Noblis, Inc. awarded $80.4M contract for IT project management support to CMS

Contract Overview

Contract Amount: $80,433,809 ($80.4M)

Contractor: Noblis, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2021-05-01

End Date: 2025-04-30

Contract Duration: 1,460 days

Daily Burn Rate: $55.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS PROCUREMENT WILL REQUIRE PROJECT MANAGEMENT ADVICE, GUIDANCE AND SUPPORT SERVICES UNDER THE OVERSIGHT OF THE OFFICE OF INFORMATION TECHNOLOGY (OIT) TO FACILITATE CONSISTENT AND EFFECTIVE PLANNING, CONTROL, AND MONITORING OF THE PROGRESS AND STAT

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $80.4 million to NOBLIS, INC. for work described as: THIS PROCUREMENT WILL REQUIRE PROJECT MANAGEMENT ADVICE, GUIDANCE AND SUPPORT SERVICES UNDER THE OVERSIGHT OF THE OFFICE OF INFORMATION TECHNOLOGY (OIT) TO FACILITATE CONSISTENT AND EFFECTIVE PLANNING, CONTROL, AND MONITORING OF THE PROGRESS AND STAT Key points: 1. Contract provides essential project management advice and support for the Office of Information Technology. 2. The duration of the contract is 4 years, indicating a significant, long-term need for these services. 3. The contract was awarded under full and open competition, suggesting a robust selection process. 4. The firm-fixed-price contract type aims to control costs and provide predictable spending. 5. This award represents a substantial investment in IT project oversight within CMS. 6. The services are critical for ensuring consistent planning, control, and monitoring of IT projects.

Value Assessment

Rating: good

The contract value of $80.4 million over four years averages to $20.1 million annually. Benchmarking against similar IT project management support contracts is challenging without more specific service details. However, the duration and scope suggest a fair market value for comprehensive advisory services. The firm-fixed-price structure provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple qualified vendors had the opportunity to bid. With 5 bids received, the competition level appears healthy, which typically drives better pricing and service offerings. This approach allows the government to select the best value solution from a broad range of potential contractors.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and prevent price gouging.

Public Impact

Beneficiaries include CMS leadership and IT project managers who will receive expert guidance. Services delivered include project management advice, guidance, and support. The geographic impact is primarily within CMS operations, likely concentrated in areas where OIT is located. Workforce implications include the potential for Noblis employees to support CMS's IT initiatives, augmenting internal capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if knowledge transfer is not managed effectively.
Reliance on a single contractor for critical project management advice could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a competitive selection process.
Firm-fixed-price contract type helps manage cost overruns.
Long-term duration suggests a stable and ongoing need for these critical services.
Contractor Noblis, Inc. has a track record of government contracting.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on IT consulting and project management. The market for IT project management services is substantial, with government agencies being significant consumers. This contract fits within the broader trend of federal agencies outsourcing specialized IT support to enhance efficiency and leverage external expertise. Comparable spending benchmarks would depend on the specific nature of the project management advice required.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded through full and open competition, there may be opportunities for small businesses to participate as subcontractors to Noblis, Inc. However, the primary awardee is a large business, and the direct impact on the small business ecosystem through this specific award is likely limited unless subcontracting plans are robust.

Oversight & Accountability

Oversight is expected to be provided by the Centers for Medicare and Medicaid Services (CMS) and its Office of Information Technology (OIT). The firm-fixed-price contract type provides a degree of financial oversight by setting a ceiling on costs. Transparency would be enhanced through regular reporting requirements and performance reviews. Specific Inspector General jurisdiction would typically fall under HHS OIG.

Related Government Programs

IT Project Management Support Services
IT Consulting Services
Federal IT Modernization Programs
CMS IT Infrastructure Support
Government IT Advisory Contracts

Risk Flags

Potential for scope creep
Contractor performance risk
Over-reliance on contractor expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $80.4 million to NOBLIS, INC.. THIS PROCUREMENT WILL REQUIRE PROJECT MANAGEMENT ADVICE, GUIDANCE AND SUPPORT SERVICES UNDER THE OVERSIGHT OF THE OFFICE OF INFORMATION TECHNOLOGY (OIT) TO FACILITATE CONSISTENT AND EFFECTIVE PLANNING, CONTROL, AND MONITORING OF THE PROGRESS AND STAT

Who is the contractor on this award?

The obligated recipient is NOBLIS, 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 $80.4 million.

What is the period of performance?

Start: 2021-05-01. End: 2025-04-30.

What is Noblis, Inc.'s track record with federal IT contracts, particularly those involving project management support?

Noblis, Inc. has a significant history of performing federal IT contracts. They are a well-established government contractor with experience across various agencies, including Health and Human Services. Their portfolio often includes complex IT services, research and development, and program management support. For IT project management specifically, Noblis has been involved in numerous engagements requiring strategic guidance, planning, execution oversight, and system integration support. Their past performance data, often available through federal procurement databases, would detail their success rates, client satisfaction, and adherence to schedules and budgets on similar projects. This contract's value and duration align with the scale of projects Noblis has managed previously, suggesting a reasonable fit based on their established capabilities.

How does the $80.4 million contract value compare to similar IT project management support contracts awarded by CMS or other federal agencies?

The $80.4 million contract value for four years of IT project management support averages to approximately $20.1 million per year. This figure is substantial but not uncommon for comprehensive IT advisory and management services required by large federal agencies like CMS. Comparable contracts often range from tens to hundreds of millions of dollars, depending on the scope, duration, and criticality of the IT initiatives supported. For instance, contracts for enterprise-wide IT modernization, cybersecurity program management, or large-scale system implementation support can easily reach or exceed this value. The specific nature of the 'advice, guidance, and support' will determine its precise positioning within the market, but the overall investment reflects the significant role IT plays in CMS's mission delivery.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Key risks include potential performance shortfalls by the contractor (Noblis, Inc.), leading to delays or inefficiencies in CMS IT projects. There's also a risk of vendor lock-in, where CMS becomes overly reliant on Noblis's expertise, making transitions difficult. Scope creep, where the project management support extends beyond the initially defined requirements without adequate adjustments, is another concern. Mitigation strategies likely include robust performance monitoring by CMS, clearly defined deliverables and key performance indicators (KPIs), regular progress reviews, and contract clauses that allow for adjustments or termination for cause. Ensuring effective knowledge transfer and fostering collaboration between Noblis and CMS personnel can also mitigate reliance risks.

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

The firm-fixed-price (FFP) contract type is generally considered effective for managing costs when the scope of work is well-defined and unlikely to change significantly. For project management advice, guidance, and support services, FFP provides cost certainty for the government, as the contractor assumes the risk of cost overruns. This incentivizes Noblis, Inc. to manage its resources efficiently. However, if the nature of the IT projects CMS is undertaking proves highly dynamic or unpredictable, requiring substantial shifts in the type or volume of project management support, an FFP contract might become less adaptable. In such scenarios, careful contract administration and potential modifications would be necessary to ensure the support remains relevant and effective without unduly increasing costs.

What is the historical spending pattern for IT project management support services at CMS, and how does this award fit within that trend?

Historical spending on IT project management support at CMS has likely been substantial and potentially increasing, reflecting the agency's ongoing digital transformation efforts and the complexity of its healthcare-related IT systems. Agencies like CMS rely heavily on effective IT project management to deliver critical services, manage large data systems, and ensure compliance. This $80.4 million award appears to be a significant, but potentially consistent, investment in ensuring the successful execution of CMS's IT portfolio. It suggests a continued strategic focus on robust project oversight. Analyzing past spending on similar contracts, or broader IT services budgets within CMS's Office of Information Technology, would provide context on whether this award represents an increase, decrease, or stable level of investment in this specific area.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 620 DISCOVERY DRIVE NW, BUILDING 2, SUITE 205, HUNTSVILLE, AL, 35806

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

Financial Breakdown

Contract Ceiling: $81,000,157

Exercised Options: $80,433,809

Current Obligation: $80,433,809

Actual Outlays: $74,434,050

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $8,337,837

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0590W

IDV Type: FSS

Timeline