HHS awards $108.8M contract for computer systems design services to CMMI TECHNOLOGY SOLUTIONS (CTS)

Contract Overview

Contract Amount: $108,808,252 ($108.8M)

Contractor: Softrams LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2023-03-14

End Date: 2026-10-31

Contract Duration: 1,327 days

Daily Burn Rate: $82.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CMMI TECHNOLOGY SOLUTIONS (CTS)

Place of Performance

Location: LEESBURG, LOUDOUN County, VIRGINIA, 20176

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $108.8 million to SOFTRAMS LLC for work described as: CMMI TECHNOLOGY SOLUTIONS (CTS) Key points: 1. Value for money appears fair given the fixed-price contract type and duration. 2. Competition dynamics indicate a full and open competition, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a fixed-price contract potentially mitigating cost overruns. 4. Performance context is within computer systems design services, a common area for federal IT spending. 5. Sector positioning is within the Health IT sub-sector, a critical area for government operations.

Value Assessment

Rating: fair

The contract's value of $108.8 million over approximately 3.6 years (1327 days) for computer systems design services is substantial. Benchmarking against similar contracts is challenging without more specific service details. However, the firm-fixed-price nature of the contract suggests that the government has a clear understanding of the scope and aims to control costs. The award amount relative to the duration indicates a significant investment in IT infrastructure or development.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the competition was broad, there were specific exclusions. The presence of 2 bidders suggests a moderate level of competition. A full and open competition generally allows for a wider range of potential offerors, which can lead to better price discovery and innovation. However, the exclusion of sources might limit the ultimate breadth of competition.

Taxpayer Impact: A full and open competition, even with exclusions, generally benefits taxpayers by fostering a competitive environment that can drive down prices and improve service quality.

Public Impact

The primary beneficiaries are likely the Centers for Medicare and Medicaid Services (CMS) and potentially other agencies within the Department of Health and Human Services (HHS). The services delivered are computer systems design, which could encompass a wide range of IT support, development, and modernization efforts. The geographic impact is primarily within Virginia, where the contractor is located, but the services likely support national healthcare initiatives. Workforce implications may include job creation within the IT sector, particularly for CMMI TECHNOLOGY SOLUTIONS (CTS) and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements are not clearly defined.
Dependence on a single contractor for critical systems design could pose a risk if performance falters.
Ensuring effective oversight of 'exclusions of sources' in the competition process is crucial for fairness.

Positive Signals

Firm-fixed-price contract type helps manage cost certainty for the government.
Full and open competition, even with exclusions, generally promotes a competitive market.
The contract duration allows for sustained support and development of complex systems.

Sector Analysis

The federal IT services market is vast and highly competitive. This contract falls within the Computer Systems Design Services category (NAICS 541512), a segment that consistently sees significant federal investment. The Department of Health and Human Services, particularly CMS, is a major spender in this area, focusing on modernizing and maintaining systems critical to healthcare delivery and administration. Comparable spending benchmarks would depend on the specific nature of the systems being designed, but contracts in this range are common for large-scale IT projects.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. This suggests that the primary focus was on full and open competition to secure the best technical solution and price. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem in supporting this significant federal requirement.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services, specifically the Centers for Medicare and Medicaid Services. Accountability measures are typically embedded within the contract's performance work statement, including milestones, deliverables, and quality standards. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

HHS IT Modernization Initiatives
CMS Health IT Services
Federal Civilian IT Procurement
Computer Systems Design Services Contracts
Large-Scale IT Development Projects

Risk Flags

Potential for limited competition due to source exclusions.
Complexity of systems design may lead to scope creep if not managed tightly.
Dependence on contractor performance for critical healthcare IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $108.8 million to SOFTRAMS LLC. CMMI TECHNOLOGY SOLUTIONS (CTS)

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 $108.8 million.

What is the period of performance?

Start: 2023-03-14. End: 2026-10-31.

What is the specific nature of the computer systems design services being procured under this contract?

The provided data indicates the contract is for 'Computer Systems Design Services' (NAICS 541512) awarded to CMMI TECHNOLOGY SOLUTIONS (CTS) by the Centers for Medicare and Medicaid Services (CMS). However, the specific nature of these services is not detailed. This could range from designing new software systems, modernizing existing infrastructure, developing data analytics platforms, or providing architectural guidance for complex IT projects. Understanding the precise scope is crucial for evaluating the contract's value and performance, as different design services carry varying levels of complexity, risk, and cost.

How does the awarded amount of $108.8 million compare to similar computer systems design contracts within HHS or CMS?

Directly comparing the $108.8 million award without knowing the specific deliverables and duration is difficult. However, for large-scale IT modernization and design projects within HHS and CMS, this figure is within a common range. For instance, major system overhauls or the development of new national healthcare data platforms can easily reach or exceed this value. The contract's duration of over three years (1327 days) suggests a substantial, ongoing effort rather than a short-term project, which aligns with the awarded value for complex design services.

What are the key performance indicators (KPIs) or metrics used to assess the performance of CMMI TECHNOLOGY SOLUTIONS (CTS) on this contract?

The provided data does not specify the key performance indicators (KPIs) or metrics for this contract. Typically, for computer systems design services, KPIs would focus on aspects such as adherence to project timelines, successful completion of design milestones, quality of design documentation, system performance post-implementation (if applicable), and user satisfaction. The firm-fixed-price nature suggests that meeting defined scope and quality requirements within budget is paramount. A thorough review of the Performance Work Statement (PWS) would be necessary to identify the exact KPIs.

What is the historical spending pattern of CMS on computer systems design services, and how does this contract fit within that pattern?

CMS is a significant investor in IT, including computer systems design services, to manage and improve the nation's healthcare programs. Historical spending patterns show consistent, substantial investment in IT modernization and support. This $108.8 million contract appears to be a significant, but not unprecedented, award within CMS's overall IT budget. It likely represents a strategic investment in a particular system or capability, fitting within the agency's ongoing efforts to enhance its technological infrastructure and service delivery.

What are the potential risks associated with a 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award, and how are they mitigated?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation implies that while the competition was broadly advertised, certain potential offerors were excluded based on specific criteria (e.g., past performance, security clearances, specific technical capabilities). Risks include potentially limiting the pool of innovative solutions or competitive pricing if exclusions were too broad or unjustified. Mitigation strategies typically involve clear, objective justification for exclusions, robust evaluation criteria for remaining bidders, and strong contract management to ensure the selected contractor delivers optimal value despite the narrowed competition.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: 8(a) Program Participant, 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: $122,507,632

Exercised Options: $108,808,252

Current Obligation: $108,808,252

Actual Outlays: $83,482,658

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $37,796,771

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCB21D0259

IDV Type: GWAC

Timeline