CMS BESST Contract Awarded to SOFTRAMS LLC for $41.7M to Support HETS Program

Contract Overview

Contract Amount: $41,746,398 ($41.7M)

Contractor: Softrams LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2023-05-17

End Date: 2026-05-16

Contract Duration: 1,095 days

Daily Burn Rate: $38.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: THE CENTERS FOR MEDICARE AND MEDICAID SERVICES (CMS) EXPECT TO ACHIEVE WITH THE AWARD OF THE BENEFICIARY SUITE OF SYSTEMS AND TRANSACTIONS (BESST) CONTRACT. THE PRIMARY GOALS OF THIS ACQUISITION ARE TO SUPPORT THE FOLLOWING FOR THE HETS PROGRAM: OPER

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $41.7 million to SOFTRAMS LLC for work described as: THE CENTERS FOR MEDICARE AND MEDICAID SERVICES (CMS) EXPECT TO ACHIEVE WITH THE AWARD OF THE BENEFICIARY SUITE OF SYSTEMS AND TRANSACTIONS (BESST) CONTRACT. THE PRIMARY GOALS OF THIS ACQUISITION ARE TO SUPPORT THE FOLLOWING FOR THE HETS PROGRAM: OPER Key points: 1. The Beneficiary Suite of Systems and Transactions (BESST) contract aims to enhance the HETS program. 2. Awarded to SOFTRAMS LLC, the contract has a value of $41.7 million. 3. The contract falls under Custom Computer Programming Services (NAICS 541511). 4. It was awarded under full and open competition, suggesting a competitive bidding process.

Value Assessment

Rating: good

The contract's value of $41.7 million for a 3-year period appears reasonable for custom computer programming services. Benchmarking against similar large-scale IT system development contracts would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives best value.

Taxpayer Impact: The competitive award process is expected to yield a fair price, maximizing taxpayer value for the services rendered.

Public Impact

Improved support for the HETS program, potentially leading to better beneficiary services. Investment in custom computer programming services, fostering technological advancement within CMS. Potential for enhanced data management and system integration for Medicare and Medicaid beneficiaries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract type is Time and Materials, which can lead to cost overruns if not managed closely.
No specific small business participation noted.

Positive Signals

Awarded under full and open competition.
Clear objectives for supporting the HETS program.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming. Spending in this area is substantial across federal agencies, supporting critical infrastructure and program operations. Benchmarks for similar system development contracts are often in the tens to hundreds of millions of dollars.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false). Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The contract was awarded by the Centers for Medicare and Medicaid Services (CMS), a major agency within HHS. Oversight would typically involve program managers and contracting officers ensuring performance and adherence to contract terms.

Related Government Programs

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

Risk Flags

Time and Materials contract type increases cost overrun risk.
Lack of explicit small business set-aside.
Potential for scope creep in custom programming projects.
Dependence on a single vendor (SOFTRAMS LLC) for critical system support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $41.7 million to SOFTRAMS LLC. THE CENTERS FOR MEDICARE AND MEDICAID SERVICES (CMS) EXPECT TO ACHIEVE WITH THE AWARD OF THE BENEFICIARY SUITE OF SYSTEMS AND TRANSACTIONS (BESST) CONTRACT. THE PRIMARY GOALS OF THIS ACQUISITION ARE TO SUPPORT THE FOLLOWING FOR THE HETS PROGRAM: OPER

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 $41.7 million.

What is the period of performance?

Start: 2023-05-17. End: 2026-05-16.

What specific enhancements to the HETS program are anticipated with the BESST contract?

The BESST contract is expected to provide enhanced support for the HETS program, likely involving improvements in system functionality, data processing, and user interface. This could translate to more efficient operations, better data accuracy, and improved accessibility for beneficiaries interacting with Medicare and Medicaid systems.

What are the primary risks associated with a Time and Materials contract for custom programming?

Time and Materials (T&M) contracts carry inherent risks of cost escalation if not meticulously managed. The government pays for the actual time and materials used, which can lead to higher-than-anticipated costs if project scope creeps or if labor hours are not efficiently utilized. Robust oversight and clear task definitions are crucial to mitigate these risks.

How does this contract contribute to the overall effectiveness of CMS's IT infrastructure?

By supporting and potentially modernizing the HETS program, this contract directly contributes to the effectiveness of CMS's IT infrastructure. A well-functioning HETS program is vital for processing beneficiary data and ensuring program integrity. Enhancements through BESST could lead to more reliable services, better data analytics, and improved operational efficiency for CMS.

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: 75FCMC23Q0002

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

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: $68,037,937

Exercised Options: $41,752,983

Current Obligation: $41,746,398

Actual Outlays: $34,811,239

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F372DA

IDV Type: FSS

Timeline