaid Drug Program by ensuring its IT systems are robust, reliable, and up-to-date. This enables CMS to accurately track drug utilization, manage costs, prevent fraud, and ensure beneficiaries have access to necessary medications, thereby contributing to the program's mission of providing essential healthcare services.
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 › IT AND TELECOM - IT MANAGEMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: TORP-CMS-210426
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 161 FORT EVANS RD NE STE 205, LEESBURG, VA, 20176
Business Categories: 8(a) Program Participant, 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: $40,494,365
Exercised Options: $40,494,365
Current Obligation: $40,494,365
Actual Outlays: $36,666,105
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $2,756,980
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HHSM500201700023I
IDV Type: IDC
Timeline
Start Date: 2021-02-05
Current End Date: 2024-12-05
Potential End Date: 2025-04-05 00:00:00
Last Modified: 2025-09-17
More Contracts from Softrams LLC
- Cmmi Technology Solutions (CTS) — $108.8M (Department of Health and Human Services)
- Health Plan Management System (hpms) - Website Maintenance, Operations,&support Task Order — $93.1M (Department of Health and Human Services)
- THE Quality Payment Program Collects Measures From ALL Eligible Clinicians, Score Them, and Compare Their Performance to Other Clinicians in Order to Reward the Higher Performing Clinicians With a Positive Payment Adjustment, and Reduce the Payments — $88.2M (Department of Health and Human Services)
- TO Obtain Support in Planning, Developing and Operating the Accountable Care Organization - Operational System (aco-Os) and User Interface (UI) — $85.3M (Department of Health and Human Services)
- Health Plan Management System (hpms) IS a Web-Enabled Information System That Serves a Critical Role in the Daily Operations and High-Profile Initiatives of the Medicare Advantage (MA) and Prescription Drug (part D)programs. Hpms Facilitates the Nume — $82.0M (Department of Health and Human Services)
Other Department of Health and Human Services Contracts
- Contact Center Operations (CCO) — $5.5B (Maximus Federal Services, Inc.)
- TAS::75 0849::TAS Oper of Govt R&D Goco Facilities — $4.8B (Leidos Biomedical Research Inc)
- THE Purpose of This Contract IS to Provide the Full Complement of Services Necessary to Care for UC in ORR Custody Including Facilities Set-Up, Maintenance, and Support Internal and Perimeter (IF Applicable) Security, Direct Care and Supervision Inc — $3.5B (Rapid Deployment Inc)
- Contact Center Operations — $2.6B (Maximus Federal Services, Inc.)
- Federal Contract — $2.4B (Leidos Biomedical Research Inc)
View all Department of Health and Human Services contracts →