HHS Awards $39M Custom Programming Contract to SOFTRAMS LLC via Full and Open Competition

Contract Overview

Contract Amount: $38,962,376 ($39.0M)

Contractor: Softrams LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2023-02-01

End Date: 2026-04-19

Contract Duration: 1,173 days

Daily Burn Rate: $33.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BUSINESS OPERATIONS SUPPORT CENTER (BOSC)

Place of Performance

Location: LEESBURG, LOUDOUN County, VIRGINIA, 20176

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $39.0 million to SOFTRAMS LLC for work described as: BUSINESS OPERATIONS SUPPORT CENTER (BOSC) Key points: 1. Contract Value: $38.96 million over its period of performance. 2. Competition: Awarded under full and open competition, indicating a competitive bidding process. 3. Risk: Firm Fixed Price contract type generally mitigates cost overrun risk for the government. 4. Sector: Information Technology (Custom Computer Programming Services).

Value Assessment

Rating: good

The contract's firm fixed price structure suggests a clear understanding of scope and cost expectations. Benchmarking against similar custom programming services contracts would provide further insight into the pricing's competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition, allowing any qualified vendor to bid. This method typically fosters price discovery and ensures the government receives competitive pricing.

Taxpayer Impact: The competitive nature of the procurement is expected to yield value for taxpayers by securing services at a reasonable market rate.

Public Impact

Ensures continued operation of critical business support systems for CMS. Supports the Centers for Medicare and Medicaid Services' mission through technology. Potential for innovation and improved service delivery through custom programming.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in provided data.
Potential for scope creep if requirements are not tightly managed.

Positive Signals

Firm Fixed Price contract.
Full and Open Competition.
Long-term contract provides stability.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming. Spending in this area is substantial across federal agencies, supporting a wide range of mission-critical functions.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business set-asides were considered or if opportunities were missed.

Oversight & Accountability

The contract is managed by the Centers for Medicare and Medicaid Services (CMS), a major agency within HHS. Standard government oversight processes for contract performance and financial management are expected to be in place.

Related Government Programs

Custom Computer Programming Services
Department of Health and Human Services Contracting
Centers for Medicare and Medicaid Services Programs

Risk Flags

Contract awarded to a non-small business.
Potential for scope creep in custom development.
Performance metrics not detailed in provided data.
Long duration could lead to technology obsolescence if not managed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $39.0 million to SOFTRAMS LLC. BUSINESS OPERATIONS SUPPORT CENTER (BOSC)

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 $39.0 million.

What is the period of performance?

Start: 2023-02-01. End: 2026-04-19.

What specific business operations support functions does this contract enable for CMS?

This contract likely supports a variety of critical functions for the Centers for Medicare and Medicaid Services (CMS), potentially including the development, maintenance, and enhancement of IT systems that manage healthcare programs, process claims, facilitate data analysis, and support administrative operations. The 'BUSINESS OPERATIONS SUPPORT CENTER (BOSC)' designation suggests a broad scope of IT services crucial for the agency's day-to-day functioning and long-term strategic goals.

How does the firm fixed price structure mitigate risk given the custom programming nature of the work?

A firm fixed price (FFP) contract establishes a ceiling price that the contractor must not exceed, regardless of actual costs incurred. For custom programming, this shifts the risk of cost overruns to the contractor. However, it requires a well-defined scope of work upfront to prevent disputes or change orders, which could negate the intended risk mitigation if not managed carefully.

What is the potential impact of this contract on the efficiency and effectiveness of CMS operations?

This contract's impact hinges on the quality of the custom programming delivered. If SOFTRAMS LLC successfully develops and maintains efficient, user-friendly, and secure systems, it can significantly enhance CMS's operational effectiveness, improve data management, streamline processes, and ultimately support better healthcare policy implementation and service delivery to beneficiaries.

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: 230352

Offers Received: 3

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: $117,767,396

Exercised Options: $38,962,376

Current Obligation: $38,962,376

Actual Outlays: $29,441,431

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F372DA

IDV Type: FSS

Timeline