HHS Awards $196M Marketplace Assister Tech Support Contract to General Dynamics

Contract Overview

Contract Amount: $196,391,277 ($196.4M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2024-02-22

End Date: 2026-05-21

Contract Duration: 819 days

Daily Burn Rate: $239.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: MARKETPLACE ASSISTER TECHNICAL SUPPORT (MATS)

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $196.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: MARKETPLACE ASSISTER TECHNICAL SUPPORT (MATS) Key points: 1. The contract is for Marketplace Assister Technical Support (MATS). 2. General Dynamics Information Technology, Inc. is the awardee. 3. The contract has a duration of 819 days. 4. This falls under Administrative Management and General Management Consulting Services. 5. The award was made via full and open competition.

Value Assessment

Rating: good

The award amount of $196.4 million for a duration of 819 days suggests a significant investment in technical support services. Benchmarking against similar large-scale IT support contracts would be necessary for a precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a robust price discovery process. This method generally leads to competitive pricing as multiple vendors had the opportunity to bid.

Taxpayer Impact: The competitive nature of the award suggests that taxpayers are likely receiving fair value for the services rendered, minimizing the risk of overpayment.

Public Impact

Ensures continued technical support for the Health Insurance Marketplace. Supports critical functions for individuals accessing health insurance. General Dynamics' role in government IT services is reinforced. Potential impact on user experience and system stability for Marketplace users.

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 carefully.

Positive Signals

Awarded via full and open competition.
Significant duration indicates a stable, long-term need.
Supports a vital government program (Health Insurance Marketplace).

Sector Analysis

This contract falls within the Administrative Management and General Management Consulting Services sector, specifically related to IT support for a major government program. Spending in this area is substantial across federal agencies for maintaining complex systems.

Small Business Impact

The data indicates this contract was not set aside for small businesses and the awardee is a large corporation. There is no explicit mention of small business subcontracting goals in the provided data.

Oversight & Accountability

The award was made via a delivery order under a larger contract vehicle. Oversight will be crucial to ensure performance aligns with the Time and Materials contract type and to manage costs effectively.

Related Government Programs

Administrative Management and General Management Consulting Services
Department of Health and Human Services Contracting
Centers for Medicare and Medicaid Services Programs

Risk Flags

Time and Materials contract type poses a risk of cost overruns.
Lack of small business participation noted.
Potential for scope creep if not managed tightly.
Dependence on a single large contractor for critical support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $196.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. MARKETPLACE ASSISTER TECHNICAL SUPPORT (MATS)

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, 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 $196.4 million.

What is the period of performance?

Start: 2024-02-22. End: 2026-05-21.

What specific technical support functions are included in this contract, and how do they directly benefit Marketplace users?

This contract likely covers a range of technical support services essential for the Health Insurance Marketplace's operation. This could include help desk support for assisters, troubleshooting system issues, maintaining platform stability, and potentially assisting with data management. These functions are critical for ensuring that assisters can effectively help individuals navigate and enroll in health insurance plans, thereby directly impacting the accessibility and usability of the Marketplace.

Given the Time and Materials contract type, what measures are in place to mitigate potential cost overruns and ensure efficient resource utilization?

Agencies typically implement strict oversight, regular performance reviews, and detailed reporting requirements for Time and Materials contracts. This includes monitoring labor hours, rates, and material costs closely. Establishing clear ceilings, requiring justification for extended hours, and conducting audits can help control spending. The contracting officer's representative (COR) plays a vital role in managing the contractor's performance and ensuring adherence to the contract's scope and budget.

How does the performance of General Dynamics on this contract align with broader government goals for IT modernization and efficient service delivery?

The successful execution of this MATS contract by General Dynamics can contribute to broader government IT goals by ensuring the stable and reliable operation of a critical public-facing platform. Efficient technical support reduces user frustration and improves access to essential services. However, alignment also depends on the contractor's ability to adapt to evolving technological needs and potentially integrate innovative solutions, contributing to the overall modernization and effectiveness of the Health Insurance Marketplace.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 3150 FAIRVIEW PARK DR STE 100, FALLS CHURCH, VA, 22042

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

Financial Breakdown

Contract Ceiling: $198,625,946

Exercised Options: $196,391,277

Current Obligation: $196,391,277

Actual Outlays: $122,297,472

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $54,540,209

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F313CA

IDV Type: FSS

Timeline