HHS awards CGI Federal $51.4M for HPMS website maintenance and enhancement over three years

Contract Overview

Contract Amount: $51,424,053 ($51.4M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2023-12-01

End Date: 2026-11-30

Contract Duration: 1,095 days

Daily Burn Rate: $47.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: HPMS WEBSITE MAINTENANCE AND ENHANCEMENT SERVICES

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $51.4 million to CGI FEDERAL INC. for work described as: HPMS WEBSITE MAINTENANCE AND ENHANCEMENT SERVICES Key points: 1. Contract value represents a significant investment in maintaining a critical health IT system. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Fixed-price contract type may offer cost certainty but could limit flexibility for evolving needs. 4. The duration of the contract (three years) allows for sustained support and development. 5. The contractor, CGI Federal, has a substantial presence in the federal IT services market. 6. The North American Industry Classification System (NAICS) code 541519 indicates a broad range of IT services.

Value Assessment

Rating: good

The contract's total value of $51.4 million over three years averages approximately $17.1 million annually. Benchmarking this against similar large-scale IT maintenance and enhancement contracts for federal agencies requires access to proprietary cost data. However, the firm-fixed-price structure suggests that the government has negotiated a set price for the defined scope of work, which can be advantageous if the scope is well-defined and stable. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the competitive award process provides some assurance of reasonable pricing.

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 bids. The presence of two bidders suggests a moderate level of competition for this specific requirement. While more bidders could potentially drive prices lower, two offers in a specialized IT services market can still lead to competitive pricing, especially for a firm-fixed-price contract.

Taxpayer Impact: A full and open competition generally benefits taxpayers by encouraging multiple companies to vie for the contract, potentially leading to better pricing and service offerings.

Public Impact

The Centers for Medicare and Medicaid Services (CMS) benefits from enhanced and maintained IT systems. Healthcare providers and beneficiaries will experience improved functionality and reliability of the HPMS website. The contract supports the operational infrastructure for critical healthcare program administration. The geographic impact is national, as the HPMS system serves users across the United States. Workforce implications include employment opportunities for IT professionals within CGI Federal and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not tightly managed under the fixed-price contract.
Reliance on a single contractor for critical system maintenance could pose a risk if performance falters.
The broad NAICS code may obscure the specific technical expertise required, potentially leading to unforeseen challenges.

Positive Signals

Awarded under full and open competition, indicating a robust selection process.
Firm-fixed-price contract provides cost predictability for the government.
Long-term contract (3 years) allows for stable support and development of the HPMS system.
Contractor has a significant presence in federal IT services, suggesting experience with government requirements.

Sector Analysis

The Health Insurance Portability and Accountability Act (HIPAA) and related legislation necessitate robust IT systems for managing healthcare data and program operations. The market for IT services supporting federal health agencies is substantial, with numerous companies offering a wide range of capabilities from basic maintenance to complex system enhancements. This contract for HPMS website maintenance and enhancement fits within the broader category of government IT services, specifically focusing on health IT infrastructure. Comparable spending benchmarks for similar federal IT support contracts vary widely based on system complexity, scope, and duration, but multi-million dollar awards for critical system maintenance are common.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, CGI Federal, is a large business. While there is no direct set-aside, the contract may still offer subcontracting opportunities for small businesses, depending on CGI Federal's subcontracting plan and the specific technical needs of the project. The absence of a set-aside means that small businesses did not have a preferential pathway to bid on the prime contract itself.

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 by tying payment to deliverables. Transparency is generally maintained through federal procurement databases like FPDS-NG, where contract awards are reported. The Department of Health and Human Services (HHS) Office of Inspector General (OIG) may conduct audits or investigations if performance issues or potential fraud are identified.

Related Government Programs

CMS IT Modernization
Healthcare.gov IT Support
Federal Health Data Management Systems
HIPAA Compliance IT Services

Risk Flags

Potential for scope creep
Contractor performance risk
Technical obsolescence

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $51.4 million to CGI FEDERAL INC.. HPMS WEBSITE MAINTENANCE AND ENHANCEMENT SERVICES

Who is the contractor on this award?

The obligated recipient is CGI FEDERAL 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 $51.4 million.

What is the period of performance?

Start: 2023-12-01. End: 2026-11-30.

What is the track record of CGI Federal in delivering similar IT maintenance and enhancement services to federal health agencies?

CGI Federal has a significant history of providing IT services to various U.S. federal agencies, including those in the health sector. They have been involved in large-scale system modernization, maintenance, and support contracts. For instance, they have held contracts related to health IT infrastructure, data management, and citizen-facing portals. Their experience often includes managing complex systems with stringent security and compliance requirements, such as those mandated by HIPAA. While specific performance details for past contracts are not publicly detailed in this summary, their continued success in winning competitive bids suggests a generally positive track record in meeting government IT needs. However, like any large contractor, past performance reviews and any associated issues would be critical to a full assessment.

How does the annual cost of this contract compare to other federal IT maintenance contracts of similar scope?

The annual cost of this contract averages approximately $17.1 million ($51.4M / 3 years). Comparing this figure directly to other federal IT maintenance contracts requires access to a comprehensive database of contract values, scopes of work, and performance metrics, which is not publicly available in a standardized format. However, for large, mission-critical IT systems supporting major federal programs like those managed by CMS, annual spending in the tens of millions for maintenance and enhancement is not uncommon. Factors influencing cost include the complexity of the system, the number of users, the criticality of uptime, security requirements, and the specific services included (e.g., software development, infrastructure support, help desk). The firm-fixed-price nature suggests a negotiated value for a defined scope.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks include potential scope creep, where requirements expand beyond the initial agreement, potentially increasing costs or delaying timelines, especially under a fixed-price contract. Another risk is contractor performance failure, where CGI Federal might not deliver the expected level of service, impacting the critical HPMS website. Technical obsolescence or the need for unforeseen system upgrades could also pose a risk if not adequately planned for. Mitigation strategies likely include robust contract management by CMS, clear definition and control of the Statement of Work (SOW), performance monitoring, and potentially built-in review periods to assess system needs and contractor performance. The competitive award process itself serves as an initial risk mitigation by selecting a contractor deemed capable.

How effective is the HPMS website expected to be following these maintenance and enhancement services?

The effectiveness of the HPMS website post-maintenance and enhancement is expected to improve in terms of reliability, performance, and user experience. These services are designed to address any existing technical issues, update software, enhance security features, and potentially introduce new functionalities based on evolving CMS requirements. The goal is to ensure the website remains a stable and efficient platform for managing healthcare provider data and compliance. The success will be measured by metrics related to system uptime, response times, reduction in user-reported issues, and the successful implementation of new features. The three-year duration allows for sustained improvements rather than just reactive fixes.

What are the historical spending patterns for HPMS website maintenance and enhancement services?

Historical spending data for HPMS website maintenance and enhancement is not provided in the given data. To analyze historical spending patterns, one would need to access federal procurement databases (like FPDS-NG) and search for previous contracts awarded to maintain and enhance the HPMS website, potentially looking at contracts awarded to CGI Federal or other contractors over the past several years. This would reveal trends in contract values, durations, and the types of services procured, helping to contextualize the current $51.4 million award. Without this historical data, it's difficult to determine if this award represents an increase, decrease, or stable level of investment in the HPMS system.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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

Parent Company: THE Timken Company

Address: 12601 FAIR LAKES CIR # 100, FAIRFAX, VA, 22033

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $77,939,717

Exercised Options: $51,424,053

Current Obligation: $51,424,053

Actual Outlays: $36,111,695

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $9,759,542

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F281DA

IDV Type: FSS

Timeline