HHS awards $6.3M contract for Data Exchange (DEX) 2.0 services to RELI GROUP INC

Contract Overview

Contract Amount: $6,317,291 ($6.3M)

Contractor: Reli Group Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2022-12-01

End Date: 2026-11-30

Contract Duration: 1,460 days

Daily Burn Rate: $4.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DATA EXCHANGE (DEX) 2.0.

Place of Performance

Location: CATONSVILLE, BALTIMORE County, MARYLAND, 21228

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $6.3 million to RELI GROUP INC for work described as: DATA EXCHANGE (DEX) 2.0. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for custom computer programming services, indicating a focus on software development. 3. RELI GROUP INC. is the sole awardee, with the contract duration extending over 1460 days. 4. The contract type is Firm Fixed Price, which helps manage cost certainty for the government. 5. This award represents a portion of broader IT modernization efforts within CMS. 6. The contract value is $6.3 million over its period of performance.

Value Assessment

Rating: good

The contract value of $6.3 million over approximately four years for custom computer programming services appears reasonable. Benchmarking against similar contracts for IT development and support within federal agencies suggests that this price point is within expected ranges. The Firm Fixed Price structure provides cost predictability. Without specific details on the scope of work for DEX 2.0, a precise value-for-money assessment is challenging, but the competitive award process is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of two bids suggests a moderate level of competition for this specific requirement. While two bidders is better than a sole-source award, a higher number of bids typically leads to more robust price discovery and potentially lower prices for the government.

Taxpayer Impact: The full and open competition, despite having only two bidders, provides a baseline for fair pricing and encourages contractors to offer competitive terms to secure the award.

Public Impact

Beneficiaries include healthcare providers and potentially patients who will experience improved data exchange capabilities. Services delivered will focus on enhancing the Data Exchange (DEX) 2.0 platform, crucial for healthcare data interoperability. The geographic impact is primarily national, supporting the Centers for Medicare and Medicaid Services' (CMS) operations. Workforce implications may include IT professionals and developers employed by RELI GROUP INC. and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) may not have yielded the lowest possible price.
Scope creep potential in custom programming services requires diligent oversight.
Reliance on a single contractor for a critical system like DEX 2.0 poses a risk if performance falters.

Positive Signals

Awarded through full and open competition, ensuring a fair process.
Firm Fixed Price contract type provides cost certainty.
Contract duration aligns with the likely lifecycle of system development and implementation.
Contractor has experience in IT services, as indicated by the NAICS code.

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming services. The federal IT market is vast, with significant spending on software development, system integration, and IT support for critical government functions. Comparable spending benchmarks for similar custom programming contracts within HHS and other agencies often range from several hundred thousand to tens of millions of dollars, depending on complexity and duration. This $6.3 million award is a moderate-sized contract within this domain.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award. However, the prime contractor, RELI GROUP INC., may engage small businesses as subcontractors if it aligns with their project execution strategy, though this is not mandated.

Oversight & Accountability

Oversight for this contract will likely be managed by the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. The Firm Fixed Price nature of the contract provides a degree of accountability for performance against agreed-upon deliverables. Transparency is facilitated through federal contract databases. The Inspector General for the Department of Health and Human Services (HHS) would have jurisdiction for audits and investigations if any issues of fraud, waste, or abuse arise.

Related Government Programs

Healthcare IT Modernization Programs
Data Interoperability Initiatives
Custom Software Development Services
Centers for Medicare and Medicaid Services (CMS) IT Contracts

Risk Flags

Limited competition (2 bidders)
Potential for scope creep in custom programming

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $6.3 million to RELI GROUP INC. DATA EXCHANGE (DEX) 2.0.

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 $6.3 million.

What is the period of performance?

Start: 2022-12-01. End: 2026-11-30.

What is the specific scope of work for the Data Exchange (DEX) 2.0 contract and what are the key performance indicators (KPIs)?

The provided data indicates the contract is for 'Custom Computer Programming Services' under NAICS code 541511, and the project name is 'DATA EXCHANGE (DEX) 2.0'. While the exact scope and KPIs are not detailed here, DEX 2.0 likely involves enhancing or replacing existing systems for exchanging healthcare data, potentially including patient records, claims information, or quality metrics between CMS and external entities like providers, payers, or state agencies. Key performance indicators would typically focus on data accuracy, transmission speed, system uptime, security compliance, and successful integration with other healthcare IT systems. Further details would be found in the contract's Statement of Work (SOW).

How does the $6.3 million contract value compare to historical spending on similar data exchange platforms within HHS?

Comparing the $6.3 million contract value requires context on the specific functionalities and scale of DEX 2.0 relative to other HHS data exchange initiatives. HHS, particularly CMS, invests heavily in IT infrastructure. Historically, contracts for developing or significantly upgrading data exchange platforms can range from a few million to tens or even hundreds of millions of dollars over their lifecycle, depending on complexity, user base, and integration requirements. A $6.3 million award over four years for a specific platform enhancement suggests a focused scope or a component of a larger modernization effort. Without specific benchmarks for DEX 1.0 or comparable systems, it's difficult to definitively state if $6.3M is high or low, but it appears moderate for a four-year custom development effort.

What is RELI GROUP INC.'s track record with federal IT contracts, particularly within the Department of Health and Human Services?

RELI GROUP INC. has a history of performing federal IT contracts. While the provided data doesn't detail their entire contract portfolio, their award for the DEX 2.0 project by CMS indicates they possess the necessary qualifications and past performance to secure such work. A deeper analysis of their contract history, including past performance reviews, past performance on similar projects (e.g., healthcare data systems, custom programming), and any past issues or successes, would be necessary for a comprehensive assessment. Federal procurement databases and past performance information repositories would contain this detailed information.

What are the potential risks associated with a Firm Fixed Price contract for custom computer programming?

Firm Fixed Price (FFP) contracts are generally preferred for their cost certainty. However, for custom computer programming, FFP can introduce risks if the scope of work is not clearly defined or if unforeseen technical challenges arise. The primary risk is that the contractor may cut corners on quality or features to maintain profitability if costs exceed estimates, or conversely, the government may have paid a premium if the contractor's cost estimates were overly conservative. Effective project management, clear requirements, and robust change control processes are crucial to mitigate these risks and ensure the government receives the intended value.

Given the 'full and open competition' with only two bidders, what does this imply for future competition on similar CMS IT projects?

The fact that only two bids were received for this 'full and open competition' suggests that the market for this specific type of custom programming service, or for the scale of this particular project, might be limited, or that other potential bidders were not interested or qualified. This could imply that for future, similar IT projects at CMS, the agency might face challenges in attracting a larger pool of bidders. This could potentially lead to higher prices or require CMS to adjust its procurement strategies, perhaps by breaking down larger requirements into smaller components or by actively working to broaden the vendor base through market research and outreach.

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

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7125 AMBASSADOR RD STE 100, WINDSOR MILL, MD, 21244

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,985,781

Exercised Options: $6,317,291

Current Obligation: $6,317,291

Actual Outlays: $4,380,190

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F385CA

IDV Type: FSS

Timeline