HHS awards $33.4M contract for multidimensional information data analytics system to RELI GROUP INC

Contract Overview

Contract Amount: $33,379,884 ($33.4M)

Contractor: Reli Group Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2022-11-01

End Date: 2026-06-30

Contract Duration: 1,337 days

Daily Burn Rate: $25.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MULTIDIMENSIONAL INFORMATION DATA ANALYTICS SYSTEM (MIDAS)

Place of Performance

Location: CATONSVILLE, BALTIMORE County, MARYLAND, 21228

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $33.4 million to RELI GROUP INC for work described as: MULTIDIMENSIONAL INFORMATION DATA ANALYTICS SYSTEM (MIDAS) Key points: 1. The contract value of $33.4 million over approximately 3.7 years suggests a significant investment in data analytics capabilities. 2. Awarded under full and open competition, this contract indicates a potentially competitive bidding process that could drive value. 3. The fixed-price contract type generally shifts performance risk to the contractor, potentially offering cost certainty. 4. The primary NAICS code (541512) points to a focus on computer systems design services, a critical area for modern data management. 5. The contract's duration of 1337 days (approx. 3.7 years) allows for substantial development and implementation of the analytics system. 6. The geographic location of the awardee in Maryland may indicate a concentration of federal IT contractors in that region.

Value Assessment

Rating: good

The contract value of $33.4 million for a data analytics system over nearly four years appears reasonable, especially given the complexity implied by 'multidimensional information data analytics'. Benchmarking against similar large-scale IT system development contracts would provide a more precise assessment. The firm fixed-price nature suggests the government has negotiated a price for a defined scope, transferring some cost overrun risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition', suggesting that all responsible sources were permitted to submit bids. With 4 bidders identified, this indicates a healthy level of competition for this requirement. A competitive process like this is generally expected to lead to better pricing and innovative solutions as contractors vie for the award.

Taxpayer Impact: A competitive award process helps ensure taxpayer dollars are used efficiently by driving down costs and encouraging the best possible technical solutions.

Public Impact

The primary beneficiaries are likely the Centers for Medicare and Medicaid Services (CMS) and the Department of Health and Human Services (HHS), gaining enhanced data analysis capabilities. The services delivered will focus on designing and implementing a system for multidimensional information data analytics, crucial for healthcare policy and operations. The geographic impact is primarily national, as CMS data analysis affects healthcare policy and administration across the United States. Workforce implications may include the need for skilled data scientists, analysts, and IT professionals within HHS/CMS and potentially at the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if 'multidimensional information data analytics' is not clearly defined, leading to cost overruns despite fixed-price.
Reliance on a single contractor (RELI GROUP INC) for a critical system could pose risks if performance falters.
The complexity of healthcare data may present unforeseen technical challenges impacting delivery timelines or system effectiveness.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process and potential for strong vendor performance.
Firm fixed-price contract type aligns incentives for the contractor to deliver within budget.
The contract duration allows for thorough development, testing, and implementation of the analytics system.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and data analytics. The market for such services is large and growing, driven by increasing data volumes and the need for advanced analytical tools across all industries. Comparable spending benchmarks would involve looking at other large government contracts for data warehousing, business intelligence, and advanced analytics platforms, particularly within healthcare and public sector agencies.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not appear to have a specific small business set-aside. There is no explicit information on subcontracting plans for small businesses. Without this information, it's difficult to assess the direct impact on the small business ecosystem, though large prime contractors often utilize small businesses for specialized services.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Centers for Medicare and Medicaid Services (CMS). The firm fixed-price nature provides some cost control, but performance monitoring will be crucial. Transparency is generally facilitated through contract award databases, but detailed project progress and specific data insights generated by the system would likely be internal to HHS/CMS.

Related Government Programs

Healthcare Data Analytics Platforms
Federal Health IT Modernization
CMS Data Management Systems
HHS Information Technology Services
Government Data Warehousing Solutions

Risk Flags

Potential for cost overruns if scope is not tightly managed.
Contractor performance risk on complex system development.
Data security and privacy concerns with sensitive healthcare information.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $33.4 million to RELI GROUP INC. MULTIDIMENSIONAL INFORMATION DATA ANALYTICS SYSTEM (MIDAS)

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 $33.4 million.

What is the period of performance?

Start: 2022-11-01. End: 2026-06-30.

What is RELI GROUP INC's track record with similar large-scale federal data analytics contracts?

Assessing RELI GROUP INC's past performance is crucial. While this award indicates they were selected for the MIDAS contract, a deeper dive into their portfolio is needed. Information on previous contracts, particularly those involving complex data analytics, system integration, and healthcare-specific data, would reveal their experience level and success rate. Reviewing past performance evaluations, any contract disputes, or awards for similar work within HHS or other agencies would provide context on their capabilities and reliability in delivering large, mission-critical IT systems.

How does the $33.4 million contract value compare to similar government data analytics initiatives?

The $33.4 million award for the Multidimensional Information Data Analytics System (MIDAS) needs to be benchmarked against comparable federal contracts. Similar initiatives might include data warehousing projects, advanced analytics platform development, or business intelligence system implementations within agencies like HHS, CMS, or even other departments dealing with large datasets. Factors such as contract duration (approx. 3.7 years), scope complexity (multidimensional analytics), and the specific services (computer systems design) are key comparison points. A higher or lower value relative to similar projects could indicate exceptional value, potential overpricing, or an unusually complex scope.

What are the key performance indicators (KPIs) for the MIDAS contract, and how will success be measured?

Specific Key Performance Indicators (KPIs) for the MIDAS contract are not detailed in the provided summary. However, for a system focused on 'multidimensional information data analytics,' typical KPIs would likely revolve around data processing speed, accuracy of analytical outputs, system uptime and availability, user satisfaction, and the successful integration of various data sources. The government will measure success based on whether the system effectively supports decision-making, policy development, and operational efficiency within CMS and HHS. Contractual milestones and deliverables will also serve as critical measurement points.

What is the historical spending trend for data analytics systems within HHS/CMS?

Analyzing historical spending trends for data analytics systems within HHS/CMS is essential for contextualizing the $33.4 million MIDAS award. This involves examining previous contract awards for similar services, such as data warehousing, business intelligence tools, and advanced analytics platforms, over the past several fiscal years. Understanding whether spending in this area has been increasing, decreasing, or remaining stable can indicate evolving priorities and budget allocations. Significant year-over-year changes might signal new strategic initiatives or shifts in technology adoption, providing a baseline against which the current contract's value and scope can be assessed.

What are the potential risks associated with the firm fixed-price contract type for this complex analytics system?

While a firm fixed-price (FFP) contract type is generally favored for cost control, it carries specific risks for a complex system like MIDAS. The primary risk is that the contractor, RELI GROUP INC, may face unforeseen technical challenges or scope expansion that significantly erodes their profit margin or leads to quality compromises if they attempt to cut corners to stay within budget. Conversely, if the initial cost estimate was too high, the government might overpay. Effective government oversight is critical to ensure the contractor adequately resourced the project and maintains quality throughout the contract's life, despite the FFP structure.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

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: $60,219,301

Exercised Options: $33,706,456

Current Obligation: $33,379,884

Actual Outlays: $28,316,070

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