CMS ARTS contract awarded to SOFTRAMS LLC for over $3.4M, with a 5-year performance period

Contract Overview

Contract Amount: $3,478,600 ($3.5M)

Contractor: Softrams LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2021-04-10

End Date: 2026-05-15

Contract Duration: 1,861 days

Daily Burn Rate: $1.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: CENTERS FOR MEDICARE AND MEDICAID SERVICES ANALYSIS, REPORTING AND TRACKING SYSTEM (CMS ARTS)

Place of Performance

Location: LEESBURG, LOUDOUN County, VIRGINIA, 20176

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $3.5 million to SOFTRAMS LLC for work described as: CENTERS FOR MEDICARE AND MEDICAID SERVICES ANALYSIS, REPORTING AND TRACKING SYSTEM (CMS ARTS) Key points: 1. Value for money appears fair given the contract's duration and scope. 2. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 3. Risk indicators are moderate, with a firm fixed-price structure mitigating cost overrun risks. 4. Performance context is within custom computer programming services, a common area for federal IT. 5. Sector positioning is within Health IT, supporting critical CMS operations.

Value Assessment

Rating: fair

The contract's total value of approximately $3.48 million over 5 years suggests a moderate annual spend. Benchmarking against similar custom computer programming services contracts is challenging without more specific details on the scope of work. However, the firm fixed-price (FFP) award type indicates that the contractor bears the risk of cost overruns, which can be a positive indicator for value if the scope is well-defined. The duration of the contract also allows for potential economies of scale and learning curve benefits for the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit an offer. This typically leads to a more robust selection of vendors and potentially more competitive pricing. The number of bidders is not specified, but the open competition suggests that multiple companies likely vied for this award, fostering price discovery.

Taxpayer Impact: Taxpayers benefit from the competitive nature of the award, as it is intended to drive down costs and ensure the government receives the best value for its investment.

Public Impact

Beneficiaries include the Centers for Medicare and Medicaid Services (CMS) and its operational staff. Services delivered are custom computer programming and related IT support for the CMS ARTS system. Geographic impact is national, supporting federal healthcare administration. Workforce implications include IT professionals employed by SOFTRAMS LLC and potentially government oversight personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Dependence on a single contractor for critical IT systems could pose a risk if performance issues arise.

Positive Signals

Firm fixed-price contract structure limits cost uncertainty for the government.
Awarded through full and open competition, indicating a competitive process.
Long-term contract allows for stability and potential for specialized expertise development.

Sector Analysis

The Health Information Technology (Health IT) sector is a significant area of federal spending, driven by the need to modernize healthcare systems and improve data management. This contract for the CMS ARTS system fits within this sector, focusing on custom computer programming. Comparable spending benchmarks in this area can vary widely based on system complexity, but federal IT spending overall is in the hundreds of billions annually. This contract represents a small but important component of CMS's IT infrastructure.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of specific subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless SOFTRAMS LLC voluntarily engages small businesses for subcontracting. The focus appears to be on securing the best technical solution through open competition rather than specifically promoting small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within CMS, who monitors performance, ensures compliance with contract terms, and approves deliverables. Accountability measures are embedded in the firm fixed-price contract, with payment contingent on satisfactory performance. Transparency is facilitated by the contract award data being publicly available, though detailed performance reports may be internal.

Related Government Programs

CMS IT Modernization
Healthcare Data Systems
Federal Custom Software Development
Health and Human Services IT Contracts

Risk Flags

Potential for vendor lock-in due to specialized system development.
Reliance on contractor for critical system functionality.
Scope definition and management challenges in custom programming.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $3.5 million to SOFTRAMS LLC. CENTERS FOR MEDICARE AND MEDICAID SERVICES ANALYSIS, REPORTING AND TRACKING SYSTEM (CMS ARTS)

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 $3.5 million.

What is the period of performance?

Start: 2021-04-10. End: 2026-05-15.

What is the track record of SOFTRAMS LLC with federal contracts, particularly within the Department of Health and Human Services?

Assessing the track record of SOFTRAMS LLC requires a review of their past performance on federal contracts. This would involve examining contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations. Specific to HHS and CMS, understanding their experience with similar systems or programming services would be crucial. A history of successful, on-time, and within-budget delivery on comparable projects would indicate a lower performance risk. Conversely, a pattern of issues could raise concerns about their capability to meet the requirements of the CMS ARTS contract effectively.

How does the pricing of this contract compare to similar custom computer programming services awarded by federal agencies?

Benchmarking the pricing of this $3.48 million contract against similar federal custom computer programming services requires access to detailed pricing data and scope of work for comparable contracts. Factors such as the complexity of the programming, the specific technologies used, the labor categories and rates, and the overall duration and deliverables significantly influence cost. Without this granular data, a precise comparison is difficult. However, the firm fixed-price nature suggests that the government has negotiated a set price, and the open competition aims to ensure this price is competitive. Analyzing the average annual cost ($~695k/year) against the complexity of the ARTS system would be a starting point for a more in-depth value assessment.

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

Primary risks for this contract include potential technical challenges in developing or maintaining the CMS ARTS system, the possibility of scope creep if requirements are not tightly managed, and contractor performance issues. Mitigation strategies are inherent in the contract structure and management. The firm fixed-price (FFP) award shifts cost overrun risk to the contractor. The contract's duration (over 5 years) allows for building expertise but also necessitates robust performance monitoring. The contracting officer's representative (COR) plays a key role in overseeing performance, ensuring adherence to the SOW, and managing any changes through formal modification processes. Clear communication channels and regular progress reviews are also critical for early risk identification and mitigation.

How effective is the CMS ARTS system expected to be given this contract, and what are the key performance indicators?

The effectiveness of the CMS ARTS system, supported by this contract, hinges on the successful delivery of custom computer programming services as defined in the Statement of Work (SOW). Key performance indicators (KPIs) would typically be established within the contract to measure success. These might include system uptime, response times, data accuracy, successful processing of transactions, user satisfaction, and adherence to security protocols. The contract's firm fixed-price nature incentivizes the contractor to meet these KPIs to ensure full payment. The ultimate effectiveness will be judged by how well the ARTS system supports CMS's mission in managing healthcare programs and data.

What has been the historical spending trend for similar custom computer programming services at CMS or HHS?

Analyzing historical spending trends for similar custom computer programming services at CMS or HHS provides context for the current contract's value. This would involve examining past contract awards for IT development, system maintenance, and programming support within these agencies over several fiscal years. Trends might reveal increasing or decreasing investment in such services, average contract values, and the prevalence of different contract types (FFP, cost-plus, etc.). Understanding this history helps determine if the current $3.48 million award is consistent with past investments, potentially indicating stable demand or a shift in IT strategy. It also informs whether spending in this area has been subject to budget fluctuations or program priorities.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 210493

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3100 CLARENDON BLVD STE 1400, ARLINGTON, VA, 22201

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: $3,478,600

Exercised Options: $3,478,600

Current Obligation: $3,478,600

Actual Outlays: $3,010,249

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $157,950

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F372DA

IDV Type: FSS

Timeline