HHS awards $96.2M contract for data and analytic services to ESIMPLICITY INC, with a focus on agile development

Contract Overview

Contract Amount: $96,230,913 ($96.2M)

Contractor: Esimplicity Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2022-07-11

End Date: 2026-07-10

Contract Duration: 1,460 days

Daily Burn Rate: $65.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE QDAS WILL MEET THE FOLLOWING DATA AND ANALYTIC GOALS AND INITIATIVES BY ESTABLISHING A STREAMLINED AND COMMON SERVICE THAT: A) PROVIDES DATA MANAGEMENT, ANALYTICS, REPORTING AND AGILE DEVELOPMENT SERVICES B) USES AGILE DEVELOPMENT RAPID-CYCLE T

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $96.2 million to ESIMPLICITY INC for work described as: THE QDAS WILL MEET THE FOLLOWING DATA AND ANALYTIC GOALS AND INITIATIVES BY ESTABLISHING A STREAMLINED AND COMMON SERVICE THAT: A) PROVIDES DATA MANAGEMENT, ANALYTICS, REPORTING AND AGILE DEVELOPMENT SERVICES B) USES AGILE DEVELOPMENT RAPID-CYCLE T Key points: 1. The contract aims to establish a streamlined, common service for data management, analytics, reporting, and agile development. 2. Agile development methodologies are central to the contract's approach, emphasizing rapid-cycle development. 3. The contract is structured as a Firm Fixed Price (FFP) award, providing cost certainty. 4. The duration of the contract is 1460 days, spanning approximately four years. 5. The primary service area is Computer Systems Design Services, indicating a focus on IT infrastructure and solutions. 6. The award was made under a Blanket Purchase Agreement (BPA) Call, suggesting an existing framework for procurement.

Value Assessment

Rating: good

The contract value of $96.2 million over four years for comprehensive data and analytic services appears reasonable, especially considering the focus on agile development and the breadth of services (data management, analytics, reporting). Benchmarking against similar large-scale IT service contracts within HHS or other federal agencies would provide a more precise value-for-money assessment. The Firm Fixed Price structure helps manage cost risks for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This approach generally fosters a competitive environment, potentially leading to better pricing and service offerings for the government. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the pool of potential offerors, driving down costs and encouraging innovation, which can lead to more efficient use of public funds.

Public Impact

The Centers for Medicare and Medicaid Services (CMS) will benefit from enhanced data management and analytical capabilities. Services delivered include data management, analytics, reporting, and agile development, aimed at improving operational efficiency. The contract supports the modernization of data infrastructure and analytic processes within CMS. Workforce implications may include the need for specialized IT and data science skills to support agile development cycles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if agile development cycles are not tightly managed.
Dependence on ESIMPLICITY INC for critical data and analytic functions.
Ensuring continuous alignment with evolving CMS data and analytic needs over the contract term.

Positive Signals

Focus on agile development promotes adaptability and rapid response to changing requirements.
Firm Fixed Price contract provides cost predictability.
Full and open competition suggests a competitive award process.
BPA Call award mechanism can streamline procurement for related services.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the federal IT market. This sector encompasses a wide range of services from custom software development to IT consulting and data analytics. Federal spending in this area is substantial, driven by the need for agencies to modernize legacy systems, enhance cybersecurity, and leverage data for decision-making. Comparable spending benchmarks would involve looking at other large IT service contracts awarded by agencies like HHS, DOD, or GSA for similar capabilities.

Small Business Impact

The provided data indicates that small business participation (sb) is false and there is no small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses. Therefore, the direct impact on the small business ecosystem through this specific award is likely minimal, unless ESIMPLICITY INC plans to subcontract with small businesses, which is not detailed in the provided information.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within CMS. The Firm Fixed Price nature of the award provides a degree of accountability for performance against the defined scope. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Data Analytics Services
IT Modernization Contracts
Agile Development Services
Health IT Services
Centers for Medicare and Medicaid Services IT Procurement

Risk Flags

Potential for scope creep in agile development
Contractor performance risk
Alignment with evolving agency needs

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $96.2 million to ESIMPLICITY INC. THE QDAS WILL MEET THE FOLLOWING DATA AND ANALYTIC GOALS AND INITIATIVES BY ESTABLISHING A STREAMLINED AND COMMON SERVICE THAT: A) PROVIDES DATA MANAGEMENT, ANALYTICS, REPORTING AND AGILE DEVELOPMENT SERVICES B) USES AGILE DEVELOPMENT RAPID-CYCLE T

Who is the contractor on this award?

The obligated recipient is ESIMPLICITY 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 $96.2 million.

What is the period of performance?

Start: 2022-07-11. End: 2026-07-10.

What is the track record of ESIMPLICITY INC in delivering similar data and analytic services to federal agencies?

A thorough review of ESIMPLICITY INC's past performance is crucial. This would involve examining their contract history with federal agencies, specifically looking for awards related to data management, analytics, reporting, and agile development. Key performance indicators from past contracts, such as on-time delivery, adherence to budget, and client satisfaction ratings, should be assessed. Understanding their experience with the Centers for Medicare and Medicaid Services (CMS) or similar large healthcare organizations would be particularly relevant. Any past performance issues, such as contract disputes, terminations, or negative past performance reviews, would be significant risk indicators. Conversely, a strong history of successful project completion and positive client feedback would bolster confidence in their ability to meet the current contract's objectives.

How does the pricing structure of this contract compare to industry benchmarks for similar services?

The contract is awarded under a Firm Fixed Price (FFP) structure, which shifts the risk of cost overruns to the contractor, ESIMPLICITY INC. To assess the value for money, the proposed pricing needs to be benchmarked against industry standards for Computer Systems Design Services, particularly those involving data management, analytics, and agile development. This comparison should consider the labor categories, rates, and overhead applied. Analyzing the total contract value ($96.2 million) against the contract duration (1460 days) and the scope of services provides a high-level view. A more granular analysis would involve comparing the estimated hours and rates for key personnel against market data from sources like the Bureau of Labor Statistics or industry salary surveys. If available, comparing this award to similar recent federal contracts for comparable services would also be insightful.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential scope creep due to the agile development methodology, contractor performance issues, and ensuring the services remain aligned with evolving CMS needs over the four-year period. Scope creep is a common risk in agile projects; mitigation would involve robust change control processes and clear definition of minimum viable products (MVPs) and sprint goals. Contractor performance risk can be managed through strong contract oversight, regular performance reviews, and clearly defined deliverables and acceptance criteria. Ensuring alignment with CMS needs requires continuous communication and collaboration between the agency and ESIMPLICITY INC, potentially through regular stakeholder meetings and feedback loops. The FFP structure inherently mitigates some financial risk for the government, but performance risk remains.

How effective is the agile development approach likely to be for meeting CMS's data and analytic goals?

The emphasis on agile development suggests CMS is seeking flexibility and rapid iteration in its data and analytic capabilities. Agile methodologies are generally effective for projects where requirements are expected to evolve or where quick delivery of functional increments is desired. For data management, analytics, and reporting, agile can allow for continuous improvement and adaptation to new data sources or analytical techniques. The success will depend heavily on the contractor's expertise in agile practices, the clarity of user stories and acceptance criteria, and CMS's ability to provide timely feedback and make decisions throughout the development cycles. If implemented effectively, agile can lead to faster delivery of valuable insights and more responsive data services compared to traditional waterfall methods.

What is the historical spending pattern for data and analytic services within CMS or similar agencies?

Historical spending on data and analytic services within CMS and similar large federal health agencies has been substantial and generally increasing. Agencies like CMS manage vast amounts of sensitive healthcare data, necessitating significant investment in systems for data management, analysis, reporting, and security. Spending often includes contracts for Electronic Health Records (EHR) data analysis, program integrity analytics, quality measure reporting, and operational efficiency improvements. The trend has been towards more sophisticated analytics, including predictive modeling and AI/ML applications. Understanding past spending levels, contract types (e.g., FFP, T&M), and key contractors can provide context for the current $96.2 million award, helping to assess if it represents a significant increase, decrease, or continuation of previous investment levels.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Esimplicity, Inc.

Address: 1751 ELTON RD, SILVER SPRING, MD, 20903

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $97,090,602

Exercised Options: $96,230,913

Current Obligation: $96,230,913

Actual Outlays: $85,543,923

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 75FCMC22A0001

IDV Type: BPA

Timeline